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21INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
International journal of theoretical and practical research
Scientific Journal
Year: 2021 Issue: 1 Volume: 1 Published: 01.11.2021
http://alferganus.uz
Citation-.
Abdullaev, A.M. (2021). The problems of assessing the competitiveness of small businesses. SJ International journal of theoretical and practical research, 1 (1),22-31
Doi- https://dx.doi.org/10.5281/zenodo.5730975
QR-Article
DOI 10.5281/zenodo. 573097 5
Abdullaev Alisher Makhmudovich
Candidate of Economic Sciences, Associate
Professor
Ferghana Polytechnic Institute, Republic of Uzbekistan
THE PROBLEMS OF ASSESSING THE COMPETITIVENESS OF SMALL
BUSINESSES
Abstract: Entrepreneurship, as an independent socio-economic phenomenon with deep historical roots and a long path of evolutionary development, has proved its high efficiency, its ability to qualitatively transform the entire set of economic and social processes, to give them an innovative impulse. The success of the development of small businesses largely depends on the level of their competitiveness. Therefore, this concept acquires a decisive meaning, both for individual enterprises or groups of enterprises, and directly affects the situation in a particular region and the country as a whole. The article considers approaches to various methods of determining the competitiveness of small businesses, their disadvantages and advantages are studied. The definition of competitiveness of business entities is substantiated.
Keywords: business, intensification, competitiveness, market competitiveness, competitiveness factors, processing of competitiveness indicators.
Абдуллаев Алишер Махмудович
Кандидат экономических наук, доцент Ферганский политехнический институт, Республика Узбекистан
ПРОБЛЕМАТИКА ОЦЕНКА КОНКУРЕНТОСПОСОБНОСТИ СУБЪЕКТОВ МАЛОГО БИЗНЕСА
Аннотация: Предпринимательство, как самостоятельное социально-экономическое явление, имеющие глубокие исторические корни и прошедшее
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длительный путь эволюционного развития, доказало свою высокую эффективность, свою способность к качественным преобразованиям всей совокупности экономических и социальных процессов, к приданию им инновационного импульса. Успешность развития субъектов малого предпринимательства в значительной мере зависит от уровня их конкурентоспособности. Поэтому данное понятие приобретает определяющее значение, как для отдельных предприятий или групп предприятий, так и непосредственно влияет на ситуацию в отдельном регионе и стране в целом. В статье рассмотрены подходы к различным методикам определения конкурентоспособности субъектов малого предпринимательства, изучены их недостатки и преимущества. Обосновано определение конкурентоспособности субъектов предпринимательства.
Ключевые слова: бизнес, интенсификация, конкурентоспособность, рыночная конкурентоспособность, факторы конкурентоспособности, обработка показателей конкурентоспособности.
For the national economy of Uzbekistan, enhancing competitiveness of businesses is one of the most important strategic objectives, the solution of which depends on economic growth, business development, the welfare of the population and the possibility of effective integration of the country's economy into the world economic system, which is changing rapidly in the context of economic globalization. Scientists, practitioners and international financial institutions note low competitiveness of domestic business entities. Problems of competitiveness increase objectively acquire priority character in economic science. If quite recently there was an opinion that this task can be solved at the micro-level by the enterprises themselves, being guided by objective laws of the market, now there comes an understanding of necessity to develop a competitiveness increase strategy at the state level taking into account institutional conditions of state development as a whole.
Winning the competition for economic wellbeing and survival is the ultimate goal for an entrepreneur. It is the result of systematic and competent efforts of a firm to improve the competitiveness of its products and services and the competitiveness of itself.
The success of development of small business entities to a great extent depends on the level of their competitiveness. Therefore, this concept acquires a decisive importance both for individual enterprises and directly affects the situation in the region and the country as a whole.
A distinction is made between competitiveness of goods and services, business entities (entrepreneurship), regions, industries and countries (national economy as a whole). There is a close relationship between all these levels: country, regional and sectoral competitiveness ultimately depends on the ability of particular producers to
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produce competitive goods. Product competitiveness is thus a basic category for all other levels of competitiveness.
In our opinion, the competitiveness of goods should be defined as a degree of attractiveness of goods for consumers, determining the potential and real possibility to satisfy their needs. At the same time, product competitiveness is a necessary but not sufficient condition for the competitiveness of an enterprise structure. The enterprise can produce competitive products, but not be competitive.
There are the following main differences between the concepts of product competitiveness and small business enterprise (SME):
■ The buyer is the main evaluator of competitiveness of goods and small business entity. However, unlike product competitiveness assessment, small business entity competitiveness is also assessed by the manufacturer itself, determining the expediency of producing a specific type of goods under specific conditions.
■ The assessment of product competitiveness applies to each specific type of product, while SME competitiveness covers the entire nomenclature and assortment, as well as all types of production and economic activities carried out by SMEs (financial, investment activities, etc.);
■ An important parameter for evaluating the competitiveness of goods and small business entities is their life cycle. When the subject of the study is an ongoing assessment of competitiveness, the time factor is of no particular importance. When it comes to the assessment of competitiveness for a long-term period, it should be taken into account that the life cycle of small business entity, as a rule, is longer. The product range may change several times during the period of the manufacturer's operation.
Consequently, we can conclude that the concept of SME competitiveness is more complex and integral, i.e., it includes a much larger number of key elements than product competitiveness.
Taking into account all the above, the author gives the following definition: SME competitiveness is a comprehensive characteristic that makes it possible to assess the results of its activities and reflects its potential and ability at any time to ensure its competitive advantages and profitability, as well as to adapt to the constantly changing conditions of the external environment.
