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THE ROLE OF SERVICE NETWORKS IN THE ECONOMY
Karimov Oybek Olimjon o‘g‘li
Student of Namangan State Technical University
Tel: +998975701405
E-mail: karimovojbek353@gmail.com
https://doi.org/10.5281/zenodo.15558837
ARTICLE INFO
ABSTRACT
Qabul qilindi: 25-May 2025 yil
Ma’qullandi: 28-May 2025 yil
Nashr qilindi: 31-May 2025 yil
The article presents the importance of service
industries not only in the economy, but also in the social
sphere, new types of services, changes in their share in
the country's gross domestic product, and proposals
and recommendations for the development of service
industries.
KEY WORDS
economic
diversification,
structural changes, service sector
and service, strategy, services
market.
Introduction
The service sector covers all segments of the population and affects
almost all socio-economic processes taking place in society, which shows how important and
significant this issue is. In Uzbekistan, during the years of independence, systematic work was
carried out on the rapid development of the service sector and services as one of the
important directions and factors for diversifying the economy and deepening structural
reforms, increasing employment, incomes and quality of life of the country's population. In
addition, this sector plays an important role in ensuring sustainable economic growth.
In this regard, the task set in the resolution “ On the Strategy of Actions for the Further
Development of the Republic of Uzbekistan” [1] to “actively develop small urban-type cities
and towns through the creation of new industrial production and service centers, attract
funds from large economic associations, bank loans, and private foreign investments” will
ensure the further development of this sector and further strengthen the reforms underway
in this area.
There are also some problems in the formation and development of service sector
entities and ensuring their high efficiency. The need to eliminate these problems and solve not
only practical, but also a number of theoretical issues requires conducting research aimed at
increasing the efficiency of this sector and ensuring the sustainable development of the socio-
economic development of our country.
“The great economist Adam Smith, in order to more fully reveal the economic content of
goods in the form of services and to solve the problem of considering them as a source of
social wealth of the country, expressed his opinion on the concepts of productive labor and
unproductive labor in his world-famous work “An Inquiry into the Nature and Causes of the
Wealth of Nations”. Thus, A. Smith distinguished between material and immaterial production
and made a great contribution to the creation of the initial concept of service. The term
service is used by scientists in economic literature from different points of view and is
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interpreted depending on the field of economic knowledge. Many foreign and domestic
scientists have conducted theoretical research within the framework of this term. One of the
famous scientists is F. Kotler, who defines service as follows: “A service is any activity that one
party can offer to another.” One of the famous scientists of our republic, I.S. Tukhliev, said:
“Services are a special type of intangible goods.” says, and in this approach, the scientist tries
to emphasize that services represent the nature of commodities, that is, services reflect labor
relations in the processes of production, material production, but the result of the production
process has an intangible form.
Analysis of literature on the topic
A number of foreign and domestic scientists have conducted research on the topic,
contributing to the development of various aspects of this field. Including: concepts,
description and classification of services, situation analysis, contribution to comfortable living
conditions in the place of residence E.A. Razomasova, comments of local and foreign scientists
on the concept of "service sector" V.A. Lazarev, direct and significant impact of the service
sector on the health, mood, attitude to work, labor productivity of employees, level of
satisfaction and joy with their lives, and in general, on the life and development of the
productive forces M.M. Mukhammedov, processes of regulation and coordination of insurance
services Zh.R. Zaynalov, growth rates of the service sector, newly emerging types of services,
adaptation to market and consumer needs, and its importance in increasing the well-being of
the population I.S. Tukhliev, issues of service provision and its development in agriculture
G.H. Kudratov, K.J. Mirzaev, M.K. Pardaev, R. Botirova, service provision, Development of the
service and tourism sectors: I. Ochilov and others conducted research on problems and their
solutions.
Research methodology
Economic and social analysis, logical approach, deduction and scientific study of the
result were used, relying on a set of specific ways of knowing.
Analysis and results
Today, the service sector plays an important role in the
sustainable development of the economy. One of the founders of marketing theory, F. Kotler,
said: “A service is any activity that one party can offer to another; as a result of which nothing
is obtained. The provision of a service may be associated with a material product.
Sometimes it is difficult to distinguish between goods and services. In general, services
have four characteristics: intangibility; impermanence; inseparability from the service
provider and variability in quality. In addition, the service sector, as an integral part of the
economy, has the following unique characteristics: - services are not tangible as tangible
goods, and most service providers are individuals; - service providers are unique as
individuals and cannot be separated or sold separately from their providers; - the quality of
the service varies, that is, the service of one person can have different qualities at the same
time and services do not appear as objects in the process of buying and selling; - the service
cannot be stored and stored, but can only be consumed during the service; - the service itself
cannot be moved from one place to another without being separated from its owner, but the
production and consumption of the service occur simultaneously; -service providers and
consumers may be directly involved in the service process, etc.
These aspects, in addition to the generally recognized features on a global scale, also
include features that are relevant to the development of our country. It should also be noted
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that the invisibility of services means that we cannot observe them - they cannot be displayed,
transported, stored, packaged (packaged) or studied after purchase. By their very nature, the
services market develops according to the laws of a market economy and is part of the goods
market. At the same time, it has a number of its own characteristics, requiring a special
approach to meeting the demand for services in entrepreneurial and marketing activities.
