Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Journal home page:
https://inscience.uz/index.php/socinov/index
The situation of handicrafts and family business in
Uzbekistan (on the example of the pandemic period)
Oybek OSTONOV
1
Tashkent State Agrarian University
ARTICLE INFO
ABSTRACT
Article history:
Received March 2023
Received in revised form
15 April 2023
Accepted 25 April 2023
Available online
15 May 2023
This article examines some features of the development of
family business and crafts in Uzbekistan in the context of the
pandemic, the factors of its development, and socio-economic
significance. The article discusses the effective socio-economic
mechanisms for increasing employment in the development of
family businesses and crafts in the context of the coronavirus
pandemic, studied practical advice and recommendations on
increasing employment, the occurrence of pandemics in today's
conditions, the impact of the impending economic crisis and the
problems in the implementation of tasks aimed at the
development of small business and private entrepreneurship,
and ideas for their solution. The state of potential and level of
development of family business and handicrafts in Uzbekistan,
its organizational bases are analyzed, and offers on finding a
positive solution to the issues of employment are highlighted.
2181-
1415/©
2023 in Science LLC.
https://doi.org/10.47689/2181-1415-vol4-iss3/S-pp369-379
This is an open access article under the Attribution 4.0 International
(CC BY 4.0) license (https://creativecommons.org/licenses/by/4.0/deed.ru)
Keywords:
family business,
crafts,
pandemic conditions,
cultural ties,
household,
services market,
artisans
O‘zbekistonda hunarmandchilik va oilaviy tadbirkorlik
holati (pandemiya davri misolida)
ANNOTATSIYA
Kalit so‘zlar
:
oilaviy tadbirkorlik,
hunarmandchilik,
pandemiya sharoitlari,
madaniy aloqalar,
maishiy,
xizmat ko‘rsatish bozori,
hunarmandlar.
Ushbu maqolada pandemiya sharoitida O‘zbekistonda oilaviy
tadbirkorlik va hunarmandchilik rivojlanishining ayrim
xususiyatlari, uning rivojlanish omillari va ijtimoiy-iqtisodiy
ahamiyati ko‘rib chiqiladi. Maqolada koronavirus pandemiyasi
sharoitida
oilaviy
tadbirkorlik
va
hunarmandchilikni
rivojlantirishda aholi bandligini oshirishning samarali, ijtimoiy-
iqtisodiy mexanizmlari, aholi bandligini oshirish bo‘yicha amaliy
maslahat va tavsiyalar, bugungi sharoitda pandemiyalarning
yuzaga kelishi kutilayotgan iq
tisodiy inqirozning ta’siri haqida so‘z
1
Candidate of Historical Sciences, Associate Professor, Tashkent State Agrarian University.
E-mail: ostonovo@rambler.ru
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
370
boradi. Inqiroz va kichik biznes hamda xususiy tadbirkorlikni
rivojlantirishga qaratilgan vazifalarni amalga oshirishdagi
muammolar va ularni hal etish bo‘yicha g‘oyalar. O‘zbekistonda
oilaviy tadbirkorlik va hunarmandchilik salohiyati va rivojlanish
darajasi, uning tashkiliy asoslari tahlil etilib, aholi bandligini
ta’minlash masalalariga ijobiy yechim topish bo‘yicha takliflar
yoritilgan.
Положение
ремесел
и
семейного
бизнеса
в
Узбекистане (на примере периода пандемии)
АННОТАЦИЯ
Ключевые слова:
семейный бизнес,
ремесла,
условия пандемии,
культурные связи,
домохозяйство,
рынок услуг,
ремесленники
.
В
данной
статье
рассматриваются
некоторые
особенности развития семейного бизнеса и ремесел в
Узбекистане в условиях пандемии, факторы его развития и
социально
-
экономическая
значимость.
