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5SCIENTIFIC PROGRESS VOLUME 4 I ISSUE 4 I 2023 _ISSN: 2181-1601
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FOREIGN EXPERIENCE OF SMALL BUSINESS DEVELOPMENT AND DIRECTIONS OF ITS INTRODUCTION INTO THE ECONOMY OF OUR
COUNTRY
Odina Nasridinovna Teshabayeva Maftuna Mukammalovna Abdullayeva
Lecturer, Fergana state university 2-course master of economics speciality,
Fergana state university
ABSTRACT
At the present stage of economic development, small business and private entrepreneurship in our country are one of the main factors of economic growth, and the main goal of the ongoing economic reforms is to accelerate the development of industries and spheres of the economy by creating a favorable environment for private entrepreneurship.
Key words: small business, market, product, development, enterprises, profit
The social, political and economic circumstances characteristic of the transition period to a market economy have an important impact on the stratification of entrepreneurs. In the first periods of the transition period in small business, there are not only differences in the ability to farm and promote market conditions, but also negative symptoms, i.e., to varying degrees of decline in production in different industries, monopolies of commodity producers and the possibility of their influence on the prices of goods and services. The differentiation of small businesses will also depend on the differentiation of the material and technical base inherited by them, aspects of their specialization and, finally, on the ability to adapt to market relations, leaving the conditions of the totalitarian-planned system.
The development of small business acquires specific features and peculiarities in foreign countries, including European ones. Because the development of market relations has been developing in European countries for several hundred years, and noticeable results have been achieved.
In the following years, a number of small business development programs were adopted at the level of the European Community. These programmes have been enriched by additional programmes adopted at the national level by the member countries of the European Community. But it is worth noting that these programs did not use a unified approach to identifying small businesses. As a result, different criteria were used to identify these enterprises.
In this regard, the European Commission has developed a recommendation on the identification of small and medium-sized enterprises. This recommendation sets clear
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boundaries for the definition of micro, small and medium-sized enterprises throughout the EP (Table 1).
Table 1
Small and medium-sized businesses adopted by the European Community new business identification criteria [1]
Criterion Micro- small medium
enterprises enterprises enterprises
The maximum number 10 50 250
of handlers is from
Maximum product
turnover, million dollars. - 7 40
Euro
The maximum final 5 27
book value, mln. Euro
To obtain the status of a micro or small enterprise, enterprises must meet at least two of the above criteria: the number of employees in the enterprise and one of the financial criteria - total turnover or final book value. In the European Community, the criteria for small and medium-sized enterprises can be revised every 4 years, depending on the prevailing socio-economic situations.
As you know, small business is one of the main sectors of the economy that allows you to create jobs and expand the scope of activity. In 1995, in 19 European countries (member countries of the European Free Trade Association), the number of private enterprises in industries other than mining and agriculture was 16.5 million, of which 99.8% were small and medium-sized enterprises. And 92% of small and medium-sized enterprises were microenterprises (up to 10 full-time employees). The number of people employed in this field is 100 million more than one.
Among the countries, one of the countries with highly developed production is Italy. And the main pillar of such success is small business.
Italian small businesses are known for their branching or specialization in the production of one type of product or one type of product. In terms of output and growth rates of small enterprises, Italy can only be compared with Greece and Spain. In Italy, the share of industrial enterprises with less than 100 handlers in the total number of enterprises is 98 percent, and enterprises with less than 20 handlers- almost 90 percent. The average annual number of workers employed at Italian enterprises is 7 people.
It is worth noting that Italian small enterprises occupy a significant place in the export of food and other consumer goods. They are also leaders in the export of semifinished products and components, machine tools, textiles and leather, agricultural, Uzbekistan www.scientificprogress.uz Page 388
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packaging, woodworking, ceramic and metalworking equipment, as well as minitechnologies.
At this stage, it is natural to wonder how Italian small businesses have achieved such a level of competitiveness. The answer to this question can be found not in a single small enterprise, but in the basis of "clusters" or "industrial areas" - a system of enterprises with a specialized division of labor for the production of a certain type of product and organized along a single target path. This is also the main reason for the great interest in "clusters" on the part of entrepreneurs, professionals and scientists.
In Italy, small enterprises have the character of specialization in one industry or the production process of one type of product. At the same time, enterprises working in related industries are also interested in increasing specialization. Such specialization is called "clusters of small enterprises".
