CURRENT STATUS AND TRENDS IN THE INNOVATIVE DEVELOPMENT OF AGRICULTURAL ENTREPRENEURSHIP IN THE CONTEXT OF THE DIGITALIZATION OF THE ECONOMY

Main Article Content

Andrii Driha

Abstract

Introduction. The current development of agricultural entrepreneurship in Ukraine is taking place against the backdrop of the economy’s digitalization, which necessitates a rethinking of traditional approaches to organizing production, managing resources, marketing products, and ensuring the competitiveness of enterprises. It has been established that digital technologies are gradually becoming one of the key drivers of innovative development in the agricultural sector, as they contribute to increased productivity, cost optimization, improved management decisions, and strengthened market positions for agricultural enterprises. At the same time, the main challenges remain the uneven pace of digital development, financial and human resource constraints, the insufficient level of digital maturity among small and medium-sized producers, and the fragmented implementation of digital solutions.


Purpose. The purpose of this article is to examine the current state and trends in the innovative development of agribusiness in Ukraine amid the digitalization of the economy and to determine the impact of digital technologies on the efficiency and competitiveness of agricultural enterprises.


Results. This study analyzes structural changes in Ukraine’s agricultural sector from 2019 to 2025. A decline in the number of agricultural businesses was observed, from 88,100 in 2019 to 70,500 in 2025, indicating an intensification of consolidation processes and the optimization of the sector’s business structure. At the same time, the share of family farms increased from 37.7% to 41.3%, confirming that they continue to play a role as a flexible form of agricultural business organization.  It has been established that, against the backdrop of structural changes, the performance of agricultural enterprises has improved: product sales increased from 560.4 billion UAH in 2019 to 1,040.0 billion UAH in 2025, and labor productivity rose from 690 to 1,100 thousand UAH per employee. A positive trend in the adoption of digital technologies has been identified: the share of enterprises using specific digital solutions rose from 18% in 2019 to 52% in 2025. The most widely used digital tools are GPS monitoring of equipment and land resources, ERP/CRM systems, digital sales channels, and precision farming technologies.


Originality.   The scientific novelty of this study lies in its synthesis of the current state and trends in the innovative development of Ukraine’s agribusiness in the context of economic digitalization, based on a combination of structural, performance, and technological indicators. The study substantiates the interconnection between the digitalization of the agricultural sector, improvements in enterprise performance, and the development of their competitive advantages. Unlike approaches that view digitalization primarily as a technological process, this article defines it as a comprehensive factor in innovative development that encompasses the production, management, logistics, and marketing processes of agricultural enterprises.


Conclusion. It has been established that the current state of agricultural entrepreneurship in Ukraine, in the context of the economy’s digitalization, is transitional in nature. On the one hand, the agricultural sector retains significant economic importance and demonstrates growing operational efficiency among enterprises. On the other hand, the uneven adoption of digital technologies, financial and human resource constraints, as well as differences in the level of digital maturity among agricultural enterprises, are hindering the sector’s full-scale innovative development. It has been demonstrated that digital innovations positively impact the efficiency and competitiveness of agricultural enterprises by optimizing production, management, logistics, and marketing processes; reducing costs; increasing labor productivity; improving resource management; and strengthening market positions. Future research should focus on refining methodological approaches to assessing the digital maturity of agricultural enterprises, studying the impact of specific digital technologies on the financial and economic outcomes of their operations, and developing practical mechanisms to accelerate the digital transformation of small and medium-sized agricultural enterprises.

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