Сhallenges and trends of private household development in a reginal economy (in the case study of Оrenburg region)

Abstract

Nowadays private households have become legal in Russia that has led to a new stage of their development. Current social and economic trends in the country, the decrease of farm production rates and rural and urban population income growth have resulted to the development of private households as a form of self-employment and self-sustainment of the population. This fact explains the importance to study the development trends of private households in modern regional economy in order to determine the ways to increase the efficiency of their activity that is significant in terms of food counter-sanctions. In this context the object of the original study is to investigate the current conditions of private households as a small-size economic activity and to reveal the trends of their development to support a regional economy. The study is based on universal scientific research methods and methodological tools of economics including comparative, economic and statistic, and calculation and constructive methods. Empirically the research is based on official statistical data by the Ministry of Agriculture, Food and Processing industry of Orenburg region and the Territorial Management of public statistics on Orenburg region. On the basis of the analysis of the dynamics of agricultural goods production in Orenburg region we have reveal the increase trend of a private household share and the production volume of agricultural goods there. This testifies the importance of private households in a domestic food supply process. When estimating the household development trends in the economy of Orenburg region it has been revealed that the infrastructure development, rural economy diversification, the development of the regional meat and dairy food cluster will become a decent public tool to support the agricultural sector in general and private households in particular. In future the conducted research will become a foundation for substantiation and development of organizational and economic mechanism of cluster type management that requires special approaches in territorial management.