Agrarian Economy 2025 Т. 18 № 1-2: 40-49

SIZE OF AGRICULTURAL ENTERPRISES AS A FACTOR OF THEIR COMPETITIVENESS AND EFFICIENCY

Yatsiv I., Doctor of Economic Sciences, Professor
ORCID ID: 0000-0002-2370-6351
Yatsiv S., Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0002-5242-7845
Lviv National Environmental University

https://doi.org/10.31734/agrarecon2025.01-02.040

ANNOTATION

The impact of the size of agricultural enterprises in Ukraine on their competitiveness and efficiency has been examined, especially under the conditions of martial law. Data from the State Statistics Service of Ukraine were utilized, classifying enterprises into large, medium, and small categories, with microenterprises being a subset of small enterprises. This study investigated the technological, economic, and social efficiency indicators of various agricultural enterprises based on their size.

Changes in the number of agricultural enterprises of different sizes and their shares in the total volume of agricultural products sold served as indicators of competitiveness. The findings revealed that, until 2022 and throughout the period of martial law, large agricultural enterprises maintained a high level of competitiveness. However, in 2023, small agricultural producers showed resilience and the ability to operate effectively in challenging economic conditions.

Additionally, the relationship between the technological efficiency of crop production and the size of agricultural enterprises was studied. It was found that as the size of the enterprises increased, the yields of the main grain and oilseed crops they cultivated also rose. Notably, this correlation strengthened during the period of martial law.

Conversely, no significant relationship was observed between the size of agricultural enterprises and their economic efficiency. Small agricultural enterprises have developed rational business solutions that enable them to achieve profitability levels comparable to those of large and medium-sized enterprises.

A significant impact of enterprise size on employee wages was also identified, which serves as an indicator of social efficiency. Wage levels in small agricultural enterprises remain considerably lower than those in large and medium-sized enterprises weakening the competitive position of small agricultural producers in the labor market.

KEYWORDS

agricultural enterprise, enterprise size, large-scale agricultural enterprise, small agricultural producers, competitiveness, efficiency, martial law

FULL TEXT

LINK

  1. Andriichuk, V. H. and Sas, I. S., 2017. Criteria for the distribution of agricultural enterprises by size and differentiation of the level of state support for agribusiness. Economics of AIC, 10, P. 13–24.
  2. Bida, M. B., 2021. The current state and tendencies of development of the enterprises in Ukraine according to their size. Business Inform, 8, P. 82–95.
  3. Drahan, О. O. and Zubchenko, V. V., 2023. Peculiarities of the functioning of agricultural holding companies in Ukraine. Investments: Practise and Expertise, 5, P. 44–50.
  4. Economic activity. State Statistic Service of Ukraine, 2024 [online] Available at: http://www.ukrstat.gov.ua [Accessed February 08, 2025].
  5. Grouping of enterprises by size of the harvested area of the main crops. State Statistics Service of Ukraine, 2024 [online] Available at: http://www.ukrstat.gov.ua [Accessed February 08, 2025].
  6. Hnatyshyn, L. and Varfaliuk, V., 2023. Peculiarities of managing business processes at large-scale agricultural enterprises. Agrarian Economy, 16 (1), P. 60–68.
  7. Hrabovetskyi, B. Ye., Chaplyhina, O. V. and Koziar, L. V., 2015. Methods of measuring of level of production concentration and influence of size of enterprise on its efficiency. Bulletin of Vinnytsia Polytechnic Institute, 5, P. 41–49.
  8. Ihnatenko, M. M., Levaieva L. Yu., Bilousov, Ye. Yu. and Bykalo, M. V., 2024. The impact of innovation strategies of large agricultural holdings and corporations on innovation and modernization of small and medium-sized agricultural enterprises. Efficient Economy [online] 5 Available at: https://www.nayka.com.ua/index.php/ee/article/view/3758 [Accessed February 05, 2025].
  9. Khodakivska, O. V. and Mohylnyi, O. M., 2017. Ukrainian agricultural holdings: agricultural policy and challenges for the future. Economics of AIC, 6, P. 33–41.
  10. Kits, M. V., 2015. Financial state and development of large product agricultural enterprises. Bulletin of Sumy National Agrarian University. Series: Economics and Management, 5, P. 45–50.
  11. Koval, P. V. and Zarytska, N. P., 2017. Analysis of the effectiveness and efficiency of the activity of agricultural enterprises of Ukraine in terms of their size of land. Actual Problems of Innovation Economy, 4, P. 10–17.
  12. Krasnorutskyi, O. O., Smihunova, O. V. and Chyhrynov, Ye. I., 2023. Strategic guidelines for managing the size and scale of production of agricultural dairy enterprises. Scientific and Technical Bulletin of the Institute of Animal Science NAAS, 129, P. 90–102.
  13. Marenych, T. H., 2018. Criteria for the gradation of enterprises in size depending on the tasks of differentiation. Bulletin of Kharkiv Petro Vasylenko National Technical University of Agriculture, 193, P. 36–47.
  14. Onegina, V., Kucher, L., Kucher, A., Krupin, V., Kłodzinski, M. and Logos, V., 2025. Unlocking innovation capacity: strategies for micro-, small, and medium enterprises in Ukrainian agriculture. Agriculture, 15 (1), P. 65.
  15. Postol, A. A., 2018. Efficiency of production of agricultural products in large agrarian enterprises. Economy and the State, 4, p. 87–91.
  16. Yatsiv, I. B., 2013. Competitiveness of agricultural enterprises. Lviv: Ukrainskyi bestseler.
  17. Zbarskyi, V. K. and Ostapchuk, A. D., 2019. Methodological approaches to the balance of different in size enterprises. Scientific bulletin of International Humanitarian University. Seriia: Economics and management, 38, P. 42–52.
  18. Zghurska, О., Somkina, T., Korchynska, O., Fedorchenko, A., Tarasevych, O. and Kubiv, S., 2021. Formation of organizational and economic structure in the process of developing innovative solutions of a diversified enterprise. Journal of Hygienic Engineering and Design (Food Production and Processing), 36, P. 111–118.