SMALL FORMS OF ENTERPRISE IN THE RURAL ECONOMY: PROSPECTS FOR DIFFUSION AND THE SECTORAL DIMENSION

Abstract

It has been substantiated that military challenges, the European integration vector of development and the deepening of decentralisation determine the need to diversify the rural economy by stimulating, alongside the basic link (agriculture), the development of structure-forming links (forestry, fishing and hunting, rural and green tourism, bioenergy), which will make it possible to fully utilise the resource and production potential of rural areas and increase the economic and financial self-sufficiency of rural communities. It has been established that the formation of a network of new growth poles for the rural economy requires the strengthening of small business institutions. They will contribute to the realisation of the entrepreneurial and resource potential of the rural population and ensure the full development of both agricultural production and non-agricultural activities. Research has shown that the roadmap for stimulating the development of small forms of economic activity should provide for the formation of instruments for their diffusion (penetration) into key sectors of the rural economy. It has been found that a promising direction for the diffusion of small forms of economic activity in the agricultural sector is their institutionalisation in the field of organic agricultural production, as well as in the field of agricultural waste management and the production of various types of biofuels based on their recycling. It has been proven that the revitalisation of small-scale farming is important for expanding the scope of secondary forest use and developing recreational forest use, which will have a positive impact on the employment dynamics of rural residents and the income level of rural households. It has been established that creating conditions for their integration and cooperation is important for strengthening small-scale farming in the rural economy, as this will increase the concentration of investment potential and consolidate organisational and infrastructural opportunities for more effective use of the resource and production potential of rural areas. It has been substantiated that the integration of small forms of economic activity can be achieved through the creation of clusters, and cooperation through the entry of small businesses into service and marketing cooperatives.