Abstract: article examines the current state of Ukraine's economic development, focusing on the role of small agribusiness as one of the key drivers of regional and national growth. In particular, the importance of small agricultural enterprises in shaping a competitive agricultural sector in the context of globalization and Ukraine's integration into international markets is highlighted. The specifics of small agricultural enterprises’ functioning are considered within the framework of the agricultural sector transformation, accompanied by significant economic reforms aimed at stabilizing and modernizing the industry. The main challenges facing small agribusinesses are identified, including limited access to financial resources, a lack of innovative technologies, insufficient infrastructure support, and risks associated with climate change. One of the key barriers is the low level of technological support, which limits the productivity and competitiveness of small agricultural enterprises. Low integration into global markets, caused by the lack of proper logistics chains and limited access to information about international requirements, also poses significant obstacles. The instability of agricultural policies and frequent changes in the regulatory environment create additional risks for entrepreneurs, who are forced to adapt to constant changes. The article analyzes the effectiveness of existing state support mechanisms, such as credit programs, subsidies, and tax benefits, which, in many cases, remain insufficiently effective due to low implementation rates and complex procedures. One of the promising directions is the development of organic production, which is in high demand in international markets and provides additional opportunities for exporting high-value-added products. Cooperation among small agricultural producers is viewed as a strategy that enables them to compete with large enterprises by pooling resources to implement joint projects. The article also emphasizes the importance of local communities’ participation in creating a favorable business environment based on transparency, collaboration, and innovation. The study's findings indicate that small agribusiness is a critically important component of Ukraine's economic recovery and could serve as the foundation for sustainable regional development. However, achieving this requires a comprehensive approach from state policies, including support