Volume 03 Issue 01-2023
13
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Currently, there are different opinions about the reasons for state regulation of the small business sector. According
to the traditional theory, the government should intervene in the economy when the market fails to allocate resources
efficiently, resulting in market "failure". In the framework of welfare theory, it is emphasized that the reason for
market "failures" is not only monopoly, but also the existence of externalities (externalities). This article discusses the
factors and functions affecting the regulation of small business by the state, and provides analytical information on
its share in the main types of economy.
KEYWORDS
Small business, gross domestic product, innovation, entrepreneurship, industry, automobile industry, income, profit,
resource, factors.
INTRODUCTION
At the end of the 20th century and the beginning of the
21st century, deep changes took place in the real
economy, which required a revision of the ideas about
the role of competition and the state in the evolution
of economic structures. G. As Kleinerta says, taking
into account the complex interaction of actors requires
changing the fundamental foundations of economic
theory, many paradigms on which modern economic
Research Article
THE NEED FOR GOVERNMENT REGULATION OF SMALL BUSINESS
Submission Date:
January 08, 2023,
Accepted Date:
January 13, 2023,
Published Date:
January 18, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue01-02
Rashidov Rahmatullo Alojonovich
Phd, Head Of The "Economics" Department, Associate Professor Namangan Institute Of Engineering
Technology 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 01-2023
14
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
theory
is
based
and
modern
business
recommendations are built. Here, the change of the
concept in terms of the degree of revolution can be
compared with the transition from Newton's idea of
the geometry of space to Einstein's idea.
Based on the intersubjective nature of the economic
reality, it is necessary to revise the dominant ideas
about the reasons, goals and mechanisms of the state
regulation of the economy of the small business sector
in a paradigmatic way . In the context of the Barcelona
consensus, which replaced the failed Washington
consensus,
the
functions
of
ensuring
the
competitiveness of the national economy by creating
conditions for the reduction of production and
transaction costs of the state are generally recognized.
However, significant differences remain in the
interpretation of the importance and role of state
regulation. The common shortcoming of these
interpretations is that the theories and concepts
developed within the economic mainstream are based
on the methodology of individualism and a narrow,
individualistic interpretation of the mechanisms of
systematization of economic reality. In this regard,
state regulation of the economy and the small business
sector is usually seen as an exogenous, political
process of state intervention in the economy to
address market failures.
Main part. A meaningful explanation of the reasons for
regulation by the state is related to the recognition
that the centrifugal forces in the form of cooperation
as well as the centrifugal forces in the form of
competition should act in the economy, and the state
should make its contribution. It is necessary to form
and successfully operate these forces, to maintain their
production balance by creating a system that
corresponds to reality, and to regulate business
activities.
A fundamental revision of the distorted ideas about
the reasons for state regulation involves reformatting
the research views based on the value-rational nature
of the behavior of entrepreneurs. At the same time, it
allows to develop a systematic and integrated vision of
the role of the state as a single economic entity acting
as an active organizer and coordinator of various
subsystems of the business environment, regulatory,
economic, institutional, economic and business
environment .
Table 1.
Factors limiting the development of the small business sector in the country's economy
Factors
The result of the factors
High risk; increase sensitivity
to changes in business
conditions
- highly unstable market position of small
enterprises;
- significant variability of small enterprises.
Difficulties
in
attracting
additional
funds
and
obtaining loans
- low opportunity in financial markets compared to
small business;
- limiting the size of the enterprise to the size of its
own capital, using venture capital.
A high share of personal
financial resources
- financial independence;
- decreased efficiency and slower business growth
Volume 03 Issue 01-2023
15
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
The level of self-organization
of small enterprises to
protect their interests is low
- dependence on large companies;
- monopoly at the local level
Access to real estate is
limited
- losing to large and old firms in terms of property
availability
Difficulties in obtaining the
necessary information
- wrong management decisions
Uncertainty and caution of
economic partners
- Difficulties in negotiating contracts
Lack of qualified personnel
- personnel problems;
- a high share of personnel costs and related
allocations in current costs
The state has a special place as an organizer in the
process of interaction with small businesses. Having an
impact on the formation of the business environment
of small businesses, it plays a systematic and
regulatory role and should help to develop the most
promising directions of business activity, to develop a
set of measures that help small businesses to adapt to
changing conditions.
RESULTS AND DISCUSSION
It is known that the goal of our research is to develop
the criteria for the use of innovations in the sustainable
development of small business and to think about the
elimination of existing problems in the future. For this,
it is necessary to take into account the indicators of its
use of innovations. In fact, the implementation of
innovations creates a great opportunity to improve the
quality of products and services, as well as to increase
the income of small business entities. However, this
process is characterized by its complexity.
Based on this, we consider it important to pay
attention to the indicators that determine the overall
situation of existing problems and opportunities
during the study and analysis of the practical situation
of the development of small business and private
business entities. At the beginning of our study, if we
focus on the share of small businesses and private
enterprises in the GDP, we can see that a decline has
been observed for each period.
