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PRIORITY AREAS OF DEVELOPMENT OF REGIONAL ENTREPRENEURSHIP IN UZBEKISTAN AND INCREASE OF ITS EXPORT POTENTIAL
NISHONBOYEV DONIYOR ERKINJON ugli
Candidate of the International Institute of Food Technology and Engineering
Fergana, Uzbekistan
Annotation: in Uzbekistan, a system for rating the socio-economic development of regions was introduced, based on which economic indicators, business support environment, infrastructure and the level of use of available resources in districts and cities were studied.
Key words: small business, entrepreneurship, republic, state, process, economics, efficiency, gross regional production.
The online system for calculating and evaluating indicators of entrepreneurship development is a 25-point indicator provided by responsible organizations and is a survey of entrepreneurs in 4 directions. Assessment of the level of entrepreneurship development in the regions is regularly conducted on the basis of half-yearly and annual results.
Compared to 2016, Uzbekistan has made great progress in improving the economic conditions for doing business. State (regional) support has become one of the factors of entrepreneurship development. As a result of the measures implemented for the development of entrepreneurship, in particular, tax, credit and utility payment benefits, a moratorium on inspections of business entities, and the expansion of financial support in the following areas positive trends were identified in 2020.
The activities of small business and private entrepreneurship and the scientific and methodological aspects of increasing the export potential in this activity have been studied by economists. Entrepreneurial activity is studied in the scientific works of economists Y.A. Schumpeter, J.M. Keynes, R.D. Khizrich, M.E. Peters, M. Silva, A. Mulabdic, Yasar P., D. Angelo, R. Ganotakis, F. M. Kotler, P. A. Samuelson.
Thus, the number of cases of damage to real estate belonging to entrepreneurs decreased by 13 times (96 cases, 1260 in 2019). The amount of compensation for interest on loans given to entrepreneurs increased 3 times (2.8 trillion soums, 855 billion soums in 2019). The analysis showed an increase in the number of entrepreneurs operating continuously over the past three years, their number increased by 32.5% and accounted for 26% of the total number of entrepreneurs (21% in 2019).
Thus, the indebtedness of entrepreneurs to the state increased 3.4 times during compulsory enforcement (690 billion soums, 206 billion soums in 2019). At the same time, the amount of overdue loans of entrepreneurs increased by 63% (from 4.8 trillion soums to 3.0 trillion soums in 2019). In the analysis, it was found that the level of effective use of vacant land decreased from 72% to 37%. According to the results of the survey, in 2020, more than 25,000 entrepreneurs noted that the confidence of entrepreneurs in banking services, infrastructure and state bodies has increased compared to 2019.
At the same time, 44% of respondents engaged in forced sponsorship and 40% doubted the justice of court decisions. According to the results of the research, the ranking of cities in the regions and districts of our republic was compiled. According to the evaluation results, the highest level of productivity development was recorded in the city of Tashkent (7.8 points). The lowest indicators were recorded in Kashkadarya (4.5 points), Surkhandarya (4.5 points) and Samarkand (4.6 points) regions..
The volume of gross regional production increased by 4.6% and amounted to 55,972.1 billion. amounted to soum. The growth rate in agriculture, forestry and fisheries is 103.6% (the share of the gross regional product - 35.1%), in industry 104.8% (19.5%), in construction 112.7% (6.8%) and 103.8% (38.6%) in the services sector.
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Table 1
Gross regional product of Fergana region, (2018-2022) billion. soum [1]
Years GRP Agriculture, forestry and fisheries Industry Construction Services Net taxes on products
2022 55 972,1 19 032,9 10 565,9 3 666,5 20 952,4 1 754,4
2021 47 760,5 16 129,7 9 558,7 3 008,7 17 385,6 1 677,8
2020 37 216,2 12 551,1 7 455, 2 386,0 13 529,0 1 294,7
2019 32 520,8 10 859,5 6 344,3 1 824,6 11 779,5 1 712,9
2018 27 523,9 10 214,0 5 136,9 1 308,3 9 495,8 1 368,9
Gross regional product per capita increased by 2.5% and amounted to 14,219,100 soums
Table 2
The contribution of industries to the growth of Fergana region's GRP,
Years GRP Agriculture, forestry and fisheries Industry Construction Services Net taxes on products
2022 4,6 1,2 0,9 0,8 1,4 0,3
2021 8,2 1,0 1,7 1,0 4,2 0,3
2020 4,8 1,7 0,8 0,9 0,8 0,6
2019 4,4 1,2 0,5 0,9 1,5 0,3
2018 7,4 3,3 1,1 0,9 1,8 0,3
As part of the investment program, 138.6 billion soums of funds were used. 1 thousand 138 projects were implemented within the framework of the regional socio-economic development program.
