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578
INCREASING THE COMPETITIVENESS OF SMALL BUSINESSES
Bustonov Mansurjon Mardonakulovich
Professor of Namangan Technical University, Doctor of Economics
Email:
Akmal Mamadaliev Gayratalievich
assistant of Namangan Technical University
Abstract:
In the context of growing global competition, a lot of scientific research is being
conducted in the world on using the potential of small businesses and private entrepreneurship to
ensure competitiveness. Factors determining the potential of small businesses and private
entrepreneurship, their impact on the level of competitiveness, opportunities for use in the
interests of developing the national economy, improving the mechanism ensuring the
competitive advantages of real opportunities and potential of small businesses and private
entrepreneurship in the global market, developing alternative business models, introducing
effective methods for the development of small businesses and private entrepreneurship in the
context of digitalization, while using the achievements of modern science and practice is one of
the priority areas of scientific research in this area. Effective implementation of these tasks
requires accelerating work to improve the competitiveness of light industry enterprises.
Introduction.
Particular attention is paid to the effective use of the opportunities of small
businesses and private entrepreneurship in increasing the competitiveness of the national
economy in the context of globalization and increasing international competition in the world
economy. According to calculations, “currently, global GDP has grown by 4.3% in one year. In
countries with middle income level, the share of small and medium-sized businesses in GDP is
68% and 55%, respectively. The reason why small and medium-sized enterprises achieve such
positive results and competitive advantages is the effective use of digital tools” [1]. Today,
ensuring the competitiveness of small businesses is taking place in conditions of increasing
complexity in the field of logistics (supply) among many obstacles.
In Uzbekistan, special attention is paid to economic development, reducing unemployment,
increasing employment and increasing incomes of the population by supporting small businesses
and private entrepreneurship and ensuring their sustainable development. The Development
Strategy of New Uzbekistan for 2022-2026 defines such tasks as “Creation of 200 new industrial
zones in the regions and development of a system of business incubators. Creating more
favorable conditions for the development of entrepreneurship in areas with a “difficult” socio-
economic situation. Reducing the tax burden on business entities from 27.5 percent to 25 percent
of the gross domestic product by 2026. Supporting entrepreneurship, improving the activities of
structures in the regions to reduce unemployment and poverty” [2]. Effective implementation of
these tasks requires accelerating work to improve the competitiveness of light industry
enterprises. The tasks set are important for improving the scientific and methodological base of
factors for the development and competitiveness of small businesses at various levels, as well as
areas for the effective use of competitive advantages.
Research methodology.
The research used methods of systematic analysis, statistical observation,
statistical aggregation and grouping, selection, correlation and regression analysis, econometric
modeling and forecasting.
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Results and Discussion.
The approach proposed by the author allows us to take into account all
the important parameters that shape the competitiveness of an enterprise: products, operational
efficiency and concentration of the current market. First of all, the method is intended for self-
diagnosis of a company’s competitiveness, since it is mainly based on an expert assessment of its
competitive advantages by enterprise specialists. To assess the competitiveness of light industry
enterprises in the activities of small businesses, the author proposed the use of limit indicators
“low intensity of competition” (-0.1<Tm<1.4), “medium intensity of competition” (0.4<Tm<1.4)
and “high intensity of competition” (0.7<Tm<1.4).
The intensity of competition is characterized by the degree of market monopolization and the
intensity of competition. The intensity of the competition is assessed using the following method.
1.
Market dynamics indicator (growth rate)(Tm):
2.
�
�
=
�
�1
−�
�0
�
�0
∗
12
�
+ 1
(1)
Where, V_m1,V_m0 is the size of the market during the reporting period and the base period,
characterized by the total assets of all firms in the market;
t – number of months in the analyzed period.
2. The intensity of competition is determined by market dynamics (Ut): – Tm>1.4 yes (minimum
competition):
Ut=0
(2)
–0.1<Тm<1.4 in this case (low intensity of competition):
U_t=((1.4-T_m ))/0.7
(3)
0.4<Tm<1.4 in this case (the intensity of competition is average):
U_t=1
(4)
0.7<Tm<1.4 in this case (the intensity of competition is high):
U_t=1.2
(5)
The matrix for qualitative assessment of the competitive position of an enterprise is constructed
as follows. The average values of the calculated indicators were determined based on the sample
of enterprises studied (Table 1).
