MODERN ASPECTS OF DEVELOPMENT OF SMALL INNOVATIVE ENTREPRENEURSHIP IN THE AGRARIAN SECTOR OF ECONOMY

Abstract

The article deals with theoretical aspects of the development of small innovative entrepreneurship in the agrarian sector of the Ukrainian economy. The author defines the concept of "innovation" as one of the main factors contributing to the implementation of new ideas into specific commercial achievements, which allows an enterprise to gain competitive advantages. The main circumstances that slow down the pace of innovative development of small business in the agricultural sector are identified. One such circumstance is the problem of spreading innovations, which is facilitated by an imperfect and underdeveloped system of primarily public research institutions, as well as commercial ones (such as technology parks or business incubators). The experience of the European Union in the successful dissemination of innovation processes and their impact on the development of small business is studied. The main directions by which the European society has ensured the successful dissemination of innovative processes are identified. Based on European approaches to the dissemination of innovations, an algorithm for selecting an innovative project by a small business entity is proposed. The essence of small business in the agricultural sector is defined. It is established that the innovation infrastructure is essential for small agro-industrial entrepreneurship, and its functional blocks are indicated. It is established that today one of the most difficult problems to solve that hinder the development of innovative small business in Ukraine is the restriction of access of small businesses to financial resources, as well as their limited volume. The ways of financing small innovative entrepreneurship are as follows: self-financing, financing through capital market mechanisms, bank lending, budget financing, as well as alternative financing methods: leasing, factoring, venture financing. The author identifies the advantages and disadvantages of financing methods for innovative small businesses. Today, the State authorities of Ukraine, as well as local authorities, provide some forms of State financial support to small businesses, such as partial compensation of interest rates on loans, provision of subsidies, budget investments, State guarantees, loans and microcredits, and operation of sectoral financial programs (agricultural sector: livestock, crop production).