CC BY
22Iqtisodiy fanlar /Economic Sciences/Экономические науки
International journal of theoretical and practical ЩЩШ research
Scientific Journal
Year: 2022 Issue: 2 Volume: 2 Published: 28.02.2022
http://alferganus.uz
Citation:
Abdullaev, A.M. Institutional reforms as a key driver of entrepreneurial activities in Uzbekistan. SJ International journal of theoretical and practical research, 2 (2), 7-14.
Абдуллаев, А.М. (2022). Институциональные реформы как ключевой фактор предпринимательской деятельности в Узбекистане. Nazariy va amaliy tadqiqotlar xalqaro jurnali, 2 (2), 7-14.
Doi:
https://dx.doi.org/10.5281/zenodo.6466245
DOI 10.5281/zenodo.6466245
QR-Article
Abdullaev, Alisher Makhmudovich
Candidate of Economics, Associate Professor of the Department
of Economics, Fergana Polytechnic Institute
UDC 658
INSTITUTIONAL REFORMS AS A KEY DRIVER OF ENTREPRENEURIAL
ACTIVITIES IN UZBEKISTAN
Abstract: Modern entrepreneurship in Uzbekistan is considered as a target group of ongoing reforms and, most importantly, as a driving force of transformations in the socioeconomic and socio-political spheres. The analysis carried out by the author showed that at the moment entrepreneurial activity is carried out through the institutions of market infrastructure - a set of interrelated design and technological, information and production and organizational systems. Conclusions of the article: the government should think about the post-crisis period of development, develop a deeply thought-out long-term program of targeted projects for the modernization and technical re-equipment of the basic sectors of our economy, the introduction of modern innovative technologies designed to give a powerful impetus to Uzbekistan to achieve new frontiers that ensure the competitiveness of Uzbekistan in the world market.
Keywords: institution, institutional environment, institutional conditions, entrepreneurship, transformation, the economy of Uzbekistan.
ИНСТИТУЦИОНАЛЬНЫЕ РЕФОРМЫ КАК КЛЮЧЕВОЙ ФАКТОР ПРЕДПРИНИМАТЕЛЬСКОЙ ДЕЯТЕЛЬНОСТИ В УЗБЕКИСТАНЕ
Абдуллаев Алишер Махмудович
©
RESEARCH _o ni_
SJIF 2022:5.962
к.э.н., доцент кафедры «Экономика» Ферганский политехнический институт
ISSN 2181-2357
Т. 2. №2. 2022
Аннотация: Современное предпринимательство в Узбекистане рассматривается как целевая группа проводимых реформ и, самое главное, как движущая сила преобразований в социально-экономической и общественно-политической сферах. Проведенный автором анализ показал, что на данный момент предпринимательская деятельность осуществляется через институты рыночной инфраструктуры - совокупность взаимосвязанных проектно-технологических, информационных и производственно-организационных систем. Выводы статьи: правительству следует задуматься о посткризисном периоде развития, разработать глубоко продуманную долгосрочную программу целевых проектов по модернизации и техническому перевооружению базовых отраслей нашей экономики, внедрению современных инновационных технологий, призванных придать мощный импульс Узбекистану для достижения новых рубежей, обеспечивающих конкурентоспособность Узбекистана на мировом рынке. Ключевые слова: институт, институциональная среда, институциональные условия, предпринимательство, трансформация, экономика Узбекистана.
Introduction
Institutional conditions for small business formation should be viewed as a collection of rules and processes that compel small business subjects to adhere to established rules and standards. Even modest institutional structure dynamics have a noticeable, if not decisive, effect on subsystems, particularly entrepreneurial formations. The institute, rules and specific guarantors of rules are all required components of the institutional prerequisites for small business formation.
In contemporary Uzbekistan, dramatic macroeconomic adjustments are underway, with the ultimate goal of implementing the transition to an open, socially-oriented market economy. In this sense, the company structure is undergoing change as a result of resource, conjunctural, and institutional variables.
