INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1228
OPPORTUNITIES FOR BUSINESS AND ENTREPRENEURIAL ENTITIES IN OUR
COUNTRY TO UTILIZE FOREIGN EXPERIENCE IN EXPORT ACTIVITIES
Gulistan State University
Mukhtabar Nurmuxamidova
– Senior Lecturer,
Hikmatillo Rixsiboyev
– Student
Entrepreneurial activity results in the creation of new products. Today, fostering a competitive
economic environment, enabling new entrepreneurs to achieve high commercial profits, and
meeting the growing needs of society are crucial. Globally, innovative entrepreneurship is
characterized by the creation of high-tech products and advanced technologies. In developed
countries, firms engaged in innovation account for more than 30% of national exports.
According to the classical English economic school, an entrepreneur takes risks to gain
profit. This school outlines the conditions under which entrepreneurship becomes beneficial to
society. Entrepreneurs are driven to produce goods and services that align with societal needs,
adapt to market competition, and comply with established norms due to their profit motive.
As per F. Wieser’s conclusions from the Austrian economic school, an entrepreneur’s
leadership begins with the conception of a business idea: they not only provide capital but also
propose new ideas, refine plans, and attract specialists. Once the enterprise is established, the
entrepreneur takes on the role of managing both theoretical and commercial aspects of the
business.
J. Schumpeter, in his concept of entrepreneurship, emphasizes that the primary task of an
entrepreneur is to identify new raw material sources, discover new markets, reorganize
production, and improve manufacturing through innovation. The essence of entrepreneurship lies
in the use of production and market factors to create “various new innovative combinations.”
Schumpeter identifies five key aspects of entrepreneurship: introducing new goods unknown to
consumers, ensuring marketability through new technologies, adopting new production methods,
utilizing alternative raw materials, and improving industry operations. He also states, “An
entrepreneur does not necessarily have to be an owner; they can also be an employee. An
entrepreneur
is
someone
who
implements
new
innovative
combinations.”
As the President of Uzbekistan has stated: “To continue financial support for
entrepreneurship, 6 trillion UZS in preferential loans will be allocated next year under family
entrepreneurship programs. Additionally, the government, in cooperation with the World Bank,
will allocate an additional $100 million to expand the rural entrepreneurship development
program.”
In 2020-2021, the government implemented comprehensive measures worth a total of 82
trillion UZS. Specifically, an Anti-Crisis Fund was established, and over 16 trillion UZS from
the budget was allocated to combat COVID-19 and support the population and
businesses.Furthermore, state-owned enterprises, over 500,000 business entities, and nearly 8
million citizens benefited from 66 trillion UZS in tax incentives, extended loan repayment
periods, and financial support programs.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1229
Referring to the Law of the Republic of Uzbekistan “On Guarantees of Freedom of
Entrepreneurial Activity,” entrepreneurship is defined as “an initiative activity carried out by
subjects of entrepreneurial activity in accordance with legal regulations, undertaken at their own
risk and under their property liability, aimed at generating income (profit).”
S. G‘ulomov, based on the Law “On Entrepreneurship,” defines it as follows:
“Entrepreneurship is an independent, initiative activity of citizens directed at making a profit or
personal income, carried out in their own name, at their own risk, and based on their own or a
legal entity’s property liability.” In the modern development of economic science,
entrepreneurship is evaluated in connection with the macro-environment and as a semi-
functional type of activity. The concept of entrepreneurship is studied from two main
perspectives:
1. The first perspective considers entrepreneurship and its activities as objective and unchanging
within specific external environmental conditions, with an emphasis on its functioning.
2. The second approach focuses more on the internal environment of entrepreneurial activity.
The superiority of one approach over the other depends on the goals and objectives set for the
research.
A significant portion of the products exported by small businesses and private
entrepreneurs consists of raw materials that are unprocessed and have low added value. This
situation necessitates the development of strict measures to direct the country’s exports toward
high-tech products. Currently, there are various approaches to defining the category of “export
potential.” By export potential, we understand the possibility of exporting available resources or
produced
goods.
