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ECONOMIC MEANING AND ESSENCE OF THE CONCEPTS
"TREATMENT" AND "CRAFTSMANSHIP"
Tuxtasinov Zafarjon Odiljonovich
independent researcher of Tashkent State University of Economics
https://doi.org/10.5281/zenodo.15661189
As one of the main directions of the reforms being carried out in the
Republic of Uzbekistan, systemic measures are being implemented to develop
entrepreneurial activity, revive the traditions of craftsmanship, and realize the
local economic potential. As the role of the mahalla institution in socio-economic
life increases, effective management of the development of entrepreneurship
and crafts in mahallas, ensuring infrastructural and organizational improvement
in these areas is becoming increasingly important.
In the context of today's globalization and market economy, the concepts
of "entrepreneurship" and "craftsmanship" acquire important methodological
and practical significance in ensuring economic growth and social stability. Both
types of activity are one of the main factors in the real sector of the economy,
ensuring employment, increasing the income of the population, and forming an
innovative environment in society. In this article, the economic essence of these
concepts, their differences and similarities, the path of historical development,
and their place in the modern economic system are analyzed based on
theoretical and empirical approaches.
The development of entrepreneurship and handicrafts in mahallas is
recognized as one of the important directions for stabilizing the modern
economy, ensuring employment, and improving social well-being.
Entrepreneurship is the process of effective management of economic resources,
innovation, and adaptation to changing market conditions. Handicrafts, while
preserving national traditions, serve as a factor in increasing economic activity
at the local level. Systematic cooperation between local government bodies, civil
society institutions, and economic policy organizations is the key to success in
this area.
Business entities must ensure financial stability while having sufficient
financial resources to implement their business plans and ensure solvency, and
business entities must analyze and control financial risks associated with their
activities, as well as develop management strategies.
First of all, the concept of entrepreneurship is interpreted in economic
literature through multifaceted approaches. In classical economic theories, A.
Smith and D. Ricardo considered the entrepreneur as an intermediary uniting
factors of production (land, labor, capital), while J.B. Say interpreted him as a
ACADEMIC RESEARCH IN MODERN SCIENCE
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person who organizes production, introduces innovations, and operates on the
basis of risk. J. Schumpeter connects the entrepreneur with the idea of "creative
catastrophe," assessing it as a force that introduces innovation into the existing
economic system, strengthens competition in the market, and creates new
economic equilibrium. In international practice, entrepreneurship, in a broad
sense, includes independent decision-making, relying on one's own resources,
taking risks for profit, and introducing innovations into economic circulation.
Handicrafts, in turn, are a traditional form of economic activity and have
occupied a special place in society since ancient times. It is especially deeply
rooted in the cultural, labor, and economic life of the peoples of Central Asia.
Craftsmanship, as a rule, is understood as the activity of people to create
products of labor by their own hands, on a small scale, based on traditional
methods. Craftsmen mainly mastered one or more professions and delivered
their products directly to consumers. According to historical sources, craft
activity developed in ancient cities in the context of mahallas, based on the
master-apprentice tradition, and this system was the basis of economic and
social stability.
And in modern conditions, entrepreneurship and crafts are mutually
integrating. Because work in handicrafts, previously carried out only within the
family or in small workshops, is now being transformed into entrepreneurial
activity, enriched with branding, digitalization, e-commerce, and export
activities. This process introduced the concept of "entrepreneurship based on
craftsmanship" into the economy.
There are principles such as the стремление of business entities to
maximize the return on investments and increase profitability through the
effective use of financial resources, as well as the adherence to high ethical
standards in their financial activities, avoiding fraud, corruption, and other
negative practices.
Thus, theoretical approaches to regulating the activities of business entities
based on the established methodology for forming economic development
models create conditions for selecting the most important regulatory principles
of state regulation and self-regulation of economic relations, depending on the
requirements for finding the direction of socio-economic development and the
overall level of development. It is based on the classical principles of evolution,
statehood, democratization, self-governance and state regulation, and social
motivation.
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Based on theoretical research, the meaning and essence of the word
"business" were revealed, according to which this word is derived from the
English word, which means entrepreneurial activity or, in other words, the
activity of people aimed at obtaining profit. Entrepreneurship (Eng. enterprise) -
independent activity of citizens aimed at obtaining personal income, profit. This
activity is carried out in its own name, at the expense of its property liability and
the legal liability of the legal entity. Small and medium-sized businesses are
businesses based on independent ownership, independent organization of
economic activity, and do not occupy a dominant position in their industry.
In conclusion, the development of entrepreneurship and crafts in mahallas
is a complex management process that combines not only economic, but also
social and cultural factors. Its success depends on scientifically based
approaches, in-depth analysis of local needs, and continuous improvement of
management mechanisms.
References:
1.
Sharifxo'jayev M., Abdullayev Yo. Management. Textbook. - T., 2003. - 37
p.;
2.
Gulomov S.S. Entrepreneurship and Small Business. - T., 2002. - 256 p.;
3.
Gafurov U.V. Improvement of economic mechanisms of state regulation of
small business. -T.: NAPU. 2017. - 274 p.;
4.
Alimatova D.S. Improvement of attracting investments in the development
of entrepreneurial activity in the regions. -T.: TMI. 2018. - 77 p.;
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Ibragimova M.M. Increasing the efficiency of small business and private
entrepreneurship based on structural changes. 2018. - 54 p.