In Uzbekistan, entrepreneurship is viewed as a target group for ongoing reforms and, more crucially, as a driving factor behind socioeconomic and sociopolitical transformations. At the moment, entrepreneurial activity is facilitated by market infrastructure institutions - a collection of interrelated design, technology, information, manufacturing, and organizational systems [1],[2]. It enables the whole entrepreneurial cycle - from the germ of an idea to its final practical manifestation as a specific product or service [3]. To function effectively, the entrepreneurial institutional system should also have a favorable regulatory environment and an efficient method for introducing enterprise products [4]. As a result, the problem of institutional infrastructure formation is one of the most significant and pressing. Simultaneously, all components of entrepreneurship's institutional infrastructure - interaction with public authorities, financial institutions, availability of technological and production capacity, transparency
8
SJIF 2022:5.962
and accessibility of information - continue to fall short of meeting tough competitive market conditions and promoting entrepreneurial activity's economic efficiency growth. Additionally, the situation is exacerbated by considerable interregional disparities in entrepreneurial institutional provision.
Economic management market conditions and the need to overcome the global financial and economic crisis, as well as the elimination of the pandemic of coronavirus infection COVID-19, necessitate an intensification of efforts to boost economic dynamics [6]. This is especially true for firms in the real sector of the economy.
In conjunction with the foregoing, entrepreneurship has been highlighted as a priority sector for the country's economic development in Uzbekistan and is promoted by the state [7]. Uzbekistan increased 18 points in the World Bank's annual Doing Business survey during the last three years.
Materials And Methods
The entrepreneurial theory began with the works of representatives of the classical school of political economy, R. Cantillon and J.-B. Say, who coined the term "entrepreneur" and emphasized his capacity to take variable-income risks and perform management and coordination functions overproduction factors. Entrepreneurship theory was further developed in the works of H. Magoldt and J. Thünen, who viewed external environment uncertainty as a source of entrepreneurial income. Entrepreneurs were viewed as innovators and creators by representatives of the German historical school (M. Weber, W. Sombart, G. Schmoller, and others). J. Schumpeter defined entrepreneurship as the capacity to create novel combinations of conventional factors of production.
Further development of entrepreneurship theory is associated with the names of F. Knight, who developed the position of external environment uncertainty as a source of entrepreneurial income; J. Shackle, who analyzed the role of time in economic theory; the neo-Austrian school (L. Mises, F. Hayek), which analyzed entrepreneurship as a process; D. McClelland, and T. Schultz, who studied entrepreneurial motivation, and so on.
Representatives of the institutional orientation, such as T. Veblen, J.K. Galbraith, and J. Commons, made significant contributions to the development of the theory of entrepreneurship. The application of institutional methodology enabled the content of the agent contradiction and the firm's essence as a network of contracts to be revealed (J. Akerlof, A. Berle, R. Coase, J. Means, etc.).
W. Baumol, R. Villigol, and J. Panzar, among others, attempted to integrate the category "entrepreneurship" into the standard economic model. The findings of studies on the factors affecting entrepreneurialism are presented in the works of C. Dean, S. Zar, and A. Thomas, among others. The relationship between economic growth and entrepreneurial development was examined using neoclassical analytical tools, as reflected in the works of Z. Griliches, E. Mansfield, M. Nadiri, M. Porter, P. Romer, and R. Solow, among others.
9
SJIF 2022:5.962
The fundamental concepts of entrepreneurship and small business in the context of institutional transformations are articulated in the works of internationally renowned economists such as J. Galbraith [8], D. Dixin [9], P. Drucker [10], A. Marshall, A. Smith [11], B. Santo [12], K. Tateisi [13], A. Hosking [14], and J. Schumpeter [15]. Among the most significant studies on various aspects of small business development in the CIS, we should highlight the work of authors such as L. Abalkin[16], V. Avtonomov[17], A. Blinov[18], T. Koichuev[19], O. Krivoruchko[20], M. Lapusta [21], A. Orlov[22], E. Primov [23], V. Rube [24],F. Shakhmalov[25], and A. Yudanov[26].
