THE IMPORTANCE OF SMALL BUSINESS AND ENTREPRENEURSHIP IN THE ECONOMY

Annotasiya

The problems in a comprehensive strategy to support the development of small business and entrepreneurship from the perspective of the institutional approach are explained

Manba turi: Jurnallar
Yildan beri qamrab olingan yillar 2023
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Umarova , Z. . (2024). THE IMPORTANCE OF SMALL BUSINESS AND ENTREPRENEURSHIP IN THE ECONOMY. Universal Science Research Jurnali, 2(4), 374–382. https://doi.org/10.5281/zenodo.11110788
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Annotasiya

The problems in a comprehensive strategy to support the development of small business and entrepreneurship from the perspective of the institutional approach are explained


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THE IMPORTANCE OF SMALL BUSINESS AND ENTREPRENEURSHIP IN

THE ECONOMY

Umarova Zеvi Odilovna

Teacher of the «Economics and Management» department of Jizzakh Polytechnic

Institute

zeboumarova1967@gmail.com

Abstract:

The problems in a comprehensive strategy to support the development of

small business and entrepreneurship from the perspective of the institutional approach
are explained.

Key words:

small business, private business, efficiency of an infrastructure,

employment, system of support of business, factors of an infrastructure.

Despite the intensification of activities to stimulate the private enterprise sector, the
effectiveness of government actions to support small businesses does not always
correspond to the efforts made. The uncoordinated focus of actions related to meeting
the needs of the region determined the task of forming a management system for small
business support bodies, the solution of which is necessary for the successful
development of this sector of the economy.
The following conceptual approaches should be taken into account to stimulate the
formation and development small business ties:

provide not only conditions for the functioning of the system of small enterprises
operating on the basis of various forms of ownership, but also their effective and
sustainable development;

to be a dynamic system that promotes the emergence and establishment of new
partnerships interacting with its components;

be adequate to the level of development of small businesses and the needs of business
structures, taking into account their sectoral and functional specialization;

be accessible to all business structures (according to location the cost of business
services and their quality, awareness of real opportunities, etc.) and provide
opportunities to solve the most important problems of small business development
(access to information networks, to provision of property and information support,
personnel decisions problems, financial and tax consulting, etc.)

Based on this, we have formulated a strategy for the management system of small
business support bodies, which consists in creating providing favorable conditions for


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the development of small businesses in Uzbekistan. Based on business process
reengineering, we will determine the conditions and factors that have a direct impact
on the successful development of small businesses.
The function of researching and updating the regulatory framework is carried out by
the small business support infrastructure bodies. Management is carried out on the basis
of current legislation, small business support programs and methods of analysis and
research. The result of performing the function is a developed strategy and an updated
regulatory framework. At the first stage, accumulated information is used to formulate
a strategy. The periodically adjusted regulatory framework and action strategy govern
the remaining functions. The strategy represents the most fundamental and important
guidelines, plans, intentions aimed at the development of small businesses.
The function of coordinating and motivating the activities of small business support
bodies involves the development of a motivating model for their activities. At this stage,
missing, weak, and duplicating functions are identified. The identified functions and
activities of the support bodies are then coordinated, taking into account horizontal and
vertical integration, resulting in a modified structure. In addition, it is necessary to
motivate business support bodies. This should be facilitated by a motivating model. The
model represents the influence of motivating factors on improving the activities of
small business support bodies. In this regard, coordination and motivation
Innovation policy should be aimed at the development of small businesses.
The function of promoting the attraction of innovation is carried out by
entrepreneurship support bodies. In addition to the above regulatory factors, there are
criteria for evaluating investment projects. The result of this function is new products,
goods and services. Profit is generated through the commercialization of innovative
ideas.
Function of protecting the interests of entrepreneurs. This function is carried out by the
regional branch of the chamber of commerce and industry. Small business support
infrastructure bodies must be involved in the implementation of all functions. Thus,
taking into account the structure of a detailed model for supporting small businesses, it
is possible to develop programs of priority measures aimed at creating favorable
conditions for the development of small businesses.
The main direction of integrating the interests of small business and the banking sector
should be strengthening their relations on a bilateral basis. The model we propose
requires a change in the traditional ideology of relations between a bank and a small


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enterprise. These relationships presuppose the presence of clearly formulated and
formally closed captive principles and obligations at all points of intersection of
economic interests.
Any process of successful regional development of small business does not happen on
its own. Both successes and failures hide, in addition to aggressive factors of external
influence, specific decisions that reflect the strategy and tactics of change management
chosen by the leadership of the fog, the city and the region as a whole.
Taking into account the need to bring the research as close as possible to the practical
result, we will consider the process of regional development in the context of the
accompanying management process. In this context, the development process is
understood as repeating cycles of four key stages:

assessments of the current economic situation;

developing strategic goals and objectives for the development of small businesses;
identifying factors limiting the development of small businesses;

development and implementation of strategies and measures for the sustainable
development of small businesses.