Modern methods allow us to analyze and classify export potential. In our opinion, it can be
divided into two categories:
1. Structural – based on studying the structural elements of export potential and analyzing the
obtained results.
2. Comparative – based on evaluating the performance of enterprises producing competitive
products and comparing their export potential.
The level of export potential of small businesses and private entrepreneurs varies
depending on the specific characteristics of each sector. Global experience confirms that in
developed market economies, small businesses play a crucial role in addressing socio-economic
problems, creating new jobs, adapting quickly to market changes, and forming a class of
property owners. In many countries, special attention is given to the role of small businesses in
economic development, enhancing entrepreneurship, and shaping market mechanisms. From this
perspective, thoroughly studying the experiences of developed market economies in financing
small businesses and implementing effective methods tailored to national economic
characteristics is a priority. This, in turn, contributes to improving the financing of small
business projects in Uzbekistan.
In the U.S. system, unlike large corporations, small business entities rely more on their
own funds rather than borrowed capital. However, rapidly growing firms often feel the need for
partial financing through external funds. In such cases, credit cards serve as an important source
of financing. In 1993, 29% of small firms used them. Nevertheless, banks also played a role in
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1230
financing. In the same year, 26% of small businesses used credit lines, 9% used financial leasing,
6% used mortgage credit, 14% took out loans for equipment, and 24% used loans for
transportation. By June 1996, until early 1998, 37% of such businesses utilized commercial
banking services, with the total amount of bank loans granted reaching $172 billion.
In the United Kingdom, personal savings and bank loans serve as the primary sources of
small business financing. More than 20% of all small businesses obtain loans from the Trade and
Industry Finance Corporation. The main government support programs for small
entrepreneurship include the Loan Guarantee Scheme. This scheme allows commercial banks to
provide loans to businesses that cannot independently secure credit. The government guarantees
up to 70% of the amount, and in high-risk cases, up to 85%. The interest rate under this
guarantee
is
2.5%
annually,
and
in
high-risk
areas,
it
is
2%.
Thus, 70-80% of the loans granted to small businesses by banks are guaranteed by the
government. To support these guarantees, approximately £50 million is allocated from the
budget annually. Another program, the “Credit Guarantee Program,” provides insurance bonuses
to entrepreneurs who have successfully operated for three years. Since the early 1990s, the
British Confederation of Industry has been implementing the “Entrepreneurship Expansion
Program.” This program considers contributions from legal and natural persons interested in
supporting small business development as an additional source of financing. Additionally, local
governments provide financial support for small business development, assisting young
entrepreneurs in setting up or expanding their businesses. Through its network of branches, the
small business sector controls 90% of the operational space for entrepreneurs. In Germany, a
state program for supporting small businesses has been developed and implemented. According
to this program, entrepreneurs receive interest-free loans for the first two years of their
operations. In subsequent years, interest is charged at very low rates. This ensures that
entrepreneurs are almost entirely provided with initial capital. The benefits are granted based on
a business plan developed and approved by a government agency. Later, this agency strictly
monitors the targeted use of the loan and requires all expenses to be documented with
appropriate financial statements. Small enterprises operating in the production sector can lease
land plots for construction at reduced prices.
In Japan, government incentives for small businesses are implemented at all stages of
development. A variety of economic support measures are applied, including preferential loans
and credits, tax incentives, technical and advisory assistance, information and computer services,
workforce training, and more. Currently, small enterprises account for 99% of all businesses in
Japan, with a total of 6.5 million such businesses. They employ 54 million people, making up
80% of the total workforce in the country.
Small enterprises account for 55% of GDP. In Japan, an essential element of the system
supporting small and medium-sized businesses is the legislative framework. It consists of a
comprehensive set of laws adopted gradually rather than simultaneously, including laws such as
“On the Establishment of the State Administration for Supporting Small Innovative Enterprises”
and “On the Establishment of a State Corporation for Financing Small Innovative Enterprises.”
