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THE AMERICAN JOURNAL OF MANAGEMENT AND ECONOMICS INNOVATIONS (ISSN- 2693-0811)
VOLUME 06 ISSUE09
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PUBLISHED DATE: - 11-09-2024
DOI: -
https://doi.org/10.37547/tajmei/Volume06Issue09-04
METHOD OF ASSESSMENT OF FACTORS
AFFECTING THE DEVELOPMENT OF SMALL
BUSINESS SUBJECTS
Israilov Rusrambek Ibragimovich
Head of Department, NamMTI, Uzbekistan
INTRODUCTION
Small business and private entrepreneurship offer
innovative ideas in the field of climate change,
resource efficiency, social cohesion and contribute
to the transition of countries to a sustainable and
digital economy. In some developed countries, the
result of its activity is more than half of the annual
GDP. The main part of the economically active
population is engaged in this type of business. Such
a result is ensured not only by the state's favorable
conditions for the implementation of business
activities, but also by the responsibility of small
business and private business entities, the honesty
and transparency of their activities.
The situation in Uzbekistan is the same - a large
part of the GDP is made up of small businesses and
private entrepreneurship, but the honesty and
transparency of doing business is still a problem.
The study of small business in Uzbekistan is
relevant because it can identify development
problems and possible ways to overcome them,
which in turn will help the growth of Uzbekistan's
economy. Perhaps the most important contribution
of small businesses to economic growth is the
regulation of employment, which is reflected in the
ability of small businesses to create new jobs. In
addition,
small
business
and
private
entrepreneurship contribute to the formation of
the middle class, which usually constitutes a
significant part of the economically active
population.
RESULT AND ANALYSIS
Despite the fact that there is a lot of research on the
performance indicators of small business entities,
the issues of comprehensive assessment of the
development of business entities and the
development of effective state and regional
programs to support their activities remain
insufficiently developed. One of the important
RESEARCH ARTICLE
Open Access
Abstract
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issues is the comprehensive assessment of the
development of small business in Uzbekistan based
on the multidimensional averaging method for the
development of directions for supporting the
activities of small enterprises.
The system of performance indicators of small
business entities includes groups of indicators such
as the number of entities, the number of people
employed in them, the efficiency of various types of
activities, resources, and determines their role in
development. Quantitative evaluation of the values
of these indicators describes some aspects of small
business activity. It does not give a clear answer in
which
regions
the
development
of
entrepreneurship is rapidly developing, because
certain indicators are highlighted for each
indicator.
At the current stage, the development of effective,
priority management solutions requires a
comprehensive approach to studying the
development of business entities in Uzbekistan
based on a general indicator. In order to determine
the overall assessment of the development of small
enterprises in the regions of Uzbekistan, this article
uses the multivariate average method. This method
makes it possible to give a generalized description
of small business development based on non-
dimensional dimensions. At the same time, many
statistical indicators describing various aspects of
business activity are taken into account. The
modern economy of the country is characterized by
the uneven development of the activities of small
enterprises in the regions of Uzbekistan.
It is related to the possibilities of creation and
operation of enterprises, implementation of
activities, development of market infrastructure,
availability of qualified workers, priority of types of
economic activities, effectiveness of territorial
programs of entrepreneurship support. The
existence of such conditions requires an objective
assessment of the rating of each region by the level
of small business development, identifying leaders
and outsiders.
A system of indicators will be formed for analysis,
and at the same time, it is necessary to ensure a
single direction of the influence of indicators on
small business activity in Uzbekistan. Indicators for
this are divided into stimulators and destimulators.
The incentives are the following indicators:
𝑋
1
- the number of small enterprises per
10,000 people of the existing population, unit;
𝑋
2
- relative weight of workers employed in
small enterprises in the total number of employed
in entrepreneurship, %;
𝑋
3
- labor productivity, soum/individual;
𝑋
4
- the comparative weight of the volume
of products (works, services) sold by small
enterprises in the total volume of products sold by
business entities, %;
𝑋
5
- return of capital, soum;
𝑋
6
- profitability of operational activity, %.
𝑋
7
indicator - operating expenses per unit of
sold product, soums.
Small of enterprises operational of activity
financial the result is operational profit (
operational revenues and expenses between
difference ). Operation of expenses decrease small
of enterprises operational of benefit to growth
effect does , therefore for operational expenses
indicator hindrance does Different measurement
and direction units have has been initial indicators
to compare for them standardization done is
increased empirical values of the indicator known
one to value from the ratio consists of
Comparison for basis as in Uzbekistan small
enterprises development as a benchmark for of
indicators maximum values get recommendation
will be done . Small entrepreneurship subjects
activities encouraging indicators according to
standardized estimates ( ) of k Z_ijindicators of
each region their maximum to the value of ratio as
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defined as :
𝑍
𝑖𝑗
=
𝑋
𝑖𝑗
𝑋
𝑚𝑎𝑥
.
(1)
Integral assessment and between the stimulus
dependence directly to be need and destimulator
with dependence reverse to be need due to, collect
during destimulators to stimulants conversion
need:
𝑍
𝑖𝑗
= 1 −
𝑋
𝑖𝑗
𝑋
𝑚𝑎𝑥
.