Production of 100,000 tons per year at the "Turon Eco Cement" enterprise in Uzbekistan district, 3,600 tons per year at the "Fergana Asiana" joint enterprise in Fergana district was launched. The fourth stage of the Indorama Koqon textile enterprise in Koqon city was launched, the production volume was further increased and 280 new jobs were created.
The light industry network is also developing in the province. Modernization of the cotton processing enterprises, whose technologies are morally outdated, made it possible to produce high-quality fiber that meets the requirements of the world market. As a result, the export volume of competitive products of this type has increased. Favorable conditions have been created for continuous supply of local light industrial enterprises with high-quality fiber and yarn.
At the moment, modern equipment is being installed in joint and private enterprises, which serves the sustainable development of our economy and the improvement of the well-being of the population. The International Industrial Fair and Cooperative Exchange, which is traditionally held every year, is of particular importance in technological upgrading of enterprises, expanding the production of affordable, competitive products from local raw materials, and supporting and stimulating the private sector.
In the Fergana region today, in the process of supporting and developing regional entrepreneurship, along with positive developments, there are also problems. 2019 "On the program of the Cabinet of Ministers of the Republic of Uzbekistan for the development of small business, entrepreneurship and home economics in Fergana region in 2019-2021" on solving existing problems and eliminating some shortcomings in the development of small business and private entrepreneurship in the region Decision No. 246 of August 24 was adopted. Based on this decision, the Coordinating Council for the Development of Small Business, Entrepreneurship and Home Economics was established in Fergana region. The Coordinating Council has developed an action program to eliminate these problems and to support and prioritize small business and private entrepreneurship in the region, and this program is being implemented according to the plan.
An urgent problem is to increase the share of private entrepreneurship in the production of the industry by increasing the number of private business entities in the regional industry and creating new jobs in it.
Fergana region has an agrarian development direction, the share of agriculture in its GNP will reach the highest level in 2020 - 42.3%, industry 25.2%, construction 8.3%, and services showing was 24.2%. In the future, one of the directions of socio-economic and structural development of the region is to gradually transfer it from the description of agrarian production to the level of agrarian-industrial and then industrial-agrarian region.
Implementation of structural changes in the economy becomes one of the main tasks of the state economic policy during the transition from one economic system to another. This is of strategic importance for the republic. One of the priority directions of deepening economic reforms in the region is the implementation of structural changes based on the superior development of the export-oriented, competitive goods production and processing industry in the world market. The main goal of implementing structural changes in the regional economy is to increase the benefits and reduce the risk of the process of globalization and integration of the world economy. It aims to transform the region from a region that gradually exports raw materials based on the demands of the external and internal markets to a region that has a fully completed production cycle, produces competitive goods and services, and provides economic growth in the context of economic modernization.
A clear proof of this is the fact that reception offices of the Prime Minister of the Republic of Uzbekistan were established in order to provide wide support to small business and entrepreneurship in our country, and to solve the problems encountered in their daily activities at the Government level. Nowadays, entrepreneurs, medium and small business entities serve as the basis for the sustainable development of the economy in the countries of the world. In developed countries, business entities make up more than 90 percent of the total number of enterprises and employ more than 50 percent of the working population.
Today, the fact that 60 out of every hundred workers working in the small business and private entrepreneurship sector are not registered according to the labor legislation, and they are paid in envelopes, leads to the violation of the social rights of these workers. In other words, in the future, they are deprived of the right to receive pension and other benefits. Based on this, starting from today, every entrepreneur has established a system of formalizing informal employees, concluding labor contracts with them, keeping labor records, paying wages based on the established procedure, and providing them with social benefits in their future life. and it is necessary to create the ground for retirement.
Fergana region has all facilities and opportunities for the development of small and medium business, private entrepreneurship. In particular, the proximity of the region to the capital, and its border with the Republics of Kyrgyzstan and Tajikistan indicate a high export potential of the manufactured products. Also, it is distinguished from other regions by the fact that there is a sufficient base of raw materials for the production and processing of agricultural products, and the presence of infrastructure facilities, including highways and railways. Just one example, if we take into account the average daily traffic of more than 45-50 thousand vehicles on the highways "M-34" and "A-373" passing through our region, paid service to the population along these highways We can organize catering, including catering, technical services for motor vehicles, hotels, motels and other types of services.
