Abstract
The paper aims to assess the influence of structural and institutional factors on agricultural development in the regions where rural areas are qualified as unfavorable for agriculture by the government of the Russian Federation. The discussed factors particularly include rural unemployment, sectoral structure of the regional economy and and forms of ownership of food producers. The proxy used as a gauge of regional agricultural development level is the output per person employed in the sector of agriculture, hunting and forestry as it is defined for statistical purposes. The application of economic and mathematical methods of analysis helped to create a set of regression models, which showed several distinctive geographical groups among the unfavorable regions. Each group of regions calls for specific individual strategies of transition to sustainable development of the disadvantaged agricultural territories.
Highlights
Small business is the basement of modern economy nowadays and its growth is a major task of any economic policy
Funds of banking organizations are the main type of credit and investment resources but some problems often arise in lending to small businesses
A particular problem is the lack of trust between banks and small enterprises that is regarded as required condition for their efficient interaction
Summary
Small business is the basement of modern economy nowadays and its growth is a major task of any economic policy. Credit and investment resources are an important booster of small businesses because small firms normally lack their own funds and frequently use their personal savings. This is especially true for small industrial enterprises that have capital-intensive asset structure and low maneuverability in a changing environment. The interpretation of the term "credit" goes back to the Latin "credo" and means "believe", "trust". This is why lending is based on the principle of credibility of relations between the agents participating in this transaction and it assumes fair execution of the contract obligations by them
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