Volume 03 Issue 05-2023
39
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
ISSUE
05
Pages:
39-48
SJIF
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(2021:
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1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The article examines the activities of small businesses on the basis of regional policy, in accordance with which
describes ways to attract investment in small businesses in the Republic of Karakalpakstan and measures for their
effective use. The article also carried out a statistical analysis of the distribution of investments in small businesses
and private entrepreneurship by region. In particular, a mechanism has been developed to attract domestic and
foreign investments to the Republic of Karakalpakstan, as well as to familiarize investors with information about the
potential and opportunities of the Republic of Karakalpakstan and create greater interest and inclination for them.
KEYWORDS
Regional policy, small business, investment, foreign investment, direct investment, cooperation, diversification,
territorial inequalities, cooperative relations, financing, credit lines, economic diversification, efficiency, marginal
productivity, statistical analysis, entrepreneurship.
INTRODUCTION
During the globalization of today's economic relations,
it is important to ensure active investment activities in
the development of the country's economy, improving
the investment climate in this regard. Even if we
observe the trends in the economic growth of
developed countries, we see that as a key factor in
Research Article
ANALYSIS OF INVESTMENTS INTO THE ACTIVITY OF SMALL BUSINESS
SUBJECTS IN THE REPUBLIC OF KARAKALPAKSTAN
Submission Date:
May 17, 2023,
Accepted Date:
May 22, 2023,
Published Date:
May 27, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue05-06
Saparov Kuatbay Abdiraxmanovich
Independent Researcher (Phd) Of Institute For Staff Advanced Training And Statistical Research Tashkent,
Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 05-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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05
Pages:
39-48
SJIF
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(2023:
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1121105677
Publisher:
Oscar Publishing Services
Servi
economic growth, the investment climate is one of the
main factors. It should be noted that in order to
establish a favorable investment climate for attracting
direct investments in the economic sectors of the
country, large-scale measures are being implemented
to liberalize the economy, support entrepreneurial
activity, and create the infrastructure of economic
regions. In this regard, the decree of the President of
the Republic of Uzbekistan “On measures to radically
improve the investment climate in the Republic of
Uzbekistan” dated August 2, 2018 PF
-5495 also sets out
the tasks for improving the investment environment.
Currently, many measures are being taken to improve
the investment climate in our republic. In particular, it
should be noted that a number of benefits have been
introduced in Uzbekistan to create a favorable
investment environment for the participants of
economic regions and ensure its attractiveness.
The main goal of the development and implementation
of programs for the economic and social development
of the region is the balanced and rational development
of the godly economy by the effective use of its natural
and economic potential and the attraction of external
resources.
In this regard, the government of our country will
increase the regional economy by 1.4-1.6 times through
proportional development of regions, implement five-
year regional programs developed in 14 regions in
terms of districts and cities, rating indicators of socio-
economic development tasks [1] of developing and
implementing a program of practical measures for
“unsatisfactory” cities and districts were defined.
Special attention should be paid to the activities of
small business entities in the territory, which are
currently the drivers of the economy. Because, despite
the fact that huge achievements are being made in the
field of small business and private entrepreneurship in
our country, there are also aspects of its capabilities
that have not yet been fully used. In particular, despite
the rapid increase in the number of small business
entities in our country, the fact that they have not yet
reached sufficient levels, especially in the leading
sectors of the economy, does not fully take advantage
of the opportunities of this sector. "Small business
provides about 60% of the country's GDP, a third of the
volume of industrial products, 98% of agricultural
products, half of investments.
Increasing the weight of small business entities in the
economy has certain limits. In order to expand these
boundaries, it is important to distinguish the main
features of the establishment of small business
enterprises. It should be noted that the further
development of small business enterprises depends on
the development of large enterprises and the
deepening of cooperative relations between them, in
this
regard,
especially
the
possibilities
of
modernization and renewal processes of leading
enterprises should be widely used. For this purpose, in
addition to the establishment of new modern
enterprises, it is possible to establish the activity of
Volume 03 Issue 05-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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Publisher:
Oscar Publishing Services
Servi
small modern enterprises through the structural
restructuring of existing large enterprises. The efforts
of branch management agencies are required to
establish cooperative relations between small business
enterprises in our country and large enterprises.
