Scientific Center of Innovative Research, International Conference on Corporation Management-2022

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Oleksandr Kushneruk, Inna Titova


State budget security is a state of ensuring the solvency and financial stability of public finances, which enables public authorities to perform their functions as effectively as possible. Russia's hybrid aggression against Ukraine and the military conflict in the east of the country, which began in 2014 and has now continued in the form of a full-scale Russian war against Ukraine, have led to a negative chain reaction of aggravated imbalances in the budget system. Due to the simultaneous indirect influence of the aggressor on the destabilization of budget-forming factors and levers of budget regulation in Ukraine, threats to the stability of its public finances are also becoming hybrid. Production in specific climatic conditions is carried out in conditions of low level of investment activity in rural areas and related sectors of the economy, physical and moral aging of infrastructure, loss of material and human resources. Increased social tensions leave the potential sector unrealized. Diversification of the economy can promote the return of citizens to rural areas and, at the same time, stimulate the need for social infrastructure and services, create opportunities for additional income for farmers, reduce migration from rural areas, including abroad.

The ongoing economic downturn in the agricultural sector [1] is accompanied by declining share of bank lending in GDP, public investment, tax revenues, accumulation of domestic and foreign debt, increasing defaults, the shadow economy, hidden unemployment, the state's inability to meet its social obligations , the lack of effective procedures to protect the rights of the owner, the weak discipline of legislation aimed at overcoming the situation, the issue of providing services in the field of health, education and leisure remain unresolved. Insufficient level of funding creates traditionally difficult conditions for the construction of social infrastructure and cultural and recreational complex.

Despite these challenges, the priorities of rural development are organic production, development of "green economy", restoration of traditional agriculture for sustainable development and as an important source of income for local people [2]. The main factors of development should be accompanied by the introduction of certification and expansion of markets, including through the promotion of regional and own brands, providing access to family businesses to financial services and local resources. Ensuring the benefits of small (up to 10 hectares) land ownership will create conditions for the preservation of biological diversity, to achieve higher quality and purity of the product. Factors in the restructuring of the economy should be the activation of equity of the majority of the population by providing the local community and strengthening control over its assets in rural areas.

Rural development should be strengthened by measures to increase opportunities and unlock the potential of individual territories and people living in them, based on environmental protection, environmental culture with the active participation of the state in the context of developing the principles of environmental management [3]. A multifunctional approach in terms of managing the socio-ecological and economic components of rural development is a prerequisite for ensuring domestic demand, increasing productivity, employment of the rural population, guaranteeing national food and economic security, expanding international exchanges.

Factors related to the possibility of depreciation of the company's assets and funds are risks, causes and possible negative consequences that arise and can be assessed at three levels - operational, innovative investment and finance. Risk (commercial or business) is formed as the sum of total risks for all activities, which are affected by many factors. Operational risks are the result of miscalculations in the manufacturing sector, supplier policy and advertising policy and can be neutralized by optimizing cash and material flows of the enterprise using methods of economic and mathematical modeling and logistics analysis. Investment risk arises during financial or innovation investment and / or related project activities of the enterprise. It can be assessed by expert analysis of the main activities of the enterprise, potential areas of diversification, production, sales, costs and profits. Shows trends in these indicators over time for different levels of production and management, the company's reputation and others.

Optimization of the investor's work is usually achieved by providing him with the appropriate level of dividends, guaranteeing the frequency of payments, ensuring the right to vote in addressing key issues of enterprise development strategy, etc. In a broad sense, financial risks are often associated with operational, innovation and capital; in the narrow - risks, ie financial and / or innovation activities, which have changed the composition and structure of capital (liabilities). Thus, financial and innovation investment risks belong to the group of speculative risks, the realization of which can be both losing and winning. In practice, these risks are closely interrelated and represent a complex set of causal relationships.

The growing risk of investment efficiency and the results of production and economic activities of the enterprise are associated with rapid changes in the economic situation and the situation on the national market, the expansion of public relations. enterprises, the emergence of new technologies, investment and other factors. The risks of investing in agriculture are objective due to the uncertain environment of the enterprise. The external environment includes objective economic, social and political conditions that carry out the activities of the enterprise and change it.

According to the program of investment and innovation development in Ukraine, the priority development of the national economy is to provide competitive advantages on an innovative basis. The decisive condition for the effectiveness of investment processes in the agricultural sector is the formation of investment attractiveness of the economic sector and the availability of investment resources for investment objects.

Given the agreements with the EU, as well as the Ukraine 2020 Development Strategy, the government has made a commitment and should make every effort to develop domestic competitive SMEs, and not only through deregulation of business. The mechanism of formation of professional and educational potential of the population, aimed at creating legal, economic, social and organizational bases for obtaining professional knowledge in accordance with the needs and opportunities for education and the situation on the labor market in terms of labor demand; creating conditions for self-employment and the development of entrepreneurial initiative [4].

Further formation of a social market economy in Ukraine is impossible without the development of rural areas on the basis of taking measures of balanced regional policy. The experience of Europe and the United States shows that the main direction of rural development and overcoming the depressed state of the local economy should be the formation of a system of rural entrepreneurship.

An important source of income for the rural population today is non-agricultural employment, which is justified by the rapid pace of agricultural mechanization and seasonality of agricultural production. These factors make it impossible to provide the population with year-round employment in agricultural production. The main motives of entrepreneurial activity of peasants can be considered [5]:

– the desire to earn more money to provide a better life for themselves and their families; higher profitability of economic activity than agricultural, creates new opportunities and opportunities, which is the impetus for further development; The issue of involving family members in economic activities is also important, both through providing them with full employment and through assistance in its management;

– meeting the need for independence, separation (distinction) among the rural community;

– formation of independence from natural disasters, risks of inventory damage, as the income from own enterprise depends much less on accidental factors than agricultural activity;

– providing employment in periods of lower labor intensity in the household.

Given the above small business as the basis of entrepreneurial activity in the countryside is able to form the appropriate environment and conditions of development to meet the existing needs of peasants and solve a number of existing problems.


finance; economy; security; budget


1. Petrukha, S. (2021). Rural economy: directions of new theorization and implementation of best european financial regulation practices. Financial and Credit Activity Problems of Theory and Practice, 5(40), 454–464. DOI:

2. Petrukha, N., Mazur, A., Kushneruk, O., Stakhova, K., Tarasenko, M. (2021). Digital and Marketing Steps of Social Cluster Development Institutions in Circular Rural Economy Conditions. Circular economy as the main way of managing in the conditions of digital transformation. Truskavets: POSVIT. P. 57–85.

3. Petrukha, N. M., Hudenko, O. D., Mazur, A. O., Maltsev, M. A. (2021). State stimulation of sustainable development of narural-resource and agrarian sectors of the national economy. Economic Bulletin. Series: finance, accounting, taxation, 8. 95–105. DOI: 10.33244/2617-5932.8.2021.95-105

4. Gogulya, O. (2017). Modern aspects of management of entrepreneurial activity of agricultural producers in the conditions of market globalization. Economy and society, 11. 184–188.

5. Malik, M., Shpykulyak, O., Suprun, O. (2017). Development of entrepreneurial activity in the agricultural sector: macroeconomic aspect. Scientific Bulletin of Uzhgorod University. Series: Economics, 1 (49). T. 2. 32–37.