В
статье
рассмотрены
эффективные
социально
-
экономические
механизмы повышения занятости при развитии семейного
бизнеса и ремесел в условиях изученной пандемии
коронавируса, практические советы и рекомендации по
увеличению занятости, возникновение пандемий в
современных
условиях,
влияние
надвигающейся
экономический кризис и проблемы в реализации задач,
направленных на развитие малого бизнеса и частного
предпринимательства,
и
идеи
их
решения.
Проанализировано состояние потенциала и уровень
развития семейного бизнеса и ремесел в Узбекистане, его
организационных основ, выделены предложения по
нахождению
положительного
решения
вопросов
трудоустройства.
Introduction
1.
Relevance
. The world economy is experiencing an economic crisis in today's
pandemic. In such a situation, a number of pressing issues arise in our country, such as
ensuring macroeconomic stability, raising living standards, and reducing poverty.
Today's crisis is sweeping the globe, confirming the inevitability of recession and
economic downturn, limited investment activity, declining demand, and international
trade, as well as serious social losses affecting many countries around the world. In
particular, family business increases the well-being of families significantly. They adapt
to changes in consumer demand more quickly than anyone else, and can quickly and
relatively uncomplicatedly change the specialization of their activities in accordance with
the fluctuations of the economic situation. They require fewer resources to organize their
activities and do not lead to tragic economic consequences for society in the event of
bankruptcy, they improve the territorial structure of the economy. An entrepreneurial
family will have the opportunity to find employment and income, better manage their
future, find their own job, and showcase their abilities and talents. In this context, new
requirements are emerging in the development of family business and crafts. When
reforms and updates are put into practice, the end result may not be as expected or the
expected result may be achieved later. Therefore, in the decision-making of the new
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
371
economic system and relations, all sectors will be provided with the necessary support
by the government, which will ensure the effectiveness of the ongoing reforms. The
modern transition stage of the Uzbek economy is characterized by the development of
entrepreneurial activity and the transition to various forms of ownership. This, in turn,
indicates that our country has enough experience in the development of small business
and private entrepreneurship. This is one of the main factors affecting the favorable
investment climate in our country. Therefore, there is a need to improve the domestic
investment climate in the country.
Especially in today's pandemic, one of the most pressing issues today is the
reorganization of the legal framework for state regulation of investment relations, the
provision of guarantees for these activities, and reforms to protect social or state
interests through insurance and other means. It is important to study the theoretical and
methodological aspects of creating new jobs in the economy on the basis of the
development of family business and crafts, as well as to identify mechanisms and
determine the prospects for the development of related industries.
2.
Methods, and analysis of relevant literature and sources:
The article uses
methods of scientific abstraction, analysis, and expert evaluation. The topic of the article
is the importance of investment projects supporting small business and private
entrepreneurship in the country's economy in the context of the pandemic, first of all, the
relevance of the topic, is the research work of foreign and domestic scientists in this field.
The situation in the world and the state of the country's economy were studied and
compared. In addition, methods such as induction, deduction, analysis, and synthesis
have been used in the conduct of scientific research, as well as in the analysis of the
literature. In addition, the sources of foreign economists were used in the analysis of the
activities of small and medium-sized businesses in foreign countries, their financing
processes and their role and importance in the country's economy, and the analytical
parts of Uzbek economists in the study of the role of entrepreneurship in the economy. At
the same time, the official statistics of the Republic of Uzbekistan were used in the study
of the level of focus of small businesses on supporting investment projects, and the
analysis of their role and impact in ensuring macroeconomic stability. Many scientists
have conducted research on investment projects in support of family businesses and
their role in the development of the country's economy. The issues of developing the
regional policy of the state to support small business are also reflected in the works of
Smid A, Keynes DJ.M, Schwass NJ, Ernesto J. Poza, Yong MA, Shumpeter Y, Chayanov AV
[1]. Proponents of this line have looked at non-capitalist peasant (Christian) farms as a
whole and studied their internal structure, production conditions, the level of
employment of the family, and its economic relationship with the peasantry. Borisova,
Kachubeya (2016) [2], on Kotler’s ph
ilosophy of entering business (Alikaeva, 2018) is
covered in his work on theoretical and methodological approaches. [3] Their research
focuses on the theoretical, organizational, and economic aspects of family
entrepreneurship.
