CC BY
4
УДК 334.012.64
Yormatov I. T., candidate of economic sciences
associate professor head of the department of management Ferghana Polytechnic Institute Republic of Uzbekistan, Ferghana
ISSUES OF ENTREPRENEURSHIP DEVELOPMENT IN NEW INSTITUTIONAL CONDITIONS
Abstract: The formation and further development of market relations in the Republic of Uzbekistan is inextricably linked with increasing the efficiency of entrepreneurial activity of business entities. In the conditions of reforming Uzbekistan, the problems of stabilizing the economy of its regions with the use of all available reserves of socio-economic growth are of particular importance. The paper analyzes the current effective development and priorities of the functioning of entrepreneurship in the conditions of the formation of an institutional economy. The role of entrepreneurship as a driving force of economic transformation and modernization of the state is considered.
Keywords: business, entrepreneurship, private business potential, business efficiency, institutional economy, economy of Uzbekistan.
The true goal of economic reforms in Uzbekistan is to create an efficient economy that ensures a high level and quality of life for the population; the country's worthy participation in the world economic community. A developed small business is a unique and effective tool for achieving these goals. And although small entrepreneurship was the first step that began Uzbekistan's path to a market economy, it can be argued that a high level of entrepreneurial ability has always been a distinctive feature of the Uzbek people. However, only the awareness by the leaders of the state authorities of the impossibility of effective socio-economic development of the country without the activation of the labor (including entrepreneurial) potential of the population could create prerequisites for the harmonization of the goals and interests of the state and the part of society with the highest entrepreneurial abilities [1-10].
The formation and development of market relations presupposes the free and equal existence and development of various forms of ownership and sectors within each of them. The economic structure of the modern economy is a system that includes large and small enterprises that interact and complement each other. Naturally, the nature of such interaction is determined by the economic conditions of the country, the peculiarity of the current stage of its development. In recent years, as world practice confirms, pronounced integration trends have prevailed. Currently, large enterprises are increasingly creating small ones around themselves, including on the basis of former branches, branches,
subsidiaries. Thus, they increase "market flexibility", get rid of inefficient overhead costs, and reduce the tax burden. Small business and private entrepreneurship can become the most dynamically developing sector that can have a significant impact on both macro and microeconomic spheres [11-53].
Market economic conditions and the need to overcome the consequences of the global financial and economic crisis require increased efforts to increase economic dynamics. This primarily applies to enterprises in the real sector of the economy, namely industrial enterprises. In recent years, the Government of Uzbekistan has done a lot for the development of small business and private entrepreneurship. Government intervention is sharply limited, registration procedures for small businesses have been significantly simplified and more transparent, taxation rates have been unified and reduced, the system of standardization and certification of products has been improved, many issues of free access of entrepreneurs to material and technical resources have been resolved through the development of exchange trading, new forms of business lending through micro-crediting and microleasing have been introduced. In accordance with the concept of entrepreneurship development, the state and entrepreneurship have common goals:
■ the most complete satisfaction of people's needs for goods and services and make a profit, and the state is interested in the development of domestic production, the introduction of new technologies, receiving taxes);
■ increasing the competitiveness of goods and services, expanding exports, taking a worthy place in the world market, reaching the international level.
It follows from the above that the state and entrepreneurship are allies, they need each other's support. If we take into account that during the Soviet period entrepreneurship was regarded in Uzbekistan as a relic of the past alien to socialism, was banned, and criminal liability was established for it, then the starting point of the history of the current domestic entrepreneurship should be considered February 15, 1991, when the Law "On Entrepreneurship in the Republic of Uzbekistan" was adopted. The legal foundation of entrepreneurial activity in Uzbekistan is a hierarchical system of legislative and legal acts being formed. The top of this system is rightfully occupied by the Constitution of the Republic of Uzbekistan. It states (Article 53) that "the state guarantees freedom of economic activity, entrepreneurship and labor, taking into account the priority of consumer rights." This provision of the Constitution gives the inviolable right to engage in entrepreneurial activity to all economic entities [54-78].
