Oksana Radchenko, Lyudmila Lazudina


. Introduction. Rural development due to historical, political, economic, geopolitical and integration factors for Ukraine is organic. Under it, they understand the state policy regarding the development of agriculture and rural areas. financial support is an integral part of the state policy of agrarian administration in all countries. It is therefore natural that the direction of supporting small businesses in the form of farms and their associations is part of this process.

Purpose. Clarification of the mechanisms of financial support of small business and criteria for their implementation as part of rural development policy.

Results. The working hypothesis is formed that support of these forms of management should be carried out mainly within the framework of the rural development policy, and not only support of their production according to criteria of the size of the land bank and profitability. The current and project mechanisms of realization of the directions of the state financial regulation of small business development through the priorities, criteria, directions and types of support are investigated. For this purpose, the analysis of current legislation on support for small business forms, distribution of funds for the program of support of farms by oblast, the Ukrainian Village Development Program for the period up to 2015, the draft Concept for the development of farms and cooperatives, as well as non-governmental programs for supporting small businesses and rural areas of Ukraine. It has been established that, with a significant number of programs foreseen for agriculture in the state budget, only one farmer is currently operating - providing turnaround assistance, and cooperation is not being funded since 2013. Despite a significant package of normative regulation of this problem, due to the lack of funds, these forms of management remained virtually beyond the state support..

Originality. Some measures to improve the financial support of small businesses are proposed through their involvement in rural development programs, and not only in the production support program. It is expected that the research will contribute to improving the process of financial support for small businesses at the level of economic and social incentives in the light of the requirements of international legislation, the need to bring domestic entrepreneurship closer to European standards, to formulate a new budget policy and will be placed in the new state financial regulation of rural development. 

Conclusion. From the above study it follows that at present there is no clear system and prerogatives in the mechanisms of state support for small business and cooperation.

Regarding normative support, it is obsolete, declarative and has no real impact on the situation due to the lack of proper funding at all levels.

Under the current policy of state support for financing and its source there is neither a methodological nor a methodical apparatus, no evaluation of the needs of small businesses in state support has been conducted.

If this niche forms of economic activity is recognized as a form of self-employment, it is necessary to strengthen the functions inherent to it and consider farming as a form of development of rural areas, with increased funding and systemic measures.

Probably the best option is to combine these measures with the allocation of tasks of state financial support to farming and cooperatives and the composition of rural development and agricultural production. The specification of the measures and mechanism of such an approach is the subject of further research.

Ключові слова

state financial support; farms; agricultural servicing cooperatives (SOCs); rural development; the Concept of development of farms and cooperatives; the state budget; Ukrainian state fun; the mechanisms of state support.


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