Thus, market competitiveness of business entities in the structure of the national economy of Uzbekistan from the position of macro-analysis can be defined as the ability of entrepreneurs in the present and in the future to produce and sell goods on the national and global markets that are more attractive in price and quality than those of foreign or domestic competitors. The study of competitors and competitive conditions in an industry is required by a business entity primarily in order to determine its advantages and disadvantages over its competitors and to draw conclusions for developing its own
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successful competitive strategy and maintaining its competitive advantage. In any case, the assessment of the competitiveness of the enterprise has the following objective: to determine the position of the enterprise in the market under study.
In our opinion, none of the existing approaches to assessing the competitiveness of enterprises has found wide application in the practice of economic analysis. This allows us to conclude that there is currently no universal methodology for a comprehensive assessment of enterprise competitiveness.
In addition to private drawbacks, the analysis of the existing approaches allows us to note the following general drawbacks of the presented methods. The vast majority of methods are based on identifying the factors determining the competitiveness of business entities, with an emphasis on identifying the maximum number of these factors, creating their exhaustive list. Further, the identified factors are processed by means of various mathematical methods.
However, the system of small business entity competitiveness factors is open, and the set of elements of this system is fuzzy. Indeed, when assessing the labor resources of the small business entity, one can conclude that labor efficiency depends on the psycho-physiological well-being of workers, and thus, including the level of divorce in a particular locality. Considering the small business entity production capabilities, we come to the conclusion about the dependence of the small business entity technological potential on the level of funding of scientific programs in a given state, and hence the degree of filling the budget. Similarly (when deeper analysis leads to an enormous increase in the number of factors) is the case in all areas of SME research: finances, production and economic potential, labor resources, competitive environment, and so on. It can be argued that, ultimately, the entire set of random and regular elementary events occurring in the space under study has a greater or lesser impact on the competitiveness of small business entity (Tab. 1).
Table 1: Characteristics of methods for assessing the competitiveness of small
businesses
Method Essence of the method Advantages Disadvantages
Matrix Analysis of the matrix: horizontally -growth (reduction) of sales volume; The availability of information on sales volumes and relative market shares of competitors It eliminates the analysis of the causes of what is happening and complicates the development of management decisions
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vertically -relative market share of the enterprise. allows the method to ensure high adequacy of estimation. and requires reliable marketing information.
Method based on the theory of effective competition The most competitive enterprises are those where the work of all departments and services is best organized. Accounting for the very diverse aspects of an enterprise. The sum of the individual elements of a complex system, which is any enterprise, does not give the same result as the system as a whole.
Method based on assessment of product competitiveness The higher the competitiveness of an enterprise is, the higher is the competitiveness of its products. It takes into account one of the most important components of enterprise competitiveness -competitiveness of its products. The competitiveness of an enterprise takes the form of product competitiveness and does not affect other aspects of its activities.
Integrated Enterprise competitiveness is an integral value in relation to current competitiveness and competitive potential. It takes into account not only the achieved level of competitiveness of the enterprise, but also its possible dynamics in the future. The specific methods and techniques used in determining current and potential competitiveness ultimately replicate those used in the approaches discussed earlier.
Thus, the number of competitiveness factors is almost infinite, hence, no matter how extensive their list is, it will still not be exhaustive, and hence, based on such an incomplete list, the assessment of enterprise competitiveness will be inadequate.
As a result, all the existing lists of competitiveness factors are very tentative, which does not allow their use for assessing the competitiveness of enterprises. The
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limited list determines the limitedness of the method. At the same time, the excessive increase in the number of competitiveness factors leads to the fact that the labor intensity of their mathematical processing becomes extremely high, and the task of collecting the necessary data - practically impossible, which significantly reduces the practical applicability of such methods for assessing the competitiveness of enterprises.
To evaluate the factors of competitiveness identified by researchers, as well as to determine a number of other indicators, approximate, approximate estimates, "expert methods" are used, suffering from significant subjectivity and conditionality. Of course, in some cases it is impossible to avoid such an approach, but the use of such estimates as a basic method leads to a very weak mathematical connection of the initial conditional factors with the assessed indicator of competitiveness.
We believe that a number of techniques in assessing the competitiveness of enterprises are based on very complex idealized constructions: new definitions and indicators for economic science are introduced, various matrices are built, new coordinate systems are introduced, and so on. Although the logical validity of the theoretical models used is not in doubt, these models appear as very abstract in the specific economic conditions of a particular economic entity. Certain criticism is caused by the reduction of multi-dimensional and heterogeneous indicators (for example, the level of labor productivity and probability of bankruptcy of the enterprise) into a single indicator of competitiveness of the economic entity. Here economists introduce coefficients determining the weighting value of each of the evaluated factors, and at the same time bringing in order the dimensionality of the indicators. However, the coefficients used in most cases are very conditional, which entails the inadequacy of assessing the impact of certain factors on the competitiveness of the enterprise. But the matter is not only in the conventionality of weighting coefficients. As it was shown earlier, different economic factors in each specific economic situation to a different extent influence the competitiveness of different enterprises, therefore, it is inadequate to knowingly establish uniform weight coefficients for assessing the competitiveness of various economic entities.
Thus, we can conclude - the definition of enterprise competitiveness is an integral element of any business entity, in order to:
• development of measures to improve competitiveness;
• selection of counterparties for joint activities;
• drawing up a program for the enterprise's entry into new markets;
• of carrying out investment activities;
• implementation of state regulation of the economy.
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