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ECONOMIC SCIENCES
Shodiyor Abduhalilovich Sultonov
PhD, associate professor in the department of Sectoral Economics of Samarkand Institute of Economics and Service DOI: 10.24411/2520-6990-2020-12188 EXPERIENCE OF FOREIGN COUNTRIES IN THE DEVELOPMENT OF ENTREPRENEURS IN
THE PANDEMIC
Abstract.
The experience of foreign countries in each development ofeconomic entities during a pandemic will increase the volume of capital inflows, which provides a number of advantages that increase the competitiveness of our national economy. This will lead to the growth of our national economy. This scientific article describes the experience offoreign countries in the development of economic entities during a pandemic.
Keywords. Small business, entrepreneurial activity, employment, social protection, production of goods and services
Introduction
Small business and private entrepreneurship are important factors in economic development, employment and income. Over the past two and a half years, more than fifty presidential decrees and resolutions have been adopted to provide comprehensive support to the representatives of this sphere. In particular, during the current pandemic, about 10 decrees and resolutions were adopted.
In particular, the procedures for the state registration of small business and private entrepreneurship, obtaining various permits and many other services have been simplified. To facilitate this, the Public Service Agency and its local centres have been established. The position of Representative (Business Ombudsman) for the protection of the rights and legitimate interests of business entities was introduced.
Literature review
There are a number of scientific works of domestic and foreign economists on the development of small business and private entrepreneurship in the service sector, the criteria for evaluating their activities. M.Friedman, one of the founders of the effective implementation of monetary policy in the United States, notes that the factors of income inequality do not accurately reflect the statistical distribution. In his view, the distribution of income in terms of consumption depends on the reasons that give rise to them, and he justifies it.1 Complementing M. Friedman's view in the context of a pandemic, income inequality shows a more complex level of increase. In this context, it shows the need for systemic reforms to improve the business environment. In order to strengthen social protection and ensure the stability of economic sectors, as well as to support some businesses in the fight against the spread of coronavirus infection in our country, the President of the Republic of Uzbekistan issued Decree No. PF-5978 of April 3, 2020 Decree "On additional measures to support business entities"2.
This decree sets out a number of proposals and measures to be implemented as follows:
1 Milton Friedman A Theory of the Consumption Function. Princeton, N.J. Princeton University Press, 1957.
2 Decree of the President of the Republic of Uzbekistan
dated April 3, 2020 No PF-5978 "On additional measures to
• Further improvement of foreign economic activity, with a special focus on reducing the cost of raw materials, supplies, accessories and components imported by small businesses for use in the production of goods by December 31, 2020;
• to stop calculating the fixed amount of personal income tax for individual entrepreneurs who are forced to suspend their activities during the quarantine period;
• Granting the right to interest-free (installment) payment of taxes until October 1, 2020, notifying the tax authorities of micro-firms and individual entrepreneurs who ceased their activities or whose revenues from the sale of goods decreased significantly compared to the average monthly amount in the first quarter of this year.
Bahrom Rajabov, an expert on social and public sector innovation, wrote in his article on the impact of the coronavirus pandemic on the Uzbek economy that "... the damage to the world economy can be calculated in general after the crisis. The economy is not affected by the pandemic itself, but by its restrictions. "3
However, the results of the analysis of the scientific literature showed that the issues of development of small business and private entrepreneurship in the field of services have not been sufficiently studied.
Research Methodology
As a result of the study of international global experience, we assessed the positive features of the localization of foreign experience in Uzbekistan through the method of comparative analysis. Using the methods of comparative assessment, the current positive and negative significance of the application of foreign experience in the practice of Uzbekistan was studied. Thus, on the basis of foreign experience, the issues of further development of the business environment in Uzbekistan have become its important features.
Analysis and results
In world practice, the activities of small businesses and entrepreneurs in the field of services play an im-
support the population, sectors of the economy and businesses during the coronavirus pandemic." 3 Retrieved from www.kun.uz on 10.04.20.
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ECONOMIC SCIENCES / <<€©LL@(MUM~J©UrMaL>>#26i7®),2©2©
portant role in solving the economic and social problems in the sustainable development of national economies. According to Eurostat, in 2018 there will be 3.7 million in Italy, 2.9 million in France, 2.4 million in Spain and 2.3 million in Germany. and 1.9 million in the UK. small businesses. In this area, 17.8 million in Germany, 11.2 million in Italy, 10.3 million in the United Kingdom and 9.0 million in France. and in Spain, 8.0 million people were permanently employed4. For this reason, in the developed countries of the world, great importance is attached to the wider use of business opportunities to ensure sustainable and high economic growth. This is because the sector plays an important role in the production of new types of products, services, employment, social protection.
