CC BY
69
ANALYSIS OF EXPERIENCE OF SINGAPORE IN THE STATE SUPPORT AND REGULATIONS OF BUSINESS ENTREPRENEURSHIP
A.M.Abdullaev, candidate of economic sciences, associate professor D.E. Yunusova, student Fergana polytechnic institute (Uzbekistan, Fergana)
DOI: 10.24411/2411-0450-2019-10661
Abstract. In article investigated important tools which influence and contribute to the development of entrepreneurship and business by analyzing one of the most developed countries of the world. As conclusion given some recommendations regard to improvement, as world experience taking and using appropriate methods in home country is the best and very effective way to develop in particular sphere.
Keywords: innovative business, SME, enterprise, support, encourage, implement, promote
In modern society small business is an integral element of a competitive market system without which economy and society in general cannot steadily develop. Around the world small business acts as one of drivers of economic and scientific, technical progress. Now business activity is carried out through institutes of market infrastructure - set of the interconnected design and technology, information and production and organizational systems. It allows to run a full cycle of business - from an initial idea to final practical embodiment in the form of concrete goods or service [1,2,3,4].
Growth of number of small business entities promotes rise of number of the middle class in social structure of society. The Republic of Singapore is the city-state located in Southeast Asia. In Singapore the state support of business is developed, creation and development of innovative business is encouraged, good conditions are created directly for implementation of business activity. Small and medium-sized enterprises in Singapore are united in uniform group. The main criteria are number occupied, them there have to be no more than 200 people, and an annual turnover of sales, it should not exceed 100 million dollars a year. Today in Singapore small and medium-sized enterprises make 99% of all enterprises of the country. Simultaneously, 70% of the occupied population are engaged in the sphere of small and medium business. 50% of GDP of Singapore is the share of small business.
First of all it is important to highlight some points about Spring agency in Singapore created for support of small and medium business. It carries out about 50 various programs of support of business. The agency is engaged in development of enterprise capacity of the companies of small and medium business, including marketing, development of a brand and improvement of management. Moreover, it is engaged in rendering the services necessary for businessmen for functioning, including consulting, accounting and other services. Besides, the agency helps with issues of corporate development, including improvement of structure of the enterprises and trainings. Obviously, for that reason the World Bank determines Singapore as the best place for running business for the last 6 years.
Secondly, but equally important is that there are various forms and methods of state support of small and medium business in Singapore. Usually, they can be divided into administrative, financial and fiscal. Administrative methods contain process of opening and registration of the enterprises, development of infrastructure, providing companies with qualified personnel and improvement of interaction of small enterprises. In Singapore the bureaucracy is reduced to a minimum, registration of legal entity does not take more than an hour and carried out through the Internet portal of public services. Additionally, a large number of the business incubators supported by the state functions. They offer physical space for business development, give
an opportunity to work with access to the general services, the business management and financial aid during initial development of projects. Public authorities of Singapore help small and medium business with selection and training of personnel. The state can cover up to 90% of expenses on education and training. Likewise, an enterprise can independently invite to itself an expert for personnel training, including foreign experts, with subsequent compensation of costs of payment of its services from the state. The state promotes cooperation of enterprises who run their business in manufacture sphere with appliance of innovative technologies. This method is effective as, one small or medium-sized enterprise often cannot start new hi-tech production up to standard, it is much simpler to group of such enterprises to accomplish it. Dividing among themselves all production chain and costs of modernization, they begin to develop in common [5, 6].
Besides standard forms of control, public authorities carry out monitoring of small and medium business to reveal for what enterprises modernization of the equipment, retraining of personnel, updating of computer providing is necessary. Thereby the special commissions reveal needs of the enterprises for the purpose of providing further the state help. To methods of financial support, realized by the state agency "Spring", monetary grants, the state schemes of participation financing and favorable debt financing belong. Monetary grants cover some share from necessary financing and are focused on inspiration of projects to innovations, researches and creation of the socially oriented companies. Each grant has the set of requirements for its receiving. Participation financing assumes granting the capital by investors in exchange for a share of the company. The state, in this case, acts as the co-investor. This form of financing is suitable for the projects needing the considerable capital already at a stage of their basis. There are several schemes of participation financing developed by "Spring" which differ with conditions and the amounts of investments. Unlike participation financing, debt it is provided to the enterprises needing money without granting to the creditor a share in authorized capital of the company. The agency
developed a set of schemes on crediting of new projects ("startups") and credit insurance.
Third, for small and medium business in Singapore there are also certain fiscal methods of support. Tax benefits and international agreements of the state belong to them. The companies answering to the established criteria can be completely exempted from taxes within the first three years from the moment of the basis. Moreover, Singapore concludes the international free-trade agreements, about investment guarantees, about elimination of double taxation with many developed countries therefore small enterprises at expansion in the future will get advantages in the form of fast entry into the foreign markets. Thus, the government of Singapore emphasizes the key role of small and medium business in development of national economy. The listed methods of support have significant effect on the number of the opened enterprises, on degree of their innovation and stability in the future, and as a result promote increase in rates of economic growth in the long term [7].
