ASSESSMENT OF THE PERFORMANCE EFFICIENCY OF A SMALL AGRICULTURAL ENTERPRISE IN MODERN CONDITIONS

Authors

  • M. M Humeniuk Yuriy Fedkovych Chernivtsi National University, Ukraine
  • D. V Nemish Precarpathian State Agricultural Experimental Station of the Agricultural Institute in Carpation Region of NAAS, Ukraine

DOI:

https://doi.org/10.37406/2706-9052-2022-17

Keywords:

small business, farming, efficiency, profitability

Abstract

Introduction. Small agricultural enterprises play an important role in the structure of the national economy, provide a significant share in the production of gross output, and form a sufficient level of market competition. However, the activity of small agrarian enterprises is unstable and often not long–term in nature, which triggers the need to evaluate their efficiency and justify the development prospects of these formations. Purpose. The aim of the article is to justify the system of indicators for evaluating the efficiency of small agricultural enterprises and assess the level of their economic benefit. Methods. The methodological basis of the research consists of general scientific and special methods, namely: abstract– logical, analysis and synthesis, comparative, graphic, sociological. Results. It was established that the set of indicators used to evaluate the efficiency of small agricultural enterprises should be graded by types of efficiency. The groups of indicators that must be used when assessing the economic, technological, social and environmental efficiency of small agrarian entrepreneurship are defined. It was established that small farms predominate among subjects of small agrarian entrepreneurship in Ukraine both in terms of number (92%) and area of agricultural land (92.5%). The dynamics of the level of economic efficiency of small agrarian entrepreneurship were evaluated. It was determined that the profitability of agricultural production in small farms of Ukraine in 2016 was 42.4%, and it decreased to 37% in 2020. The main problems of ensuring the effective functioning of small farms were studied. Conclusion. The economic efficiency of small agricultural enterprises is only a part of their overall efficiency. Increasing the efficiency of production in small agricultural enterprises is one of the most essential measures to reduce social tension and ensure the economic security of the state.

Author Biographies

M. M Humeniuk, Yuriy Fedkovych Chernivtsi National University

Candidate of Economic Sciences, Associate Professor,
Associate Professor of the Department of Finance and Credit

D. V Nemish, Precarpathian State Agricultural Experimental Station of the Agricultural Institute in Carpation Region of NAAS

Candidate of Economic Sciences, Senior Researcher,
Head of the Department of Economics

References

Boyko, V.V., Krupa, V.R. (2019). Mehanizmy ta instrumenty upravlinnja rozvytkom sub’jektiv malogo pidpryjemnyctva APK [Mechanisms and tools for managing the development of small businesses in agriculture]. AgroSvit. № 20. P. 3–10 [in Ukrainian].

Gazuda, M.V., Voloshchuk, N.Yu. (2015). Regional’ny’j rozvy’tok sfery’ malogo pidpry’yemny’cztva [Regional development of the sphere of small entrepreneurship]. Uzhhorod : Publishing House “FOP Sabov A.M.”, 254 p. [in Ukrainian].

Lupenko, Y.O., Shpikulyak, O.G. (ed.), Malik M.Y. etc. (2017). Rozvytok malyh agrarnyh pidpryjemstv u rynkovomu instytucijnomu seredovyschi: indykatory ta efektyvnist’ : monografija [Development of small agrarian enterprises in the market institutional environment: indicators and efficiency : monograph]. Kyiv : NNC “IAE”, 204 p. [in Ukrainian].

Nazarkevich, O.B. (2019). Ocinka efekty’vnosti gospodars’koyi diyal’nosti maly’h agrarny’h pidpry’yemstv v umovax decentralizaciyi [Evaluation of the efficiency of economic activity of small agricultural enterprises in conditions of decentralization]. ScienceRise. № 11. P. 6–12 [in Ukrainian].

Nivyevskyi, O., Yavorskyi, P., Donchenko, O. (2020). Mali fermery’ ta domogospodarstva v sil’s’komu gospodarstvi ta sil’s’kij ekonomici : ocinka yih roli ta zahody’ z pidtry’mky’ yih stalogo rozvy’tku [Small farmers and households in agriculture and rural economy: assessment of their role and measures to support their sustainable development]. Kyiv : Kyiv School of Economics. 78 p. [in Ukrainian].

Yavorska, T.I. (2012). Maly’j biznes u sil’s’komu gospodarstvi : teoriya i prakty’ka : monografiya [Small business in agriculture: theory and practice : monograph]. Kyiv : NNC “IAE”. 405 p. [in Ukrainian].

Shelenko, D., Balaniuk, I., Shpykuliak, O. etc. (2022) Simulation of change in performance indicators (net profit, land area, number of employees) of agricultural cooperatives of Ukraine. Scientific Papers Series “Management, Economic Engineering in Agriculture and Rural Development”. Vol. 22. № 1. P. 569–578 [in English].

Published

2023-02-14

How to Cite

Humeniuk, M. M., & Nemish, D. V. (2023). ASSESSMENT OF THE PERFORMANCE EFFICIENCY OF A SMALL AGRICULTURAL ENTERPRISE IN MODERN CONDITIONS. Podilian Bulletin: Agriculture, Engineering, Economics, (36), 53–59. https://doi.org/10.37406/2706-9052-2022-17

Issue

Section

Economic Sciences