CAPITALIZATION OF AGRICULTURAL ENTERPRISES AS THE MOVER OF RURAL DEVELOPMENT

Abstract

It is defined that rural development is possible only if sufficient funding of economic, social and ecological needs reached by local producer’s capital accumulation is available. The expediency of Ukrainian agricultural enterprises level determination on the basis of a dual approach (capitalization of public agroholdings is determined by the market valuation of quoted on the world stock exchanges shares and capitalization of the rest of the agricultural enterprises is determined by the cost of the increase in assets) is substantiated. It is assumed that determinants which influence the size of capitalization are the land bank, legal form of management (as the ability to access the credit resources), equipment availability, use of innovative technologies and other factors which are able to generate profits that eventually may be capitalized in the enterprise or consumed by the owners. It is noticed that small, medium and big agricultural enterprises of Ukraine showed relatively proportional state of development in 2017: maximal invested capital, levels of debt, fixed assets availability and financial results of economic activity were received by medium enterprises, the minimal ones – by small enterprises. The multifactorial analysis of the agricultural enterprises capital cost growth pace sets up that the medium enterprises have the most stable performance as they react on systematic risks easier than the small ones and have higher mobility than the big ones.It was outlined that consequences of a sufficient level of capitalization may include enterprises capacity accumulation, social and public projects financing and development, ecological safety observance, the achievement of local territories sustainable development, etc.

Keywords

• rural development
• agricultural enterprises capitalization
• capitalization pace determinants
• multifactorial analysis of capitalization