CC BY
16Hasan ABULKASIMOV
Doctor of economic sciences, Professor, National University of Uzbekistan named after Mirzo Ulugbek
ECONOMIC SECURITY FACTORS OF ENTREPRENEURSHIP IN CORONAVIRUS PANDEMY AND GLOBAL CRISIS
In a market economy, economic activities of business entities are carried out these activities on the basis of risk under the influence of various risks and threats. Small business activities are affected by various economic threats. These threats put small businesses and private entrepreneurship at risk of crisis and bankruptcy. Success in business requires protection from various threats and dangers. Therefore, it is important to ensure the economic security of business activities.
Interest to the study of the entrepreneurship economic security, and economic security of business activities in the economic literature is growing up every year. However, a single definition of entrepreneurship economic security's concept has not been developed yet. In the economic literature there are different approaches to the definition of this concept. Some approaches use the concept of economic threats to clarify the meaning of the concept. In the second approach, instead of these concepts, the achievement of the set goal is defined using the concepts of enterprise activity. In the third approach, the two approaches are combined [1].
In our perspective, external threats include international and national threats. International threats are reflected in general economic instability, international trade instability, and international competition (Figure 1).
General economic threats include the economic cycle, the global financial and economic crisis and recessions. Instability in foreign economic activity is reflected in non-fulfillment of foreign trade agreements, negative changes in quotas [2]. Threats to international competition are seen in the loss of export markets due to the bankruptcy of foreign partners and partner enterprises or pressure from stronger competitors in the international market, and a decrease in competitiveness. Internal threats include threats related to the competitive position of the business entity, management and marketing policies, resources and their use, as well as fraudulent behavior of managers and employees.
The coronavirus pandemic and the global crisis in the world and in Uzbekistan are external threats to entrepreneurship. Due to quarantine measures imposed during this period, business activity decreased. In January-June 2020, the number of newly created small businesses and microenterprises decreased by 7443 compared to the corresponding period
in 2019. The share of small businesses in GDP fell by 0.2%, industry - 7.5%, agriculture, forestry and fishery - 0.3%, construction - 5.4%, trade - 3.1%, exports - 4.8%, imports - 12.1% [3].
Figure 1. Threats to the economic security of entrepreneurial activity
In order to mitigate the negative effects of the coronavirus pandemic and the global crisis in Uzbekistan, a number of Presidential Decrees were adopted: PD-5969 dated 19 March 2020 "On priority measures to mitigate the negative impact of the coronavirus pandemic and the global crisis on sectors of the economy", PD-5978 dated 4 April 2020 "On additional measures to support the population, economic sectors, and business entities during the coronavirus pandemic", PD-5986 dated 27 April 2020 "On additional measures to support the population and business entities during the coronavirus pandemic", PD-5996 dated 18 May 2020 "On further measures to support the population and business entities during the coronavirus pandemic", PD-6029 dated 27 July 2020 "On additional measures to support the population, business entities, and public catering, trade and services to reduce the negative impact of the pandemic coronavirus". In addition, the Anti-Crisis Fund was established to mitigate the negative effects of the pandemic on the country's economy.
«НОВАЯ АРХИТЕКТУРА ПОСТРОЕНИЯ ЭКОНОМИКИ В ПОСТПАНДЕМИЙНОМ МИРЕ»
In his address to the Oliy Majlis (Parliament), President Shavkat Mirziyoyev said that in order to support the population and business entities during the coronavirus pandemic, state enterprises and more than 500 thousand business entities and about 8 million citizens were provided with a total of 66 trillion soums tax benefits, loan extension and financial support. Business entities received 100 trillion soums, which is almost 4 times more than in 2016 [4].
Micro-enterprises, small businesses and individual entrepreneurs, which ceased their activities and revenues from the sale of goods (services) have decreased by more than 50 percent compared to the first quarter of this year, were granted with the right to interest-free deferral (installment payment), until 31 December 2020, of turnover tax, property tax, land tax, water use tax (further for 12 months) and social taxes (further for 6 months). These benefits have allowed a total of 230 billion soums to be saved for about 4,000 enterprises and used as working capital [5].
