Gal'yanov I.V.R&D Institute of Social Development of Rural Areas, Orel State Agricultural University, Orel, Russian Federation stu-nadya@yandex.ru
Klimov R.V.R&D Institute of Social Development of Rural Areas, Orel State Agricultural University, Orel, Russian Federation krvl@rambler.ru
Kuznetsov A.L.R&D Institute of Social Development of Rural Areas, Orel State Agricultural University, Orel, Russian Federation alk11054@yandex.ru
Studennikova N.S.R&D Institute of Social Development of Rural Areas, Orel State Agricultural University, Orel, Russian Federation stu-nadya@yandex.ru
Importance The level of rural social and engineering infrastructure, residential and road construction significantly depends on the extent to which the State is involved in addressing these issues. However, State finance, regional and municipal budgetary funds are insufficient, thereby necessitating new sources of finance. Therefore agricultural businesses assume higher social significance. Objectives The research investigates objective data on agricultural business participation in socio-economic development of rural areas in the Russian Federation and abroad. We examine the existing expertise, identify similarities and difference of approaches to involving agricultural businesses in addressing social issues of rural areas. Methods The research employs data collection, overview of literature, data systematization, comparative and logic analysis, generalization. We obtained information about the way agricultural businesses participate in the social development of rural areas in 30 regions of the Russian Federation throughout seven federal districts, and the CIS, Europe, Asia, USA and Canada. Results Agricultural businesses provide various aid, but it is considered as low effective. Agricultural businesses contribute insufficiently due to unsatisfactory financial position of agricultural producers and their low cost effectiveness. Tax incentives, which foreign countries actively apply, can be quite an appropriate mechanism for Russia. Conclusions and Relevance The findings may be useful to encourage agricultural businesses for participating in the social development of rural areas. Such initiatives will give an impetus to the development of rural areas, thus boosting small business in rural areas, improving the technological level of social institutions, changing the social perception of rural areas and easing social tensions.
Keywords: participation, agricultural business, rural areas, social development
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