Table 2
Share of small business and private entrepreneurship in GDP and GDP (in percent)
No
Republic and
regions
2017
year
2018
year
2019
year
2020
year
2021
year
Volume 03 Issue 01-2023
16
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
1
Republic
of
Karakalpakstan
58.5
57.0
56.3
58.1
56.4
2
Andijan
80.2
73.1
69.6
69.9
71.8
3
Bukhara
79.9
80.9
74.3
75.6
75.4
4
Jizzakh
85.6
86.2
83.1
83.0
81.2
5
Kashkadarya
73.6
72.7
70.8
71.5
69.0
6
Navoi
49.4
42.3
30.7
25.4
27.1
7
Namangan
80.8
80.5
75.9
74.6
73.5
8
Samarkand
82.6
80.8
75.2
74.2
73.4
9
Surkhandarya
79.5
81.2
78.8
77.1
77.3
10 Syr Darya
77.9
77.8
69.8
70.5
69.2
11 Tashkent
65.0
58.9
51.3
49.2
46.8
12 Ferghana
71.7
71.3
69.3
70.5
69.9
13 Khorezm
79.1
79.1
76.4
76.1
73.9
14 Tashkent city
63.0
64.8
53.1
51.2
48.1
Republic
of
Uzbekistan
65.3
62.4
56.0
55.5
54.9
Volume 03 Issue 01-2023
17
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
2 above , we can see that the share of small business
and private entrepreneurship in GDP decreased
between 2017 and 2021. In 2017, the share of small
business and private entrepreneurship in GDP was
65.3%, which is the highest indicator compared to the
previous periods. By 2018-2021, we can see that the
share of small business and private entrepreneurship in
GDP has changed in reverse proportion and the
difference between these years has decreased by 7.5%
on average.
It is noteworthy that, despite the fact that the number
of small business and private business entities has
increased by this period, the share of products created
by them has decreased sharply.
Also, when we analyze the share of small business and
private entrepreneurship in the main types of
economy, we can see the growth and decline sectors
in 2017-2021 (Table 3).
Table 3
The share of small business and private entrepreneurship in the main types of economy (in percent)
No
2017 year 2018 year 2019 year 2020 year 2021 year
1
Industry
41.2
37.4
25.8
27.9
27.4
2
Agriculture,
forestry and
fisheries
98.5
98.3
97.9
96.7
96.0
3
Investments
38.1
38.0
44.3
46.0
45.6
4
Construction
64.8
73.2
75.8
72.5
72.5
5
Trade
88.4
86.3
83.6
82.3
82.3
6
Total services
58.3
56.0
53.2
51.8
51.8
7
Shipping
54.2
55.5
54.4
51.6
42.9
8
Passenger
transportation
90.1
89.6
90.4
93.5
92.7
9
Employment
78.2
76.3
76.2
74.5
74.5
10 Export
22.0
27.2
27.0
20.5
20.0
11 Import
53.6
56.2
61.6
51.7
45.2
Volume 03 Issue 01-2023
18
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Gross
domestic
product
65.3
62.4
56.0
55.5
54.9
Table 3 shows that the share of small businesses and
private enterprises in the industrial sector was not
stable in 2017-2021, that is, in 2017 its share was 41.2
percent, in 2019 it decreased to 25.8 percent, and by
2021 it will reach 27.4 percent. organized. In 2019, it
decreased by 13.8% compared to 2017, but increased by
1.6% compared to 2019. We can observe this situation in
other types of economic activity.
Due to the insufficient production of industrialized
products
by
small
businesses
and
private
entrepreneurs, there is still a gap between large
industrialized enterprises and small business entities.
That is, corporate relations are not well established.
Commenting on these issues, our president said, "...for
example, when studying the automotive and
agricultural machinery sectors, it was found that there
is almost no cooperation between business entities
and large industrial enterprises, and as a result,
products and components produced in our country are
imported. It is a pity that some industrial enterprises do
not even know how to work with the demands of
customers, let alone small producers. "...we cannot
fully solve the problems of increasing the employment
and income of the population, and increasing the
budget revenues by building only large enterprises.
The most important way to raise the standard of living
is to develop entrepreneurship and small business." [1]
pointed out.
It was observed that the share of small business and
private entrepreneurs in construction increased from
64.8 percent to 72.5 percent in 2021 compared to 2017.
This can be explained by the fact that construction
works by entrepreneurs have increased in recent years.
The head of our country Sh. Mirziyoev noted that "
now our scientists should show clear results in areas
that are relevant for us today, such as water and
energy conservation, soil fertility and productivity,
geology, industry, and construction" [2]. In turn, it also
leads to the conclusion that this will lead to the rapid
development of this field and the creation of
opportunities in the future.
level of employment of the population by these
subjects was 78.2 percent in 2017, and by 2018 this
indicator was 76.3 percent. percent, by 2021 it will be
74.5 percent. Employment of the population in the field
of small business and private entrepreneurship
changed negatively in the period 2017-2021, that is, in
2021 it decreased by 3.7% compared to 2017.
