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ISSUES OF ASSESSING THE COMPETITIVENESS OF SMALL
BUSINESSES AND HANDICRAFTS IN NEIGHBORHOODS
Tukhtasinov Zafarjon Odiljonovich
Independent researcher of Tashkent State University of Economics
https://doi.org/10.5281/zenodo.13382423
Abstract.
This article describes the methodological aspects of assessing the
potential of small business competitiveness in neighborhoods. issues of
development of crafts in the regions and improvement of management of
business activity are highlighted, and a model for determining the indicator of
the index of competitiveness of small business is proposed.
Key words:
craft, entrepreneurship, small business, index, competence.
The success of the market relations implemented in Uzbekistan is
characterized, first of all, by the change of property relations, the development
of various forms of economic management, and the fact that the state, as the
main reformer, creates economic opportunities for this. Therefore, small
business and private entrepreneurship in the Republic of Uzbekistan is
developing year by year. In our country, small business and private
entrepreneurship emerged as a necessity from the first days of the reform, while
national handicrafts have been developing for centuries, relying on national
customs and ancient traditions. Today, the Republic "Hunarmand" association
organizes more than 16,000 artisans, many shops and galleries selling
handicraft products are operating. [4] Many artisans sell their products at
exhibitions and trade fairs, which are frequently organized in our country and
abroad. Also, handicraft products are sold directly to workshops located near
historical architectural monuments frequented by tourists.
All conditions are sufficient for the development of crafts in our republic.
Recently, the demand for handicraft products has been increasing in our
domestic market, that is, the demand has increased by 30% in the last 8 years.
But we need to expand the export of handicraft products abroad.
If we look at foreign experience, for example, the Argentine company
"Dinka" deals with the search for buyers from abroad for the products produced
by Argentine artisans, and with the delivery of products and customs
formalities, in return they receive a percentage of sales. With the establishment
of the company, it established cooperative relations with stores in the
neighboring countries of Chile, Peru, Ecuador, and then signed an agreement
with a distribution company from Texas. Today, they are looking for new
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opportunities for cooperation with stores in Spain, Italy, Germany and
Switzerland. The annual turnover of the company is 1 mln. more than a dollar.
In Vietnam, special attention is paid to folk crafts. For example, in 2003,
Vietnam's folk handicraft products took the 8th place in the world in terms of
export volume and amounted to 367 million. dollar income.
China and Germany are also major exporters of handicrafts.
Therefore, we should expand the export of handicraft products abroad in
our Republic.
In the conditions of the market economy, improving the methodology of
material support and analysis of the development of entrepreneurial activity
with high labor productivity ensures the formation of a sense of ownership of
production in the individual, and all this is interrelated with the use of positive
forms of labor organization and payment, and the improvement of the financial
incentive system. Material support of entrepreneurial activities is objectively
limited. But it should be formed in such a way and the method of analysis should
be chosen so that it fully responds to the principles and tasks of the society at
the current stage of development in the conditions of the market economy.[2]
When determining the methodological aspects of the analysis of the
development and efficiency of small business and private entrepreneurship, it is
necessary to determine its identifiable criteria. The criteria of economic
efficiency of small business and private entrepreneurship should reflect the
efficiency of payment according to work, implement laws that satisfy the
growing needs, demands and offers, and reflect their interdependence in the
process of improvement of payment according to work. The economic efficiency
of business activities is interrelated with the general criteria of production
efficiency.[2]
At the same time, no matter how perfect the financial support for small
business and private entrepreneurship, it will not give the expected effect if the
conditions for payment of labor are not combined with the improvement of the
entire system of its organization, management and economic management
mechanism. In the form of salary, it is necessary to connect the increase of the
economic efficiency of entrepreneurial activity with the labor contribution of the
employee. Naturally, it is necessary to increase the financial and moral
responsibility of the entrepreneur for the shortcomings and mistakes made in
the work, which in the current market economy, in particular, it is necessary to
pay strict attention to these aspects.
THEORETICAL ASPECTS IN THE FORMATION OF
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International scientific-online conference
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Analyzing the entrepreneur's potential and the ability to repay the loan, as
well as methods of determining the economic efficiency of the enterprise, take
the main place in the methodology of evaluating the efficiency of small business
and private entrepreneurship.[3]
It is necessary to comprehensively analyze all aspects of the entrepreneur's
activity. In this case, internal factors are studied in terms of their theoretically
possible and practical results and losses (strengths and weaknesses of the
client), and external conditions in terms of positive or negative impact on the
activity of the entrepreneur.
Among the internal factors, the organization and state of the debtor's
finances, the entrepreneurial skills of the company's managers, the composition
of the staff, the state of equipment and its use, the nature of technology, the set
of issues related to the accounting, storage and organization of the use of raw
materials and materials, the composition of products, purchasing and the nature
of product transfer markets (including the prevalence of natural exchange), the
state of research and development, and the structure of the enterprise should be
considered. As part of external factors, the social, political, economic,
technological and legal conditions of the debtor's activity are analyzed.
