CC BY
33EFFICIENCY OF FORMATION OF FRANCHISE IN SMALL BUSINESS
DEVELOPMENT Khodjayev A.R.1, Amonov M.T.2
1Khodjayev Anvar Rasulovich - Lecturer; 2Amonov Mirzohid Tuymuratovich - Lecturer, DEPARTMENT OF ECONOMICS, BUKHARA STATE UNIVERSITY, BUKHARA, REPUBLIC OF UZBEKISTAN
Abstract: due to the growing share of the private sector in our country, the formation of franchising in the development of small business in the country will have a positive impact in the future. As a form of franchising, small business is distinguished as a direction that allows you to set up a sustainable business that is profitable in the short term. Ensuring business success is the most important task for start-ups. For those who want to test their strength in the business world, it is advisable to choose safe structures for business activities. Keywords: franchising; entrance fee, royalties, surcharges.
Small business has a special place in the world economy and the system of regions as one of the most highly developed, effective forms of economic activity. In developed countries, small business accounts for 60 percent of GDP and more than 50 percent of the employed population. Small business also hinders the development of monopolistic processes in the economy, accelerates the development of science and technology, promotes structural change in the national economy and its regions.
In the context of modernization of the economy, President of the Republic Sh. Mirziyoyev in his Address to the Oliy Majlis said: "... not everyone can be an entrepreneur. Therefore, it is necessary to work systematically with such people and provide them with a decent job by retraining them for the profession. $ 700 million will be raised for these purposes. We must fully support the entrepreneurs who create new jobs, and, if possible, carry them on our shoulders." Only small businesses with high socio-economic efficiency can contribute to economic growth and employment.
What is franchising? Franchising (or franchising) is the sale or temporary use of a trademark or company technology (organizational methods) to another entrepreneur. Within the framework of franchising, two persons participate as a subject of the relationship. The owner of a trademark or technology is called a franchisor. The person who purchases the opportunity to exercise the rights belonging to the franchisor is called the franchisor. In this process, the set of rights granted to the franchisee by the franchisor is often referred to as the franchise. According to the current legislation of the Republic of Uzbekistan, only citizens registered as commercial organizations and business entities can be participants in the franchise agreement.
The meaning of franchising is to disseminate through the multiplication of a successful business, that is, to master the image and technology of an enterprise that has been thoroughly tested in practice and is operating successfully. The franchisor grants the franchisee the right to use its name, work style, know-how, experience, knowledge, production and management technologies on a paid basis. In doing so, the franchisor usually assumes the responsibility of assisting in setting up the business, providing technical and advisory assistance.
The franchisee is known as a franchisor by the way and manner in which he conducts his business under the franchisee brand, using his reputation in the market of goods and services.
There are three types of fees in franchising relationships: entry fees, royalties, and surcharges. The entrance fee is paid by the franchisee as a down payment for the subsequent use of the name. The amount of payment depends on the area of business, the internal standards of the trademark owner and the wishes and desires of the franchisor. Royalties are periodic payments made to a franchisor on a monthly or quarterly basis for the use of a trademark and business system by a franchisor. In most cases, royalties are defined as a percentage of the franchisee's income, but sometimes the franchisor may assign a fixed fee that is not related to income. Additional fees are not found in all contracts. Such payments are made on a one-time or periodic basis, usually for advertising and PR, the purchase of equipment (if the equipment is antique and expensive), the purchase of goods from the franchisor, the development of the franchising network. In addition, the franchisee must invest in its own development to meet the terms set out in the contract by the franchisor.
The advantages of franchising are:
successful organizational models and effective organizational form of distribution and reproduction of modern technologies;
"educational school" for small business;
method of cooperation of entrepreneurs with practical results;
An effective form of attracting people and their funds to entrepreneurship.
One of the important advantages of franchising is to capture the competitiveness and increase the competitiveness of the whole network. This advantage is provided by:
uniformity of development strategy and uniformity of activities of all participants;
constant exchange of information (ie the ability to be aware of innovative ideas and accurately assess the situation in the market, which in turn increases the level of strategic planning and marketing);
joint activities to provide goods / services in the market (unified marketing strategy, general marketing activities, including centralized advertising costs) and to determine the terms of supply of resources (search and find suppliers, get discounts and other benefits);
Increase of goods and services, staff skills and reputation of the whole industry.
There is a division of labor between the franchisor and the franchisor, in which the franchisor is responsible for the tasks performed by the large enterprise, including research, marketing, contracting with resource suppliers, special measures to develop and promote the corporate network image, etc. , provides network business - specific network flexibility with its operations.
As a result, all participants in the franchise network will be able to reduce the cost of advertising and other marketing activities, research and staff training, as well as save money on purchases from suppliers. The network itself is an excellent mechanism for sharing useful information and generating new ideas.
