Cluster Approach in the Development of Small Agribusiness Subjects

Abstract

The number of small agricultural business entities includes agricultural enterprises of various organizational and legal forms (with the exception of state and municipal enterprises, dependent and subsidiaries and partnerships), as well as agricultural consumer cooperatives, peasant (farmer) households, and household households. At present, the small agricultural business of the Republic of Tatarstan is represented by over 470 thousand personal, about 3 thousand farms and more than 300 agricultural consumer cooperatives. Personal subsidiary farms use 
 1 499.3 thousand hectares of agricultural land, and private farms own more than 312 thousand hectares of arable land, or 9% of the area of the entire arable land of the republic. If we consider the share of small agribusiness entities in the structure of the region's economy, then almost half of the gross agricultural output falls on them. To improve the efficiency of small agribusiness, the further development of small enterprises is associated with their clustering. This article examines the advantages of the cluster approach in the activities of small agricultural businesses. The clustering of small agribusiness entities opens up more opportunities for expanded production. Small enterprises that are members of the agro-industrial cluster increase their competitiveness and position in the commodity market. Functioning within clusters can contribute to the production of goods, endowing them with other properties and, accordingly, conquering new market niches. The stable development of regions, economic growth in production in many areas of the agro-industrial complex in recent years create real prerequisites for the creation of local clusters. Compared to Russia, in developed countries, clusters have been created for decades and, importantly, they show real profitability, as well as the inclusion of organizations in such clusters contribute to the exchange of experience in doing business. For the further development of small businesses, it is necessary to use a cluster approach, the advantages of which are the expansion of sales markets for products, the full cycle of production of finished products, savings with large volumes of purchases.