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IMPORTANCE OF SMALL BUSINESS AND ENTREPRENEURSHIP IN THE ECONOMIC DEVELOPMENT OF UZBEKISTAN Bakieva I.A.1, Fayziyev Sh.Sh.2
'Bakieva Iroda Abdushukurovna - Candidate of Economic Sciences, Associate Professor;
2Fayziyev Shavkat Shahobidinovich - Teacher, DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP, FACULTY OF BUDGET ACCOUNTING AND STATE
FUNDS,
TASHKENT FINANCIAL INSTITUTE, TASHKENT, REPUBLIC OF UZBEKISTAN
Abstract: this article analyzes the state of small business and entrepreneurship in the economic development of the country and the importance of this sphere, taking into account its role in increasing the competitiveness of products, providing the population with jobs.
Keywords: business, entrepreneurship, development, sphere, employment, competitiveness, jobs.
Development of small business and private entrepreneurship in Uzbekistan is on the threshold of a new stage. Small business and entrepreneurship is an integral and essential sector of the market economy, forming the competitive environment. The features of this sector with a sufficient level of its development contribute to economic, social and political stability of society. Small business and entrepreneurship are essential elements of a market economy to ensure a harmonious development of the regions, largely determining the rate of economic growth, the structure and quality of the gross domestic product. One of the main advantages of a small business is that it inevitably leads to the emergence of competition in the domestic market, which in turn has a positive effect on the economic condition of the country. Small business and entrepreneurship is an important factor in the growth of national well-being, as he is the main source of income is not only a significant part of the people involved in his field, but also their families. Besides all this, small business and entrepreneurship allows a person to combine into one work and personal life, to realize itself, to demonstrate their abilities and talents.
Uzbekistan confidently and quite successfully follow the path of scientific, technical and social process of modernization of the national economy, is trying to not only lose, but to exaggerate this momentum of economic and social development, aims to quickly join the ranks of advanced countries in the world. One way to achieve this goal are the reforms taking place in the small business and private entrepreneurship. Over 26 years of independence in the Republic of Uzbekistan were held a number of activities that promote the development of small business, in fact, it plays a key role in the development of the market economy and is one of the key elements of economic growth and the possibility of regular income for its citizens.
Small business development - one of the main directions of structural changes in the economy of Uzbekistan, which creates the necessary atmosphere of competition, helps to create jobs and increase incomes. To ensure the most favorable business environment to entrepreneurs in Uzbekistan accepted system consistent measures to create maximum favorable conditions and business climate, benefits and preferences,
provide comprehensive support for the accelerated development of small business and private entrepreneurship, increasing their share in the national economy. Currently, entrepreneurs intending to start their own business, have the opportunity for two days to obtain a permit. This period corresponds to the criteria applicable in developed countries. For entrepreneurs really benefit from the introduction of the principle of "single window". The procedure for connecting businesses to engineering and communication networks, processing of export products more cheaply and simplified customs. Implemented the order in which the number of micro-audits of small businesses and farms have been reduced. From now on they will be conducted no more than once every four years. Checks of other businesses - no more than once every three years. Changed the order of conducting counter inspections.Provide a favorable legal framework for the establishment and operation of small businesses, simplified procedure of registration of business on the principle of "single window" This will free up a lot of time and will allow entrepreneurs to conduct business more effectively [1].
During the years of independence Uzbekistan has established a solid legal framework that fixes the priority of private property - the basis of the market economy. Formed a favorable business climate and reliable legal guarantees accelerated development of small business and private entrepreneurship as an important factor in the formation of the middle class of proprietors, sustainable development of the economy, creating jobs and income growth. In order to improve the activities of small business and private enterprise has adopted a number of normative and legal acts. Decree of the President of the Republic of Uzbekistan No. UP-4848 of October 5, 2016 "On additional measures to ensure the rapid development of business, all-round protection of private property and the qualitative improvement of the business climate" is aimed at further strengthening of the legal protection of private property, the creation of an enabling environment and full support of small and private businesses. Particular attention in this document is given to take effective measures to ensure the dynamic modernization of small and private enterprises and stimulate their export activities, which should be the main direction of the growth of industries and regions, providing employment.
February 1, 2017 was made the Pre sident o f the Republic of Uzbeki stan Decree № PP-2750 "On additional measures to improve the mechanisms for public services to business entities", which contributed to the revitalization of small businesses. Resolution of the President of the Republic of Uzbekistan from 10.02.2017, № PP-2768 "On creation of the Guarantee Fund of small business development" has enabled the subjects to reduce the risks in their activities. And in the Decree of the President of the Republic of Uzbekistan "On measures to further simplify the procedures and speed up implementation of the state property to be used for business purposes," Many of the procedures have been simplified with the use of state property in business.
From February 2017 by the decree of the President of the Republic of Uzbekistan entered into force yet another normative document "On the Action Strategy for the Further Development of the Republic of Uzbekistan". The basis of the Action Strategy formed the conceptual issues of socio-political, socioeconomic, cultural - humanitarian development of the country, as well as improving the business climate in economic relations. The aim of the Action Strategy is the fundamental efficiency of the reforms, the creation of conditions to ensure full and accelerated development of the state and society, the country's modernization and liberalization of all spheres of life and further development of effective protection of private property and entrepreneurship [2]. These efforts will lead to a gradual improvement of the business environment in the country. With this in mind, the third course of action strategy outlines the following tasks for the further strengthening of macroeconomic stability and sustaining high rates of economic growth: maintaining macroeconomic balance, ensuring the sustainable rate of GDP growth by deepening the structural and institutional changes on the basis of medium-term programs; strengthening of local revenues, while maintaining social spending priorities; continuation of the policy of reducing the tax burden and simplifying the tax system, improving tax administration and expansion of appropriate incentive measures; further improvement of monetary policy, the use of advanced tools of international practice, as well as the gradual introduction of modern market mechanisms in the foreign exchange regulation, ensuring the stability of the national currency; an increase in lending to private enterprise; expansion of the scope of insurance, leasing and other financial services through the introduction of new services and improving their quality, Each of the above tasks cover a certain direction to promote the development of private enterprise. If we analyze the priorities for action strategies, each of which affects in fact the possibility of the development of private enterprise. In addition, "in the structure of household incomes growing share of income from business activities, which in the years of independence has increased from 10.6 to 53 percent. This is one of the highest rates in the CIS countries [3].
