Experience of foreign countries in improving the mechanism of sustainable development of small entrepreneurship

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Гаибназарова, З., & Фарходов, Б. (2023). Experience of foreign countries in improving the mechanism of sustainable development of small entrepreneurship. Направления развития благоприятной бизнес-среды в условиях цифровизации экономики, 1(01), 50–53. https://doi.org/10.47689/TSUE2022-pp50-53
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Аннотация

The article deals with the development of small business based on the experience of foreign countries, given offers and recommendations for improving the mechanism of sustainable small business in our country using the latest technologies and economic development strategies.

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шароитида қулай ишбилармонлик

муҳитини ривожлантириш йўналишлари

50

EXPERIENCE OF FOREIGN COUNTRIES IN IMPROVING

THE MECHANISM OF SUSTAINABLE DEVELOPMENT

OF SMALL ENTREPRENEURSHIP

Gaibnazarova Zumrat Talatovna,

DSc, Professor,

Tashkent State Technical University named after Islam Karimov,

Farkhodov Bobir Utkirovich,

Trainee researcher,

Tashkent State Technical University named after Islam Karimov

Abstract.

The article deals with the development of small business based on

the experience of foreign countries, given offers and recommendations for

improving the mechanism of sustainable small business in our country using the

latest technologies and economic development strategies.

Keywords:

sustainable development, small entrepreneurship, foreign

experience, innovation, investment.

In 21st century, the approaches and principles to support sustainable

development of small business by states have significantly changed. It creates and

implements economic mechanisms depending on sustainable development of

small business in the countries, general situation, as well as international,

economic, regional and other conditions. Successful tasks in France, Sweden,

Brazil, China, USA, Germany, Italy, Finland and Japan have been studied according

to the main and international experience in sustainable development of economic

activity in small business.

Brazilian government support for sustainable development of small

businesses was formed and this strategy was based on introduction of import

substitution plans. If the imported products are not produced in Brazil, the right

to bring these industrial products into state territory was provided. These

measures, which were actively used in the 1960s and 1980s, helped prevent many

Brazilian manufacturers from going into crisis and created the basis for the

development of scientific research and experimental design work.

In the early 2000s, Brazil sustainable development strategy focused on

ensuring competitiveness in key industrial sectors, the growth of emerging

industrial technologies, and promoting the export of value-added products. The

country implemented projects on the basis of state program

Innovative Brazil

and strong industry

in priority directions: medicine, industrial and technical

products, nanotechnology, development of biotechnology projects, use of

renewable energy sources.


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Иқтисодиётни рақамлаштириш

шароитида қулай ишбилармонлик

муҳитини ривожлантириш йўналишлари

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In 2008, Brazil approved

Manufacturing Development Policy

for

investment projects aimed at sustainable development of small businesses. The

program included the following areas covering strategic sectors: health care,

nuclear energy, defense, nanotechnology and biotechnology. In order to

strengthen its position in the world market, the funds of National Bank of

Economic and Social Development were directed to investment projects of

metallurgy, aviation construction, paper industries, petrochemical and food

industries. The procedure for using credit funds for small industrial enterprises

has been simplified. These measures, as well as tax exemptions on wages and

government purchases, made it possible to mitigate the effects of the 2008 global

financial crisis.

Sustainable Development of Industry

plan, launched in 2012, created

mainly conditions for providing tax incentives, anti-dumping measures and

financing sources and guarantees for exporters.

With the help of various programs, the state supports sustainable

development of small businesses and export projects. On the basis of special

conditions, production guarantees and loans to large companies and small

enterprises for financing the production of export goods, taking into account up

to 75-100 percent of required amount, have been provided for a period of 30

months. Another program aims to provide export credits at reduced rates for

importers of Brazilian products. However, as a result of the analyzes of the World

Trade Organization, restrictions were placed on this program regarding legality

of the use of such subsidies.

Starting from 2020, the promotion of investment projects in industry has

become particularly important, which has been reduced to 15% from the highest

in the world in 1999, when bank interest rates reached 45%.

For sustainable development of German small business, a banking system

focused on long-term lending has begun to be created. Only for the purpose of

sustainable development of small business, state banks were established to

finance investment projects. Since the 1960s, government support has been

mainly focused on the development of scientific and industrial research. Starting

from the mid-1970s, one of priority directions of investment projects in Germany

was implementation of scientific research and experimental design works in state

institutions. The main attention was paid to development and introduction of

scientific research and experimental design work in sustainable development of

industrial sectors. In addition to development institutions, investment projects

focused on scientific research and experimental construction work were

encouraged on the basis of tax incentives and public-private partnership tools.

Since the mid-1990s, priorities of Germany have changed and have been

revised in order to develop investment projects aimed at increasing the energy

efficiency of production, developing the use of renewable energy and

green

technologies.


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Иқтисодиётни рақамлаштириш

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муҳитини ривожлантириш йўналишлари

52

In Germany, there are a number of state institutions and programs aimed at

implementation of sustainable development projects of small businesses and

development of scientific research and experimental design work. For example,

the state bank

KfW Bankengruppe

provides loans at low interest rates for

sustainable development of small businesses, and state export agency

Euler

Hermes

provides loans and guarantees.