A. Hikmatov[27], B. Berkinov[28], M. Ikramov [29], N. Makhmudov, M. Tursunkhojaev, Z. Khudayberdyev, V. Baturina, and D. Trostyansky, among others, conducted studies on the peculiarities of this sector of the economy's formation and development.
A. Akhmedieva, U. Validjanova, O. Ismailova, L. Ishmukhamedova, S. Salaev, I. Tursunov, E. Ergashev, and M. Eshov, among others, devoted their dissertations exclusively to the development of small businesses and private entrepreneurship under new institutional conditions. They focused primarily on regional or branch-level solutions to this problem. However, the focus of research on the problem has shifted somewhat recently from analyzing general issues facing small businesses (their place and role in the economic system, in resolving social problems, and employment issues, for example) to analyzing the factors impeding their development and identifying conditions for small business activation. At the same time, practice demonstrates that despite the state's efforts at various levels, from national to regional, we cannot expect a significant improvement in the situation. This is due to both the multifaceted nature of the small business phenomenon and the diversity of conditions under which it operates. As a result, despite the abundance of publications devoted to various aspects of small business, the study of this issue requires additional development. The institutional conditions governing the entrepreneurial structure in Uzbekistan, in particular, have not been empirically studied.
The study's theoretical and methodological framework was established by the concepts and hypotheses that defined the principles of entrepreneurial activity. The study drew on works that formulated theories of entrepreneurship, innovation and innovative development, and state regulation of the economy, among others. The set of scientific problems was solved through the application of general scientific methods for the study of economic processes.
Results And Discussion
In 2016-2022, a number of systemic measures aimed at creating conditions for doing business and attracting foreign investment for small and private businesses, which are the foundation of Uzbekistan's economic development, were adopted. In October 2016, the Decree of the President of the Republic of Uzbekistan S. Mirziyoyev "On Additional Measures to Ensure Accelerated Development of Entrepreneurship, Comprehensive Protection of Private Property and Qualitative Improvement of the
10
SJIF 2022:5.962
Business Climate" was issued [30]. The Decree is aimed at creating an even more favorable business environment by abolishing all types of unscheduled and counter-inspections and eliminating barriers. The document pays particular attention to the adoption of effective measures to ensure the dynamic modernization of small and private businesses and stimulate their export activities, which must become the main direction of economic growth in the development of industries and regions, providing employment for the population, and also provides for additional measures to further encourage the participation of small businesses and private entrepreneurship in exports.
In accordance with the Decree of the President of the Republic of Uzbekistan "On measures to radically improve the system of state protection of legitimate interests of businesses and further development of entrepreneurship" of June 19, 2017, as well as the Decree "On improving the organization of the Chamber of Commerce and Industry of the Republic of Uzbekistan" a deep reform of the Chamber of Commerce and Industry by reviewing its objectives, functions and powers is implemented [31,32].
In order to radically improve the business environment, to create the most favorable conditions for doing business, reduce, simplify and increase the transparency of all types of procedures related to the activities of enterprises, the introduction of generally accepted in world practice, the system of criteria for assessing the business environment and on this basis to further increase the international rating of the business and investment climate in Uzbekistan, the President issued a Decree # 4455 "On measures to further radically improve the business and investment climate in Uzbekistan" on 18 July 2012.
According to the adopted document, the ministries of economy and finance, the Central Bank together with the interested departments and structures in accordance with the methodology adopted by the World Bank and its division of the International Finance Corporation to form the report "Doing Business 2017: Equal Opportunities for All" carried out extensive work on the factor analysis of the business environment and introduction of evaluation criteria and indicators that determine the country rating[33]. The government has a strategic task to increase the country's rating according to the criteria of the "Doing Business" report [34].
