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Economic Analysis: Theory and Practice
 

Cooperation and integration of small businesses in the agricultural sector of economy

Vol. 14, Iss. 35, SEPTEMBER 2015

PDF  Article PDF Version

Received: 21 May 2015

Received in revised form: 20 July 2015

Accepted: 4 August 2015

Available online: 7 October 2015

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 14-21

Volobueva T.A. Orel State Agrarian University, Orel, Russian Federation
dim669@live.ru

Importance Under agrarian business transformation, small farms not only produce agricultural products. They also perform a number of important economic and social functions in rural areas. The development of agricultural consumer cooperation depends on the solution of key problems faced by small businesses in the process of their operation.
     Objectives The purpose of the work is to analyze triggers of inter-farm cooperation development, and define major areas of arranging the processes of cooperation and integration for small businesses.
     Methods Based on the analysis of the works of eminent scientists and economists, I have examined the basic types of agricultural consumer cooperatives in Russia and future cooperation arrangements for integrated interaction of private subsidiary farms and agricultural organizations.
     Results I define major directions of inter-farm cooperation, offer certain types of integrated interaction of private subsidiary farms and agricultural organizations, which enable to fully use their potential to develop rural economy and rural areas. The article includes a scheme of cooperation and integration arrangements for small business patterns of the agro-industrial complex.
     Conclusions and Relevance Government support to cooperatives is crucial. It should include financial institutions development, qualified personnel training, public organizations creation to protect the interests of small businesses participating in the processes of cooperation and integration.

Keywords: small business pattern, cooperation, integration, agriculture, State support

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