Table 1
Matrix of qualitative assessment of the competitive position of an enterprise
State
Ud1 – Ud2
Ud1 – Nd2
Nd1 – Ud2
Nd1 –Nd2
Ud3
[1;1;1]
good
[1;0;1]
satisfactory
[0;1;1]
satisfactory
[0;0;1]
unsatisfactory
Nd3
[1;1;0]
satisfactory
[1;0;0]
unsatisfactory
[0;1;0]
unsatisfactory
[0;0;0]
risis
Then, if the value of the indicator of the enterprise under study is above the average value, it is
assigned the value “1”, if lower - the value “0”. As a result of the study, it was found that in
order to make the right and effective decision, taking into account the tastes of consumers,
market conditions and conditions of uncertainty between demand and supply certainly require a
scientific basis, and many decisions are made taking into account the fact that research consists
of alternatives for a complex process (Elication Et Choix Traduisant la Realite - exception and
choice reflecting reality), A_Vak - VAKKONI, B_DM - D.MARETTI, C_san - SANAM, D_Ide
- IDEAL and E_im - IMRON. Let's determine competitiveness using the ELECTRE method.
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Statement of the problem - we usually evaluate the following selected economic indicators on a
rating scale based on 8 criteria (Table 2).
table 2
Assessment of economic indicators of enterprises by experts using a 20-point system
Indicators
Оценка предприятий (балл.)
Vakkoni
А
D.Marett
iБ
Sanam
C
Ideal
Д
Imron
E
Market experience
17
18
18
19
18
Market share
10
19
17
18
17
Image of the state
14
20
20
19
19
Naturalness of products
18
16
17
15
18
Product range
17
18
17
20
12
Product price
14
20
20
18
20
Package design
12
20
19
20
20
Product expiration date
15
16
16
19
18
Selecting the best alternative objectives based on these identified values is an assessment of the
firm's competitiveness. Each N criterion is assigned an integer n, describing the importance of
the selected indicator, and the hypothesis that alternative A is superior to alternative B is
considered, where the set I of criterion N is divided into three subsets. Including:
I+(x,y), A set of criteria in which criterion A is preferable to criterion Bу: x>y;
I- (x,y) A set of criteria where B is superior to A x: y>x;
I=( x,y) A set of criteria in which criteria A and B have the same value y=x.
Of course, determining which business has an advantage and competitiveness in the application
of quality management among enterprises, learning to evaluate effective management, first of all,
begins with defining the goal. To do this, it is necessary to study the economic state of
enterprises, regardless of what products they produce and provide services , before and during
the introduction of new production.
In this regard, the main task is to determine the group of factors influencing the formation of
future demand and the competitiveness of enterprises in a specific field of activity:
- studying changes in the demand of regular customers for products produced at enterprises;
- analysis of directions of development of activities of enterprises close to each other;
- consideration of areas of potential use of products (services) produced at enterprises.
1
Compiled by the author based on information from the D.Maretti company
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If the value of the indicator of the inspected enterprise is above the average value, it is assigned
the value “1”, if lower - the value “0”.
The values of two indices: compatibility and incompatibility are calculated by assessing two
alternatives according to the given parameters of the selected enterprises. Determination of
compatibility and incompatibility of these indicators under the assumption that alternative option
A is superior to alternative option B (if A-V>0, “+”; if A-V <0, "="; "-").
Based on the calculation results, the superiority of D_Ide - IDEAL and B_DM - D. MARETTI
was determined, and the remaining results E_im - IMRON, C_san - SANAM and A_Vak -
VAKKONI determine the low level of competitiveness, that is, the insignificance of the pair
configuration, compared to other competitors of clothing manufacturing enterprises.
Indicators of compatibility and incompatibility characterize the degree of “priority” in relation to
the data on the basis of which the final conclusion was made (Table 3).
Table 3
Priority of enterprise competitiveness
�
���
�
��
�
���
�
���
�
��
�
���
-
+
+
+
+
�
��
+
-
+
+
+
�
���
+
+
-
+
+
�
���
+
+
+
-
+
�
��
-
-
-
+
-
According to the data presented in Table 3, the priority of D. Maretti's competitiveness compared
to other selected cases was determined by paired comparison (with the largest number of “+”
received).
According to the author, competition forces market participants to constantly monitor the actions
of their rivals, make decisions that lead to the elimination of the negative consequences of their
competitive pressure, and contribute to the sustainable development of the subject in a
competitive environment, that is, ensuring competitiveness.
Conclusion.
The competitiveness of an enterprise arises in conditions of economic freedom,
political stability, legal framework and institutional support. Based on these factors, it is
necessary to use all opportunities aimed at achieving the level of profitability of the enterprise’s
economy as a result of marketing activities in the market, as well as to comprehensively study
supply and demand. Since the competitiveness of an enterprise is determined by many factors,
based on econometric analysis it is possible to determine the patterns of dependence on changes
in indicators of the main outcome indicators characterizing the economic activity of the
enterprise.
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