The article considers the formation processes of an effective competitive environment of entities in the conditions of agrarian business, which significantly depend on the organizational and legal forms of economic entities. It is outlined that the preconditions for the formation and effective functioning of the competitive environment should be the absence of discrimination and equality of all agribusiness entities and certain segments of the agricultural market. It is noted that the freedom of agribusiness entities to choose their own organizational and legal forms of their production and commercial activities are the primary prerequisites for the formation of competitive environments that will encourage agricultural producers to increase the efficiency of production activities. It is emphasized that due to the realities of the current state of the agricultural market and the effectiveness of its operators, self-sufficiency of production resources and the formation of only production capacity does not allow agricultural enterprises to increase production and gain the necessary competitive advantages at certain levels of market infrastructure. It is also emphasized that, in general, each individual business entity competes in selected object markets. Therefore, for their in-depth study it is necessary to segment the competitive environment, which is carried out depending on the type of competition. The processes of division into separate market segments should take into account the fact that the target markets are not an isolated segment. They are fully interconnected and the replacement of existing competitive environments of one of them will individually affect the competitive environments of the other.In addition, in each of the presented segments of the competitive environment of agribusiness entities, the main guarantee of their harmonization and continuous competitive development should be the economic freedom of individual entities. This should take place in selected areas of activity. The choice of individual distribution channels should be based on the formation of an appropriate system of flexible pricing. Thus, the actualization of the need to create innovative capacity is an integral part of their competitive development.
Keywords: economic growth potential, competitive environment, business entities.
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The article was received 06.02.2021