3.
Results of the research
: The spread of coronavirus disease in early 2020 began
to affect the economies of China and later other countries. The coronavirus disease,
identified as COVID-19, soon spread globally and was declared a pandemic by the World
Health Organization. The pandemic has had a negative impact on the economies of almost
every country on Earth, and its impact is still expanding. According to the basic forecasts
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
372
of the International Monetary Fund, by 2020 the world economy is expected to shrink by
3%. At the same time, the economic decline was 6.1% in developed countries (including
the United States -5.9%, Eurozone countries -7.5%) and developing countries -1%, as
well as in Russia -5.5% and in Kazakhstan -2.5%. In Uzbekistan, economic growth is
projected at 1.8 percent. According to the World Bank, at a time when the global economy
is experiencing high economic growth since the 2008 global financial crisis, the crisis
expected to occur under the influence of this pandemic has once again put the global
economy at risk. Further liberalization of the economy in our country, its development
based on the knowledge economy is an important factor in strengthening the position of
the national economy in the world community. The reforms being implemented in
Uzbekistan reflect this goal and are developing. However, in 2020 there is a pandemic
situation caused by the spread of coronavirus in the world occurred. This, in turn, has led
to the derailment of the economies of many developed and developing countries around
the world. It is no secret that as a result of economic inactivity in the economy, significant
problems are observed in a number of sectors of the economy. It should be noted that in
order to mitigate the negative impact of such negative consequences on the sectors of our
economy, the Government has developed and implemented urgent measures. In
particular, the Decree of the President of the Republic of Uzbekistan of March 19, 2020,
№ 5969 "On priority measures to mitigate the negative impact of the coronavirus
pandemic and the global crisis on sectors of the economy" [5] is a vivid example.
According to the decree, a number of measures aimed at stabilizing the macroeconomic
balance have been identified.
The Presidential Decree of September 21, 2018 "On approval of the Strategy of
Innovative Development of the Republic of Uzbekistan for 2019-2021" states that "the
main goal of the strategy is to develop human (intellectual) capital as a key factor
determining the level of competitiveness and innovative development of the country".
Unfortunately, neither concrete measures in health care, nor in the education system, nor
in the family have been developed in the formation of mechanisms for the realization and
development of intellectual ability (human capital).
In this context, the Decree "On priority measures to mitigate the negative impact of
the coronavirus pandemic and the global crisis on sectors of the economy" was signed
[5], according to which 10 trillion The Anti-Crisis Fund was established in the amount of
UZS [6]. The World Bank has allocated $ 700 million to support Uzbekistan's anti-crisis
program. In addition to the $ 14 billion credit line. The U.S. decided to allocate dollars.
The bank's management has already allocated 1.2 billion sums to finance the healthcare
system, social protection institutions, and institutions, as well as budget support. It was
noted that the issue of operational allocation of funds in the amount of USD is being
considered. The $ 1 billion “Solidarity Package”, formed by the European Bank fo
r
Reconstruction and Development, has provided $ 220 million to four Uzbek commercial
banks. Credit lines and trade finance lines were provided to finance small and medium
business projects in U.S. dollars [7]. In this regard, if we analyze the ongoing economic
reforms in Uzbekistan in terms of economic development. In 2019, the gross domestic
product of Uzbekistan reached 511.8 trillion sums by 2018 compared to an increase of
25.8 percent. In 2014-2019, the country's GDP and the volume of loans from commercial
banks tended to grow. The volume of credit investments in the real sector of the economy
in 2019 increased by 26.3% compared to the previous year and as of January 1, 2020,
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
373
amounted to 211.5 trillion sums [8], the ratio of loans to GDP was 41.3%. From this, we
can draw the following conclusions: in our country, real creative work is widespread, the
demand for money is growing, and this indicates that the level of credit supply is
growing. However, the fact that the relative level of loans to GDP did not increase by
almost 0.1% compared to the previous year shows that the loans allocated to the real
sector in this country are insufficient.
