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HOME-BASED ENTREPRENEURSHIP AS A SOURCE OF REVENUE GENERATION IN THE SERVICE SECTOR
Assistant Professor Pardaeva Ozoda Mamayunusovna
Uzbekistan, Samarkand Agricultural Institute, Master
ARTICLE INFO
ABSTRACT
Received 7 October 2017 Accepted 15 October 2017 Published 7 November 2017
KEYWORDS
small business, market,
family business,
home based entrepreneurship,
manufacture,
income.
The article reveals the issue concerning small business as an important sector of a full-fledged market. Without small business, the formation of a civilized market economy is impossible. Furthermore, the question about the given limited resources which are most fully to meet the needs of the personnel of the business structure at the micro level and all members of society at the macro level is also analyzed. As the example home based business is given in the article as it is one kind of a family business which can be organized in all spheres. Conditions and types based on the content of the general labor of the house and its numerous aspects, which are similar to each other cover the article.
© 2017 The Author.
Uzbekistan belongs to countries that have a traditional type of reproduction of the population, therefore, the population growth in it is mainly due to natural growth. Among the main reasons for the population growth historical, national ones can be found.
The population of the Republic of Uzbekistan is more than 32 million people, of which 47 % are urban and 53 % are rural. In the 1990s. the annual population growth averaged 400 thousand people, or 1.5 %. According to forecasts of scientists, while maintaining such: the rate of natural increase in the population of the country by 2020 will increase to 40 million people.
The Uzbek national tradition is characterized by different folk art: making jewelry from metals, embroidery, carpet weaving.
Uzbekistan is among the labor-surplus countries. The proportion of people younger than working age in the total population is 39 %, of working age 54 %, over working age - 7 %. The total number of employed is 8.9 million people, about 3/4 of them work in the material production sectors, about 1/4 - in the non-productive sphere. Annually, the number of people employed in the economy increases by 1.5 %.
According to official statistical information, the number of unemployed at the end of the XX century amounted to more than 52 thousand people, or 0.5 % of the economically active population. At the same time, the hidden unemployment in the country is practically not taken into account, and work in the personal subsidiary farm is considered the place of employment.
Over the past 10 years, the structure of employment by sectors of the economy has significantly changed. The share of employees in the non-state sector was 74.2 %, whereas in 1991 it was only 35.3 %. The largest percentage of the non-state component is characteristic for agriculture (85%), its value in the service sector (53 %).
Small business
With the transition of the economy of the Republic of Uzbekistan to market relations, and in connection with this and the beginning of the development of small business in our country, scientific concepts and official documents began to include such concepts as "small business", "small enterprises", etc.
The so-called small economy is an important sector of a full-fledged market. Without small business, the formation of a civilized market economy is impossible.
The objectives of creating small businesses, or small businesses, are:
saturation of the consumer market with goods;
- overcoming sectoral and regional monopoly;
- expansion of competition;
- Creation of a material basis for employment of workers released from existing enterprises;
- strengthening the economic base of local authorities;
- development of villages, small towns;
- the revival of art crafts.
The economy of any state cannot develop normally without an optimal mix of large, medium and small businesses. This is proved by the whole history of economic development of the leading countries of the world.
The development of small business in Uzbekistan is of great economic importance due to the following
circumstances:
- small business allows us to fill all our markets and most fully meet the needs of the population in consumer goods and services;
- for the creation of small firms, large investments and a long period of their construction are not required;
- development of small business is one of the most effective areas of antimonopoly policy and ensuring a competitive enviromnent;
- Small enterprises are easier to manage, they do not need to create complex management structures;
- Small firms can quickly and cheaply re-equip, introduce and test a new technology, carry out partial or full automation of production, achieve the optimal combination of automated and manual labor;
- the development of small businesses can largely solve or alleviate the problem of unemployment;
- With the development of small businesses, the middle class and the class of small owners appear, interested in stabilizing the economy and establishing elementary order in the country;
Over the past 10 years, small business and private entrepreneurship in Uzbekistan has increased significantly. It plays an important role in the development of agriculture, the construction sector, the trade services sector, and their significance is also increasing in the production and light industry sectors.
Taking into account the national peculiarities and spiritual values of the republic, entrepreneurship has a special social significance.
Social efficiency reflects the degree of achievement of social parameters of entrepreneurship.
At the same time, the question is raised to the forefront: how, given these limited resources, it is most fully to meet the needs of the personnel of the business structure (at the micro level) and all members of society (at the macro level).
In order to involve the unoccupied population in productive activities, to increase the incomes of family budgets, to increase the efficiency of industrial activities of large industrial enterprises through the organization of production of certain types of components, finished products and services using home-based labor, Presidential Decree No. UP-3706 of January 5, 2006 year "On measures to stimulate the expansion of cooperation between large industrial enterprises and the production of services based on the development of hunters labor." was taken. The main objectives of the development of home work are defined as: creating favorable conditions for broad involvement of the population in domestic work, developing cooperation between industrial enterprises and citizens engaged in the production of products and services for their orders at home, primarily in the garment, haberdashery, silk, processing , the furniture industry, the electronics industry, as well as in telecommunications and various branches of services and services that make it possible to increase the efficiency of industrial production. As a result of the work carried out in 2010, 940.0 thousand new jobs were created, of which two-thirds were created in rural areas, about 65 % are in small business and services, and more than 20 % in domestic work. This direction of production development on the one hand gives entrepreneurs the opportunity to attract labor without expanding production facilities, and on the other hand it serves to increase employment and the standard of living of the population. This increases the social efficiency of entrepreneurship.