On the basis of private enterprise development, the following positive developments taking place in the country, macroeconomic indicators are stable, stronger economic balance; state budget and balance of payments are executed with a surplus. Ensured the growth of exports and foreign exchange reserves; rising living standards, growing a layer of business elite in the population.
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As a result of the measures taken for the formation of the business environment, comprehensive support and further stimulate the development of small business and private entrepreneurship in January-December 2017 created 38.2 thousand. New subjects small businesses and micro-firms (without and farms), 12, 2% more than in the same period in 2016. The largest number of small businesses created in industry (27%), the trade sector (21%), agriculture, forestry, fisheries (13%) and construction (10%) (Figure 1).
0 industry
# trade
£ agriculture, forestry and fisheries
0 building
# other types
Fig. 1. The proportion of newly established micro and small enterprises by economic activity (January-December 2017)
[4]
As of 1 January 2018, in the country the number of active small business entities (without and farms) totaled 229,666 units. Small businesses and private entrepreneurship in January-December 2017: industrial output was 57 095.6 billion soums (39.6% of total industrial production), or 102.1% compared to January-December 2016; mastered investments 19 407 100 000 000 soums (32.0% of total utilized investments), or 95.5% compared to January-December 2016.; construction works on 22 173.8 billion soums (65.1% of total construction works), or 103.2% compared to January-December 2016; rendered services to 68 161.9 billion soums (58.4% of total services), or 99.9% compared to January-December 2016; It formed 88.4% of the total volume of retail trade, which amounted to 93 billion sum 508.0 (1.1% increase); provided growth road transport turnover of 5.3% (77.9% of total turnover); provided passenger growth by 3.1% (94.8% of total passenger); provided employment to 10 587.7 thousand. people, or 78.3% of all employed in the economy (growth by 1.8%) - exported products (goods and services) to $ 3 763 500 000.. the United States (27.0 % of total exports), which is 624.4 million. USD, or by 19.9% more than in 2016 (Figure 2).
Export Industry The services Building Employment
M January - December 2016 ■ January December 2017
Fig. 2. The share of small business and private entrepreneurship (as% of total volume) [4]
The growth in exports contributed to the increase in the number of small and micro enterprises that export goods and services. Compared to the year 2016, the number increased to 1310 units, in particular, industrial (733), commercial (329), agricultural (162). In terms of the main economic activities the largest share of small business and private entrepreneurship in 2017 was observed in agriculture - 99.0%, passenger turnover - 94.8%, trade - 88.4%, employment - 78.3%, cargo turnover - 77.9.In 2017, the share of small business and private entrepreneurshipGDP was 53.3% (Figure 2).
2013 2014 2015 2016 2017
Fig. 3. The share of small business and private entrepreneurshipGDP [4]
Along with the above-mentioned achievements, there are some problems that hinder the development of private enterprise: a poorly developed legal culture in the sphere of small business and private entrepreneurship, in some cases, vulnerable operating mechanism to protect the rights of entrepreneurs; private enterprise is not enough involved in the export to the country in particular, the presence of specific challenges in ensuring the quality of exported products in farming enterprises; shortcomings in the provision of social infrastructure in the regions and districts; the existence of restrictions on the provision of financial, material and technical resources for small businesses and private entrepreneurship These problems are particularly evident at the regional level. In addition, the country has a number of problems at the state level in the macro regulation of the private sector. The liberalization, modernization and diversification of the national economy of the solution is extremely important.
The system of small and private businesses have a lot of problems and state support for the sector aimed at solving them. In this context, the following priority tasks, in which decision should be involved small businesses
-to achieve by 2030 the increase in GDP not less than 2 times. This will further strengthen the economic base of the social and inter-ethnic harmony, state security, sustainable development and entrepreneurial initiative.
- to increase exports of small businesses and private entrepreneurship through JSC "Uztadbirkoreksport" and "Uzsanoateksport" as well as the Foundation of the National Bank.
- public authorities must consistently defend the interests of private property, entrepreneurship and small business as part of measures to achieve macroeconomic balance, in matters of employment, higher real incomes.
- consistently implement measures to further develop the social sphere, improving the level and quality of
life.
- need to increase support for export enterprises, fully stimulate the participation in the export of farms, small businesses and private entrepreneurship.
Thus, the development of small business and private entrepreneurship in Uzbekistan contributes to the welfare of society and quality of life.
References
1. Kabulov A.A. Modernization of financing of small business and private entrepreneurship in Uzbekistan. Uzbekistan-ekonomika-biznes.html, 2016.
2. Decree of the President of the Republic of Uzbekistan from 07.02.2017 № UP-4947 "On the Strategy of Actions for the Further Development of the Republic of Uzbekistan".
3. Mirziyoyev Sh.M. Critical analysis, strict discipline, and personal responsibility should become the norm in the daily activities of every manager.T.: "Uzbekistan", 2017.
4. [Electronic resource]. URL: www.stat.uz. The official website of the Republic of Uzbekistan State Statistics Committee. (date of acces: 12.02.2018).
