This monograph presents an integrated theoretical and methodological analysis of institutional economic transformation and the evolutionary development of entrepreneurship. It examines the evolution of scientific approaches to entrepreneurship, the structure of the institutional environment of small business, and the relationship between its functional potential and systemic limitations. Special attention is given to modern concepts and models of entrepreneurial development and their relevance to contemporary economic systems. The study's methodological framework identifies the mechanisms of institutional change, key analytical approaches to evaluating institutional environments, and factors shaping institutional dynamics. It also outlines ineffective regulations and barriers that constrain entrepreneurial activity, offering evidence-based methods for designing institutional components and forecasting institutional development within small business ecosystems. The monograph demonstrates that the institutional approach provides an effective interdisciplinary platform that integrates economic, legal, social, and managerial perspectives.