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

Main Article Content

Nataliia Vdovenko
Alyona Piven
Oksana Radchenko
Ihor Sinenok
Solomiya Voskobiinyk

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.

Downloads

Download data is not yet available.

Article Details

Section
Integration System of Education, Science and Production
Author Biographies

Nataliia Vdovenko, National University of Life and Environmental Sciences of Ukraine

Dr. Sci. in Economics, Head of the Department of Global Economics. Professor (Full), Dr. Sci. (habil.) in Economics, Honored Worker of Agriculture of Ukraine, Head of the Department of Global Economics National University of Life and Environmental Sciences of Ukraine. Her sphere of scientific interests includes the global economy, fisheries and aquaculture economics, regulation, animal husbandry, livestock production, supply chain management. She has published around 343 papers in peer-reviewed journals and in the proceedings of conferences. She has taken part in more than 35 conferences and workshops as a Keynote Speaker. She is a member of editorial board of some scientific journals. She is the Member of Doctoral Academic Council in Economics, National Consultant on Marketing Fish Products and on Data Collection and Statistics of Fisheries and Aquaculture Regional Office for Europe and Central Asia Food and Agriculture organization of the United Nations, Expert of the Ministry of Education of Ukraine and Expert of the National Agency for Quality Assurance in Higher Education.

Has practical experience of the accountant of the Oil Supply Department, OJSC «Kyivoblagrotechservice».

Scientific interests: global economy, fisheries and aquaculture economics, regulation, animal husbandry, livestock production, value chains. 

Adress: 15 Heroyiv Oborony st., Kyiv, 03041, Ukraine

Web of Science: https://publons.com/researcher/2095898/nataliia-mychailivna-vdovenko/

 Scopus Author ID: https://www.scopus.com/authid/detail.uri?authorId=56912343500

 Researcher ID: J-5146-2017

Alyona Piven, Kharkiv Petro Vasilenko National Technical University of Agriculture

Ph.D., Senior Lecturer of Department of organization of production, Business, and Management, Kharkiv Petro Vasilenko National Technical University of Agriculture

She teaches discipline taught: Management, Intellectual Property, Оrganization of labor manager, Theory of organization. Scientific interests: Management of the development of integration processes in the activities of agro-industrial enterprises.

Author of more than 25 scientific works. 

Oksana Radchenko, National Scientific Center “Institute of Agrarian Economics”

Ph.D. (Economics), Associate Professor

Ihor Sinenok, National University of Life and Environmental Sciences of Ukraine

Postgraduate, Department of Global Economic

Solomiya Voskobiinyk, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies

Ph.D. in Economics, Assistent Professor, Department of Management, Stepan Gzhytskyi National University of Veterinary Medicine, and Biotechnologies Lviv

She teaches disciplines taught:  Management, Creative management, Agricultural management, Self-management (Самоменеджмент), Management of Potential of Enterprise (Управління потенціалом підприємства). Scientific interests: Personnel Management in Agricultural Enterprises, Creative management, Self-management.

Author of more than 17 scientific works. 

References

ASSOCIATION AGREEMENT BETWEEN UKRAINE, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand {Agreement ratified by a statement of Law 1678-VII of 16.09.2014}. Available: https://euroua.com / association /. Access: 15 March 2020. (in Ukrainian).

BECHKO, P. K.; BARABASH, L.V.; NATALICH, O. S. (2017) Directions of optimization of crediting of subjects of managing of agrarian branch. Financial Services, n. 3, p. 38-42. (in Ukrainian).

COMMITTEE OF THE VERKHOVNA RADA OF UKRAINE ON AGRARIAN AND LAND POLICY. Available: http://komagropolit.rada.gov.ua/. Access: 20 March 2020. (in Ukrainian).

CONCEPT OF THE RURAL DEVELOPMENT FUND (2020) Available: https://uteka.ua/publication/news-14-delovye-novosti-36-v-minekonomiki-predstavili-koncepciyu-fonda-razvitiya-selskix-territorij. Access: 15 March 2020. (in Ukrainian).

DEMYANENKO, M. Ya. (2014) Credit factor of sustainable development of the agricultural sector of Ukraine. Economics of agro-industrial complex, n. 11, p. 5–14. (in Ukrainian).

DENDUP, T.; DORJ, P.; GYELTSHEN, T.; PENJOR, L. (2018) Relationship between Entrepreneurial Factors and Small Agro-enterprises’ Success: Evidence from Bhutan. Journal of Economics, Management and Trade, p. 1-9. DOI: 10.9734 / JEMT / 2018/41089.