If the entrepreneurs of Fergana region further expand their activities, take advantage of additional opportunities, create at least 1 or 2 jobs each, and provide permanent employment to the unemployed population, new jobs will be created in the region. jobs will increase from 10,000 to 20,000. This will lead to the welfare of many families and an increase in the standard of living.
In 2018-2019, 302 projects with a value of 6.3 trillion soums were implemented in the service and agricultural sectors within the framework of the socio-economic development program in the region, and 15,458 new jobs were set to be created. For example, "Fergana Universal Glass" limited liability company produces glass containers for the pharmaceutical and food industries. The
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enterprise, which started operating in June 2019, implemented a project worth 50.1 million dollars and started producing import-substituting products. Until now, 4 million dollars worth of glass vials were imported to the pharmaceutical industry of our country. When this enterprise was launched, the possibility of supplying glass containers to pharmaceutical enterprises of our country expanded.
Table 3
Prospective indicators of increasing the production of agricultural products by small
№ Indicators Unit of measure 2023 year 2024 year 2025 year 2026 year
1. Meat (live weight) A thousand tons 57,1 59,2 69,1 80,4
2. Milk A thousand tons 348,5 357,5 360,4 402,9
3. Fish A thousand tons 8874,5 8970,2 9013 1254,0
4. Gross grain crop yield A thousand tons 428,0 430,0 467,2 564,2
5. Vegetables A thousand tons 261,0 278,0 307,0 412,3
6. Grapes A thousand tons 11,7 12,5 13,1 17,8
7. Poly crops A thousand tons 218,0 228,5 239,6 290,4
8. Potatoes A thousand tons 58,0 60,0 61,3 90,6
9. Fruits and berries A thousand tons 37,5 38,0 40,3 75,4
More than 100 types of glass containers are currently being produced at this enterprise, the only one in Central Asia. The enterprise is equipped with the most modern technologies manufactured in Germany, the Czech Republic, and France, and fully local raw materials are used in production. This year, the company, which is working at full capacity, will produce 102 million glass containers per year, and it is expected to export products worth 2 million dollars.
Regional businessmen plan to increase the number of animals in the livestock sector and, therefore, to increase the volume of production of livestock products. By 2021, it is planned to increase the number of cattle to 567,700, including the number of cows to 168,000, the number of sheep and goats to 675,000, and the number of poultry to 1,200,000.
Meat production will reach 70,000 tons, milk production will reach 385,000 tons, egg production will reach 185,000 tons, wool production will reach 1,200 tons, and cocoon production will reach 2,800 tons. With this, the needs of the people of the region for flour and flour products, potatoes, vegetables, rice, fruit, grapes, meat and dairy products will be fully satisfied. Conditions will be created for the export of surplus products.
In 2021, the share of agriculture in the gross regional product of the region will be 28.5 percent. The volume of processing of agricultural products will increase due to the operation of existing processing enterprises in the region at full capacity and the import of mini-technologies for processing agricultural products from abroad. In 2021, 100.0% of cotton, 88.0% of grain, 12.0% of vegetables and fruits, 38.0% of fruit, 40.0% of grapes, 25.0% of meat and processing of 41.0% of milk is achieved.
Today, entrepreneurs are building hydroponic greenhouses in all regions of the region. This makes it possible to produce high-quality police products and create many jobs. According to experts, 3 kilograms of tomato seedlings grown in the normal way are harvested, while the yield of hydroponics reaches 12 kilograms. Ripening of crops is reduced to 25-30 days.
High-yielding varieties of tomatoes and cucumbers were brought from the Netherlands and planted in these greenhouses. The whole process is fully automated. Modern equipment imported from the Republic of Korea determines the temperature, the plant's demand for water and nutrients through a thorough analysis, and water enriched with minerals is delivered to the plant roots by drip method. 1,500 tons of tomatoes are grown in the greenhouse per year. Also, agricultural products worth 2 million dollars will be exported.
Today, the field of small business and private entrepreneurship is at its growth stage in Fergana
region. Development of production with modern technologies instead of traditional types of small enterprises allows further development and improvement of small business activity in the region.
In 2020, the number of small business entities participating in the foreign economic activity of the region will increase to 200, and the number of participants in export-import operations will increase to 93 compared to 2019.
Rational use of production capacity in industrial enterprises, introduction of production of new competitive products, development of small business and private entrepreneurship, improvement of activities of joint ventures, increase of local budget revenues and reduction of the share of subsidy by deepening tax and budget reforms special attention is paid to the issues. It is planned to implement a number of measures on the formation of financial and banking infrastructures in the region. By 2020, the number of branches of commercial banks has increased to 52, the number of minibanks to 138, the number of savings banks to 159, the number of special funds to 70, the number of credit unions to 6, the number of microcredit organizations to 9, the number of insurance organizations to 7.