The Central Bank of the Republic of Uzbekistan has set a task to provide
commercial banks with additional liquidity resources in the amount of 2.6 trillion sums.
Accordingly, legal entities and individuals facing financial difficulties from commercial
banks have the opportunity to delay payments on loans of individual entrepreneurs until
October 1, 2020. In addition, a moratorium on the application of bankruptcy procedures
and declaration of bankruptcy of enterprises facing financial difficulties as a result of this
situation will be introduced until October 1, 2020, audits will be extended until October
1, 2020.
Now shareholders' meetings can be held via videoconference. An Anti-Crisis Fund
worth 10 trillion sums are being set up under the Ministry of Finance of the Republic of
Uzbekistan without establishing a legal entity. Measures are being taken to attract up to
$ 1 billion in foreign loans from the budget, the fund, as well as soft loans from
international financial institutions and other sources to finance measures to support real
sector enterprises, exporters, and commercial banks. Additional support to the budget,
enterprises in the field of agriculture, utilities, and energy in the Resolution of the
President of the Republic of Uzbekistan dated April 22, 2020, PR-4691 "On additional
measures to support the population, sectors of the economy and businesses during the
coronavirus pandemic". Preliminary agreements have been reached with international
financial institutions to attract long-term soft loans and grants totaling more than $ 3
billion, as well as to develop a roadmap for attracting grants and long-term financing for
measures to combat the negative effects of the global coronavirus pandemic, as well as
assignments to establish a coordination group to attract grants and long-term
preferential financing in the preparation and implementation of investment projects. In
addition, in a short period of time, our citizens, governmental and non-governmental
organizations - at the initiative of the Foundation "Mercy and Health of Uzbekistan" and
the President - launched a nationwide movement "Generosity and Support" [9]. As
mentioned above, the purpose of decrees, decisions, and funds is to support the
population, develop entrepreneurship, as well as to mitigate the effects of the global
economic crisis on the country's economy. This is for us to perform a number of tasks
while the complex measures taken must bear fruit in practice, and the perfect decision
will surely bear fruit. The end result of the ongoing socio-economic reforms in our
country is aimed at ensuring the well-being of the population and the economic stability
of families. One of the main ways to achieve this goal is to start a family business based
on the formation of a business environment in the family. Because the formation and
development of family business, and its widespread development in the country, allows
to address easily important socio-economic issues, in particular, the increase in family
income, and employment of its members. Therefore, the formation of a family business in
the home environment and the development of this sector is one of the urgent tasks. In
particular, today it is necessary to consider private entrepreneurship as the main source
of family income, the formation of a class of private owners on the basis of family
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
374
business, as the main force in ensuring political, economic, and social stability in the
country. In the speech, the President of our country paid special attention to the legal
definition of family business as a new organizational and legal form of business for the
expansion of small business and entrepreneurship. This form of doing business in our
country complies fully with our national traditions of doing business, the current state of
economic activity, creating a legal framework for such business, strengthening the legal
guarantees of the family business, its rapid and widespread development in various
sectors of the economy, creating new jobs.
1. It is well known that family business is an intermediate link between individual
entrepreneurship and collective entrepreneurship. In ordinary and family business, the
entrepreneur is the sole owner of the property. The family business is an economic
activity of individuals carried out on the basis of joint property of a couple without
forming a legal entity, the organizationally and legally entrepreneurial activity of a couple
or family members in direct pursuit of common property, common goals, and interests.