The next priority among the legislative acts regulating entrepreneurial activity is the Civil Code. If we analyze its norms, we can state with confidence that the overwhelming majority of them regulate economic relations, that is, the sphere where entrepreneurs participate along with other economic entities. The main regulatory provisions regulating entrepreneurial activity are contained in the Law "On Entrepreneurship in the Republic of Uzbekistan". Of great
importance for entrepreneurs are the legal protection provided by law against interference in their activities and the restriction of inspections by various authorities.
The legislation regulates:
■ authorized regulatory bodies to conduct inspections of business entities no more than once a year, and those of them that pay taxes and fees in full and on time and have annual audit reports - once every two years;
■ the deadlines for conducting inspections of the activities of business entities should not exceed thirty calendar days;
■ the inspections carried out should not create obstacles to the functioning of business entities;
■ inspections of the activities of entities - members of the Chamber of Commodity Producers and Entrepreneurs - should be carried out with the participation of their representatives, which will ensure greater objectivity;
■ the basis for inspections of the activities of business entities by law enforcement agencies (prosecutor's office, internal affairs, national security service) can only be the initiation of a criminal case.
Thus, today the legislation of the Republic of Uzbekistan provides for a number of specific measures for the development of small and private entrepreneurship [28-35].
Our analysis revealed that the main legislative guarantees and provisions aimed at supporting it include the following:
1. Inadmissibility of interference in the activities of small and private businesses. In accordance with this provision, the interference of state and other bodies, their officials and employees in the activities of small and private businesses is strictly limited. All cases of violation of the rights of small and private businesses can be appealed in court. Losses caused by actions (decisions) of state bodies, including lost profits, are subject to compensation after the relevant court decision. The seizure by the state of the property of small businesses is possible only in cases and in accordance with the procedure established by law.
2. Inspections and reporting. State statistical and accounting reports by small and private business entities are submitted in accordance with the procedure approved by the Cabinet of Ministers and providing for simplified reporting procedures and forms. This legislative measure is provided in order to avoid bureaucratic abuses by officials.
3. Guarantees of ownership. The right of ownership is one of the inalienable human rights. For entrepreneurs, it is of particular importance, since the acquisition, use, preservation and multiplication of property are important incentives for their activities.
4. Accelerated depreciation. Subjects of small and private entrepreneurship have the right to apply accelerated depreciation of fixed assets with the allocation of costs to production costs in an amount not more than twice
the norm for the corresponding fixed assets. They have the right to write off up to 50% of the original cost of fixed assets with a service life of more than three years, for which depreciation deductions have been made. However, in case of termination of the activities of a small and private enterprise before the expiration of two years from the date of its entry into force, the amounts of additionally accrued (accelerated) depreciation are subject to recovery by increasing the balance sheet profit of a small or private enterprise.
5. Preferential lending. Lending to small businesses is carried out on preferential terms with compensation to credit organizations for all or part of their lost income.
6. Insurance protection of small and private businesses. Such protection is provided on preferential terms by specialized agencies and other insurance organizations.
7. Benefits for the payment of taxes and duties. Subjects of small and private entrepreneurship enjoy tax benefits in accordance with tax legislation [36-48].
Practice shows that in 2020, small businesses produce about 53.9 percent of gross domestic product compared to 30 percent in 2000. This is, first of all, the result of the support that is constantly provided to small businesses and private entrepreneurship by the state.
Thus, the created favorable institutional conditions allowed:
1. To increase the share of small business in GDP in January-September 2021 amounted to 55.7%. The number of small businesses per 1000 people of the population was 17.3 units.
2. In January-September 2021, 76.5 thousand new small enterprises and microfirms will be created again (without dehkan and farms), which is 8.9% more than the same period in 2020.
3. In January-September 2021, to increase the volume of exports of products (works, services) of small businesses to 2543.2 million US dollars, or 24.6% of its total volume.