The first stage includes:

1. Analysis of available information on the state of the economy and the small business
sector, obtained both on the basis of secondary data (using the analysis of state statistics,
regulatory framework, etc.), and on the basis of sociological research carried out using
survey technologies and qualitative methods.
However, it is important not so much to collect huge amounts of information and
precision to describe them quantitatively, how to critically evaluate even limited
information, as well as qualitative trends in the observed processes that are available.
A critical approach to assessing the system as a whole and its ability to fulfill its target
functions is important. In this regard, the disadvantage of the republic’s typical
approaches to planning and evaluating socio-economic programs in the field of
supporting small business is their obvious inclination towards the traditional type.
When assessing the state of the small business sector, it is important to use a
comparative research method, which allows the heads of khokimiyats (local authorities)
to understand the real situation, as well as to critically evaluate the structural elements
of the organizational infrastructure for supporting small businesses.
2. Determining priorities for the development of small business and its support system.
To solve this problem it is advisable to use introduction of qualitative research methods,


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such as direct interviewing, and conducting special focus group workshops. Within the
framework of such seminars, joint discussions of issues related to the development of
entrepreneurship should be held by representatives of the three stakeholders (state
structures for supporting and controlling entrepreneurial activities, organizations of the
business community and structures of the non-profit and public sector). An important
part of such seminars is the development of various options for the “problem tree” of
entrepreneurship development in the region and their wide openness discussion.
Let us especially emphasize the importance of this work in anticipation of the
construction of the “tree of goals.” Building a “goal tree” without a “problem tree”
easily turns into formal procedures for allocating resources to what can be done by
certain service providers for small businesses, instead of what is a priority in light of
limited resources.

8 important news noted in the open dialogue of the head of our state with entrepreneurs
in August 2023.

1. An integrated eco-system will be created for training small entrepreneurs in
entrepreneurship, providing them with projects, financing their activities, finding a
market for their products and partners for their business.
2. "Rural Construction Bank" will be transformed into "Business Development Bank".
The activity of this new bank will be new, as well as the working method and financing
mechanisms.
3. If an entrepreneur invests 10% of a small business project, the "Business
Development Bank" itself will invest 45%, and the remaining 45% will be funded by
the state.
4. Loans are granted to entrepreneurs for a period of 5-7 years on preferential terms.
Credit lines for 150 million dollars of these funds will be opened from October 1.
5. For entrepreneurs who have established their own business and have a clean "credit
and tax history", the collateral requirement will be reduced by 50% when taking a loan
to take their activity to a new level.
6. The Entrepreneurship Fund introduces the system of "mortgage of services" in the
fields of tourism, trade and service. Now ready-made projects of objects such as a hotel,
restaurant, shopping complex, parking lot, gas station, camping are offered to
entrepreneurs.


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7. An additional 100 million dollars will be allocated to compensation of logistics costs.
Another 25 million dollars will be allocated for certification of products abroad,
introduction of international standards and training of specialists in this regard.
8. A grant of 50 million soums will be given to companies that have attracted big
brands.

There is a clear formulation of goals and objectives in relation to their specificity,
measurability, achievability, reality and time limitation. Thus, as a result of the
implementation of the above measures, the efficiency of the system for supporting
small enterprises will increase, which will lead to an increase in the number of small
enterprises, an increase in employment and their effectiveness.

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Bibliografik manbalar

Obidova, F. Y. (2023). QURILISH KORXONALARIDA BOSHQARUV SAMARADORLIGINI BAHOLASH USLUBIYOTI. Educational Research in Universal Sciences, 2(4), 74-78.

Feruza, O. (2023). How to Create Effective Marketing Strategies for Your Business. Vital Annex: International Journal of Novel Research in Advanced Sciences, 2(3), 12-17.

Umarova, Z. O., & Obidova, F. Y. (2023). GLOBALLASHUV SHAROITIDA INNOVATSION LOYIHALARNI BOSHQARISH. Educational Research in Universal Sciences, 2(3), 203-207.

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