2. Thus, family business is a form of private entrepreneurship carried out on a
family scale, with the participation of a couple or other persons living in the family on a
single farm (their parents, spouses, and dependent children) economic activity aimed at
obtaining income (profit) under the responsibility of property. The family business is a
form of entrepreneurial activity based on the joint management of a group of people
(mainly family members) who are related by mutual kinship. Today, family businesses
can be divided into two types: the first is large companies that have been operating in the
world for many years and passed down from generation to generation, and the second is
family businesses established in countries transitioning to a market economy. They are
separated from each other in terms of scale, i.e., large and small businesses. In developed
countries, a joint business activity is a family business, established under the common
property interests and obligations of one or more family members or families. The
establishment of family small business in our country, along with the solution of many
socio-economic problems, creates the basis for the formation of a class of entrepreneurial
owners who are the main driving force of a market economy. Family business creates an
opportunity to enrich the market of our country with consumer goods and various
services. It reduces the unemployed part of the population or family members and
attracts them to engage in entrepreneurial activities, to engage in a certain type of work.
Most importantly, it encourages family members to engage in entrepreneurial
activities together
—
family businesses. Due to this, it is important to develop small
family businesses in the modern market economy, to bring them to the level of an
industry that produces competitive products and services.
The socio-economic significance of family business in the national economy is
reflected in the following:
-family small business is the most convenient way to develop free market relations,
and restore the historical traditions and skills of the people;
- improvement of the mental state of the population, development of the ability to
run an independent business, summarizing their income and expenses, without losing
the sense of dependence;
- creation of a material basis for improving the welfare of families;
- self-employment of family members, the creation of new jobs within the family;
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
375
-preparation of conditions for families to earn income in accordance with market
rules;
- sharing in GDP, production of products for large industrial enterprises through
home-based activities;
-production of industrial and agricultural products;
- entrepreneurial activity in the field of construction, trade, and services.
The family business is an important factor in eliminating unemployment. It
encourages the population to engage in certain income-generating labor activities, and
self-employment of family members together. It has become the main and additional
source of income for the family farm. The development of family businesses will increase
the level of employment in the country, create new jobs on a family scale, and provide
employment for the existing unemployed in each family. The creation of new jobs,
especially in rural areas, plays an important role in the implementation of important
social tasks related to solving the problem of youth employment. It should be noted that
the creation of new jobs in the family business is much cheaper and more convenient
than in other areas. The value of jobs created on the basis of different forms of ownership
will vary. Therefore, while the most expensive jobs are created in state and mixed forms
of ownership, the cheapest jobs are created in the private sector, especially in family
farms. It is known that the economy is experiencing rapid growth in employment in areas
where there is little opportunity to create cheap jobs. For this reason, the majority of new
jobs are created by small and private businesses.
The family business has long been formed and developed in Uzbekistan in the
form of national crafts. The transition to market relations, changes and diversification of
forms of ownership, the establishment of new attitudes to labor, and the growth of
material interest through entrepreneurial activity require a new approach to this area
and the need for its comprehensive development. Embroidery, sewing, weaving,
carpentry, goldsmithing, copper smithing, pottery, painting, jewelry, bakery, handicrafts,
carving, national knife-making, and other similar handicrafts are among the family crafts
that have been practiced by family dynasties for many years. [10.43]. Attention is paid to
the preservation of traditional heritage and its transmission to future generations, the
restoration of craft centers, and changes in the quality of products. Today, the production
of handicrafts can be divided into two groups: products for use in everyday life, as well as
for exhibitions and sales to foreign visitors [11].
In 2018-2019, Crafts Development Centers will be established in 23 cities and
districts of the country. These centers will be built in the style of historical and traditional
architecture and other items are placed. Importantly, in these centers, artisans have lived
and worked for centuries in the same place as their ancestors, that is, on the first floor of
the building under construction are their workshops and shops, and on the second-floor
modern accommodation is organized for them [12.1256]. In accordance with the
"Comprehensive Program of Projects for the Development of Handicrafts in the Republic
of Uzbekistan in 2018-2019", more than 12,000 projects worth 405.1 billion sums were
financed by banks, and 46,400 jobs were created. It also exported $ 18 million worth of
handicrafts [13.1].