In conclusion, we can say that the share of the private sector in our country is growing. In this regard, we have seen that the formation of franchising in the development of small business in the Republic will be effective in the future. As a form of franchising, it attracts small businesses by enabling them to set up sustainable businesses that are profitable in the short term. Ensuring business success is the most important task for start-ups. For those who want to test their strength in the business world, it is advisable to choose safe structures for business activities. There is a division of labor between the franchisor and the franchisor, in which the franchisor is responsible for the tasks performed by the large enterprise, including research, marketing, contracting with resource suppliers, special measures to develop and promote the corporate network image, etc. , provides network business - specific business flexibility with its operations.
As a result, all participants in the franchise network will be able to reduce the cost of advertising and other marketing activities, research and staff training, as well as save money on purchases from suppliers. The network itself is an excellent mechanism for sharing useful information and creating new ideas.
Franchising provides an opportunity to attract people to the business who have organizational skills but do not yet believe in their own strengths and skills and do not have their own antique business idea. It will be easier for such people to do business under the auspices of successful individuals and organizations. Thus, the expansion of franchise systems will increase the economic activity of the population, allow the use of funds collected in the form of money and property as an investment in the economy.
Therefore, we have witnessed the development of small business in our country, which has not yet been thoroughly studied. The purpose of studying them is to draw the right conclusions about the development of this field.
According to the results of the study, the scientific conclusions are as follows:
Small business and entrepreneurship will increase the share of the private sector as a result of the use of foreign experience to develop their business.
Improving the efficiency of use of the franchising network in the formation of small businesses. It is a franchising network that allows small businesses to set up sustainable businesses that are profitable in the short term.
The possibility of reducing costs through the franchising network in the development and organization of small business.
The article contains the following suggestions from the author:
The Chamber of Commerce and Industry of Uzbekistan should publish explanations, literature on the franchising network for entrepreneurs and farmers' associations and involve them in this activity.
It is necessary to organize and explain the disciplines of the franchising network in higher education institutions. Explain to graduates that the franchising network is effective in starting a business.
It is difficult to get products to the world market in agricultural production, so it seems that the production of competitive products through franchising is effective.
If these proposals are put into practice in the economy of our country, we believe that this will be an important breakthrough in the development of our country in the development of small business.
References
1. Tsirat A.V. Franchayzing i franchayzingovyy dogovor. [Franchising and franchise agreement] // Kyiv: Istina, 2002.
2. Rasulovich K.A. THE ROLE OF AGRO-TOURISM IN THE DEVELOPMENT OF SOCIO-ECONOMIC INFRASTRUCTURE IN RURAL AREAS // Наука и образование сегодня, 2021. № 3 (62). Р. 13-14.
3. Alidjonovich R.D., Umarovich A.S. Budget Policy in Uzbekistan: Practical and Strategic Directions // European Journal of Business and Management Research, 2020. Т. 5. №.1.
4. Khodjayev A.R. et al. EFFICIENCY OF USING MODERN INFORMATION AND COMMUNICATION TECHNOLOGIES IN SMALL BUSINESS // World science: problems and innovations, 2021. Р. 130-132.
5. Sherov A.U. ANALYSIS OF FACTORS OF BUDGET POLICY EFFECTIVENESS // Economics and Innovative Technologies, 2019. Т.№. 3. Р. 3.
6. Rasulovich K.A., Ulugbekovich K.A. SECTION: ECONOMICS // POLISH SCIENCE JOURNAL, 2020. Р. 25.
7. Junaydullaevich A.A. Innovative factors for agriculture development // Academy, 2020. № 4 (55).
8. Xodjayev A. et al. THE ROLE OF SMM MARKETING IN SMALL BUSINESS DEVELOPMENT DURING A PANDEMIC // ЦЕНТР НАУЧНЫХ ПУБЛИКАЦИЙ (buxdu. uz), 2020. Т. 1. № 1.
9. Qulliyev O. Covid-19 и экономика Узбекистана // ЦЕНТР НАУЧНЫХ ПУБЛИКАЦИЙ (buxdu. uz), 2020. Т. 2. № 2.
10. Qulliyev O. Принципы функционирования и основные направления деятельности многосторонних банков // ЦЕНТР НАУЧНЫХ ПУБЛИКАЦИЙ (buxdu. uz), 2020. Т. 2. № 2.
11. Qulliyev O., Jiyanov L. Инновационное развитие и сельскохозяйственный подоход к сельскому хозяйству // ЦЕНТР НАУЧНЫХ ПУБЛИКАЦИЙ (buxdu. uz), 2020. Т. 2. № 2.
12. Anvarovich Q.A. et al. THE ECONOMIC MODERNIZATION OF UZBEKISTAN // ResearchJet Journal of Analysis and Inventions, 2021. Т. 2. № 05. Р. 332-339.
13. Бобоева Г.Г., Файзиев С.Н., Амонов М.Т. Развитие интеллектуального потенциала Республики Узбекистан // Наука, техника и образование, 2020. № 11 (75).
14. Tuymuratovich A.M. The Importance of Small Business in a Market Economy // Academic Journal of Digital Economics and Stability, 2021. Т. 7. Р. 61-68.
