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0STATE AND PROSPECTS OF DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES OF THE KYRGYZ REPUBLIC
ZULPUKAROVA TATTIGUL ALIBAEVNA Teachers, Osh Technologicial Universit named after M.M. Adysheva
Kyrgyzstan
Annotation. The article "State and prospects of development of small and medium-sized enterprises of the KyrgyzRepublic" discusses the needn for functioning of small and medium-sized enterprises, their current state and role in the country's economy, as well as prospects for development in market conditions.
The functioning of small and medium-sized enterprises as a special sector of the economy is one of the most important areas of structural transformation in order to ensure the economic growth of Kyrgyzstan at the present stage. Without the creation of small and medium-sized businesses, it is impossible to create an effective multi-structured economy, the formation of a broad layer of the middle class of owners and entrepreneurs, which determines the stability of civil society and guarantees the irreversibility of the republic's movement to the market. In the modern conditions of globalization, when each country is more or less involved in a single world economy, the progressive development of the national economy requires taking into account global trends.
In this regard, the problems of developing small and medium-sized businesses in countries such as Kyrgyzstan are becoming particularly relevant in the context of the global financial crisis. The economy of Kyrgyzstan is not comparable in size, structure and degree of integration into the global economic space in comparison with the Russian, Kazakh or American ones. Therefore, the impact of the global crisis on the country's economy is felt to a lesser extent. In such conditions, business can serve as a locomotive of the Kyrgyz economy and make it more successful.
The importance of developing small and medium-sized enterprises in Kyrgyzstan cannot be overemphasized, given that the share of the working-age population in the country is almost 60 percent of the total population, while the share of the employed population is only 36 percent. The share of people employed in small and medium-sized enterprises (including individual entrepreneurs and farms) accounted for only 13.8 percent of the total number of people employed in the economy and 42.8 percent of the republic's GDP.
Despite the obvious economic efficiency and feasibility, small and medium-sized businesses in Kyrgyzstan in a market economy are quite vulnerable due to the comparative weakness of the financial base, which is associated with difficulties in initial financing, the reluctance of many banks to lend to small and medium-sized businesses, as well as high interest rates on loans. The financialosituation of small and medium-sized enterprises is particularly aggravated by such negative phenomena as inflation, financial crises, instability of the legislative and legal framework for the functioning of enterprises, frequent changes and imperfections in tax legislation, customs tariffs, etc.
It should be noted that a large number of works are devoted to the issues of specifics, economic and legal regulation and state support for small businesses,, and the competitiveness of small and medium-sized businesses is noted as one of the objective features of this sector of the economy without special comments or in-depth research. Meanwhile, the competitiveness of small and medium-sized enterprises, the very phenomenon of competition in the field of small and medium-sized businesses require special study due to their essential differences.
Currently, the economic literature has developed a modern understanding of competition as an economic struggle between producers for attracting consumers and the possibility of making a profit. As the productive forces of society develop, technology improves, and scientific and technological achievements are involved in production, the market is saturated with goods and services, which increases competition between producers for sales and resource markets. Success is associated with those manufacturers who are able to offer products and services that best meet the needs and
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expectations of consumers. Thus, along with the concept of "competition", the concept of "product competitiveness" appears - everything that provides a product with competitive (distinctive) advantages relative to similar offers from other manufacturers. This may include not only high technical or operational parameters of the manufactured products, but also all the components of the product complex -packaging, advertising, warehousing and delivery services, customer advice, etc .
Small business development increases the number of owners, thereby expanding the boundaries for further growth of competitive enterprises.
Recently, Kyrgyzstan has clearly shown a tendency to increase competition between enterprises, which are exposed to the growing cumulative impact of competitive factors in the conditions of a gradually developing market economy. Nevertheless, many enterprises do not carry out targeted work on analyzing competitors, and there are no systematic ideas about what is the competitiveness of an enterprise, how to create it, maintain it, and how to correctly implement it.
Due to their economic nature, small and medium-sized enterprises have significant advantages, since their position in close proximity to consumers allows them to quickly and flexibly respond to changes in market conditions. In this regard, the small and medium-sized business sector is able to ensure the accelerated formation of normal market relations.
At the same time, the same economic nature of small businesses necessitates state support for small and medium - sized enterprises, primarily due to thelimited amount oftheir own funds and the difficulty of attracting them for the development of competitive businesses.
