FUNCTIONING AND DEVELOPMENT OF SMALL FORMS OF BUSINESS IN THE AGRICULTURAL COMPLEX

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Visnyk LNAU: Economics of AIC 2021 №28: 131-134

FUNCTIONING AND DEVELOPMENT OF SMALL FORMS OF BUSINESS IN THE AGRICULTURAL COMPLEX

Fedyk O., Candidate of Economics
ORCID ІD: 0000-0002-5996-2103
Lviv National Agrarian University

https://doi.org/10.31734/economics2021.28.131

Annotation

The main subjects of the market of agricultural products and products of its processing include producers of agricultural products, procurers of such products, processing enterprises and other small forms of management.

Individual agricultural production is carried out in different organizational forms, which are characterized by their differences and features. Thus, farming.is the most potentially promising and widespread variety of small forms of agriculture in modern and special literature. However, among the most active small businesses in the agro-food market, the author specifies households, because they run the process of formation of primary economic needs and primary economic interests, which stimulate development of social production. Households participate in all phases of the socio-economic cycle, in particular, consumption of goods and services, supply of economic resources, production of goods and services, distribution and redistribution of national product, formation of final income, savings.

Taking into account the crisis of the socio-economic system, small farms take an active part in agricultural production and play an important role in development and functioning of rural areas. For a large part of population, their activities are gradually transformed from an additional source of food and funds into the main, and thus small businesses have great prospects for development. Due to their functions, small forms of management show economic stability during financial and economic crises, namely, promote self-sufficiency in household consumption, support self-employment of the rural population, preserve the cultural traditions of the Ukrainian countryside. Due to flexibility, focus satisfaction of food demands, low energy and material consumption, predominance of manual labor, small production, use of labor of family members, specialization in the manufacture of labor-intensive and uncommon products, small businesses better tolerate the instability of state and market changes, due to the peculiarities of its activities.

Key words

agro-industrial complex, agricultural products, farms, households, personal peasant farms

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