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Entrepreneurship is one of the pillars of the economy of the country and covers all sectors irrespective of ownership forms. Currently, this activity is increasingly spreading in rural areas. Our research results on transformation in the agricultural sector of the economy show that it is due to the development of entrepreneurship and strengthening entrepreneurial orientation and improvement of business environment economic entities in rural areas they were able to quickly and efficiently adapt to market conditions and to enter the foreign market, therefore, the purpose of the paper is to define the basic principles and the principles of entrepreneurial activity, its specifics and trends in agriculture and rural areas, to show the beginning and the development of collective and individual entrepreneurship. Methodology. The theoretical and methodological basis of the research is the dialectical method of cognition and systematic approach, through which theoretical and methodological foundations of the development of business interactions in the agricultural sector in terms of institutional transformations. The results showed that in the article, the methodical design determining the nature and characteristics of agricultural business organically integrated the concept of institutional knowledge of the economic order, which allows us to identify the evolutionary concept of the formation of enterprises; the structure of the institutional system of entrepreneurship in the context of the evolution of this concept. Practical implications. The studied institutions create incentives for the development of science and education, encourage the mobility of production factors, and facilitate the transfer of scientific and technical information and the introduction of new technologies, promoting entrepreneurship and innovation. Conversely, inefficient institutions reduce the potential level of well-being, reduce reliability assurance of property rights, and enforce contracts. Value/originality. Given systematic and analytical characteristics of the effects, significance, dynamics of development of agrarian entrepreneurship in the context of institutional transformation, show the paradox, the stability of the institutional environment will not soon be reached, therefore, the dilemma of institutions remains unresolved. In general, the institutional transformation has ensured the formation of a mixed economy, the real pluralism of forms of ownership and agricultural management even if they are not yet fully institutionalized in the market. Transformations in the business environment we call the transformation of institutional conditions for the development of economic formations. Institute of entrepreneurship for the imperfections of the rules and conditions of economic interactions has not yet become mutually beneficial by the Institute for functional participants. Analysis of the development of agrarian enterprises in the conditions of institutional transformations proves the inconsistency of the institutional framework of entrepreneurial activity, which leads to a decrease in the number of enterprises – economic entities, non-transparent activities of business entities, the removal of landlords from participation in the activities of enterprises.

THE FEATURES OF ENTREPRENEURIAL INTERACTIONS IN THE AGRICULTURAL SECTOR IN TERMS OF INSTITUTIONAL TRANSFORMATIONS