Italian clusters-denote a group of small enterprises located in relatively limited geographical regions and engaged in the production of the same goods. Although there is an atmosphere of mutual competition between enterprises, at the same time there is a high level of cooperation between them. Because at the same time, the production process is divided into certain stages, and a certain company is responsible for each of them. Therefore, in specialized small enterprises, the workflow is divided among themselves, and they can be organized into groups depending on the requirements of the market.
Large enterprises with assembly lines of production use the services of clusters of small enterprises that have the flexibility and ability to adapt very quickly in the process of providing the production process with raw materials or components (Fig.1).
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Figure 1. Interaction of enterprises belonging to Italian clusters Uzbekistan www.scientificprogress.uz Page 389
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It is worth noting that with such specialization, enterprises will be inextricably linked, but this does not mean their interdependence. On the contrary, full independence in the choice of production directions and partners is ensured. Each enterprise deals with one stage of the production process, without which one cannot function.
The importance of distributing the production process between a large number of small enterprises ensures the achievement of a high level of specialization at complementary stages of production. At the same time, it is easier for newly emerging enterprises to enter the network and occupy a niche.
Cluster associations can include micro, small and medium-sized enterprises or also consist of large enterprises that have organized subcontractors around themselves. Some clusters specialize in only one production process, while others include various production and service industries that serve related activities or, ultimately, one large industry.
The advantages of small enterprises concentrated in clusters in competition are important in three aspects:
- specialization;
- cooperative;
- flexibility.
When enterprises are organized into clusters, their small size cannot serve as an obstacle to using the services of external suppliers of goods and other structures. The specialization of enterprises gives them the opportunity to use their resources in an optimal way.
Specialization also makes it possible to effectively solve problems related to product quality control. If a firm is engaged in the same type of activity, it will have to work hard in one direction and be in constant search.
As a result of the growing specialization in the labor market, local workers, specialists, technicians, managers and consultants often move from one firm to another. Thus, the advantages of specialization and new technologies (know-how) extend to the entire local system, and not to a single company. In addition, local infrastructure and training centers are adapting to the demand for clusters.
A group of enterprises (clusters) organized into a single production system and having a division of labor also relies on mutually beneficial cooperation. The advantages of cooperation are manifested in the following:
-in the process of cooperation, small enterprises can deepen their specialization and mutually compensate for their weaknesses;
-cooperative relationships help to make the production process extremely flexible, since they can, by mutual agreement, increase production as demand increases and reduce production when demand decreases.
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Clusters are stratified by size, structure, specialization, level of development, location region and other factors.
There are no special rules that determine the size of clusters. In Italy, you can find clusters of different sizes. For example, more than 40 thousand workers, about 10 thousand enterprises and several districts (Bella, Como, Carpi, etc.) covering Prato, you can point to the Gorotal ceramic network cluster in Puglia, which has about a hundred enterprises with about one thousand employees.
The size of clusters may refer to:
- cluster activity period;
- market capacity.
-the presence of organizational and economic, technical-technological and institutional opportunities that create conditions for the development of production.
The second aspect in cluster stratification is their structural structure. The main five types of domestic production systems can be listed:
Clusters containing several small enterprises specializing in the production of the same goods.
Clusters of small and micro-factories, which are organized around one or more large enterprises and are based on a contract relationship.
A subcontractor system centered around several contractors.
According to the degree of development, it is possible to observe clusters that are forming, growing and entering a period of maturity.
The clusters that are now forming are characterized by being specialized in a narrow range and, as a rule, oriented towards meeting the needs of local markets.
The growing cluster is characterized in many ways by covering a wider range of areas, seeking to expand the scope of activity even beyond the scope of local markets, and a system of firms acting as subcontractors of large enterprises.
The maturity of the cluster is determined by its strong position in domestic and international markets, the presence of deep specialization and the acquisition of systems of contracting and subcontracting.
The Regulation, Coordination and support of the activities of clusters is engaged in widely progressive institutional (chambers supporting entrepreneurship, associations, centers, educational institutions, etc.) and state structures. The Italian experience shows that perfectly formed institutional systems are important in the development of clusters.
With the help of institutional structures, emerging enterprises can start their activities with limited investment and less risk.
In the successful operation of small business enterprises and their capacity building, it is important to provide high-quality business service. Among the institutional structures, which are called" business support institutions", information and
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counseling centers occupy a special place. They are a means of effective support of beginner entrepreneurs who are just entering the business in the right way of their work, ensuring the stability and progress of operating enterprises.
