Role of small business in Uzbekistan

World experience confirms: small business (small business) is a very important element of a market economy, without which the state cannot develop. It largely determines the pace of economic growth, the structure and quality of the gross national product.

Small business in many respects contributes to maintaining a competitive tone in the economy, creates a natural social support for the social structure organized on the basis of the market, and also forms a new social layer of entrepreneurship.

Today, small business in Uzbekistan, in spite of the course towards a market economy proclaimed by its political leadership and supported by the majority of the active population, is developing slowly and contradictory.

In the early stages of the development of market relations, entrepreneurship needs serious government support. Assistance to small businesses should be provided by both state authorities and public organizations of entrepreneurs themselves (unions, associations, agencies). For this, it is necessary to formulate a clear unified state and non-state policy regarding small business.

State policy should not be directed to the administrative-directive regulation of small business, but to the creation of the necessary market infrastructure, a system of state and public support for its development. The transition to market relations in the domestic economy determines the need for organizational and economic transformations in all areas of economic activity. One of the most important areas of economic reforms contributing to the development of a competitive market environment, filling the consumer market with goods and services, creating new jobs, forming a wide circle of owners is the development of small forms of production. Economic practice in small business is causally dependent on the deepening specialization of social production and the differentiation of goods and services. Economic maneuverability, decision-making flexibility, spatial and spatial mobility make small business necessary in a modern, post-industrial society.

The experience of the leading countries of the modern world clearly proves the need for a highly developed and efficient small business sector in any national economy. Therefore, the revival of the Republic cannot be carried out without a given sector of the economy corresponding to this development, since it is precisely this locomotive that literally drags economic and social development.

Thus, the problem of small business development is very urgent for the Republic. Developed countries have long understood how important small business is in their economies. And only in our country small business remains underestimated and does not receive the necessary state support.

Small business is an entrepreneurial activity carried out by subjects of a market economy under certain, established by laws, criteria (indicators) that constitute the essence of this concept. The concept of “small” is a qualitative characteristic. Economists and lawyers always strive to specify all the signs and concepts, eliminating ambiguities. 50 kg is a big burden for a tourist, but it is a very light weight for weightlifting competitions. A small business should be identified by a specific attribute. This sign is usually taken the number of employees. In various countries, for specific economic situations, the maximum allowable number of employees in a small enterprise is stipulated by law. Most often, a small enterprise is understood as an enterprise with the number of employees less than 50 people, but there are examples where the number of employees is allowed up to 200 people, and where there should be no more than 15 people. It depends on the scope of the enterprise.

The average number of employees of a small enterprise for the reporting period is determined taking into account all its employees, including those working under civil law contracts and part-time taking into account real time worked, as well as employees of representative offices, branches and other separate divisions of the indicated legal entity. In the event that a small enterprise exceeds the above number of employees, this enterprise loses the benefits provided by applicable law for the period during which the specified excess is allowed, and for the next three months. Small enterprises that carry out several types of activities (multidisciplinary) belong to those according to the criterion of the type of activity whose share is the largest in annual turnover or in annual profit. Entrepreneurships are also understood as individuals engaged in entrepreneurial activities without forming a legal entity.

A small enterprise is not a special economic form. Its allocation is determined by the scale of activity, features in the organization of work, and benefits from the state.

A small business is a legal entity. This means that there is its state registration, it can act as a participant in business transactions and contracts, its activities are individually accounted for and controlled.

Legal entity - an institution, enterprise, company that meets certain legislative criteria (the presence of the charter, seal, bank account, state registration, names). A legal entity can be not only a group of citizens, but also an individual citizen. However, the interests of a small enterprise are represented by specific people: owner, manager, accountant, employee. They sign contracts, purchase raw materials, sell products, make transactions, but each of them acts only as a representative of the enterprise and therefore the enterprise is responsible for the actions of a particular employee. Thus, a small enterprise participates in economic activity as a single team. A small enterprise owns property (equipment, cars, furniture, a building). It can acquire and sell its property, manage its use. Neither the owner, nor the head, nor the employee of a small enterprise are owners of property. On their personal behalf, they cannot sell or use the property of a small business. The interaction of an individual and a small enterprise is determined by a specific contract, assignment, job description.

A small enterprise can engage in any activity permitted by the laws of the country, but there are types of services and products that are mainly sold by small enterprises. This is public service, catering, household appliance repair, advertising services, car rental, photography, printing services, training, etc.

Each sphere of small business has differences in the organization of activities, economic principles, the rules for constructing financial flows, the nature of partnerships.

Innovative small enterprises arise on the basis of specific scientific discoveries. They often turn out to be the first step for a future new type of production, new products. The most characteristic example of this type of enterprise was the first enterprise for the assembly of personal computers. Creating an innovative enterprise, the owner takes risks. If new types of goods are not bought, then the enterprise will go bankrupt, and all the capital invested in it will disappear. But if the new business is successful, then the profit will grow rapidly, the owner will very quickly turn from a small businessman into a major industrial leader.

Small businesses as subjects of a market economy have both advantages and disadvantages. Analyzing foreign and domestic experience in the development of small business, one can point to the following advantages: faster adaptation to local business conditions; greater independence of actions of small businesses; flexibility and efficiency in making and implementing decisions; relatively low costs, especially management costs; a great opportunity for an individual to realize his ideas, to show his abilities; lower capital requirements and the ability to quickly introduce changes in products and production in response to local market requirements; relatively higher return on equity, etc. At the same time, small businesses are also characterized by certain disadvantages, among which the most significant should be highlighted: a higher level of risk, therefore a high degree of volatility in the market; dependence on large companies; deficiencies in business management; poor leadership competence; hypersensitivity to changes in business conditions; difficulties in attracting additional financial resources and obtaining loans; the uncertainty and caution of economic partners when concluding agreements (contracts), etc.1. Of course, the shortcomings and failures in the activities of small businesses are determined by both internal and external reasons, the conditions for the functioning of small enterprises.

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