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DEVELOPMENT OF SMALL BUSINESS AND ENTREPRENEURSHIP IN
JIZZAX REGION
Elov Olimdjon Kamilovich
Navoiy State University, Department of Geography and Basic of Economic
Knowledge. Lecturer
Shermamatov Muxammad
Navoiy State University, 3rd-year student at School Management
https://doi.org/10.5281/zenodo.14414254
Abstract:
The article discusses the development of small business and
entrepreneurship. It highlights the role of small business and entrepreneurship
in the Jizzakh region. Economic reforms being carried out in the Republic of
Uzbekistan and the Jizzakh region are aimed at ensuring stable economic
growth, emphasizing the importance of small businesses and entrepreneurship,
and creating new opportunities for their development. The article also outlines
the measures being supported to foster the growth of small business and
entrepreneurship in the country and the region.
Keywords:
Small Business, Entrepreneurship, Sole Proprietorship, Family
Business, Stages of Entrepreneurial Activity, Advantages and Disadvantages of
Entrepreneurship.
Introduction:
The development of small business and entrepreneurship,
which plays a crucial role in the national economy, is being actively pursued.
This aims to fill the domestic market with competitive, high-quality, and
exportable products, create new jobs, and increase the income of the population
while ensuring stable economic growth. Significant efforts are being made to
achieve these goals. At the same time, this sector serves as a major driver for the
growth of tax revenues to the state budget and the increase in the share of gross
domestic product (GDP), which is a key indicator of economic development. In
the Jizzakh region, small business and entrepreneurship, as well as the
development of the private sector, are of great importance in ensuring the
region's economic stability and improving the living standards of its population.
Small businesses mainly operate in agriculture, trade, services, and industry,
with a particular focus on creating new jobs and ensuring the economic
resilience of the region. In the Jizzakh region, entrepreneurship is one of the key
sectors of the economy and has been expanding across various industries. The
development of small business and entrepreneurship is being actively promoted
in agriculture, industry, trade, services, and tourism. Small business and
entrepreneurial activities are becoming the foundation and key driver of social,
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economic, and political stability in our society. Currently, particular attention is
being paid to the development of small business and entrepreneurship in our
country, as this area is considered a strategic task of our national economic
policy. In conditions of capital scarcity, small business activities do not require
large investments and ensure high turnover rates of resources. They help
address issues such as economic restructuring, instability, and resource
limitations, rapidly and efficiently filling and shaping the consumer market.
Small businesses are highly adaptable to changes in consumer demand, ensuring
the necessary balance in the consumer market. At present, this sector plays a
leading role not only in accelerating the growth rate of the economy but also in
addressing crucial issues like employment and increasing the income of the
population, which are of great importance to our country. Small Business: A
subject of entrepreneurship that starts with relatively small capital, usually
managed by one or a few people (a sole entrepreneur or a small team), and is
economically independent. Small businesses often develop in sectors such as
services, trade, manufacturing, and agriculture.
Main Characteristics of Small Business:
Small Capital and Scale:
In small
business, initial investments and the scale of the enterprise are typically small,
and it is often started with limited financial resources.
Number of Employees:
Small businesses generally have a small number of employees, and in many
cases, one person performs multiple functions or roles.
Type of Products and
Services:
Small businesses often focus on traditional services, such as local retail,
restaurants, workshops, repair services, and other products or services that
meet daily needs.
Decision-Making Speed:
Since the owners of small businesses
have full control over their enterprises, decisions are made quickly and easily,
which ensures rapid adaptability.
Advantages of Small Business:
Flexibility:
Small businesses respond
quickly to market changes and can adapt to new opportunities more rapidly.
Lower Costs:
Compared to large corporations, small businesses allow for cost
savings. For example, rental, marketing, and management expenses may be
lower.
Job Creation:
In many countries, small businesses play a vital role in
creating new jobs and reducing unemployment.
Social Role:
Due to their close
connection with communities, small businesses provide products and services
that meet the specific needs of local populations.
Disadvantages of Small Business:
Limited Capital:
Small businesses often
lack sufficient financial resources and have limited access to credit, which can
restrict their growth and expansion opportunities.
Difficulty Competing:
Small
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businesses struggle to compete with larger companies due to higher production
and marketing costs, making it hard to match the scale and efficiency of big
firms.
Lack of Stability:
Small businesses may lack stability due to inexperience
in management or insufficient strategic planning, which can lead to challenges in
maintaining long-term sustainability.
Support for Small Business.
Many countries strive to support small
businesses because they contribute to economic development and help increase
employment levels. Support programs may include the following:
1.
Financial Assistance
: Small businesses receive financial
support through loans, grants, or subsidy programs to help them grow and
expand.
2.
Tax Incentives
: Tax reductions or temporary tax breaks
provide relief for small businesses, helping them reduce operational costs.
3.
Training and Advisory Services
: Training and consulting
services are provided for small business owners and managers to improve
their skills in business management and strategy.
4.
Support for Startups
: There are programs specifically
designed to support new small business projects and startups, offering
both financial and technical assistance to entrepreneurs.
Types of Small Business:
Sole Proprietorship
: This type of business is
managed by one person who assumes all the responsibilities and liabilities of the
business.
Family Business
: A business managed by family members, often
engaged in small-scale services or trade activities.
Small Partnership:
A business
formed by two or more individuals who jointly manage the operations and share
responsibilities and profits.
Cooperatives:
A group of small entrepreneurs or
producers who come together to collectively produce and sell goods or services.
Keys to Success for Small Business:
Market Adaptation
: Responding to
customer needs by offering new products or services that align with market
demands.