A key feature of Japanese legislation is the clear definition of the law’s scope and structure, the
development of mechanisms for implementation, the interaction schemes of executors, and a list
of measures for enforcement. The Japanese government takes care of the renewal of the
entrepreneurial
sector
and
facilitates
the
establishment
of
new
enterprises.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1231
In 2003, amendments to the legislation allowed the creation of small enterprises with an
initial capital of just 1 yen. As a result, over 32,000 enterprises were established in this manner.
In South Korea, the government provides preferential conditions for small enterprises to replace
outdated equipment and install new ones. Large enterprises can receive credit lines of up to 1.5
billion won, while small enterprises can obtain up to 3 billion won. Small enterprises pay an
intermediary fee of up to 1% per year, while large enterprises pay up to 1.5%. In addition, up to
70% of bank loans allocated to fixed assets for small enterprises (up to 1.5 billion won) are
insured.
A comparative analysis of financial support for small businesses in developed market
economies is of particular interest. The volume of credit allocated to small businesses is highest
in Japan (39.9 billion USD), Germany (61.9 billion USD), and Canada (22.8 billion USD). The
UK and France stand out for providing the most significant guarantees. These high figures
indicate that developed countries have well-established and effective systems for financially
supporting small enterprises.
Experience in developed market economies confirms that measures to support small
businesses financially often share similarities, though there are some differences. The formation
and operation of private entrepreneurship in Uzbekistan have unique characteristics. There are
several challenges hindering the development of private enterprises:
1. Lack of Adaptation to Changing Market Relations – Many small businesses struggle to adjust
to evolving market conditions. Insufficient financial incentives for employees, limited
opportunities for selecting and training qualified personnel, and restricted funds for purchasing
raw
materials
and
materials
are
significant
obstacles.
2. Shortage of Modern Marketing and Management Technologies – Many small enterprises lack
effective
business
strategies
and
innovative
management
approaches.
3. Unfavorable Ratio Between Own and Borrowed Resources – The financial structure of small
enterprises is often imbalanced. High levels of accounts payable and receivable, as well as the
poor solvency of enterprises undergoing bankruptcy procedures, weaken the sector.
4. Business Closures and Capital Withdrawal – Some entrepreneurs shut down enterprises and
reinvest capital into financial assets, reducing the reinvestment of profits into business
development.
5. Reinvestment of Capital from Closed Enterprises – Some new businesses are established using
the capital and income generated from previously closed enterprises, but this process is not
always efficient.
One of the key indicators of private enterprises is their efficiency. Many researchers
analyze the efficiency of private enterprises by focusing on foreign experience.A crucial feature
of small businesses and private entrepreneurship is their relative resilience during economic
downturns.
Small private enterprises have lower financial indicators but a high demand for external credit
resources. Their resource efficiency indicators do not allow them to rely solely on private
funding sources.
As part of the Anti-Crisis Program, the following measures are recommended to develop private
entrepreneurship in Uzbekistan:
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 03,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 1232
• Implementing standardized procedures that reduce the cost of banking credit operations;
• Increasing short-term bank liabilities to enhance liquidity in bank assets and liabilities;
• Developing various guarantee mechanisms at national and regional levels to reduce credit risk
for small enterprises.
The development and sustainability of small businesses largely depend on their interaction with
large businesses and access to financial resources.
References:
1. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan. "On the Effective
Organization of the Activities of the Entrepreneurship Development Agency under the
Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan."
February 17, 2021, No. 77.
2. Decree of the President of the Republic of Uzbekistan. "On the Development Strategy of
New Uzbekistan for 2022-2026." January 28, 2022, No. PF-60.
.
3. Decree of the President of the Republic of Uzbekistan. "On Systematizing Measures to
Improve Uzbekistan’s Position in International Rankings and Indices." March 7, 2019, No.
PF-5687.
4. Muftaydinov Q. "Issues of Entrepreneurship Development in the Context of Economic
Liberalization." Doctoral dissertation abstract. Tashkent, 2004, p. 52.
5. Mirzaev X. "Ways to Increase the Export Potential of Entrepreneurial Entities." Materials of
the Scientific Online Conference "Innovative Research in the Modern World: Theory and
Practice."
.