Ensuring the employment of the population is one of
the main indicators that determine not only the
economic potential of the country, but also the
standard of living of the people living here. This aspect
is of particular importance for our nation, where more
than 60 percent of the population consists of young
people. In order to ensure the effectiveness of the
specified tasks, the state is paying special attention to
the implementation of effective mechanisms for
ensuring the employment of the population in the field
of small business and private entrepreneurship, in
particular, increasing the role of the farming
Volume 03 Issue 01-2023
19
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
movement,
developing
services,
production,
housekeeping, crafts and other effective forms of
employment [3 ].
CONCLUSION
Based on the above analysis, we can say that small
business and private business entities in Uzbekistan
have a tendency to grow only in some sectors of the
economy. In our opinion, one of the main issues facing
us in this regard will be the effective establishment of
business relations in untapped sectors. This, in turn,
requires us to quickly enter the international market, to
find new directions of economic relations between the
state and small business and private business entities.
Based on the analytical results discussed above, we
consider it necessary to implement the following
measures in the development of small business and
private entrepreneurship in our country:
- in-depth study of the current market situation for the
purchase and introduction of foreign equipment and
modern innovative technologies to small businesses
and private enterprises;
- State assistance in increasing the environment of
mutual competitiveness between small business and
private business entities;
improving the exchange of information about internal
and external market opportunities by small business
and private business entities .
REFERENCES
1.
Rashidov, RA, Hasanboeva, NH, & ogli Otakhonov,
SM (2021). ISSUES OF USING BANK CREDITS IN
DEVELOPMENT OF FAMILY ENTREPRENEURSHIP.
Journal of Central Asian Social Studies, 2(02), 148-
159
2.
Rashidov, R. (2017). NEKOTORYE VOPROSY
EFFEKTIVNOGO ISPOLZOVANIYA TECHNIKI V
HLOPKOVODSTVE V UZBEKISTANE. Obshchestvo i
economy , (3-4), 138-141.
3.
ALojonovich, RR (2016). Correlation between
resource economy factors in cotton growing.
Science i education segodnya , (6 (7)).
4.
Rahmatullo, R. (2016). Sectoral specificities by
application of resource saving technology in
cotton growing. Economics , (8 (17)).
5.
Rashidov, R. (2016). Correlation between resource
economy factors in cotton growing. Nauka i
obrazovanie segodnya, (6), 68-70.
6.
Alojonovich, RR (2019). Economic efficiency of
resource-saving technologies in the cotton
industry system of indicators. International Journal
of Scientific and Technological Research, 8(11),
3861-3863.
7.
Zulfikarova Dilfuza Gulomzhanovna, Saidboev
Shermirza Dotkamirzaevich, Rashidov Rahmatullo
Alojonovich "Conceptual Bases of Full Realization
of Women's Labor and Entrepreneurial Activity".
PSYCHOLOGY AND EDUCATION (2021) 58(2): 237-
240
8.
http://www.psychologyandeducation.net/pae/ind
ex.php/pae/article/view/1552
9.
Gulomzhanovna, ZD, Dotkamirzaevich, SS, &
Alojonovich, RR (2021). Conceptual Bases of Full
Realization of Women's Labor and Entrepreneurial
Activity. Journal of Psychology and Education,
58(2), 237-240.
10.
Alojonovic, RR, &
Sardorbek, O. (2021).
THEORETICAL BASES OF INCREASE OF ECONOMIC
EFFICIENCY OF USE OF RESOURCESAVING
TECHNOLOGIES IN THE COTTON INDUSTRY.
International Engineering Journal For Research &
Development, 6(ICDSIIL), 5-5.
11.
Tursunalievich, AZ, & Alojonovich, RR (2021).
CREATION OF ELECTRONIC TEXTBOOKS IN
Volume 03 Issue 01-2023
20
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
01
Pages:
13
-20
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
HIGHER EDUCATION. International Engineering
Journal For Research & Development, 6(ICDSIIL),
4-4.
12.
ALOJONOVICH, RR (2021). RESOURCE-SAVING
TECHNOLOGIES IN COTTON-GROWING ECONOMIC
EFFICIENCY INDICATOR SYSTEMS. PLANT CELL
BIOTECHNOLOGY AND MOLECULAR BIOLOGY,
134-140.
13.
Rahmatullo, R. (2020). The Emergence of
Innovative Digital Technologies.
14.
Alojonovich, R. R. (2022). THE NATURE OF
RESOURCE-SAVING
TECHNOLOGIES
AND
FEATURES OF THEIR USE IN COTTON FARMING.
Galaxy International Interdisciplinary Research
Journal, 10(10), 65-68.
