The role of credit cooperation in the development of small business in the Agriculture of Kabardino-Balkarian Republic
Pages: 75-78.
E-mail: margan-isuf@mail.ru
The article deals with small farming opportunities in the agricultural sector in a limited amount of State support for agricultural organizations after Russia’s accession to the WTO. It shows that one of the factors strengthen the position of small business in the market is to overcome the existing shortage of financial resources through the development of rural credit cooperatives. Forming of a system of agricultural consumer cooperatives, highlights the role of microfinance as a credit cooperation Institute, in the context of an efficient agricultural structures in the region is seen on the example of Kabardino-Balkaria. Analyses of microfinance in the region’s infrastructure, the number of cooperatives, the amount of mutual fund assets, the aggregate volume of external and internal borrowings is carried out. The forms of the State support of agricultural credit consumer cooperatives, as well as the possible mechanisms for attracting financial resources on consumer cooperation in conditions where limited to participation in the program of subsidies and grants for personal plots, not having status of peasant (or farmer’s) farming operation or an individual entrepreneur are considered. It is concluded that for microfinance development in rural areas it is important to improve the federal legislation and the systematic approach of the regional authorities and organs of local self-government.
Keywords: small forms of management, the Institute of credit cooperatives, credit consumer cooperative, micro-finance institutions