Today it is important to improve the organizational and economic mechanisms of the development of small business and private entrepreneurship in the service sector in the world economy, to create a favorable business environment, to strengthen their participation in foreign economic activity, to make full use of employment and income. is important.
In the Address of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis on January 24, 2020, we are mobilizing all our resources to develop entrepreneurship and create new conditions for this sector. Under the program "Every family is an entrepreneur", 5.9 trillion soums were allocated to families starting their own businesses. Under the new tax policy, the tax burden on wages has been reduced by 1.5 times. As a result, the number of people employed in the formal sector increased by 500,000 during the year. The VAT rate was reduced from 20 percent to 15 percent. As a result, 2 trillion soums remained at the disposal of taxpayers last year. This year, this figure is expected to reach 11 trillion soums. Having so much money at the disposal of entrepreneurs in a year will definitely give them a huge additional opportunity to develop their business. As a result of our reforms, 93,000 new business entities were created last year, or almost twice as many as in 2018. He rose 7 places in the World Bank's Doing Business ranking, ranking 8th out of 190 countries in terms of business registration and one of the best reformers.5
In recent years, in the process of reforms in the social and economic spheres and sectors in our country, great attention is paid to the full support of small business and private entrepreneurship in the service sector, the creation of a favorable infrastructure for them. Ensuring employment and, most importantly, improving the living standards of the population through the involvement of small business and private entrepreneurship in the service sector is one of the priorities of today's globalization.
For this reason, many developed countries support the development of small business and private entrepreneurship in the service sector, as small business and private entrepreneurship are the basis for the formation of the middle class, the availability and size of which determines the level of economic
development of the state. Small business and private entrepreneurship are a key element of a modern market management system, ensuring the existence of a developed market economy. The main means of replenishing the budgets of developed countries is the tax revenue from small business and private entrepreneurship. Small business and private entrepreneurship allow to increase competition, economic initiative and activity of citizens of the country, which prevents the rise in prices for goods and services and encourages entrepreneurs to constantly improve product quality and introduce new technologies. The development and support of small business and private entrepreneurship is one of the ways to solve the problem of unemployment - in developed market economies, 50 to 90 percent of citizens work in this field.6
According to the International Monetary Fund (IMF), the IMF today owns 90 percent of the world's small and medium-sized businesses, employing 63 percent of the world's population. Across the EU, small and medium-sized businesses account for 99.8 per cent of the total, employing 85 per cent of the population and contributing 58 per cent of the total value added.7
The economy of developed countries has a significant share of small business and private entrepreneurship in GDP. For this reason, the state provides various benefits and incentives to the subjects of this sphere, and provides comprehensive support to the representatives of this sphere. For example, in France, the development of small business and private entrepreneurship by the state is carried out as follows:
- Systematic provision of small businesses and private entrepreneurship with the necessary information;
- practical assistance to small business and private entrepreneurship in ensuring the competitiveness of products in domestic markets and sales;
- Increasing and stimulating the export potential of small business and private entrepreneurship;
- financial assistance;
In developed countries, special attention is paid to the training of business professionals. According to some experts, education in small business and private entrepreneurship is even more important than financial lending.
The Government of Canada implements targeted programs to support entrepreneurship and provides management support (information, technical, marketing) services. Employment Centers under the Canadian Ministry of Employment and Immigration provide assistance to small businesses in selecting and hiring workers; provides advice on a variety of issues, including planning, social security, and more. The Federal Bank of Canada provides advisory assistance to businesses with less than 75 employees. Here, customer problems are analyzed and solutions are presented, as well as work with them on
4 Eurostat http://xn--80aplem.xn--p1ai/analytics/Malyj-i-srednij-biznes-v-stranah-Evropy.
5 Speech of the President of the Republic of Uzbekistan
Shavkat Mirziyoyev to the Oliy Majlis. Newspaper "Halk
sozi", January 25, 2020.
6 https://docplayer.ru/49459454-Faktory-vliyayushchie-na-razvitie-malogo-i-srednego-biznesa-nefinansovaya-pod-derzhka-malogo-i-srednego-biznesa.html.