(2)
Using the above equation, we will calculate the
integral indicators of small business development
in Namangan, Andijan, Fagana, Syrdarya, Jizzakh
and Samarkand regions until 2012 and 2023. For
this purpose, using the statistical indicators of the
respective regions, we will first determine the
highest values of the state of small business
development in the above-mentioned regions in
2012-2023. The highest rate of small business
development in Namangan region is 32,305 in
2023. That is,
𝑋
𝑚𝑎𝑥
= 32305
; In Andijan
𝑋
𝑚𝑎𝑥
=
39038
(2023); in Fagana
𝑋
𝑚𝑎𝑥
= 2682
(2023); In
Syrdarya
𝑋
𝑚𝑎𝑥
= 15036
(2022); in Jizzakh
𝑋
𝑚𝑎𝑥
=
22474
(2022)
and
Samarkand
𝑋
𝑚𝑎𝑥
=
47943
(2022)
Table 1
An integral indicator of the state of small business development in the
regions of Uzbekistan in 2012-2023
Namangan
2012
2013
2014
2015
2016
2017
0.662
0.646
0.62
0.595
0.564
0.546
2018
2019
2020
2021
2022
2023
0.506
0.475
0.336
0.21
0.104
0
Andijan
2012
2013
2014
2015
2016
2017
0.543
0.522
0.489
0.465
0.437
0.444
2018
2019
2020
2021
2022
2023
0.479
0.422
0.339
0.188
0.103
0
Ferghana
2012
2013
2014
2015
2016
2017
0.033
0.101
0.314
0.584
0.751
0.855
2018
2019
2020
2021
2022
2023
0.897
0.912
0.889
0.597
0.396
0
Jizzakh
2012
2013
2014
2015
2016
2017
0.722
0.707
0.693
0.678
0.673
0.62
2018
2019
2020
2021
2022
2023
0.542
0.428
0.276
0.205
0
0.319
Syr Darya
2012
2013
2014
2015
2016
2017
0.623
0.591
0.574
0.568
0.538
0.504
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2018
2019
2020
2021
2022
2023
0.467
0.267
0.112
0.082
0
0.254
Samarkand
2012
2013
2014
2015
2016
2017
0.769
0.736
0.732
0.711
0.708
0.666
2018
2019
2020
2021
2022
2023
0.591
0.465
0.31
0.151
0
0.22
In the next step, the integral value (multivariate
average)
𝑚
is calculated as the average value from
the standardized indicators ( ) calculated for each
region:
𝑃̅
𝑗
=
1
𝑚
∑
𝑍
𝑖𝑗
𝑚
𝑖=1
(3)
Using equation 2.1.3 above, we determine the
average integral values of the regions. Then in
Namangan region - 0.438; Andijan - 0.369;
Ferghana - 0.527; Jizzah - 0.488; Syrdarya - 0.381;
Samarkand - 0.504 values were determined.
According to this, we can see that Namangan,
Andijan and Syrdarya regions are on the 1st place,
Jizzah is on the 2nd place, and Fergana and
Samarkand regions are on the 3rd place.
For a more detailed comparative analysis of the
activity indicators of small enterprises based on the
integrated indicator, the grouping of the regions of
Uzbekistan was carried out in 2012 and 2023.
Groups with equal and unequal intervals (with
equally filled intervals, as well as with gradually
increasing intervals in arithmetic and geometric
progressions) were tested. Grouping with unequal
intervals resulted in empty groups, so grouping
with equal intervals is optimal.
Among the main reasons for this situation are the
different levels of development of the economic
potential of the regions; diversification by types of
economic activity; incompatibility of production
volumes with local natural resource potential;
negative demographic and environmental trends;
insufficient development of the market and social
infrastructure; lack of financial resources for the
implementation of regional socio-economic
programs to support small businesses.
In order for most regions to have a certain potential
and to be able to increase the efficiency of the main
indicators of small business activity in the future, it
is necessary to solve the following problems arising
from the specific characteristics of small business
operating in each region. Among the main ones are
difficulties in selling products; ensure product
competitiveness; elimination of obstacles to the
development of new markets; lack of financial
resources and buildings for small business
development; insufficient opportunities to find
new business partners and form business
relationships; lack of qualified personnel, skills and
information related to business activities; rising
energy and raw material prices.
The main directions of state support for small
business are as follows: improvement and
systematization of the legal framework; formation
of effective infrastructure for support and
development of small business; support the
development of cooperation between small and
large enterprises; improvement of the simplified
system of taxation, accounting and reporting;
implementation of financial and credit support for
small business entities; to encourage small
business entities to implement innovative and
socio-economic programs, to sell products (works,
services) produced by small enterprises for state
and regional needs. Further development of small
business is possible only in conditions of rational
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ratio of effective methods and directions of state
policy. Effective economic reforms determine the
development of small business in the regions and
the economy as a whole. Consistent and targeted
directions of the state policy ensure the efficiency
of the activities of small business entities of
Uzbekistan as a leading branch of the economy.
CONCLUSIONS
According to the conducted studies, the
destabilizing factors of the external environment
are economic and socio-cultural. Economic factors
the most negative effect shows ( especially the
exchange rate change and of the population
purchase of ability decline ), socio-cultural factors
less effect does ( awkward demographic situation
and personnel abroad out departure ).
Positive factors between the following our
emphasis possible : political ( small business
development contribution adding one row the law
projects acceptance to do and of Uzbekistan market
participants for new opportunities opener World
Economic Community towards movement , new
technologies work output , processes automation )
and technological factors .
US experience that's it shows that, is small and
medium enterprises in development to success the
following support from the network use because of
can be achieved : financial , logistics, information ,
advice . Such network in creating state , local power
bodies , public , universities and Big business
participation is enough the world economy
development present stage small and There are
many medium-sized businesses to obstacles face is
coming and their the main ones usually:
undeveloped in countries - state by e field level lack
of support or his ineffectiveness .
Today, there is a system of state support for small
enterprises in Uzbekistan, the formation and
improvement of infrastructures by the state,
increasing the income of the population, improving
secondary and special education are accelerating
the processes of economic integration with the
world community.
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