Main factors of effective functioning of small agricultural business

Goal. To identify the factors influencing the efficiency of small agricultural enterprises and identify criteria for their classification, taking into account the specifics of the agricultural sector. Methods. The methodological basis of the study were general and special methods, in particular: abstract, analysis and synthesis, comparative, graphical, analytical groupings. Results. It is established that during all stages of reforming the country’s economy, small agricultural business is in the center of science and practice, as it can ensure sustainable development of rural areas and a sufficient level of food security. The results of the study of the dynamics of agricultural production by small agricultural enterprises show that their share in the production of such products is significant. The influence of a set of factors on the development of small agricultural enterprises is considered, the socio-economic problems that cause them are identified. The main groups of internal and external factors influencing the functioning of small agricultural enterprises as a full-fledged component of the agricultural sector are identified. It is substantiated that during the diagnostics of the external environment it is expedient to distinguish macro-level factors (general economic, domestic economic support and regulation), scientific-technical, and meso-level (market, financial credit, socio-demographic). It is proved that during the assessment of the internal environment it is necessary to distinguish groups of production (organizational, technical, technological, price) and non-production (marketing, labor) factors. Conclusions. Under the conditions of changing the institutional environment, small agricultural enterprises have many problems and obstacles. The efficiency of their functioning is influenced by a set of factors that are closely related and provide the most effective results of production and economic activities of small agricultural enterprises, provided they are comprehensive and balanced.