Economic Effects of Investing in Entrepreneurial Initiatives in Rural Communities: Case Study of Greenhouse Structures Production

Vitality even survival of certain rural community could be secured by devising and implementation of proper infrastructural contents and entrepreneurial initiatives. Moving business ventures that do not have direct implications to agriculture and food production, from urban to rural space, particularly will benefit local community initiating its revitalization and renewal. In this circumstance, there will be decreased extensive migrations and demographic evacuation from rural space, while community will be economically strengthened enough to offer the local population somewhat decent level of living. Mentioned initiatives in rural space are usually adequately supported by state or even local authorities, as their core strivings are balanced regional development and elimination of depopulation processes.

Performed research aims to assess the investment in realization of one business idea in certain rural community (implementation of facility for production of greenhouse structures) as economically justified. In research used data are obtained from one agricultural cooperative active in Western parts of Serbia, while investment analysis considers applying of commonly used static and dynamic methods for evaluation of investment efficiency. Gained results (static: Ee – 1.48, NPM – 27.53, ARR – 23.75, SPP – 3.49 years, or dynamic: NPV – 50,569.32 EUR, IRR – 23.69, DPP – 4.05 years) linked to implementation of planned entrepreneurial initiative, show that business idea could be considered as socially and economically good, even very profitable business solution for cooperative and overall rural community.