Home-based business as one kind of family business can be organized in all spheres. In what sphere there would be no home-based business, it is based on the content of the general labor of the house. As a result of its numerous aspects, they are similar to each other, regardless of sector. It should be noted that there were individual enterprises before family enterprises. Nevertheless, home-based entrepreneurship is more convenient than individual entrepreneurship. Facilities and features vary depending on the uniqueness of the service sector. To answer these questions, we have in mind the following:
First, in the process of registration of home-based business in the service sector, there are a number of exemption from worries. An individual entrepreneur has to register with the local authorities in order to start his activity, a home-based entrepreneur needs only agreements with the employer.
Secondly, jobs in the sphere of services of a home-based entrepreneur are much broader than for an individual entrepreneur. Individual entrepreneurs operate in the established manner, only one has the right to participate in business. A home-based entrepreneur carries out activities stipulated in the contract itself and may involve family members as an addition to workplaces. The difference of this aspect is very similar to the family business.
Thirdly, an individual entrepreneur engaged in business in his home should allocate that part of the house where he acts as a non-residential area, after utilities are also exceeded, and the home-based entrepreneur can conduct activities without allocating a separate site in the house and live in the house, utilities do not change and this gives an opportunity to save money.
Fourth, individual entrepreneurs in the sphere of services pay uniform taxes. Home-based entrepreneurs are exempt from taxes. This function serves the employers. Agreed with the employer, workers are paid wages within the law.
Fifthly, the activities of individual entrepreneurs working in the service sector are continuously monitored in accordance with the procedure established by the regulatory authorities. But in home business there can be a check only if there is a planned inspection of the enterprise itself, that is, the employer. This is also the basis for continuous work.
Sixth, In the field of individual entrepreneurs find the necessary tools, equipment, inventory, raw materials and their supply in their responsibility. Home workers needed tools, equipment, tools, raw materials and, as we mentioned, the company itself, that is, the employer, provides.
Home-based business is conducted in the largest industrial enterprises of the country. Features of home work, it also requires the use of other areas. All businesses have the opportunity to work at home to meet the
needs, besides workers can develop.
List of main home-based enterprises used in leading companies in the Republic of Uzbekistan:
In all industrial structures Manufacturing of sports equipment Making dishes
Execution of accounting and auditing cases Manufacture of different materials in gift items.
- In the electrical structure Manufacturing of electrical tools for households Cleaning of tilings and small parts made of plastic
- In refineries
Manufacture of polyethylene and paper bags
- In chemical plants Manufacture of polypropylene tilings
- In factories of metallurgy and processing them Manufacture of metal jewelry
Manufacture of small equipment for households
- In engineering Manufacturing of small equipment Manufacturing of blocks for cars and bicycles Separating equipment in calibers
Manufacture of plastic sheathes and plumbing items
- In furniture factories Manufacturing of fittings Collecting furniture
- In the industry, construction of materials Making bricks
Making dishes
Making doors and windows, making small parts for them
- In textile and knitwear factories Knitting handmade carpets of wool and silk Knitting of knitwear and wool products Painting materials manually
Making towels
Manufacturing of covers for equipment
- In garment factories Embroidery
Manufacture of fittings for clothes
- In the shoe factories Manufacturing of parts for shoes
- In cotton processing plants Making aprons for picking cotton
Manufacture of gloves, mattresses, pillows and kurpaclii
- In the food Confectionery production Washing glassware Production of milk
- Oil and lubricating oils Confectionery production
The basic list of types of home-based work that can be used in the service sector and in the service sector of the Republic of Uzbekistan:
- In the construction industry Making bricks
Manufacturing of construction objects Manufacturing of joiner's products Manufacturing of various ornaments
- In the sphere of housing and communal services Performing dispatch cases
Carrying out small repair work with measuring instruments
- In the sphere of civil service Washing clothes
Ironing
Delivery of washed clothes to owners
- In railway services
Case of an interpreter
Sewing of mattresses, pillows, towels
- In aviation services Washing and sewing uniforms Case of an interpreter Making small towels
- Motor transport services Car repair
- Information and communication services Blocks Maintenance
Making envelopes for mail
- Tourism and hotel services Washing clothes
Manufacturing of various ornaments Designing of bouquets Booking of hotels (dispatcher)
- In the production of goods and material maintenance Washing and sewing uniforms
Packaging of small and loose goods
- Financial and insurance services Services of the agent in the field of insurance Execution of accounting matters
- In the field of culture and art Designing of bouquets Restoration of works of art Educational services
Tutor
Distance Learning
- All branches of the non-production sector Making gifts
Sewing clothes
Repairing of small parts and equipment
The ongoing reforms in the country, based on more than ten years, show the experience that it is time to pass the law of the Republic of Uzbekistan on home-based entrepreneurship. Developing and implementing this law to the issue of employment in the country to improve their standard of living and quality.
In our country in statistical reports, the number of enterprises engaged in home-based work is both employed. The districts of the regional commission work in the cities and in the regions for the development of home-based entrepreneurship. This commission is engaged in the production of industrial enterprises and service enterprises involved in domestic work at home, at the orders of enterprises to develop cooperation between citizens of equipment, raw materials, components and semi-finished products, in order to ensure stable conditions, ensure the transfer of production and solve payment issues for their time and a place. This is proof that there are many advantages for those who want to do home-work.
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