Small enterprises developing at the highest pace in European countries make the most of their business service in solving problems that they cannot independently solve. Analysis shows that the governments of developed countries with a market economy pay special attention to the development of entrepreneurial activity. In these countries, special service networks have been formed aimed at meeting the needs of entrepreneurs. In particular, the activities of the Eida Center for the relief of the business environment (BE) are aimed at facilitating the business environment and establishing favorable conditions for small enterprises. In the United States, the Small Business Administration (SBA), established in 1953, has for many years been instrumental in defining the main directions of small business policy. A similar structure exists in Portugal. The small business administration implements its policies through the small entrepreneurship institute and the investment fund. In the United Kingdom, Small Business Service (KBS) is established, which has a unique place in the acquisition of qualified service services by small firms.
Support for small business enterprises is necessary not only because their size is small, but also because they are able to operate on the basis of high profitability, as well as produce competitive products in the domestic and foreign markets due to their ability to innovate.
Business service in EI is understood as groups of several types of activities. Their type depends on the technical classifications of entrepreneurial activity. EHDa business service includes a highly qualified service service divided into 8 groups:
- information technology related service;
- professional service: legal advice, accounting and reporting, financial management, business planning, business management issues, etc;
-marketing service: marketing research, advertising, promotion of the sale of goods, etc;
-technical service: architecture and design, engineering services, technical tests,
etc;
-rental and leasing service: transportation and equipment rental, including office equipment, computer equipment rental, etc;
-operation service: delivery of material resources, performance of various work and services related to production;
-financial service: credit, insurance, securities market and stock exchange, factoring, futures, etc;
-other service types.
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More than 500 European Information Centers (EAMS), with support from the European Commission, operate in eh member countries. EAMS provide assistance to entrepreneurs by improving the Information Service, one of the main tasks of the European community in the implementation of its policies in the industry. Today, EAMS are organized in 37 countries of Europe and the Mediterranean. They act as a ring connecting European institutional structures and local entrepreneurs. Their main goal is to provide assistance to business entities by establishing an information and consulting service in all regions that are part of the Eh.
Along with EAMS, business information centers (BAMS) operate in various countries in Europe. The small business service (KBS) is one such centre operating in the United Kingdom.
The small business service (KBS) is the Enforcement Agency of the Department of trade and industry in the United Kingdom. KBS helps small businesses make the most of their capabilities and implement business ideas. The agency calls on Central and local government bodies to "take care of small businesses above all", to prove the competitiveness of small businesses and to encourage their novatorical abilities.
Business Challenge Ltd. It was founded in 1991 to serve small businesses. It supports entrepreneurs seeking support in the field of effective business management. Business Challenge Ltd advises small businesses on business planning, financial plans and budget formation, cash flow movement, government guarantees and benefits.
An important component of the information and consulting service in Germany is the Chamber of Commerce and industry, of which all small business enterprises are members. The chamber provides free services to entrepreneurs. It carries out the work of organizing training courses, helping enterprises to establish interaction and providing information about competitors in the domestic and foreign markets of Europe.
Those engaged in small businesses market goods and services based on the demand needs of the population, increase the employment of the population, become a source of income and satisfy consumption in relation to the income generated.
Life experience confirms that production on a small scale of production also has its advantages. This is based on factors such as the sufficient development of small technologies in the current period, the high productivity of labor in small businesses, the expansion of the ability to produce quality products and withstand competition in the market, the fact that small and medium-sized enterprises do not require large capital investments, work for large companies in the local market or national economy, therefore quickly adapt
It is no secret that the development of market relations will depend on the proportional interaction of various industries and the organization of production within the framework of market requirements. Market regulations lead to the specialization of
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production and stimulate the formation of specific aspects of economic activity based on consumer demand.
During the transition period, structural changes in the economy will be aimed at the formation of a self-correlation in various specialties of production and a reasonable ratio of the creation of goods and services within the country. In this case, on the one hand, the development of production at the expense of the organization of economic entities based on various forms of property through the nationalization and privatization of state-owned production enterprises, on the other hand, an economic background is created for the development of small-scale production through the localization of production.
During the transition period, small-scale entrepreneurs provide the welfare of living within their capacity by making ends meet, making money, and engaging in small-scale entrepreneurship. The scale of small entrepreneurship will be tied to the level of economic development of each country. In relation to this, its species continue to develop.
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