DOBEŠ, K.; KOT, S.; KRAMOLIŠ, J.; SOPKOVA, G. (2017) The perception of governmental support in the context of competitiveness of SMEs in the Czech Republic. Journal of Competitiveness, v. 9, n. 3, p. 34-50. DOI: https://doi.org/10.7441/joc.2017.03.03

GRUBINKA, I. (2015) Possible directions for improving state support for credit support of agricultural enterprises. Bulletin of Lviv National Agrarian University. Series: Economics of agro-industrial complex, v. 22, n. 1, p. 115-118. (in Ukrainian).

GULA, A. S. (2016) Technology of diagnostics of creditworthiness of agrarian enterprises by methods of multidimensional modeling. Financial and credit activities: problems of theory and practice, v. 2, p. 189-201. (in Ukrainian).

KAN, A.; KAN, M.; DOĞAN, H. G.; TOSUN, F.; UCUM, I.; SOLMAZ, C. (2018) Evaluation of young farmers project support program in terms of agri-entrepreneurship in Turkey. Pakistan Journal of Agricultural Sciences, v. 55, n. 4. Available: http://www.medsci.cn/sci/show_paper.asp?id=387f41166ea41680

KIRILENKO, I. G.; IVCHENKO, V. E. (2016) Structural reforms in the countryside: world experience, Ukrainian realities. Economics of agro-industrial complex, n. 2, p. 5. (in Ukrainian).

KOVAL, N. I.; RADCHENKO, O. D. (2019) Determinants of the state of financial resources of small agricultural enterprises. Bulletin of VNAU. Economics series, n. 3, p. 100-116. (in Ukrainian).

KROPIVKO, M. M. (2016) The main directions of increasing the productivity of farms. Economics of agro-industrial complex, n. 12, p. 51. (in Ukrainian).

"LAND MARKET 2020" in the framework of Grain Ukraine 2020. Limited Edition Available: https://bit.ly/37W2SGB. Access: 15 March 2020.

LAW "On Development and State Support of Small and Medium Enterprises in Ukraine" of March 22, 2012 № 4618-VI. Available: https://zakon.rada.gov.ua/laws/show/4618-17#Text. Access: 15 March 2020. (in Ukrainian).

LETTER of the SFSU dated November 8, 2016 №24033 / 6 / 99-99-14-03-03-15 On providing tax advice. Available: http://sfs.gov.ua/baneryi/podatkovi-konsultatsii/konsultatsii-dlya- yuridichnih-osib / 70278.html. Access: 15 March 2020. (in Ukrainian).

LUPENKO, YU. O.; MESEL-VESELIAK, V. I. (2012) Strategic directions of development of agriculture of Ukraine for the period till 2020. Kyiv: National Research Centre "Institute of Agrarian Economics" (in Ukrainian).

MALIK, N. I.; SHPIKULYAK, A. G.; MAMCHUR, V. A. (2020) Realization of the purposes of sustainable development of Ukraine in the context of transformation of personal farms into family farms. Economics of nature management and sustainable development, v. 7, n. 26, p. 21-31. (in Ukrainian).

MINISTRY OF ECONOMIC DEVELOPMENT, TRADE AND AGRICULTURE OF UKRAINE. Available: https://www.me.gov.ua/?lang=uk-UA. Access: 15 March 2020. (in Ukrainian).

NAKKU, V. B.; AGBOLA, F. W.; MILES, M. P.; MAHMOOD, A. (2020) The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective. Journal of Small Business Management, v. 58, n. 1, p. 2-31. DOI: https://doi.org/10.1080/00472778.2019.1659671.

NEMISH, D. V.; SAVKA, M. V. (2020) Development of personal farms and their transformation into family farms. Economics of agro-industrial complex, n. 2, p. 54. (in Ukrainian).

OLIYNYK, O. O. (2014) Conceptual approaches to building a system of microcredit in the agricultural sector of the economy. Scientific Bulletin of the National University of Life and Environmental Sciences of Ukraine. Series: Economics, agricultural management, business, v. 200, n. 3, p. 40-47. (in Ukrainian).

PORTOVARAS, T.; HARBAR, Z. H.; SOKURENKO, I.; SAMOILYK, Iu. (2020) Management of small business entities. Independent Journal of Management & Production, 11(8), 680-694. DOI: dx.doi.org/10.14807/ijmp.v11i8.1226.

