INFLUENCE OF THE STATE SUPPORT ON THE PROFITABILITY OF THE COOPERATIVES IN THE SOUTH-EAST REGION OF THE REPUBLIC OF BULGARIA

Abstract

Agriculture is important for the sustenance of any country. But the incomes realized by agricultural producers are lower compared to those obtained in other sectors. The predominant representatives in the sector are micro and small enterprises. They do not have sufficient financial means to make the necessary investments in the enterprise's activity process, and their access to external financing is very limited. This necessitates the key role of state intervention in order to preserve the well-being and development of agriculture in the country. By providing state support to cooperatives, the sustainable development of agricultural producers is promoted. It aims to support the economic development of rural areas and to increase the competitiveness of agriculture in general. Based on the results obtained from the applied regression model with fixed effects, evidence is found for the positive influence of state support on the profitability of agricultural cooperatives in the South-East region of the Republic of Bulgaria. It is established that the innovation and investment activity, as well as the size of the agricultural cooperatives in the South-East region of Bulgaria, are statistically significant indicators that influence the receipt of state support.

Keywords

• state support
• profitability
• investment activity
• innovation activity
• cooperatives