Many experts consider that Singapore -the best place for implementation of business activity - according to researches of CNN, the country takes the 5th place on development of SME - today in the country about 140,000 subjects of SME operate, that makes about 90 percent of all enterprises of the country and provide with jobs a considerable part of the busy population. Economists allocate the main reasons for prosperity of economy and business in Singapore. For instance, a basis of SME of Singapore is providing various services: trade, transport, communication, financial, tourist and others which provide jobs for the most part of the population of the country. Secondly, acts of the country created favorable conditions for opening of business and implementation of direct activity which are subject to strict execution. Special privileges are calculated on SME only beginning the business, for example, concerning SME there is preferential tax law which is directed to attraction of the foreign capital and investments. There is no duty on transfer of profit, guarantees of investments of money in economy, etc. are provided. The Government of Singapore is interested in assistance of development of SME for the purpose of
their competitiveness in the international market. Yet, in Singapore a huge number of various programs for preferential crediting which include special loans, insurance of credit risks, granting subsidies, financing of training and professional development of shots of SME takes root. So, the SME in Singapore is the basis of the economy at the expense of the favorable economic situation which developed in the country and attractive investment image and also the thought-over state policy in the field of support of SME [8].
Strong support from the state and various public funds which in the countries with the developed market economy is rendered to small business should be considered as perspective investments in scientific and technical progress and improving competitiveness of the country on the way of strengthening orientation of national economies to resource-saving and the solution of social problems by forces of the population (a problem of employment, increase in the additional income working at a basis of secondary employment, etc.). In addition, giving financial support to the small business plays more and more major role in national economy, the state keeps in hands economic levers of control of development of situation in period of crisis [9].
The government of Singapore is interested in assistance of development of SME for the purpose of their competitiveness in the international market. Specially created Spring agency providing development and implementation of various programs of assistance of SME, development of enterprise abilities
vices, training for business management is engaged in support of SME in Singapore. Also a huge number of various programs for preferential crediting which include special loans, insurance of credit risks, granting subsidies, financing of training and professional development of shots of SME takes root. So, the SME in Singapore is the basis of the economy at the expense of the favorable economic situation which developed in the country and attractive investment image and also the thought-over state policy in the field of support of SME. Considering the above review of development of the sector of SME in foreign countries, it is possible to draw a conclusion that the level of development of SME directly defines extent of development of national economy in general. So by means of experience of Singapore, further can recommend several effective tools which can be applied in Uzbekistan too:
- Upgrade and improve services of "Agency of public services" concerning business operations, simplify processes of registration, management, control and operation of enterprises by applying new technologies and modern software.
- Promote establishment of such innovative and effective companies as Spring in Uzbekistan.
- Use special fiscal tools in order to motivate enterprises and promote them to openly operate, extend production and incomes, conduct international contracts.
- Involve foreign experts to implement experience, consult and train national entrepreneurs.
of subjects of SME, providing consulting ser-
Библиографический список
1. Шрейдер А. С. Формы и методы государственной поддержки малого и среднего бизнеса в республике Сингапур. - 2013.
2. Алиев Б. Х., Мусаева Х. М., Иманшапиева М. М. Малый бизнес в условиях инновационного развития экономики Российской Федерации //Финансы и кредит. - 2011. -№ 37 (469).
3. Абдуллаев А. М., Курпаяниди К. И. Об инновационной составляющей предпринимательской среды // Экономическое возрождение России. - 2012. - № 4. - С. 129-134.
4. Курпаяниди К. И. Государственное регулирование инновационного процесса в Узбекистане //Всероссийский экономический журнал ЭКО. - 2014. - № 6 (480).
5. Курпаяниди К. И. Институциональные основы системы государственной поддержки малого предпринимательства: опыт США //Национальные интересы: приоритеты и безопасность. - 2012. - №. 41.
6. Курпаяниди К. И. К вопросам оценки эффективности предпринимательства в рейтинге FORBES" лучшие страны для бизнеса" (на материалах Республики Узбекистан) // Бюллетень науки и практики. - 2018. - Т. 4. - № 3. - С. 193-202.
7. Курпаяниди К. И. Актуальные вопросы оценки инвестиционной привлекательности и факторы активизации инвестиционных потоков // Экономика, предпринимательство. Право. 2011. №9. URL: https://cyberleninka.ru/article/n/aktualnye-voprosy-otsenki-investitsionnoy-privlekatelnosti-i-faktory-aktivizatsii-investitsionnyh-potokov (дата обращения: 31.05.2019).
8. Курпаяниди К.И., Ашуров М.С. Узбекистонда тадбиркорлик мух,итининг замонавий х,олати ва уни самарали ривожлантириш муаммоларини бах,олаш.Монография. GlobeEdit Academic Publishing, European Union, 2019.
9. Kurpayanidi, K. I., & Abdullaev, A. M. Actual issues of the functioning of an innovative industrial enterprise// ISJ Theoretical & Applied Science, 2018. - №11 (67). - P. 74-81.
АНАЛИЗ ОПЫТА СИНГАПУРА В ГОСУДАРСТВЕННОЙ ПОДДЕРЖКЕ И РЕГУЛИРОВАНИЯ ПРЕДПРИНИМАТЕЛЬСТВА
А.М. Абдуллаев, канд. экон. наук, доцент Д. Юнусова, студент Ферганский политехнический институт (Узбекистан, г. Фергана)
Аннотация. В статье исследованы важные аспекты, влияющие и способствующие развитию предпринимательства и бизнеса, путём анализа методов государственной поддержки и регулирования высокоразвитого государства как Сингапур. Как заключение, даны некоторые рекомендации к вопросу внедрения методов, взятых из мирового опыта.
Ключевые слова: инновационный бизнес, МСБ, предприятие, поддержка, способствовать, реализовать, продвигать.
