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66PROBLEMS OF FORMATION AND DEVELOPMENT OF SMALL BUSINESS
AND PRIVATE ENTREPRENEURSHIP
Gulomjon Abdusalomovich Nabiyev Dilbar Dilshodovna Isroilova
PhD of KarSU Student of KarSU
ABSTRACT
This article describes problems of formation and development of small business and private entrepreneurship and give some suggestions
Keywords: Economy, small business, development, entrepreneurship, demand and supply
The rapid development of small business and private entrepreneurship is a key link in ensuring the sustainable growth of any country's economy and a priority of ongoing economic reforms. In our country, the sustainable development and support of small business and private entrepreneurship has been identified as one of the main priorities of socio-economic development of the country.
"Absolute abandonment of command-and-control management in the economy, gradual implementation of market reforms and careful monetary policy have ensured macroeconomic stability, high economic growth, keeping inflation at the forecast level, and small business and private entrepreneurship. , created a wide range of opportunities and favorable conditions for the development of the farming movement."1
At the heart of the ongoing systemic reforms in the economy of Uzbekistan, measures to develop entrepreneurship are important. Under the influence of these reforms, the role of small business and private entrepreneurship today; GDP growth is reflected in the active participation of the population in the implementation of profound structural changes in industries and sectors of the economy, along with employment. The President of the Republic of Uzbekistan Sh.M.Mirziyoev in his Address to the Oliy Majlis on December 29, 2020 spoke about the need to implement reforms to improve entrepreneurship in the future: That is why we must all stand by the shoulders of entrepreneurs and support them at all times [1-5].
The above facts show that in the development of small business and private entrepreneurship it is expedient to pay attention not only to traditional processes, but also to innovative development processes. In this regard, the problematic processes facing our economy are reflected in detail in the Resolution of the President of the Republic of Uzbekistan dated May 5, 2018 No PQ3697 "On additional measures to create conditions for the development of active entrepreneurship and innovation."
1 Гуломхасанов, Э. М., Каримов, К., & Лазизова, М. (2021). РАЗВИТИЕ ЭКОНОМИКИ НА ТЕРРИТОРИИ БУХАРСКОЙ ОБЛАСТИ ПОСЛЕ КРИЗИСА COVID-19. Scientific progress, 2(5), 474-478.
systematized. The existence of technical and psychological barriers to the involvement in the development and promotion of innovative products and services is recognized, and in this regard, the process of overcoming existing problems is given priority. In accordance with this resolution, it is necessary to create favorable legal and organizational conditions for the development of active entrepreneurship, the promotion of domestic and foreign innovations in the real sector of the economy. Therefore, it is necessary to give full priority to the processes of innovative development of entrepreneurial activity. Based on the above, the need to ensure the compatibility of organizational elements of innovative development of entrepreneurial activity, to increase the effectiveness of current and future mechanisms of innovation development shows the urgency of the research process in this area.
Also, as a result of sustainable development of small business and private entrepreneurship, prudent economic policy of the state, a favorable macroeconomic environment has been created in our country [6-15].
In particular, the legislation on the protection of private property and entrepreneurship has been strengthened, the process of registration, voluntary registration and liquidation, licensing and permits for certain activities has been simplified, government intervention in small business and private entrepreneurship has been limited, and all forms of reporting by businesses. and deadlines have been sharply reduced, tax rates have been unified, and a market mechanism has been formed that allows for greater use of material and technical resources [16-28].
However, today there is a change in the activities of small business and private entrepreneurship under the influence of increasing competition and consumer demand around the world, the processes of diversification and deepening specialization in the production of industries. Such a process requires a broader approach to the economic nature of small business and private entrepreneurship and its place in the country's economy.
Also, as a result of sustainable development of small business and private entrepreneurship, prudent economic policy of the state, a favorable macroeconomic environment has been created in our country.
In particular, the legislation on the protection of private property and entrepreneurship has been strengthened, the process of registration, voluntary registration and liquidation, licensing and permits for certain activities has been simplified, government intervention in small business and private entrepreneurship has been limited, and all forms of reporting by businesses. and deadlines have been sharply
reduced, tax rates have been unified, and a market mechanism has been formed that allows for greater use of material and technical resources.
However, today there is a change in the activities of small business and private entrepreneurship under the influence of increasing competition and consumer demand around the world, the processes of diversification and deepening specialization in the production of industries. Such a process requires a broader approach to the economic nature of small business and private entrepreneurship and its place in the country's economy.
The high level of attention paid to the development of small business and private entrepreneurship has a positive impact on increasing the share of this type of activity in economic activities. In particular, according to the analysis of small business and private entrepreneurship in 2015-2020, this type of activity accounts for an average of 60% of GDP. In 2015-2017, the share of small business and private entrepreneurship in the industrial sector averaged 42%, and in 2018-2020 this average averaged 30%. This situation can be explained by the role of foreign investment in the industrial sector of the country's economy in 2018-2020 in the development of large industrial sectors.
In conclusion, it is important to develop the activities of business entities in the context of modernization of the economy. It is the business entities that do not require large sums of money and guarantee the growth rate of resources, to solve the problems of restructuring in the economy relatively quickly and without excessive costs, to fill the domestic market with consumer goods even when financial resources are limited, to form a middle class. to increase the share of economically active population that smooths the income disparity of groups, to create new jobs in a short time at a relatively low cost, to develop and implement innovative technologies, to create a healthy competitive environment in the market, to strengthen interaction between different sectors of the economy. and most importantly, based on the experience of developed countries in the growth of the country's GDP, it should be noted that small business and private entrepreneurship are important and key sources.
Based on the growing market relations in the economy of our country, the study of free competition reflects a number of pressing issues. In particular, it is based on the wide range of opportunities, conditions, privileges and advantages of entrepreneurship in the country, the increase in the number of business entities, the development of free competition and growing demand for services in the economy. The priority of economic development is not only economic development based on factors of production and investment, but also the transition to a model of innovative economy in the future based on the formation of innovative development directions of small business and private entrepreneurship. The main goal of this model is to increase the sustainable
2 Gulomkhasanov, E. M., Bakhadir, O., & Madina, L. (2021). DEVELOPMENT OF THE DIGITAL ECONOMY IN THE TOURISM SPHERE IN UZBEKISTAN. nPOEXEMH TA nEPCnEKTHBH PEAm3Ati,U TA BnPOBAff^EHHX MlWflHC^nmHAPHHXHA YKOBHX tfOCXrHEHb, 24.
Uzbekistan www.scientificprogress.uz Page 48
competitiveness of the national economy through the use of effective technologies and innovations, the development of domestic and foreign markets for investment and innovation and the transition to an innovative development economy in an export-oriented investment environment. In our opinion, it is expedient to implement the following measures in the formation of innovative directions of small business and private entrepreneurship in the country: - Formation of investment flows aimed at commercialization of innovations in small business and private entrepreneurship; -creation of conditions (tax regime, customs policy, including measures aimed at creating a favorable investment climate) that will ensure maximum sensitivity of business entities to innovations; - Carrying out practical and fundamental research aimed at overcoming the existing shortcomings in the innovation cycle of entrepreneurial activity; - The formation of innovative infrastructure, which affects the formation of the need to radically change the current situation in the field of commercialization of advanced technologies, etc.
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