It is necessary to analyze the production processes of
large enterprises in each sector and to develop a
mechanism for assigning work volumes that can be
assigned to small enterprises on a mutually beneficial
basis in order to increase their economic efficiency.
This event, along with the existing and operating small
business enterprises, will allow to determine the
amount of new enterprises.
ANALYSIS THEMATIC LITERATURES
In the process of studying the review of the literature
on the topic, we considered the opinions of several
foreign and Uzbek economists on attracting
investments to small business and entrepreneurship.
In particular, attracting foreign investments to the
economy and small business, which is a component of
it, and various aspects of the activities of enterprises
established with their participation have been
reflected in the scientific works of a number of foreign
and national economists. The President of the Republic
of Uzbekistan Sh. Mirziyoyev emphasized the
development of long-term concepts of development,
as the first step in this regard, the adoption of state
development programs of the Republic of Uzbekistan
and the creation of a fund for financing these
programs. In this regard, it was recognized that one of
our important tasks is to mobilize the funds collected
in the hands of the population in the form of
investment in the development of the economy, to
strengthen the sense of entrepreneurship in people
[2].
Most authors understand that investments are the
money invested in the reproduction, maintenance and
expansion of capital. A similar concept is also
supported by Uzbek scientists. D.Gozibekov believes
that “investments are in the proce
ss of converting
capital into capital in order to maintain the current
value of capital in general and increase the savings of
this value. For this reason, they are not consumed
during this time period and are attached to specific
objects and processes for a certain period, in which
they are busy, in which they face specific and non-
specific risks” [3].
In some economic literature published in the Russian
language, investment is the expenditure of monetary
funds, understood to be used to re-generate total
social or single capital, which consists not in
consumption, but in finding a higher income or social
effect in the Future [4].
In some literature, the total type of investment of
financial, property and intellectual benefits to various
sectors, investment projects for the purpose of
development of production, entrepreneurship, profit
or other final results is called investments [5].
According to these authors, investments are resources
used to expand or renew production, that is, to
Volume 03 Issue 05-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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SJIF
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(2021:
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5.
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(2023:
7.
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
increase real capital. But it should also be said that
investments are not only resources used to increase
real capital, these resources are also used for tangible
and intangible assets and the purchase of securities.
Investment is also understood as the long-term use of
economic resources in order to generate profit in the
future [6]. That is, allocating financial resources to the
final goal in order to capitalize capital and create
savings is called investment [7].
According to Uzbek scientists: “Investment is the use
of financial, material and intellectual assets by
individuals and legal entities operating on the basis of
entrepreneurship, regardless of the form of
ownership, or the state, in order to obtain economic
and social benefits, within the framework of the law.
spending
on any business object” [8]. Below are some
of the works carried out:
-
to verify the hypothesis of a decrease in the
production profit rate as a result of the development
of small business and private entrepreneurship and to
research the need for innovation processes and its
directions in the field to increase business results;
-
development of theoretical principles of
econometric modeling of development of small
business enterprises and investment programming;
-
comprehensive analysis of the pace and
efficiency
of
small
business
and
private
entrepreneurship development, development and
improvement of econometric modeling methods of
production processes in them;
-
development of optimization and econometric
models related to management and forecasting of
small business enterprises in the region, creation of
methodology of product quantity, price, cost
management in accordance with the nature of
markets;
-
to consider the issue of expressing the demand
of entrepreneurs for investment financing funds and
the offer of credit funds of banks in the districts of the
Republic
of
Karakalpakstan
through
linear
programming models and minimizing the total interest
payments;
-
consists of analyzing the efficiency of micro-
firm, small and private enterprises based on marginal
indicators and developing practical proposals aimed at
increasing their competitiveness.
METHODS
The methodological basis of the study is the
fundamental laws of statistical science, Decree No. 60
of the president of the Republic of Uzbekistan “on t
he
development strategy of the New Uzbekistan for 2022-
2026”dated January 28, 2022 [1], based on the priorities
established on the data of the Cabinet of Ministers of
the Republic of Uzbekistan and the statistical agency,
through the extensive introduction of modern
statistical methods and methodologies in the
collection and processing of statistical data aimed at
expanding the coverage of socio-economic processes
studied at the sectoral and territorial levels, further
adaptation of the system of statistical observations to
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Publisher:
Oscar Publishing Services
Servi
the generally accepted international practice is
organized. A new system for the development of small
business and entrepreneurship will be introduced.
