Development of the economy and small agribusiness of Ukraine

Abstract

The article analyzes the current state of Ukraine’s economic development, emphasizing the significance of small agribusiness as one of the key drivers of regional and national economic growth. It examines the specific features of small agricultural enterprises within the context of agricultural sector transformation, economic reforms, and shifts in the global economic environment. Particular attention is paid to the role of small agribusiness in ensuring the country’s food security, creating new jobs in rural areas, fostering local community development, and reducing socio-economic disparities between regions.The study identifies the main challenges faced by small agricultural enterprises. These include limited access to financial resources, insufficient technological support, low integration into global supply chains, instability in agricultural policy, and significant external risks, particularly geopolitical ones. The article also analyzes the effectiveness of existing government support mechanisms such as credit programs, subsidies, and tax benefits, highlighting gaps in their implementation.A special focus is placed on the prospects of introducing innovative approaches, including digital technologies, organic production, and the development of agricultural cooperatives. These areas are identified as strategically important for enhancing the competitiveness of small agricultural enterprises and integrating them into modern markets. Additionally, the study explores how active participation of local communities and infrastructure development can contribute to creating a favorable business environment. The findings confirm that the development of small agribusiness is an essential component of Ukraine’s economic recovery, requiring a comprehensive approach. Effective state policies that consider the specific needs of small agribusiness, combined with local community initiatives, can serve as catalysts for sustainable economic growth, regional development, and the strengthening of the country’s food security.