In order to further involve the population in entrepreneurial activities and create additional conditions for legal employment, the Decree of the President of the Republic of Uzbekistan #PP-4742 dated 08.06.2020 was adopted. "On measures to simplify state regulation of entrepreneurial activity and self-employment" [35]. According to the document, the country introduced a procedure according to which:
- Registration of self-employed persons is carried out in a notification procedure through a special mobile application or personal account of the taxpayer with the issuance of a matrix bar code (QR-code), certifying the fact of registration as self-employed, with the cancellation of the procedure for issuing temporary labor certificates;
- self-employed persons pay social tax for 2020 in the amount of not less than 50 percent of the amount of the basic calculation amount, regardless of the time actually worked as a self-employed person, the amount of which is fully referred to the off-budget
11
SJIF 2022:5.962
Pension Fund and on which the amount of earnings for calculating the pension in the manner prescribed for individual entrepreneurs is determined;
- The requirement that self-employed persons have no right to hire workers or have an employer remains;
- state re-registration of legal entities - subjects of entrepreneurship when changing their location (mailing address) is not required in the absence of tax arrears in significant amounts by implementing a notification procedure;
Registration of individual entrepreneurs in the state tax authorities is carried out at the place of entrepreneurial activity during their state registration (re-registration);
- The certificate of state registration of an individual entrepreneur is issued with a picture of the individual entrepreneur on it.
In addition, the Ministry of Economic Development and Poverty Reduction, the Ministry of Justice and the Chamber of Commerce and Industry introduced from 2021 an information system "Business Navigator", which allows the real-time use of services that facilitate entrepreneurial activities.
In this context, the potential of the middle class emerging in Uzbekistan as a result of the development of small and private business, a natural supporter of effective institutions for the protection of property rights, is important. The relevance of the problem, its scientific and practical importance, as well as the insufficient development have determined the writing of the monograph, its object and subject, its logic and structure.
References:
1. Kurpayanidi, K. I. (2015). Some Issues of Assessing the Quality of Institutional and Entrepreneurial Environment in Uzbekistan. Economic Analysis: Theory and Practice, (14 (413)).
2. Ikramov, M. A., & Alimov, G. A. (2019). The formation of demand as a factor in the innovative development of Uzbekistan. In Russia's Economic Growth: Problems and Strategic Prospects (pp. 38-44).
3. Abdullaev, A. M., & Kurpayanidi, K. I. (2014). Socio-economic aspects of functioning of small business entities in the system of institutional transformations. New University. Series "Economics and law", (2 (36)).
4. Abdurakhmanova G. K. The role of small business in the market economy // Science and Practice. 2013. - - №3 - C. 77.
5. Margianti, E. S., Ikramov, M. A., Abdullaev, A. M., Kurpayanidi, K. I., & Misdiyono, M., Khudayqulov, A. (2020). Role of goal orientation as a predictor of social capital: Practical suggestions for the development of team cohesiveness in SME's. Monograph. Gunadarma Pulisher, Indonesia.
6. Kurpayanidi, K. I., Abdullaev, A. M., & Khudaykulov, A. (2020). Challenges of coping with the economic consequences of the global pandemic COVID-19. ISJ Theoretical & Applied Science, 5(85), 1.
12
SJIF 2022:5.962
7. Kurpayanidi, K. I., & Ashurov, M. S. (2020). COVID-19 pandemic sharoitida tadbirkorlik va uni rivozhlantirish masalalari: nazaria va amaliyot. Monograph. GlobeEdit Academic Publishing. https://doi.org/10.5281/zenodo.4046090
8. Galbraith D. Economic policy is measured by results // Problems of Management Theory and Practice. - - 1999. - - №. 5. - - С. 32-37.
9. Deakins D., Freel M. S. Entrepreneurship and small firms. - McGraw-Hill College, 2009.
10. Drucker P. F. Business and Innovation. - Williams, 2007.
11. Marshall A. Principles of Economic Science //M.: Progress. - - 1993. - - Т. 1. - -С. 416.
12. Smith A. An Inquiry into the Nature and Causes of the Wealth of Nations. -Moscow: Sotsekgiz, 1962. - - 684 с.
13. Santo B. Philosophy of Entrepreneurship // Problems of Management Theory and Practice. - - 1990. - - №. 3. - - С. 96-101.
