Norman Berry professor at the University of Buckingham indicates that first systematic analysis of business undertaking was carried out by J. Sñhumpeter. According to Sñhumpeter’s point of view, the moving force of business development is entrepreneur’s activity that destabilizes economic system from within.
J. Sñhumpeter pointed at institutional aspects of business undertaking implying the possibility of appealing to government in case of breaking of agreements by one of the partners in business. It is the characteristic of developed society. But at the same time Sñhumpeter was against government intervention in economics.
Analyzing fundamental work of F. Knight concerning entrepreneur’s activity it is necessary to point out the role of instincts, intellect and habits in society. In order to show the difficulty and complicity of interaction between institutions, society and economics it is crucial to understand the aspects of thinking and such activity of people that is not much concerned with conscious thinking – habits, customs, rules (institutions). Should also be noted that habits and stereotypes occupied central place in “old” institutionalism and F. Knight agreed with significance of mentioned institutions. He considers that property right guard and legal support is inevitable for business.
“Second breath” of theory of business undertaking was given by modern Austrian school. One of the key figures in economic theory of 20th century, Nobel Prize winner, representative of Austrian school of liberalism F. Hayek in economic aspect gave essentially new approach. It conditionally can be called evolutional epistemology and on its basis Hayek states economic theory and institutional economics [3]. In his works there is no explicit concept of business undertaking but there is everything required for its modeling and first of all accent is made on unbalanced markets. The elements of institutionalism in Hayek’s works are worth mentioning. Íå points out that legislation for its consequences was truly named as the most important human invention, even more significant than fire and gunpowder. In chapter four “Changing concept of law” Hayek accurately analyses law, compares it with “rules” regulating people’s behavior.
Austrian methodology is based on thought that major part of people’s knowledge about the society in whole is latent. For illustration of this idea Kirzner used conception of entrepreneur’s vigilance. As far as institutional aspect is concerned Kirzner paid much attention to the analysis of transaction costs or more exactly to the costs for information required to start negotiations to make a deal.
In Russia a number of scientists are studying the problem of institutions in business activity. Scientific interest appears here as institutions cut down transaction costs that is crucial for entrepreneurs. The shortest way to it is reducing economic uncertainty by establishing steady rules of behavior.