RADCHENKO, O.; LEONTOVICH, S. (2020) The Role of State Financial Regulation in Strengthening the National Security of Ukraine. Gesellschaftsrechtliche Transformationen von wirtschaftlichen Systemen in den Zeiten der Neo-Industrialisierung.

KORNIEIEV, V.; PASICHNYK, YU.; RADCHENKO, O.; KHODZHAIAN, A. und andere: Collective monograph. Verlag SWG imex GmbH, Nuremberg, Germany.

RADCHENKO, O.; TSVIHUN, I.; YASINETSKA, I.; BUDNIAK, L. (2020) Financial resource balance of the agricultural sector: case of Ukraine. Independent Journal of Management & Production, v. 11, n. 8. p. 615-625. DOI: 10.14807/ijmp.v11i8.1221

RADCHENKO, O.; SEMENYSHENA, N.; SADOVSKA, I.; NAHIRSKA, K.; POKOTYLSKA, N. (2020) Foresight Development Strategy of the Financial Capacity: Comparative Study of the Ukrainian Agricultural Sector. Engineering Economics, v. 31, 178-187. DOI: 10.5755 / j01.ee.31.2.24340.

RADCHENKO, O. D. (2018) Support of the agricultural sector through preferential lending mechanisms. Collection of scientific works of the University of the State Fiscal Service of Ukraine: electronic scientific publication. Goal. ed. M.O. Kuzhelev, n. 1, p. 161-177. (in Ukrainian).

RADCHENKO, O. D. (2020) Formation of the system of agrarian microcredit Entrepreneurship in the agrarian sphere: global challenges and effective management: Proceedings of the I International scientific-practical conference (February 12-13, 2020): at 2 o'clock Zaporozhye: ZNU, Part 1, p. 232-235. (in Ukrainian).

RADCHENKO, O. D.; ALESKEROVA, YU. V.; TODOSIYCHUK, V. L. (2018) Credit aspects of state support for the development of the agricultural sector of Ukraine. Bulletin of VNAU. Economy. Finances. Management: current issues of science and practice, v. 11, n. 39, p. 84-94. (in Ukrainian).

RADCHENKO, O. D.; LAZUTINA, L. A. (2018) Methodological approaches to assessing the financial potential of rural development in Ukraine. Agrarian Economics, n. 12, p. 52–58. (in Belarus).

REZAEI-MOGHADDAM, K.; IZADI, H. (2019). Entrepreneurship in small agricultural quick-impact enterprises in Iran: Development of an index, effective factors and obstacles. Journal of Global Entrepreneurship Research, v. 9, n. 1, p. 17. DOI: 10.1186 / s40497-018-0133-3.

THE CABINET OF MINISTERS sent 125 million to farmers for compensation of interest for the use of loans: Available: https://biz.censor.net.ua/n3212089. Access: 15 March 2020. (in Ukrainian).

THE CONCEPT OF DEVELOPMENT OF FARMS AND AGRICULTURAL COOPERATION FOR 2018-2020. Order of the Cabinet of Ministers of Ukraine dated 13.09.2017 № 664-r. Access: 15 March 2020. (in Ukrainian).

THE ONLY COMPREHENSIVE STRATEGY FOR THE DEVELOPMENT OF AGRICULTURE AND RURAL AREAS FOR 2015-2020 URL: http://minagro.gov.ua/node/16025 (accessed September 18, 2018). (in Ukrainian).

TULUSH, L. D.; HRYSHCHENKO, O. YU. (2018) Transformation of high-commodity private households into entrepreneurship subjects: tax and budget aspects. Ekonomika APK, n. 1, p. 40-52. (in Ukrainian).

TULUSH, L. D.; RADCHENKO, O. D. (2020) Financial support for sustainable development of villages and rural areas of Ukraine. Improving the financial and credit mechanism to ensure the innovative development of the economy: a collection of abstracts of the All-Ukrainian scientific-practical Internet conference. Part 1. Dubliani, p. 262-265. (in Ukrainian).

ZBARSKY, V. K.; ALEKSEEVA, Yu. Yu. (2017) Features of transformation of rural households into family farms. Economics of agro-industrial complex, n. 7, p. 23 (in Ukrainian).

ZIN, M. L. M.; IBRAHIM, H. (2020) The Influence of Entrepreneurial Supports on Business Performance among Rural Entrepreneurs. Annals of Contemporary Developments in Management & HR, v. 2, n. 1, p. 31-41. DOI: 10.33166 / ACDMHR.2020.01.004.

Most read articles by the same author(s)

Similar Articles

You may also start an advanced similarity search for this article.