Services are both an economic and a social sphere at the same time. Because the activities of
the service industry are used in all areas, including economic, social and even political
spheres. The economic sectorality of services is manifested in the fact that a part of the
country's gross domestic product is created in this sphere. Its social sphere is that most of it is
aimed at improving people's lives and making their lives more convenient. As a result of this
service being directly integrated into the communication service, modern paid services -
remittance channels (Paynet, Unipay, Western-union, etc.) have been formed. The
development of the services market in the republic serves as an incubator for
entrepreneurship. Because, due to the rapid turnover of capital, favorable conditions are
created for business entrepreneurship. The structure of the services market in most cases
consists of small enterprises, which allows the majority of economically active persons to
engage in business. The services market represents the purchase and sale relations for the
provision of household, educational, medical, technical, communal, cultural, communication,
transport, consulting, engineering, leasing and other services to the population. It also forms
its own branches and institutions. This, in turn, is an important guarantee of the formation of
the middle class of owners (entrepreneurs) and is the basis for the development of the
country's economy. Therefore, it is appropriate to consider the economic analysis of the
reforms being carried out in the service sector in the Republic of Uzbekistan, the processes of
their implementation and the results. The fact that the service sector accounted for 47.3
percent of the gross domestic product in 2017 indicates how significant the role and influence
of this sector in our economy are. It is worth noting that, given that today more than half of
the employed population in the entire economy of the Republic of Uzbekistan works in the
service sector, it is necessary to act now for the prospects of the sector.
Conclusions and suggestions
In conclusion, the experience of developed countries
shows that private entrepreneurship, especially service sector entities, is one of the main
factors ensuring socio-economic stability in all aspects of social development. The
development of this sector leads to the enrichment of the country's population, economic
development, consumer market saturation, an increase in state budget revenues, and a
decrease in unemployment. It is also necessary to practically substantiate the fact that one of
the important directions for increasing the efficiency of the service sector is the efficiency of
economic potential and develop a system of indicators expressing them, as well as ways to
identify and analyze the factors affecting their change; - identify and analyze the factors
affecting private enterprises engaged in the service sector; - show that, based on the
importance of determining the break-even point of the service sector today, a number of
methods can be used and show ways to increase efficiency by analyzing the factors affecting
its change; - improvement of standardization, licensing and certification systems in increasing
the efficiency of the service sector; - based on the importance of increasing the profit and
profitability of the service sector in the conditions of a free economy, by analyzing the factors
affecting their change, to show the ways to find internal opportunities for improving these
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indicators.
The “New Uzbekistan Development Strategy for 2022-2026” sets out many goals and
objectives. Based on these goals and objectives, it is necessary to continue the coherence of
these reforms, in particular, to systematically develop the service sector in the future.
Therefore, we believe that it is appropriate to make a number of proposals for the
development of this sector in the current digital economy. Based on these goals and
objectives, it is necessary to continue the coherence of these reforms, in particular, to
systematically develop the service sector in the future. Therefore, we believe that it is
appropriate to make a number of proposals for the development of this sector in the current
new era of economic development. Firstly, to expand the scope of modern market services,
create a positive competitive environment in the sector by introducing new types of services,
and dramatically increase the share of the sector in the national economy of the country. For
this, it is necessary to further increase the efficiency of the service sector and turn the service
sector into a driver of the economy.
Used literature:
1. Decree of the President of the Republic of Uzbekistan Sh. Mirziyoyev “On the Strategy of
Actions for the Further Development of the Republic of Uzbekistan” dated February 7, 2017
No. PF-4947. // “Word of the People” dated February 8, 2017 No. 28 (6722).
2. Razomasova E.A. Sphere style: theory, cost and development: monograph / E.A.
Razomasova; NOU VPO Tsentrosoyuza RF "Sibirsky universitet potrebitelskoy kooperatsii". -
Novosibirsk, 2011. - 136 p.
3. Lazarev V.A. K voprosu o sootnoshenii concepts "service sphere", "non-proizvodstvennaya
sphere", "social sphere", "obsluzhivaniya sphere" and "service sphere" // Internet magazine
"NAUKOVEDENIE" Volume 8, No. 6 (2016) http://naukovedenie.ru/PDF/53EVN616.pdf
(dostup svobodnyy). Go to the screen. summer Russian, English
4. Muhammedov M.M. “Development of the service sector is a priority issue”. Service Journal.
No. 1, 2009.- pp. 47-56.
5. Tukhliev I.S., Khaitboev R. Basics of tourism // Science and technology 2014-328.
6. Tukhliev I.S., Khaitboev R. Basics of tourism // Science and technology 2014-328.
7. Botirova R., Ikromov I. Current directions of development of the service industry in the
regions. No. 11(119)-2017. http://www.biznesdaily.uz
8. Ochilov I. Types of services and their classification in the conditions of market relations.//
Development of service, service and tourism sectors: problems and their solutions.
Monograph. - T.: ECONOMY-FINANCE, 2008.
9. Philip Kotler. Basic marketing. . Perevod s angliyskogo V. B. Bobrova. Obshchaya redaktsiya
i vstupitelnaya article E. M. Penkovoi. Moscow.: Progress. 1991
10. Resolution of the First President of the Republic of Uzbekistan I. Karimov dated May 21,
2007 No. PK-640 "On additional measures to accelerate the development of services in the
Republic of Uzbekistan until 2010".