As a result of the implementation of measures to reduce and eliminate the negative effects of the coronavirus pandemic and the global financial and economic crisis in our country in January-December 2020, GDP rose by 1.6% compared to the corresponding period of 2019, industrial production by 0.7%, agricultural production increased by 3.0%. However, GDP per capita declined by -0.3% [6]. In 2020, 93.2 thousand new small enterprises, micro-enterprises (excluding farms, dehkan farms) were created. This is 0.4% more than in 2019. During the analysis, the share of small business in GDP rose by -0.3%, agriculture, forestry and fisheries by -0.9%, construction by -3.4%, trade by -1.5%, services by -1.7%, -6.5% in exports and -9.8% in imports. Its share increased by +1.7% in industry and by +5.4% in investments [7].
The President of the Republic of Uzbekistan Sh.M. Mirziyoyev proposed to authorize the Business Ombudsman to prosecute officials who violated the property rights of entrepreneurs, to extend the deadline for another year for payment on the land and property taxes in the amount of 400 billion soums of 20 thousand entrepreneurs and the moratorium on inspections of business entities. The head of the state also set tasks to create more convenience for entrepreneurs [4]: revocation of 105 types of licenses and permits, and simplification of procedures and rules on 115 licenses and permits; to continue to help entrepreneurs with working capital shortages get the business back on its feet in the condition of the pandemic; extension of benefits provided to tourism, transport, and catering until the end of 2021; to increase the amount of advances on public procurement up to 1 billion soums by 30%; allocation of 6 trillion soums of soft loans in 2021 for family business programs; allocation of additional $100 million to expand the rural entrepreneurship development programs; revision of about 5,000 legal acts
related to entrepreneurial activity and reduction of their number; development of a Business Code.
At this time, for a gradual recovery of the activities of business entities, and for conducting safe operations using measures to combat the coronavirus pandemic, it would be advisable to perform the following:
- among the measures aimed at removing obstacles and barriers to the rapid development of private property, private entrepreneurship: first of all, a radical revision of the mechanism of access to raw materials for private entrepreneurs, and expanding the sale of resources at public exchanges and fairs;
- strengthening the norms of legal protection of rights and guarantees for business entities and private property owners, intolerance towards unscrupulous entrepreneurs;
- optimization of privileges and preferences to create a competitive environment and equal opportunities for all business entities, and providing them not to certain enterprises, but to stimulate certain types of products and services' entities;
- formation of a reliable system of internal control in the enterprise to prevent fraud that threatens the economic security of the business entity.
This system should include a combination of a well-functioning accounting system and regular supervisory activities, improvement of the principles and methods of managers' work, as well as regular monitoring and organization of the internal audit service.
References
1. Abulkasimov M.H. THE NEED FOR INCREASING LABOR PRODUCTIVITY IN ENSURING THE ECONOMIC SECURITY OF THE PERSON// International Scientific Journal Theoretical & Applied Science p-ISSN: 2308-4944 (print)e-ISSN: 2409-0085 (online). Year: 2019 Issue: 10 Volume: 78 . Published: 30.10.2019 // http://T-Science.org
2. Vakhabov A, Muminov N, Djurakhanov F, Karimov A: The accession of Uzbekistan to the world trade organization: challenges and opportunities for the food processing industry. Uzbekistan Economy. Stat Anal Rev 2006, 4: 97-102. [http://www.uzbearingpoint.com/files/3/a43.pdf]
3. O'zbekiston Respublikasining ijtimoiy-iqtisodiy holati (Socio-economic situation in the Republic of Uzbekistan). January-June 2020. - Tashkent: UzDavStat Committee, 2020. - P. 219, (in Uzbek).
4. O'zbekiston Respublikasi Prezidenti Shavkat Mirziyoyevning Oliy Majlisga murojaatnomasi (Address of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis) // Xalq so'zi, December 30, 2020, (in Uzbek).
5. Tulyakov E. COVID-19: O'zbekiston tomonidan amalga oshirilgan choralar (COVID-19: Measures taken by Uzbekistan), (in Uzbek), //https://strategy. uz/index. php?news=1013
6. O'zbekiston Respublikasining ijtimoiy-iqtisodiy holati (Socio-economic situation in the Republic of Uzbekistan. January-December 2020. Statistical data Collection-Tashkent, UzDavStat Committee, 2021.- P. 8, (in Uzbek).
7. Same source, pages 260, 267.