During the analysis, it is desirable to study the direction and growth of the
changes occurring in various areas of the debtor entrepreneur's activity, to
determine the ability to plan and control his activity. It is determined, first of all,
by assessing the ability to plan for profit in the short term and assess the quality
of cash flows, to make appropriate changes in the organization of activities in
relation to existing conditions and obtained results.
It is necessary to analyze the existence of prospective projects of the
organization of the debtor entrepreneur's activities for the far future, the
opportunities of the entrepreneur to implement the project, if the loan is given
as an investment, the estimated profitability of the loan project. The client's
liquidity (general solvency) is considered in terms of the sources of its activity
(capital) and the nature of investment. In such cases, the company's business
conditions and its ability to fulfill its obligations are analyzed.
In our opinion, a comprehensive analysis should cover:
- management system;
- internal factors;
- external factors;
- production conditions;
- the nature of the balance sheet and other reporting information;
THEORETICAL ASPECTS IN THE FORMATION OF
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International scientific-online conference
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- includes the analysis of indices and ratios.
The main tool of financial analysis is summarizing the prices based on
graphical representation and revealing the peculiarities of these graphical
images in order to tell how the prices will be.[3]
In the conditions of the market economy, business activities develop on a
large scale. The wide development and improvement of entrepreneurial activity
is related to the expansion of its essence and scope of main tasks. These tasks
can be divided into the following types:
- the task of material resources, that is, any business activity should be
provided with objective factors, raw materials, production means and necessary
production forces,
- the task of organization is that production raw materials, means of
production, production forces should be formed in such a way that as a result of
it, the entrepreneur should have the level of product production in the specified
volume and the level of product production in the specified volume and the
specified amount of income;
- the task of creativity is mainly the means of production necessary for the
organization of production, the creative approach to increase the quality of
production, reduce production costs, and ensure the growth of profit.
In order to assess the investment climate in the field of handicrafts and
small business in the regions, the indicator "Regional Small Business
Competitiveness Potential Index (IPK)" is proposed, which is determined
according to the following formula:
IPK =
n
In × If × IRР × IQP,
(1)
Here, In is the index of innovative potential;
If - information potential index;
IRR - resource potential index;
IQP is an index of economic potential.
Local indicators are used to calculate the index, and as a result of their
integration, the competitiveness potential of small businesses of the region is
determined.
On the other hand, local indices reflect integrated indicators of a lower
order in relation to the indicator of competitive potential.
At the same time, rapid development of labor-intensive sectors of the food
processing industry, focused on the processing of local raw materials and the
production of ready-made competitive products, is of great importance in
increasing the employment of the population and in the development of
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handicrafts. In particular, the development of the fruit and vegetable processing
network creates great opportunities in this area. The favorable climatic
conditions of the regions allow the cultivation of fruits, vegetables and fruit
crops in large quantities and in a wide range. Such an opportunity, firstly,
reduces the destruction of agricultural products, especially perishable and
difficult to transport products, secondly, it ensures the preservation of product
quality, thirdly, it reduces the costs of transporting, storing and selling products
for farmers and farms, and fourthly, the employment of the population increases
employment, increases income, reduces unemployment, and fifth, creates work
for rural residents in their place of residence.
It is worth noting that construction of labor-intensive productions based
on household farming and folk crafts enterprises also helps to provide
employment to the population.
In our opinion, in order to further develop handicrafts in the regions and
thereby ensure the employment of the population, attention should be paid to
the following:
- learning and introducing advanced foreign experiences in the
development of craft and household activities, i.e. providing home services by
telephone, advocacy, creating software products;
- to carry out extensive propaganda work among the population about the
activity of home farming, its advantages, the privileges and eases given by our
government for the development of home farming; increase the image of the
household among the public;
- development of economic mechanisms that will allow artisans and
homemakers engaged in informal activities to transfer to formal activities;
- mastering types of craft activities specializing in the production of new
goods and services suitable for changing market conditions.
In addition, the development of tourism services based on the historical, cultural
and architectural monuments of the local areas, as well as economic cooperation
and cross-border trade with neighboring countries will also help to increase the
level of employment of the population.
References:
1.
https://iqtisodiyot.tsue.uz/sites/default/files/maqolalar/29_B_Tursunov.
pdf.
2.
Abdullaev Yo., Karimov F. "Fundamentals of small business and
entrepreneurship" T.: Labor, 2000
3.
Khodiev B. Yu and others. "Small business management" Tashkent,
Teacher, 2008.
THEORETICAL ASPECTS IN THE FORMATION OF
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International scientific-online conference
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4.
http://www.artcraft.uz/uz/content Information from the official site of
the HUNARMAND ORGANIZATION
