Background of the development of small entrepreneurship in rural areas


Oleksandr Maslak
Sumy National Agrarian University
Ukraine

Nataliia Maslak
Sumy National Agrarian University
Ukraine

Serhii Huzhvenko
Sumy National Agrarian University
Ukraine

Abstract


Purpose. The purpose of the article is to analyze the background of the creation of family-type farms based on personal peasant farms, to consider possible scenarios for the development of such processes in Ukraine, to identify the strategic objectives of the development of small entrepreneurship in rural areas and the main ways of achieving them.

Methodology / method / approach. The theoretical and methodological basis of the research is the dialectical method of knowledge of economic processes, the fundamental provisions of modern economic theory, legislative acts of Ukraine, scientific works of domestic and foreign scientists on trends and specifics of small business development in rural areas. To achieve the goal, there were used methods of logical generalization and systematization; abstract method; techniques of analogy and comparison.

Results. The results of the analysis of the background of the establishment of family-type farms based on personal peasant farms indicate a significant untapped potential in Ukraine. The implementation of this process will be facilitated by the availability of labor, natural resources and favorable agro-climatic conditions, as well as the growth of demand for traditional and organic food. Scenarios of possible development of small entrepreneurship in rural areas are considered; and it is considered more acceptable one that involves the support of small business entities and developing market infrastructure for expanding the range of agricultural products and foodstuffs, increasing their production volumes, and improving their quality. The strategic goals of small business development in rural areas and the main ways of their achievement are determined.

Originality / scientific novelty. For the first time a SWOT-analysis of the development of small business in rural areas of Ukraine was conducted and three alternative scenarios of possible development of such entrepreneurship in the countryside were considered. The main ways to achieve the identified strategic goals are to create a favorable tax, financial microclimate for the activity of small forms of entrepreneurship in rural areas and the development of the infrastructure of the agrarian market.

Practical value / significance. Recommendations for the preparation of regional agro-industrial development programs and rural areas are given. Among the strategic objectives of the regional agro-industrial development and rural development programs, it is proposed to foresee the expansion of the entrepreneurial environment in the village and the development of the activity of agricultural service cooperatives.


Keywords


small entrepreneurship; farm; family farm; rural territories; Ukraine.

References


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