Author(s): Ezgi CEVHER
In order to achieve balanced growth of enterprises and their sustainability institutionalization process should be well understood, planned and implemented. In the paper, current situation of small enterprises, most of which are family businesses, are evaluated in the context of institutionalization. The aim of the paper is to analyze negative and positive sides of transformation of small enterprises. Although institutionalization provides different advantages for small enterprises, it also has negative effects. In the study, it is aimed to determine the contribution and negative effects of institutionalization, to develop applicable recommendations for small enterprises and to share these recommendations with the managers.