Regional peculiarities and tendencies of entrepreneurship development in agriculture

Abstract

The article deals with regional characteristics and trends of entrepreneurship in agriculture. When forming an agrarian policy, it is important to take into account the soil-climatic and economic conditions, the possibilities of balanced provision of material and technical resources, the volumes of production and consumption of agricultural products, since it is acceptable for one region and may be unsuitable for another. The combination of natural, socio-economic, demographic, and historical aspects of the activities of market makes adjustments to the formation of the regional food market and its functioning. Existing circumstances have caused the socioeconomic need to form regional markets and ensure the adequacy of industrial, agricultural production and service sectors for intra-regional and interregional exchanges. The rational expansion of production and consumption of products and services in the region provides for their cheapening as a result of savings associated with distribution, primarily transportation costs, and increased of interregional competition. The market of agricultural products, like any other products, is determined first of all, demand and supply. Demand for products in each region is formed under the influence of a set of factors. First of all, it is the number of people who live in this region. Its value and age structure determine the required supply volumes, as well as the structure and range of agricultural products. The next factor that affects demand is the different levels of income and the source of income. An important factor in the formation of local traditions demand is people that define the type of nutrition of inhabitants, their culture and, accordingly, form the level and structure of food consumption. The proposal in the form of volumes of production depends, first of all, on the conditions of entrepreneurial activity in the agricultural sector, the structural construction of agriculture, its relations with other spheres, the availability and state of development of market infrastructure, etc. All these are the conditions that have certain features in specific region and areas, and must form the subject of research. The system of optimal functioning of the regional and local economy requires the exact consideration of the specific conditions of economic activity, resource opportunities and market relations at the microeconomic level, in order to provide for intensive economic development. This leads to a more detailed consideration of the features that affect the functioning of the agricultural market and the development of forms of entrepreneurial activity.