Economics and Business Management

Рrospects of the development of small business in agriculture

Y. Lanchenko, V. Ivchenko
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Abstract

Small business is characterized by a flexible mechanism of adaptation to the changing conditions of the market environment in the economy, as well as non-economic influencing factors, etc. In the conditions of Ukraine, the permanent military threat of the russian federation can be attributed to the latter, which changes the conditions for the functioning of small business entities in agriculture, since the satisfaction of the population's primary needs for food and the employment of labor in rural areas depend on it. The subject of research covers the theoretical and practical principles of the development of small business entities in the agrarian sector of the economy. The purpose of research is to substantiate the directions of prospective development of small business entities in agriculture based on the analysis of indicators of their economic activity in recent years. Research methods: abstract-logical; monographic; statistical and economic, systematic approach, etc. The essence of all subjects of small entrepreneurship in agriculture is summarized and defined on the basis of the organizational, legal and social and economic principles of their development; perspective directions for the production of less capitalintensive and more labor-intensive types of agricultural products by small business entities are substantiated, taking into account their current economic condition; directions for supporting the development of small agrobusiness in rural communities and the transformation of part of rural households into farming and other types of small business entities thanks to organizational and financial and material support at the level of territorial communities have been determined. Organizational and financial and material support for the development of small agribusiness entities will ensure a decrease in unemployment, an increase in added value, labor productivity, labor income in the agrarian sector of the economy, and will contribute to the development of rural areas and communities. Practical implementation: the formation of agrarian and regional policy for the development of the economy and territorial communities, the process of developing projects of state and local programs for the development of the agrarian sector of the economy and rural areas

Keywords

small business; farm; rural household; employment; labor income; agriculture

Suggested citation
Lanchenko, Y., & Ivchenko, V. (2024). Рrospects of the development of small business in agriculture. Economics and Business Management, 15(1), 71-91. https://doi.org/10.31548/economics15(1).2024.061
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