During the first half of this year, handicrafts in the country include floral fabrics
and embroidery, embroidery, national costumes, porcelain, faience and ceramics, jewelry
made of precious metals, author's furniture, wooden handicrafts, volumetric and shaped
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
376
molds, foundry, metalware, and wood carving made up the majority of registered
artisans in order to carry out their craft.
Implementation of targeted and comprehensive measures to preserve the
cultural heritage and historical traditions of our people, further development of folk art
and applied arts, comprehensive support of citizens engaged in handicrafts, on this basis,
employment of the population, especially youth, women, and low-income families.
Decrees and decisions in this area have imposed a number of tasks on the Craftsmen's
Association. It should be noted that as a result of extensive propaganda and advocacy
work, the number of registered artisans from the Craftsmen's Association has increased
2.5 times. That is, before the adoption of the Decree [14.], the number of registered
artisans from the Craftsmen's Association was 9,823, but today their number is 33,294.
Particular attention is paid to the creation of new jobs through the development of crafts.
In 2018, 40,338 jobs were created, and in 2019, 48,175 jobs were created. In order to
teach the secrets of handicrafts to the unemployed population, especially young people,
based on the traditions of "teacher-apprentice", artisans are given young apprentices.
During the first half of 2020, 30,964 new jobs were created [15.]. "If we look at the
tourism statistics before the pandemic, the flow of tourists to our country continued to
grow. If this trend continued, it would be possible to easily exceed the figure of 6.7
million in 2019. But the pandemic has ruined all forecasts of all countries. Would you like
to travel?!
It is obvious that at a time when the movement of the population and tourists of
our country is limited, the activities of artisans and the sale of products have stopped. But
the era itself shows that one of the areas that will revive the country's economy is
tourism, without forgetting and looking for ways to attract buyers.
" The Year of Science, Enlightenment, and Digital Economy" allows, using the
benefits created by the introduction of digital technologies, to increase the activity of
artisans, promote their products on social networks, connect to online trading platforms,
and create opportunities to sell directly abroad.
Various incentives for the development of the sector by the government are
reflected in a number of documents. In particular, in paragraph 7 of the Decree of the
President of the Republic of Uzbekistan of November 28, 2019 "On additional measures
for further development of crafts and support of craftsmen" from January 1, 2020, to
January 1, 2023, for craftsmen included in the National Catalog and Register Revenues
from sales (works, services) of more than 100 million sums, but not more than 1 billion
sums will be paid by individual entrepreneurs at a single tax rate of 2%. With the
resolution of May 28, 2020 "On urgent measures to support the tourism sector to reduce
the negative impact of the coronavirus pandemic", the profit tax rate for tour operators,
travel agents, as well as accommodation facilities from June 1 to December 31, 2020,
reduced by 50 percent. Together with the Tourism Committee and the Association of
Craftsmen, the site hunar.uz was created, which has more than 900 registered artisans in
the field of tourism. The most active of the artisans on this register are encouraged by the
Committee a number each year. These include participation in international exhibitions
abroad and assistance in the promotion and sale of products.
Earlier this year, the Tourism Lab was established with the support of the State
Committee for Tourism Development. The center is engaged in activities such as the
development of innovative projects that can serve tourism and other social spheres, the
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
377
creation of new national brand products, and the involvement and encouragement of
young people in projects. Currently, the translation of films about our great scholars and
cultural heritage into foreign languages, photo-map of Uzbekistan, eco-prayer,
performance "Dolls on a journey across Uzbekistan", logos of our regions, the green
labyrinth in Muynak, HomeFitness sports application and Masjidfinder pilgrimage
tourism applications for children work has begun on
projects such as “the Etiquette
Guide” [16.1].
