The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine

The aim of the article is to study the current state of small businesses operating in the agricultural sector of the Ukrainian economy and to substantiate the ways for increasing their efficiency, which will fully reveal their potential. In Ukraine, small businesses make a significant contribution t...

Full description

Bibliographic Details
Main Author: Zhurakovska Lina A.
Format: Article
Language:English
Published: PH "INZHEK" 2020-06-01
Series:Problemi Ekonomiki
Subjects:
Online Access:https://www.problecon.com/export_pdf/problems-of-economy-2020-2_0-pages-104_110.pdf
_version_ 1797330261075034112
author Zhurakovska Lina A.
author_facet Zhurakovska Lina A.
author_sort Zhurakovska Lina A.
collection DOAJ
description The aim of the article is to study the current state of small businesses operating in the agricultural sector of the Ukrainian economy and to substantiate the ways for increasing their efficiency, which will fully reveal their potential. In Ukraine, small businesses make a significant contribution to gross agricultural production and remain a stabilizing link of the economy. They smooth out price fluctuations and manufacture niche products, thereby ensuring the food needs of the population and the appropriate level of food security of the state. However, they are in unequal competitive conditions compared to medium-sized and large agricultural producers. The low level of their provision with agricultural machinery leads to low labor productivity and to a large extent affects the completeness and timeliness of implementing a range of works on growing and harvesting crops. A significant problem for small enterprises remains the imperfection of state support programs for farms, in particular, the unevenness of support during the year, changes in the allocation of funds from the state budget, complication of the procedure for submitting documents for consideration by commissions, and imposition of additional limitations. This leads to a decrease in the number of recipients of such support as well as to the denial by farmers themselves to receive such support. The adopted amendments to the Law of Ukraine “On Farming” do not yet prompt personal peasant households to transform into farm businesses. The state policy for stimulating the development of small businesses in the agricultural sector of Ukraine should be based primarily on solving the issue of further functioning of households. At the same time, the state support measures should be aimed at strengthening organizational and economic assistance in the creation and functioning of family farms, with their subsequent integration into agricultural cooperatives.
first_indexed 2024-03-08T07:17:27Z
format Article
id doaj.art-691a73cb3934404aa04961406ca70c3d
institution Directory Open Access Journal
issn 2222-0712
2311-1186
language English
last_indexed 2024-03-08T07:17:27Z
publishDate 2020-06-01
publisher PH "INZHEK"
record_format Article
series Problemi Ekonomiki
spelling doaj.art-691a73cb3934404aa04961406ca70c3d2024-02-03T00:28:50ZengPH "INZHEK"Problemi Ekonomiki2222-07122311-11862020-06-0124410411010.32983/2222-0712-2020-2-104-110The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of UkraineZhurakovska Lina A. 0https://orcid.org/0000-0002-7936-5947The National Institute for Strategic StudiesThe aim of the article is to study the current state of small businesses operating in the agricultural sector of the Ukrainian economy and to substantiate the ways for increasing their efficiency, which will fully reveal their potential. In Ukraine, small businesses make a significant contribution to gross agricultural production and remain a stabilizing link of the economy. They smooth out price fluctuations and manufacture niche products, thereby ensuring the food needs of the population and the appropriate level of food security of the state. However, they are in unequal competitive conditions compared to medium-sized and large agricultural producers. The low level of their provision with agricultural machinery leads to low labor productivity and to a large extent affects the completeness and timeliness of implementing a range of works on growing and harvesting crops. A significant problem for small enterprises remains the imperfection of state support programs for farms, in particular, the unevenness of support during the year, changes in the allocation of funds from the state budget, complication of the procedure for submitting documents for consideration by commissions, and imposition of additional limitations. This leads to a decrease in the number of recipients of such support as well as to the denial by farmers themselves to receive such support. The adopted amendments to the Law of Ukraine “On Farming” do not yet prompt personal peasant households to transform into farm businesses. The state policy for stimulating the development of small businesses in the agricultural sector of Ukraine should be based primarily on solving the issue of further functioning of households. At the same time, the state support measures should be aimed at strengthening organizational and economic assistance in the creation and functioning of family farms, with their subsequent integration into agricultural cooperatives.https://www.problecon.com/export_pdf/problems-of-economy-2020-2_0-pages-104_110.pdfsmall businessesfarmshouseholdsagricultural sectoragricultural production
spellingShingle Zhurakovska Lina A.
The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
Problemi Ekonomiki
small businesses
farms
households
agricultural sector
agricultural production
title The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
title_full The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
title_fullStr The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
title_full_unstemmed The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
title_short The State of and Prospects for the Development of Small Businesses in the Agricultural Sector of Ukraine
title_sort state of and prospects for the development of small businesses in the agricultural sector of ukraine
topic small businesses
farms
households
agricultural sector
agricultural production
url https://www.problecon.com/export_pdf/problems-of-economy-2020-2_0-pages-104_110.pdf
work_keys_str_mv AT zhurakovskalinaa thestateofandprospectsforthedevelopmentofsmallbusinessesintheagriculturalsectorofukraine
AT zhurakovskalinaa stateofandprospectsforthedevelopmentofsmallbusinessesintheagriculturalsectorofukraine