PROBLEMS, TRENDS AND PROSPECTS OF THE DEVELOPMENT OF SMALL ENTREPRENEURSHIP IN THE AGRICULTURAL SECTOR OF UKRAINE’S ECONOMY

Abstract

The sustainable development of small entrepreneurship in the agricultural sector has become one of the key priorities of Ukraine's economic recovery under conditions of war, digital transformation, and European integration. Despite its significant contribution to rural employment, local economic development, and food security, small agricultural enterprises continue to face numerous financial, infrastructural, organizational, and technological challenges that require comprehensive analysis and effective policy responses. The purpose of this study is to analyse the current state of small entrepreneurship in Ukraine's agricultural sector, identify the key development challenges and trends, and determine promising directions for enhancing its competitiveness and sustainability.

The study examines current trends in the development of small agricultural enterprises, the impact of martial law on entrepreneurial activity, and the role of state support, international financial assistance, innovation, and digital technologies in strengthening business resilience.

The findings indicate that, despite the negative consequences of the full-scale war, including infrastructure destruction, labour shortages, disrupted logistics, and limited access to financial resources, small agricultural enterprises demonstrate considerable adaptability and recovery potential. The study identifies the main development trends, including the digitalization of business processes, the implementation of Agriculture 4.0 technologies, the expansion of family farming, agricultural processing, organic and craft production, rural green tourism, and the growing importance of grant programmes and international support as instruments for strengthening the resilience and competitiveness of small agricultural enterprises.

The study concludes that strengthening the competitiveness and sustainability of small entrepreneurship in the agricultural sector requires expanding access to financial resources, promoting digital transformation and innovation, supporting the diversification of economic activities, encouraging cooperation, and improving state and international support mechanisms. The implementation of these measures will contribute to the sustainable development of rural areas, enhance the resilience of agricultural enterprises, and support the post-war recovery of Ukraine's economy.