Cost-Effective Management:
Managing financial resources wisely and
controlling expenses to ensure profitability.
Marketing Strategies:
Effectively
reaching out to customers and maintaining close relationships with them to
build loyalty and attract new clients.
Innovation and Creativity:
Differentiating
the business in the market by applying new ideas and technologies to stay
competitive.
Small business plays a crucial role in the economy, contributing
significantly to job creation and meeting societal needs. Creating a favorable
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environment for its development is one of the key factors for promoting
entrepreneurship.
The Role and Importance of Small Business in Jizzax Region.
Small
business plays a significant role in the economic structure of Jizzax region, and
many measures are being implemented to support entrepreneurship in the area.
These efforts mainly focus on expanding employment opportunities for youth
and women, introducing new technologies, and producing exportable goods.
Specifically, favorable conditions for small enterprises have been created in
technoparks and special economic zones, with the government offering
concessional loans and leasing services.
Types and Forms of Small Business.
Small businesses are categorized into
manufacturing, service provision, trade, and financial services. The forms of
small entrepreneurship registration include individual entrepreneurship,
private enterprises, and partnerships. Individual entrepreneurship is one of the
most convenient options, as entrepreneurs can operate without registering as a
legal entity.
Advantages and Disadvantages.
The advantages of small businesses include
their ability to be established with low costs and their significant role in
providing employment. However, due to limited capital and resources, small
businesses often face difficulties in achieving financial stability. Furthermore,
bureaucratic processes and licensing issues can hinder the growth of businesses,
although the government is taking various measures to simplify these
procedures.
Measures to Improve Profitability.
Small business entities in Jizzax region
are striving to stay competitive by implementing innovative technologies and
efficient management practices. Government support in the form of financial aid,
tax incentives, and simplified leasing conditions in technoparks provide
additional opportunities for small businesses. At the same time, a system for
resolving disputes outside of court is being developed to protect the rights and
interests of entrepreneurs. In general, the development of small business in
Jizzax region significantly contributes to economic growth, increases
employment, and enhances export potential.
The statistical data on the development of small business and
entrepreneurship in Jizzax region reflects key indicators related to the region's
economic growth, employment levels, and increased export potential. The
following statistical information highlights the main trends in the state and
development of small business in the region.
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Changes in Economic Figures of Small Business and Entrepreneurship
.
Number of small business entities:
By the end of 2023, the number of small
business entities operating in Jizzax region reached
15,000
. This represents a
10%
increase compared to the previous year.
Share of small business in the
regional economy:
Small businesses account for over
40%
of Jizzax region's
economic activity. This indicator demonstrates the significant role of small
businesses in the region's overall production volume.
Employment rate:
The
small business and entrepreneurship sector constitutes
25%
of the total
employment in the region. This is especially important for creating new job
opportunities for youth and women.
Statistics on Types of Small Businesses
.
Small businesses in the
manufacturing sector:
By the end of 2023, the number of small business entities
in the manufacturing sector in Jizzax region reached
5,500
. This accounts for
36%
of the total number of small businesses in the region. These businesses are
primarily engaged in agricultural products, the food industry, and light industry.
Small businesses in trade and services:
Small businesses in the trade and service
sectors in Jizzax region total
8,200
and represent
55%
of the region's small
business entities. This sector is especially focused on retail trade, restaurants,
hotels, and educational services.
Financial and consulting services:
By the end of
2023, the number of small businesses providing financial and consulting
services in Jizzax region reached
1,200
, accounting for
8%
of the total small
businesses in the region.
Financial Support Provided to Small Businesses
.
Concessional loans and
subsidies:
In 2023, the amount of concessional loans and subsidies provided by
the government to small businesses in Jizzax region reached
250 billion UZS
.
This significantly contributed to enhancing the financial capabilities of small
businesses in the region.
Leasing services:
Through leasing services provided to
small businesses, over
5,000
new pieces of equipment and technologies were
purchased in the region, contributing to the modernization of production
processes.
Export Potential of Small Businesses
.
Export volume:
The export volume
of small business entities in Jizzax region reached
100 million USD
in 2023.
This indicates that small businesses account for
15%
of the region's total export
potential.
Main export products:
The products exported by small businesses
include agricultural products (cotton, fruits, vegetables), food industry products
(canned goods, sweets), and light industry products (fabrics, clothing). These
sectors play a leading role in the region's export activities.
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New Projects Aimed at Developing Small Businesses
.
Technoparks and
innovation centers:
In 2023,
2 new technoparks
and
3 innovation centers
were launched in Jizzax region to support the development of small businesses.
These centers, in particular, assist small businesses in introducing new
technologies and producing high-value-added products.
Training programs for
small businesses:
In 2023, over
1,500 entrepreneurs and their employees
participated in training programs organized to support small businesses in the
region. These training sessions covered areas such as business management,
financial management, marketing, and the implementation of innovative
technologies.
Conclusion.
The opportunities being created and the measures being
taken to develop small business and entrepreneurship in Jizzax region are
helping to stimulate economic growth, create new jobs, and enhance the region's
export potential. At the same time, the development of small businesses plays a
crucial role in improving the welfare of the population and ensuring the region's
economic stability. To achieve this, effective collaboration between the
government and entrepreneurs, innovative approaches, and the efficient
allocation of financial support are of great importance. The measures and
opportunities aimed at developing small business and entrepreneurship in
Jizzax region are making a significant contribution to economic growth, the
creation of new jobs, and increasing the region's export potential. The key
indicators of this development, such as the number of small business entities,
financial support, export volume, and changes being implemented through
innovation centers, are helping to ensure the region's economic stability and
improve the welfare of the population.
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