Despite the fact that handicrafts in the field of tourism belong mainly to the
group of recreational and aesthetic consumer goods, it is important that industry
representatives do not waste time. Even before the quarantine period and the beginning
of the tourist season, it is important that our artisans and shopkeepers selling their
products learn to communicate in different languages, in addition to creating new types
of souvenir products and learning foreign experiences online. The social orientation of
the Crafted.uz platform is also designed to help artisans draw portraits and geographies
of potential buyers. Who buys the most souvenirs? Which tourist is interested in what
product? Which souvenir product earns the most? In which ethnic group do tourists
shop, male or female? This is achieved by conducting the necessary research to find
answers to questions such as attracting foreign grants and experts in the field. Today,
such a traditional view of family business is beginning to recover. On the basis of family
property, family members, based on labor and hired labor, organize family businesses,
which are called family businesses, room shops, family businesses, micro-firms, farmers,
and farms. Given socio-economic importance of small family business, several advantages
can be identified:
- family members and relatives work on the basis of common goals and devotion to
the family (in Western countries this is called the "spirit of family kinship");
- presence of strong kinship ties in the family makes it easier for other forms of
business to form and develop relationships between employees, as these relationships
are already formed in the family;
- inheritance of family business to the next generation;
- absence of contradictions in property relations, that is, the reliance on the
property of one family;
- organization of business on the basis of mutual trust;
- each participant in the family business has a strong motivation to achieve a
common goal;
- the absence of problems in the socio-economic relations between the employer
and the employer, i.e. the participation of family members belonging to the same family;
- uniformity and generality of the interest received from business activity or
product of labor;
- decision-making related to entrepreneurial activity together with family
members, its speed and conciseness;
- rapid change of family business, taking into account the constantly changing
market conditions;
- possibility of easy control and analysis of family activities and production
processes at the family level;
- direct transmission of information and rapid assimilation among family
members, rapid response to changes;
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
378
- existence of family relations in conducting business.
The household requires independent management as an integral part of the
microeconomy. One of the advantages of this management is that it is free of
administrative command in management. The family business is an entrepreneurial
activity carried out by family members for the purpose of gaining income (profit) at risk
and under their own property responsibility. The family business is based on the
voluntariness of its participants, and all family members participate in the management.
The family business is an organizational and legal form of the family business, which is
carried out by a legal entity that is a small business entity established on the basis of
common property. Family business participants are all looking for the most effective and
convenient ways to manage, thinking of their own well-being. So, as a result of the work
of the family, their direct material interest increases. Family members develop a spirit of
not only owning property but also owning the work and its outcome. This manifests itself
as a factor that does not require additional capital, or money in the use of people's inner
potential, or talent.
Thus, the family business will have a new meaning in terms of its management.
Most importantly, people develop a mentality of owning, multiplying, using, disposing of,
and achieving material and financial interests in accordance with market relations.
Dependence on this psyche is completely alien. Hence, family entrepreneurship is also
seen as an important factor for the growth of the whole economy.
4.
Conclusions
. Based on the above considerations, it can be said that the
management of a family business regulates all its aspects independently and objectively.
These aspects include, first of all, the internal structure of family business. Depending on
the profession and abilities of each person in the family, they decide for themselves what
to do. Second, it directly manages, monitors, and evaluates the economic process, i.e.,
entrepreneurial activity. Third, it also agrees to pay th
e family members ’wages. Whether
to give it as a boon, separate it according to the necessity of each, or divide it according to
the end result, all matters are decided independently. In any case, it is clear that all
income from the result of labor will belong to this family. Fourth, participation in family
business encourages every family member to adhere to strict discipline, not to deceive
each other, to fight for family honor, to have good results, and thus to form a spirit of
striving for high-quality products and educate generations in this spirit. The family
business is one of the most important functions of the family economy in a market
economy. In this regard, the functions of the family should be considered as factors that
ensure its well-being. Because the successful performance of the functions of the family
economy leads not only to its material well-being but also to the reduction of social
conflicts arising in the family. Eventually, a family tradition of entrepreneurship is
formed. Thus, a generation with qualitatively new content and spirit emerges. This
generation is the future of Uzbekistan. Thus, the family business is the foundation of a
democratic civil society, not an investment or a hired worker, but an entrepreneurial
activity capable of providing a decent life for oneself and one's family members while
maintaining one's family at the expense of a privately gifted, self-employed person with
an average income.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
03 (2023) / ISSN 2181-1415
379
REFERENCES:
1.
