Institutional basis for the development of enterprises in the agrarian sphere
Abstract
The situation with the formation of entrepreneurship, its institutional environment was analyzed in the article; the ways to improve the institutional environment for the development of entrepreneurship in the agricultural sector were developed.
According to the results of the study, it was firstly determined that the share of economic entities by their size in the total number of economic entities as a percentage of large enterprises is 0.00 percent, which indicates that the share of large businesses in agricultural production is very small. Secondly, medium-sized businesses accounted for 3.1 percent in 2018, compared to 4.3 percent in 2010. Thirdly, small businesses account for 96.9 percent of total business entities in 2018, which is 1.2 more than in 2010, of which approximately 90.0 percent are microenterprises.
Studies have shown that according to the 2019 survey, among the main factors restraining agricultural activity, entrepreneurs identified the following: insufficient demand for agricultural products - 10%, weather conditions - 28%, labor shortage - 4%, lack of materials and equipment - 2%, financial restrictions - 22%, other factors - 21%. It is important to note that almost more than a third of entrepreneurs, namely 38% believe that nothing is holding them back in their work.
The article defines that the main forms of state support of entrepreneurship in the agrarian sphere are: political, economic, social, environmental. Emphasis is placed on economic and political support, which means supporting the interests of agricultural producers, who are in line with the main directions of the state's agricultural policy and its national interests. The simplification of tax administration and the creation of conditions for improving access to credit resources were identified as factors that facilitate the entrepreneurship development. It is also important to reduce the monopolization of agricultural markets and material and technical resources.
The article proves that support for entrepreneurship development should be based on a favorable institutional environment; it is determined that the stimulating factor for the development of entrepreneurial activity is the improvement of the regulatory framework and reorganization of governing bodies, which will lead to an improvement in the institutional environment and, in turn, will become a powerful tool for enhancing entrepreneurial activity and will contribute to sustainable economic development of the state.
We have determined that in the future, the research on this issue will be aimed at the development of effective mechanisms for creating favorable conditions for the development of entrepreneurship in the agrarian sector, both from the state and foreign donors in terms of technical, information and educational support.
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