Institutional environment for financial provision of small agricultural business entities of Ukraine

Abstract

The purpose of the study is to assess the institutional environment and determine the need for financing small agricultural businesses in Ukraine in order to facilitate access to financial resources in accordance with the need. The information base of the study is the regulatory and legal framework of state support for the agricultural industry, analytical studies of information agencies, data from the State Statistics Service of Ukraine and Ministry for Development of Economy, Trade and Agriculture of Ukraine. The data on the planned and actual indicators of budget expenditures for agricultural development were obtained on the basis of an analysis of the reports posted on the official website of the State Budget of Ukraine. The study determined the market capacity by financing the activities of small agricultural enterprises by sources and state support. An attempt has been made to outline the technology for a comprehensive assessment of the need for financing peasant and small farms in Ukraine through determining the capacity of financing the industry. As a result, it was established that the annual demand for resources for this type of entrepreneurship is at least UAH 370 billion, and in the near future it will grow at least UAH 26.5 billion annually. Particular attention is paid to the areas of micro crediting and state support for the development of small businesses in rural areas. The practical significance of the study lies in the fact that the implementation of the results of research work allows the implementation of technological support for the formation of a financing system for small agricultural entrepreneurship. This is necessary for the technical justification of state programs for the development of small business, strategies for the development of rural areas, state regulation of the development of the agricultural sector.