14. Tateisi K. Eternal spirit of entrepreneurship // K.: Ukrzakordonvizaservis. — 1992.
15. A Course in Entrepreneurship: A Practical Guide / Translated from English: International Relations, 1993.
16. Schumpeter J., Mileikovsky A. G., Bomkin V. I. Theory of Economic Development: (A Study of Business Profits, Capital, Credit, Interest and the Conjuncture Cycle): Per. with German. - Progress, 1982.
17. Abalkin L.I. Notes on Russian Entrepreneurship/ Selected Works: in 4 vols. v. Vol. III // VEO of Russia.-Moscow: OAO NPO of Economics.-2000.-365-436s. - - 2007.
18. Avtonomov V. Practitioners through the eyes of theorists (the phenomenon of entrepreneurship in economic theory) / / Entrepreneurship in Russia. - - 1997. - - №. 4. -- С. 5-11.
19. Blinov A. O. The State and Entrepreneurship (Theory of the Middle Class) //M.: Paleotype. - - 2003.
20. Koichuev T., Koichueva M. Theory and practice of economic development in the transition period // Reforma, Bishkek. - - 2001.
21. Krivoruchko O. N. N., Zaitsev A. A., Lobanov S. N. Stanovlenie predprinimatel'noi ekonomiki v Rossii [Formation of the entrepreneurial economy in Russia]. - Economy, 2000.
22. L. Small entrepreneurship. - Infra-M, 2005.
23. Orlov A. K. Features of the investment assessment of development megaprojects with state participation // Economics and Entrepreneurship. - - 2015. - - №. 5-1. - - С. 892-895.
24. Primov E. Formation and Development of Entrepreneurial Activity in the Kyrgyz Republic // Society and Economy. - - 2003. - - №. 9. - - С. 127-134.
25. Rube V. Institutional aspects of the organization of small business in developed countries and in Russia. Tutorial. - Litres, 2017.
13
SJIF 2022:5.962
26. Shamkhalov F. Small business in the system of market reforms: the problems of growth or survival. - - 2011. - - T. 10.
27. Yudanov A. Y. Carriers of entrepreneurship: gazelle firms in Russia // Journal of the New Economic Association. - - 2010. - - №. 5. - - C. 91-108.
28. Hikmatov A., Trostyansky D. Development of small business as a factor of economic growth in Uzbekistan // Society and economy. - - 2002. - - №. 2. - - C. 142148.
29. Ikramov M. A., Some issues of state regulation of the innovation process: foreign experience and practice of Uzbekistan //Innovation economy: prospects for development and improvement. - - 2013. - - №. 3. - - C. 198-205.
30. Collection of Legislation of the Republic of Uzbekistan, 2016, No. 40, art. 467
31. On measures to radically improve the system of state protection of legitimate interests of businesses and the further development of the entrepreneurial activity. Decree of the President of the Republic of Uzbekistan N UP-5087 of 19.06.2017 // Collection of Legislation of the Republic of Uzbekistan, June 27, 2017, N 25, Art. 522.
32. On improving the organization of the activities of the Chamber of Commerce and Industry of the Republic of Uzbekistan. Decree of the President of the Republic of Uzbekistan № PP-3068 of June 19, 2017, // Collection of Legislation of the Republic of Uzbekistan, 2017, № 26, Art. 578).
33. The Collection of Legislation of the Republic of Uzbekistan, 2012, No. 29, Art. 328; 2013, No. 36, Art. 477.
34. Kurpayanidi, K. I. (2017). "Doing Business 2017: Equal Opportunities for All" as a Driver of Entrepreneurial Environment Regulation. Economic Analysis: Theory and Practice, 16(3 (462)).
35. National Legislative Database, 09.06.2020, No. 07/20/4742/0736; 10.02.2021, No. 09/21/6165/0104; 06.05.2021, No. 06/21/6221/0428
36. https://lex.uz/ru/docs/4849605
14