Smith A. Issledovanie o prirode i prichinakh bogatstva narodov. -
М. Sots.
entsik,
1962, -S.332; Keynes Dj. M. "Favorite production". - M.: Economics, 1993;
JoachimSchwass. Family businesses: successes and failures // IMD Global family
business center. 2013.Ernesto J.Poza Family business, South-Western, Cengage
Learn
ing, Nelson Education, Ltd. © 2010.Malvin Yong. Family business in Singapore //
CPA Australia Ltd and KPMG Services Pte. Ltd. © September 2013.ShumpeterY Theory
of economic development.
–
M.: Mysl 1982, p. 159.; A.V.Chayanov. O razmere semii
krestyanskogo
domoxozyaystva. // Vestnik statistiki. 1991, №7, p 47.
2.
Borisova B.P., Kachubeya I.V. (2016) Under the scientific edition of "Studies in
the spirit of postmodernism" born statues under the monograph Moscow.Berlin. - 368
p.
3.
Alikaeva M.V., Aslanova L.O., Bajenova T.Yu., Borisov S.A., Dudnik D.V., Dyakov
S.A., Zakharova S.G., Zenkina M.V. , Kuzmina E.E., Ksanaeva M.B., Lapushinskaya
G.K.Lysenko E.A., Mironov L.V., Opryshko E.L., Orlova L.D., Ostapchuk E.G., Skazochkin A
.V., Skazochkin G.A., Tekucheva S.N., Firtseva S.V., Shafieva Yu.N., Sheveleva V.V., Sher
M.L., shcherbakova E.N. (2018) Strategicheskoe razvitie malogo biznesa i formy
podderjki individualnogo predprinimatelstva [Electronic resource]: monograph. -
Nizhny Novogorod: NOO “Professional science”,
- Access mode: http: // scipro. Ru /
Conf / monograph business.
4.
https://lex.uz/docs/4770761
5.
https://lex.uz/docs/4800005
6.
https://unews.uz/uz/news - site information was used.
7.
http://uza.uz/oz/business/evropa-tiklanish-va-tara-iyet-bank.
8.
Based on information from https://stat.uz/uz/ and http://cbu.uz/oz/.
9.
Issues of food security, development of horticulture were discussed /
https://president.uz/en/lists/view/3487
10.
Abdullaeva RG Family business is an important factor in ensuring employment
and improving the welfare of the population // Theoretical and practical aspects of
modernization of the national economy (collection of scientific articles). Appendix to the
journal "Economics and Finance", issue 4. 2014. p.43.
11.
Ostonov O.A. Revival of Uzbek national handicraft traditions // ACADEMICIA:
An International Multidisciplinary Research Journal. Vol.10 Issue 2, February 2020.
–
P.
26.
12.
O.Ostonov, Kh.Akhmedov, Kh.Khushvaktov, Kh.Khidirov. Some features of the
development of national crafts on the basis of tourism in Uzbekistan // JOURNAL OF
CRITICAL REVIEWS. 2020; 7 (11): 1256-1261
13.
http://21asr.uz/
14.
https: //regulation.gov.uz/ru/document/9426.
15.
https://handicraftman.uz/2020-year-of-the-craftsmanship-of-the-
development-of-the-handicraft-service-of-assessment/?lang=uz-kr
16.
https://www.solanews.uz/kr/posts/view/114832/world-turizm-what
will
change after the pandemic.