The work of providing credit services to economic entities in the region has been radically improved. The allocated loans are mainly directed to the development of small business enterprises, support of farms and development of processing industry enterprises. Total loan disbursements in 2019 amounted to 238.3 billion. amounted to 596.0 billion soums by 2021. increased to soums. More than 60.0% of the granted loans are long-term loans. Loans to small business entities in 2019 amounted to 50.6 billion. amounted to soums, by 2025 it is expected to increase by 3.5 times. In order to fulfill these tasks, the main attention should be focused on the priority development of industry in cities and villages, especially the production of consumer goods, the rational use of water and land resources from existing agro-climatic conditions, and the sustainable development of agriculture by improving land reclamation. Also, based on local conditions, it is necessary to prioritize the development of the service sector in all districts of the region, to expand new types of services, to increase the level of employment of the population, especially young people, based on the development of small business, households, and market infrastructure.
According to the Decree of the President of the Republic of Uzbekistan dated November 18, 2008 "On measures to further increase the financial stability of enterprises of the real sector of the economy", commercial banks will restore and modernize economically insolvent enterprises and, on their basis, production based on modern new technologies. organization works are being carried out systematically.
It should be noted that branches of commercial banks in our republic do not have the right to provide guarantees. Therefore, they should submit the documents related to the provision of the guarantee to the head office of the bank on time.
Guarantees of commercial banks for exported goods should be given to business entities that are reliable and have not "tainted" their reputation. The reason for this is that in practice, there are known cases of illegal actions by some business entities when exporting their products. As a result, export revenues did not come to our republic.
Commercial banks of our republic can use their foreign representative banks to support the process of using documented letters of credit of foreign banks for the payment of goods exported from the regions.
At the present time, training courses for business entities operating in the regions have been organized at the Higher School of Business and Entrepreneurship under the Ministry of Economic Development and Poverty Alleviation of the Republic of Uzbekistan. However, in these training courses, firstly, there are no topics on documented letters of credit and bank guarantees; secondly, employees of branches of commercial banks were not involved in these training courses. For business and entrepreneurial subjects In the training courses organized for business and entrepreneurial subjects, there are issues of opening bank accounts and obtaining loans related to banking services only.
Commercial banks of our republic have not paid attention to the issue of ensuring the independence of branches in the implementation of banking operations since they started their
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activities. In particular, there is no independence of branches in granting loans and performing currency operations. For example, bank branches are not authorized to open a documented letter of credit. They just prepare the relevant documents and send them to the bank's head office.
Also, branches of commercial banks do not have the right to issue guarantees. However, employees of commercial bank branches work directly with clients. Therefore, they should have sufficient knowledge and practical skills about the types and forms of documented letters of credit, types of bank guarantees and the procedure for their use.
After acquiring sufficient knowledge and practical skills in the use of international settlement forms, the branches of the commercial bank can provide quality consulting services to clients.
At this point, it should be noted that the knowledge and imagination of business entities about the practice of financing foreign trade activities is insufficient. Most of the business entities did not study subjects related to foreign trade activities at secondary special and higher educational institutions. Therefore, it is appropriate to organize educational seminars for them, which will teach them the issues of financing foreign trade.
Currently, there is no practice of selecting small business entities with stable cash flow as a separate group of clients and giving them unsecured loans. This prevents the increase of lending to the subjects of this sector. In addition, formalization of credit provision increases the borrower's costs related to lending. In addition, conflicts arise when agreeing on the marginal value (the level of credit given in relation to the value of the supply) between supply and credit.
It should be noted that in the practice of our republic, there is no internationally recognized highly liquid collateral (gold, customer-owned land, government securities, corporate securities whose payment is guaranteed by the government). it is permissible. In such conditions, it becomes an urgent issue to pay attention to collateral objects that are relatively easy to sell. Because the extension of the terms of sale of collateral objects creates a negative effect on the financial condition of the commercial bank.
LIST OF USED LITERATURE
1. 1-3. Prepared by the author based on statistical data.
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4. Erkinjon o'g'li, N. D. (2024). Opportunities for the Use of Foreign Experience in Export Activities of Small Business and Business Entities in Uzbekistan. International Journal of Scientific Trends, 3(1), 57-64.
5. Erkinjon o'g'li, N. D. (2024). Opportunities for the Use of Foreign Experience in Export Activities of Small Business and Business Entities in Uzbekistan. International Journal of Scientific Trends, 3(1), 57-64.
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