4. In January-September 2021, small business entities will produce industrial products in the amount of 81501.1 billion soums.
5. In January-September 2021, the share of small businesses in the total volume of industrial production will increase to 25.9%.
Currently, the nature of Uzbekistan's entrepreneurial potential is due to the transitional state of the Uzbek economy. On the one hand, Uzbekistan has demonstrated the ability to rapidly form an entrepreneurial infrastructure and the very class of entrepreneurs, especially since these concepts themselves were perceived extremely negatively for many previous decades of the Soviet economy.
On the other hand, many market structures are making confident steps, for example, the securities market (stock market).
Another important task is to transfer the majority of Uzbek old enterprises (firms) to the rails of a market economy by taking into account the impact of the market not only on its external economic conditions, but also on internal ones, i.e. to rebuild relations within companies, introduce a modern management system, expand economic democracy. It is also extremely important to form a new culture of relations between employees at privatized and corporatized enterprises, many of whom have become both owners and managers at the same time, and shareholders' awareness of their rights and obligations.
In this regard, the role and efforts of the state, as well as other public institutions (education, mass media, etc.) aimed at forming a civilized class of entrepreneurs in our country, legislative and organizational support of this process are extremely important. The large-scale expansion of the private property sector, the strengthening of guarantees and the formation of a favorable business environment were named by the President of Uzbekistan Sh.M.Mirziyoyev as one of the priorities of deepening economic reforms, which, among other measures, requires a revision in the direction of reducing the still high costs of business associated with the passage of administrative procedures in public administration and market institutions.
Numbei' of operating small enterprises 2nd míera-firni^ by region, units
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Fig. Analysis of the state of development of small businesses in Uzbekistan in 2020.
In the context of the goals of socio-economic development in the foreseeable future, clearly defined property rights and a system of institutions that allows these rights to be effectively protected can contribute to solving such tasks as:
■ increasing the participation of the population in entrepreneurial activity by limiting the risks accompanying business ownership, including the need to divert resources to protect property, and, as a result, reducing property inequality in society;
■ activation of investment activities, including by attracting foreign capital;
■ restructuring of the economy and improving its efficiency;
■ narrowing of the "shadow economy".
The system of property rights protection institutions includes a number of blocks, which include legal regulation of relations on issues and protection of property rights, the judicial system and out-of-court dispute resolution, self-organizing business structures and a number of others. Most of the basic elements of this system in Uzbekistan have already developed (in the period of formation - extrajudicial institutions), but the task of ensuring the effectiveness of assistance to owners in protecting their rights has yet to be solved. The existing risks of non-fulfillment of the terms of transactions, insufficient opportunities to protect their rights in administrative and legal relations, lack of information pose a significant problem for business in Uzbekistan, putting the protection of the rights of owners and entrepreneurs in the priorities of the state's economic policy.
The development of an institutional environment for the protection of property rights is one of the central tasks of state policy in the medium and long term. Its solution involves close cooperation with the private sector. The formation of a favorable institutional environment for the protection of property rights will largely depend on transformations aimed at changing the role of the state in the economy, increasing the transparency of the mechanism of state decision-making, strengthening the independence of the judiciary, improving the functions of the legislative and executive authorities. This is a continuous and largely "technical" process, implying the improvement of legislation in the field of property, the development of mechanisms of judicial and non-judicial systems of dispute resolution and protection of property rights, optimization of tax and customs administration procedures, etc.
The driving force of institutional transformations in the economy is the demand made by market participants for the rules of economic interactions, as well as the ability of the state/society to meet this demand in the form of effective legal acts, informal agreements and other institutions.
Thus, in the course of reforms, not only political will is important, but also public institutions that contribute to the achievement of policy goals. In this context, the potential of the middle class emerging in Uzbekistan as a result of
the development of small and private businesses, a natural supporter of effective institutions for the protection of property rights, is important.
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