ANALYSIS AND RESULTS
In many countries with a developed market economy,
regional policy is carried out in the following 3
directions, which serve to ensure the redistribution of
capital investments:
The first direction is to build infrastructure facilities in
underdeveloped and industrially underdeveloped
regions and improve their connections with other
regions. It is known that in countries with a developed
market economy, the state does not directly interfere
in production, but the creation of economic and legal
conditions for the effective operation of entrepreneurs
is the primary duty of the state. The presence of roads
and railways, electricity networks, gas and water
pipelines, and communication lines will greatly help the
development of entrepreneurship in such areas.
Currently, certain works are being carried out in our
country to supply rural settlements with natural gas
and drinking water.
The second direction is the application of restrictive
methods (implemented through administrative or
financial restrictions) in relation to highly developed
and industrialized regions, especially large cities.
Territorial disparities will be prevented by restricting
the placement of new industrial enterprises in such
regions. This method is widely used for agglomeration
centers in almost all developed countries of the world.
Preventing the placement of new industrial enterprises
in large and big cities, development of small towns,
urban settlements and rural settlements are urgent
problems in Uzbekistan.
The third direction is to encourage the attraction of
foreign and private investments in order to place
industrial enterprises in problem regions. This direction
is the main direction that the state pays great attention
to when locating enterprises belonging to various
sectors of the economy.
This caused a decrease in foreign investment in the
financing of fixed capital investments in the region and
amounted to 1304.9 billion soums in 2020. The share of
this resource in the total capital investments was 47.8%
compared to 2018 and 24.6% compared to 2019. This
has strengthened its strength in the financing of small
business enterprises. Indicators of capital investment
in the Republic of Karakalpakstan show unevenness
across the territory of the Republic of Karakalpakstan
(Table 1).
Table 1
Capital investments in districts of the Republic of Karakalpakstan
(billion soums)
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2018
2019
2020
2021
2022
capacity
percent
capacity
percen
t
capacity
percen
t
capacity
percen
t
capacity
percen
t
Republic,
total
1 918,0
139,0
3 092,4
100,3
2 478,2
69,2
2 415,5
89,2
1 973,7
98,0
Nukus c.
544,8
133,3
794,4
115,5
407,9
44,4
452,8
102,2
606,2
91,5
Amudarya
89,7
140,1
96,0
90,1
169,2
152,0
148,0
79,5
93,4
155,3
Beruniy
230,5
217,4
201,6
75,0
218,9
94,5
218,5
91,3
126,0
85,6
Buzatov
9,9
45,9
4 m.
32,1
63,2
27,2
100,0
Qorauzak
265,5
317,3
179,1
52,0
131,5
62,9
70,9
48,8
42,2
74,1
Kegeili
64,8
164,6
67,0
83,2
40,4
52,0
48,1
108,0
42,5
124,4
Kungirot
72,6
102,0
221,4
242,4
133,6
52,0
186,5
127,5
151,2
86,7
Kanlikul
41,6
131,7
282,0
524,0
49,0
15,1
109,7
205,7
105,8
99,1
Muynak
44,1
81,3
105,0
189,1
184,8
152,4
100,8
50,1
131,6
111,6
Nukus
86,5
187,3
137,1
133,5
105,7
67,1
123,6
107,9
64,2
109,0
Takhiatash
43,2
154,4
95,6
176,3
99,0
89,7
118,5
110,3
90,7
91,5
Taxtakupir
76,8
355,3
18,5
21,0
45,6
208,6
52,3
102,1
23,4
65,2
Turtkul
58,5
83,1
190,2
269,2
304,7
138,8
283,3
85,1
186,1
119,9
Xujayli
71,5
130,9
232,4
277,7
90,4
33,7
160,1
162,9
119,0
105,0
Shimbay
69,9
235,6
120,5
138,9
117,7
84,3
99,8
77,4
68,1
93,5
Shumanay
49,4
74,1
204,7
319,8
119,6
50,2
57,8
43,6
27,2
100,7
Ellikqala
108,6
56,1
136,8
102,8
214,2
134,4
152,8
64,9
69,0
108,3
According to the table, the most important
investments are made by Amudarya and Kegeili
districts. This can be proved by the high level of
development of small business in them compared to
other districts. At the same time, it should be noted
that the districts of Turtkul and Muynak have improved
in terms of this measure, and this is based on the
efforts of enterprising entrepreneurs.