In 2013, Germany launched 500 million Euro Central Innovation Program

to finance 5,000 new and 8,000 existing investment projects for the development

of innovation.

Small businesses and holding companies of Germany have improved their

ability to attract venture capital thanks to tax incentives, and now they are

starting to invest in young technology companies and high-tech startups.

Currently, the reforms being carried out in Germany are aimed at creating a

favorable business environment, therefore, financial and advisory support is being

introduced in implementation of investment projects of high-tech start-ups in

industrial sectors. The strategy for sustainable development of high-tech small business

is aimed at solving following tasks: environmental protection, development of

transport system and health care, as well as development of modern technological

achievements of industry, which ensures the implementation of scientific research

projects and creation of new products. As a part of the task,

improvement of regional

economic structure

is carrying out sustainable development of small business with the

help of subsidies. At the same time, supported enterprises are developing more

successfully than unsupported ones.

Germany uses public procurement for strategic purposes as a tool to

develop the use of materials, technologies or standards. In addition, Germany

provides subsidies to energy-efficient small businesses for the purchase of

electricity from renewable sources as part of its environmental protection

obligations, which provides opportunities for sustainable development of small

businesses.

In Italy, the implementation of investment projects in strategic directions of

industry, including the automotive industry, was encouraged, and preferential

loans and subsidies were provided for repair and expansion of production

facilities. All loans were nationalized by special holding company due to problems

in repaying the given loans and in order to save non-functioning small businesses.

In the 1950s and 1960s, state organizations directed investments to

modernize engineering industries, create infrastructure, and sustainably develop

heavy industry. Specialized banks were established, which were engaged in

financing investment projects aimed at sustainable development of small

businesses. They provided financing new industrial projects and traditional lines.

Subsidies and other measures have been provided to strategic small

businesses to support their sustainable development and reconstruction.

However, due to a number of problems, these subsidies did not lead to necessary


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Иқтисодиётни рақамлаштириш

шароитида қулай ишбилармонлик

муҳитини ривожлантириш йўналишлари

53

structural restructuring and sustainable development of small businesses in Italy.

At the same time, many troubled enterprises in strategic and traditional sectors

were saved from crisis, which led to expansion of a number and size of state-

owned companies.

In the 1980s, the goals of state small business sustainable development

were focused on scientific research and experimental design works, as well as on

promotion of competitiveness, as well as on expansion and modernization of

small business, which had fallen into difficult conditions due to strengthening of

international competition. In Italy, investment projects of strategic enterprises,

preferential lending continues, for example, loans were allocated to ensure the

reconstruction of FIAT.

Currently, a set of industry-

related measures “Industry 2015” has been

adopted in Italy for sustainable development of small entrepreneurship, strategic

goals of which are to use innovative investment projects aimed at scientific

research and experimental design work, and to direct investments in areas of

energy efficiency and logistics.

Active attraction of foreign direct investments, use of subsidies for scientific

research and experimental design works and business development, and

allocation of large-scale tax incentives are among the most types of projects for

sustainable development of small business. The purpose of allocating subsidies

for the sustainable development of small businesses is based on a number of

criteria, such as creating new jobs, achieving planned economic efficiency,
introducing advanced technologies, and creating value-added products. This

approach allows for effective distribution of economic resources to solve the tasks

of sustainable development of small business.

References

1. Adam Szirmai, Wim Naudé, Ludovico Alcorta.

Pathways to

Industrialization in the Twenty-First Century: New Challenges and Emerging

Paradigms. Oxford University Press, USA.

2013.

p. 232.

2. Owen G. Industrial Policy in Europe since the Second World War: What

Has Been Learnt? ECIPE Occasional Pape

r. № 1. 2012. –

pp. 17

20.

3. Industrial Performance Scoreboard and Member States

Competitiveness

Performance and Policies [Electronic resource]. European Commission.

Commission staff working document. 2012.

P. 83.

Mode of access:

https://ec.europa.eu/docsroom/documents/111/attachments/1/translations/e

n/renditions/ native

Библиографические ссылки

Adam Szirmai, Wim Naudé, Ludovico Alcorta. Pathways to Industrialization in the Twenty-First Century: New Challenges and Emerging Paradigms. Oxford University Press, USA. – 2013. – p. 232.

Turaev, Shavkat. "Improvement of the Calculation Procedure of Tax Burden with Digital Technologies." 2021 International Conference on Information Science and Communications Technologies (ICISCT). IEEE, 2021.

Owen G. Industrial Policy in Europe since the Second World War: What Has Been Learnt? ECIPE Occasional Paper. № 1. 2012. –pp. 17–20.

Тўраев, Шавкат. "КОРХОНАЛАРДА СОЛИҚ ЮКИНИ ОПТИМАЛЛАШТИРИШ МАСЛАЛАРИ." Иқтисодиёт ва инновацион технологиялар 10.3 (2022): 378-385.

Industrial Performance Scoreboard and Member States’ Competitiveness Performance and Policies [Electronic resource]. European Commission. Commission staff working document. 2012. – P. 83. – Mode of access: https://ec.europa.eu/docsroom/documents/111/attachments/1/translations/e n/renditions/ native

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