First of государственной all, the creation of the necessary legal conditions for the development of entrepreneurship, including in small forms, should be considered as the basis for state support. Over the years of independence, the Kyrgyz Republic has created legal conditions for the development of small and medium-sized businesses. AtaTthe same time, there are more than 60 legislative acts regulating relations in this area. A legal framework for the activities of small and medium-sized enterprises, farmers and peasant farms, and individual entrepreneurs has been developed. The main impetus to entrepreneurship was given by the Law" On general principles of denationalization, privatization and entrepreneurship " of 20.12.1991, which played a huge role in the development of entrepreneurship.
To date, the republic has formed the main institutional conditions for the development of small and medium-sized businesses- the institution of private property, the taxation system, mechanisms for attracting investment, including foreign ones, the system of state support for small and medium-sized businesses, etc.However, many aspects require further development and improvement.
In this regard, it is very important to use the experience of managing and supporting the development of small and medium-sized businesses in other countries, both developed and developing. In particular, the experience of China is the most convincing in this regard. It is the development of small and medium-sized enterprises in various sectors of the Chinese economy that has determined the current level of market relations and openness of the Chinese economy. As the country's economic reforms deepen, the role of small businesses is growing even more.
However, despite the positive dynamics of small and medium-sized businesses, the potential of small enterprises, the possibilities of its impact on the economic and growth of Kyrgyzstan are clearly insufficient. At the same time, the main limiting factor for the development of most small and medium-sized businesses is, in our opinion, insufficient investment in the fixed capital of small enterprises. The existing state fiscal policy does not facilitate the accumulationof funds by enterprisesfor investment purposes, and access to credit resources of the banking sector is difficult due to the specificsof small businesses. As a result, in the absence of external investment, the innovative component of small and medium-sized enterprises ' business is lost, and they cannot be involved in intra-industry cooperation with large enterprises. This makes it impossible to use the advantages of narrow specialization with the use of high-tech equipment and modern technologies typical of technoparks and cluster industries, which negatively affects the competitiveness of small and medium-sized enterprises in Kyrgyzstan.
Considering the competitiveness of small and medium-sized enterprises as their ability to withstand the competitive environment, we should recognize the presence of a number of factors that determine the formation of competitiveadvantages inthe SF for small and medium-sized businesses:
- internal factors (the quality of products produced, the level of personnel, the efficiency of the enterprise management system, the level of technologies used and the condition of equipment);
- external factors (interaction with suppliers, consumers, government agencies, investors, and financial institutions), including the so-called dynamic abilities to learn, make better experiences, share information, and make and execute decisions quickly.
Assessment and analysis of the competitiveness of small enterprises in Kyrgyzstan show that the main problems of competitiveness of small and medium-sized enterprises in the republic are determined, firstly, by the lack of their ownresources forthe necessary innovative development, and secondly, by the difficulty of attracting loans, loans and other external sources of financing. The solution to this problem requires the mandatory and active participation of the State.
The prospects for the development of small and medium-sized businesses in Kyrgyzstan, we believe, should be primarily related to the development of those enterprises that are focused on the domestic market and are capable of rapid and efficient growth. In this case, the industry affiliation of small and medium-sized businesses is important, which determines the attractiveness for investment of certain business entities, taking into accountthefactors of the territorial location of these enterprises.
Small businesses, due to their economic nature, are closer to the market and consumers, are able to respond flexibly to changing needs, and therefore are potentially more competitive.
However, the specifics of small business require government involvement in supporting the formations and development of small businesses, especially in ycnoBHaxmarket economies. Such support includes favorable legislation, the creation of the institution of private property, special tax regimes, credit and financial levers, a system of state funds to support and encourage small businesses, etc.
The main prospects for the development of small and medium-sized businesses in the Kyrgyz Republic will be related to the priority development of small and medium-sized enterprises focused on the domestic market and investment-attractive for foreign entrepreneurs.
In this regard, it is necessary to develop a system of state support measures for the development and competitiveness of small and medium-sized enterprises in Kyrgyzstan, to improve economic, including tax and customs legislation, and to provide financial, property, information, and advisory support to small and medium-sized enterprises.
Giventhelimited domestic sources of investment development of the national economy and the small and medium-sized business sector, the state's ability to ensure the inflow of foreign investment into the country is becoming a priority. Therefore, investment support is considered as the basis for developing the competitiveness of small and medium-sized enterprises in Kyrgyzstan.
REFERENCES:
1. Gribov V. D. Osnovy biznesa. n[Fundamentals of business]. - Mm.: Finance and Statistics, 2010.
2. Musakozhoev Sh. M. Ekonomika [Economics]. Textbook for Universities, Bishkek, 2016.
3. Abdymalikov K. The economy of the Kyrgyz Republic in transition. Bishkek, 2010.