At the time when it is possible to attract foreign
investments in the country, it cannot be denied that
there are a number of problems in attracting foreign
investments in the region. Including:
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-
the active participation of local governments in
providing foreign investors with information on
their birthplaces;
-
in some cases, technology and equipment are
outdated, standard products for production do not
meet international requirements and are not
competitive;
-
infrastructure is not developed at the level of
construction;
-
experience of working with investments and lack
of legal knowledge of entrepreneurs;
-
investment
proposals
and
production
of
technological and economic bases in this regard do
not meet the requirements.
The share of foreign investments in the Republic of
Karakalpakstan also came into control, depending on
the figure of foreign investments complained about,
and on the directions it leads. The countries of the
world, where the integration and globalization of
national economies are increasing, differ sharply from
the previous stages in terms of their meaning and
content. These processes require the modernization of
the economy in each country and its regions. The
economy cannot be imagined without investments.
The main focus of our research will now be on the
analysis of the current state of the small business
sector in the Republic of Karakalpakstan and the
investments that are being made in the sector.
Picture 1. Structure of investments in fixed capital in 2012-2021 on sources of financing of small businesses (in
interest accounting) [9]
If we pay attention to the picture, compared to 2012,
the volume of financing in 2019 decreased by 18.3%. In
general, this indicates that the scope of investment in
our country has increased. But in 2021, compared to
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)
(2023:
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Servi
2020, it decreased by 3.9% and in 2022 by 0.8%. We can
assume that this decrease is due to the worldwide
coronavirus pandemic.
It is impossible to imagine the process of appropriation
of foreign credit lines by commercial banks and
implementation of financing at their expense without
cooperation with local governments. Therefore, during
the current year, banks together with local
governments will pay attention to the following issues:
-
directing the attracted foreign investments to
all regions of our country, in addition, using these
funds, first of all, to deepen structural changes and
diversify
the
economy,
to
accelerate
the
modernization of existing capacities and technological
renewal, and to localize production based on industrial
cooperation. paying special attention to directing the
projects of deepening processes for financing;
-
directing the funds allocated from foreign
credit lines to projects aimed at the production of food
products, including the processing of meat, milk and
fruit and vegetable products, and all-round support for
entrepreneurs to use these funds.
In general, it is possible to increase the quality of
products produced in our country to the level of the
demand of world markets based on wide attraction of
investments in small business in our country and
increasing their attractiveness, implementation of
promising projects of cooperation, introduction of new
modern techniques and technologies.
CONCLUSIONS AND SUGGESTIONS
With the help of the joint efforts of the legislative and
executive government and local governing bodies in
our country, it is possible to achieve significant results
in improving the conditions for the development of
small business, which in turn will lead to positive
changes in the development of small business entities
and economic reform in Uzbekistan. will come. At the
same time, it increases the efficiency of using domestic
investments in our country, which has a positive effect
on the growth of GDP. As a result of the analysis, it is
necessary to increase the volume of investments in
industrial sectors, because the share of small business
entities in the industry has been decreasing in recent
years. In general, the development of industry in the
country is not significant. The following scientific
proposal and practical recommendations were
developed to increase the amount of investments
attracted to small business and entrepreneurship and
to improve the mechanism of state support for this
process:
1. It is necessary to further reduce the tax burden on
enterprises making investments in order to focus on
the development of the country's production and
service sectors;
2. It is necessary to establish the issue of effective use
of financial resources of enterprises for the
implementation of investment projects, development
and modernization of production;
3. It is necessary to develop recommendations for
increasing profits at the expense of increasing
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production efficiency in enterprises that carry out
investment activities in the economy;
4. In order to develop the country's economy, it is
necessary to develop a mechanism to fully develop
enterprises and improve the material life of workers;
5. In order to further improve investment activities in
the republic's economy, we believe that it is necessary
to create a balanced production environment based on
the development of inter-industry and intra-industry
cooperation.
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Uzbekistan Shavkat Mirziyoyev to the Oliy
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(2022:
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)
(2023:
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http://www.bulletennauki.com/metyokubov
(дата обращения 15.07.2018).