7 https://www.imf.org/exter-nal/pubs/ft/sdn/2015/sdn1504.pdf:
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implementation, strategic and financial planning services are provided.8
The share of small business and private entrepreneurship in the number of people employed in the economy was 78.0% in Japan, 71.0% in Italy, 69.5% in Germany, 56.0% in the United Kingdom, and 54.0% in the United States. We can see that in Russia it was 25.6 percent.9
In Japan, small business (9 million small businesses) is quantitatively superior to all sectors of the national economy. It employs 80% of the population, labor productivity is 67% of the productivity of large enterprises and the share of small business in GDP is 78%. 4 million in Italy. The productivity of a small enterprise is 78% of the productivity of large firms, and its share in GDP is -73%. In the early 1990s, 26.15 per cent of enterprises in the U.S. were very small, 28.4 per cent in May, 49.4 per cent and 28 per cent in Japan, 26 per cent and 23 per cent in the United Kingdom, 32 per cent and 28 per cent in France, respectively. small enterprises include firms with up to 19 employees, and small enterprises with up to 99 employees.
In the United States, the problems of small business and private entrepreneurship are dealt with by two agencies - the Small Business Administration (SBA) and the Congressional Committee on Small Business. They employ 4-5 thousand people. These include: designed to solve only small and medium enterprise problems.
SBA creates favorable conditions for the development of small business and private entrepreneurship in the country, as well as the development of various financial institutions. It has the following programs:
• program of financial support for small businesses (includes 7 programs, the program "7 a guaranteed loans" is the basic program);
• Innovative Small Business Support Program (consisting of 3 programs);
• consulting, training, technical assistance and information services programs (consisting of 10 programs);
• Disaster Relief Program (6 programs);
• Small Business Export Opportunity Development Program (this area includes 4 programs);
• a program to support groups with national disadvantages and interests (including 7 programs);
• Women Entrepreneurs Support Program (3 programs).
A total of 61 specialized programs have been developed in the United States to develop and support small businesses. No other country in the world has such powerful action programs. Also noteworthy is the experience of the SBA in encouraging small and medium-sized businesses in the field of taxation. It envisages a gradual reduction of marginal tax rates and a reduction in taxation on a narrow tax base, as well as a wider use of tax benefits. This will ensure the flow of investment in industry, services and trade.10
Conclusions and recommendations
8 Сарокина В.Ф. Малый бизнес по британские, 106-стр.
9 https:// stat.uz/uz/432-analiticheskie-materialy-uz/2031 -o-
zbekiston-respublikasida-kichik-biznes-va-xususiy-tad-birkorlikning-rivojlanishi.
In our opinion, based on the results of the above analysis, the following suggestions and conclusions have been drawn:
1. It is necessary to make extensive use of the experience of developed countries in the system of regulation of small business and private entrepreneurship in the service sector in our country. In particular, assistance to small businesses in the selection and hiring of workers, simplification of government regulation and administrative pressure, change of institutions providing an effective credit mechanism, training of specialized personnel, creation of reliable legal protection of business, formation of access to economic and legal sources of social insurance, etc. it would be advisable to set up counseling centers.
2. Taking into account the employment of a large part of the population in small business and private entrepreneurship in foreign countries, the creation of an effective working environment in these entities in the conditions of Uzbekistan.
3. Providing various support incentives to expand the production of primary goods by studying the demand of the population for goods produced by small businesses and private entrepreneurship.
4. A total of 61 specialized programs for the development and support of small business in the United States have been developed. Identify and apply a range of appropriate programs in the context of Uzbekistan.
References
1. Mirziyoev Sh.M. Speech of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis. Newspaper "Halk sozi", January 25, 2020.
2. Mirzaev, K.J., & Pardaev, M.K. (2014). Economics of the service sector. Tashkent
3. Mirzaev, K.J. (2010). Methodological issue of improving the efficiency of agricultural services. Monograph. Tashkent: "Economy-Finance" Publishing House.
4. Mardonov, B.B., et al. (2019). Modernization of the service sector and improving the welfare of the population: problems and solutions. monograph. Tashkent: "Science and technology".
5. Sarokina V.F. Maliy biznes po britanski, 106-p.
6. Sultonov Sh. A Small business and private entrepreneurship: regional problems and solutions. T. 2013. State Publishing House "Navruz" State Unitary Enterprise. 103 b.
7.https://stat.uz/uz/432-analiticheskie-materialy-uz/2031 -o-representation-of-small-business-and-private-entrepreneurship-in-the-republic.
8.https://docplayer.ru/49459454-Faktory-vliyayushchie-na-razvitie-malogo-i-srednego-biznesa-nefinansovaya-podderzhka-malogo-i-srednego-biznesa.html.
9.
https://www.imf.org/external/pubs/ft/sdn/2015/sdn150 4.pdf:
10. http ://xn--80aplem.xn--p 1 ai/analytics/Malyj -i-srednij-biznes-v-stranah-Evropy.
10 Ш.А.Султонов. Кичик бизнес ва хусусий тадбиркорлик: худудий муаммолари ва ечимлари. Т. 2013. "Навруз" нашриёти ДУК. 103 б.
