Development of small and private businesses — one of the most pressing problems in Uzbekistan. While the relative weight and importance of small business in the economy grows, the proportion of these indicators are lower than in developed countries. One of the most important factors affecting the performance of the small business is institutional support for entrepreneurship.
Key words: Small business, private enterprise, the efficiency of infrastructure, employment, business support systems, factors, infrastructure.
Despite increased efforts to stimulate private business sector, efficiency of actions of controls on business support not always corresponds to applied efforts. Lack of coordination of actions and their focus on the needs of the region identified the task of forming the control system of small business support necessary for the successful development of small business. It is necessary to consider the following conceptual approaches stimulating formation and development of small business:
- To provide not only conditions for functioning of system of the small enterprises operating on the basis of various patterns of ownership, but also their effective and a sustainable development;
- To be the dynamical system promoting occurrence and formation of new partner communications, cooperating with its components;
- To be adequate to a level of development of small business and requirements of enterprise structures taking into account their branch and functional specialization;
- To be accessible to all enterprise structures (on distribution, cost of business services and their quality, to being informed about the real possibilities of and other) and to provide possibilities of decision of major problems of development of small business (access to information networks, to maintenance of property and information support, the decision of personnel problems, financial and tax consultation, etc.).
On this basis, we formulated a strategy of management system of small business support, which is to create an enabling environment for SME development in Uzbekistan. Based on reengineering business processes, define the conditions and factors influencing the successful development of small businesses.
The function of research and actualization of normatively-legal base is carried out by the organs of infrastructure of support of small enterprise. A management is carried out on the basis of current legislation, programs of support of small enterprise and methods of analysis and research. The result of performing the duty is the worked out strategy and updated normatively-legal base. On the first stage for forming of strategy used the present accumulated information. The periodically corrected normatively-legal base and strategy of actions are managers for other functions. Strategy is the most fundamental and important options, plans, intentions, sent to development of small enterprise.
Function of coordination and motivation of activity of organs of support of small business assumes working out of motivating model of their activity. At this stage missing, weak, duplicating functions come to light, besides functions should be provided for development in the long term in connection with a changing social and economic situation in the country. Then the revealed functions and activity of bodies of support are coordinated taking into account horizontal and vertical integration therefore the changed structure turns out. Besides it is necessary to motivate organs of support of business. It should be promoted by motivating model. The model represents influence of motivating factors on improvement of activity of organs of support of small business. In this connection the coordination and motivational policy should be directed on development of small business.
Function of promoting innovation is carried out by business support agencies. Except the regulating factors set forth above here there are criteria of an estimation of investment projects. The results of this function are the new products, goods and services. An income appears due to commercialization of innovative ideas.
Function of businessmen’s interests protection. Executing the given function is assigned to regional branch of commercial and industrial chamber. The organs of infrastructure of support of small enterprise must be involved during realization of all functions. Thus, taking into account the structure of detailed models of small business support is possible to develop a program of priority measures aimed at creating an enabling environment for development of small enterprise.
The basic direction of integration of interests of small business and bank sector should be the strengthening of their relations on a bilateral basis. The model offered by us requires the change of traditional ideology of relations between a bank and small enterprise. These relations assume presence of accurately formulated and formally fixed principles and obligations on all points of intersection of economic interests.
The offered model of cooperation of bank sector with small business in region in practice will allow to provide relative balance of their economic interests. Any process of successful regional growth of small business doesn't occur in itself. Both successes and failures include, besides aggressive factors of external influence — the concrete decisions reflecting strategy and tactics of change management, selected by leaders of the district, city and region as a whole.
Taking into account necessity of the maximal approaching of research to practical result we will consider regional development process in a context of management process accompanying it. In this context, development is understood as repeating cycles of four key stages:
- estimations of the modern economic state;
- making of strategic targets and tasks for development of small business;
- determinations of factors of inhibition of small business development;
- development and realization of strategy and measures on steady development of small business.
The first stage includes:
1. Analysis of available information on the state economy and the MT received both on the basis of secondary data (by analysis of national statistics, the legal framework, etc.), and on the basis of sociological research carried out using polling technology and qualitative methods.
However it is important not so much to collect the enormous arrays of information and exactly in number to describe them, how many critically to approach to the estimation of even limited information, and also high-quality tendencies of the observable processes which are available. The critical approach to a system estimation in whole is important and its capabilities to carry out the criterion functions. In this regard, the lack of typical for the country approaches to planning and evaluation of socio-economic programs for the support of MTs is their obvious attraction to the traditional type. During realization of estimation of the state of sector MT in area it is important to use the comparative type of researches, allowing to realize the real provision to heads of khokimiyats (regional authority), and also critically to estimate the structural elements of organizational infrastructure of support of small business.
2. Determination of priorities of development of small business and system of its support. To solve this problem it is expedient to use qualitative research methods such as direct interviews, and conducting of special seminars and focus groups. Within the framework of such seminars should it is conducted joint discussions of the questions connected with development of business by representatives of three concerned parties (the state structures of support and the control of an entrepreneurial activity, the organizations of enterprise community and structures of noncommercial and public sector). Important part of such seminars is development of different variants of «tree of problems» of development of enterprise in the area and their wide open discussion. We will underline especially importance of this work on the threshold of construction of «a tree of the purposes». Construction of «a tree of the purposes» without «a tree of problems» easily passes in formal procedures of resource allocation that can be made by those or other providers of services for small business, instead of that is priority in the light of the limited resources.
One of important factors of success of realization of the second stage, there is clear formulation of aims and tasks in regard to their specification, measurability, attainability, reality and limited nature in time. Since aims and tasks of development are formulated, the estimation of present and potential factors of inhibition of development of small business is conducted, including administrative barriers, conditioned by the folded practice of control and support of entrepreneurial activity. It is not less important to define subjective internal barriers to successful achievement of the put aims and tasks on development of the system of support. Now there was a situation at which, on the one hand, small enterprises are interested in search of perspective projects and ideas for business development, and with another — there is a wide range of the young men having enterprise ideas, however not having possibilities of their realization. One of methods of decision of this problem is offer organization of competition of business-projects for young people. The primary purpose of competition is conditioning for forming of new generation of young businessmen. Priorities should include:
- Selection of perspective projects and assistance in their development;
- The organization of examination of projects;
- Attraction of investors for projects implementation;
- Ensuring interaction of young entrepreneurs with investors.
A competition must be carried out within the framework of the Commercial and industrial chamber, jointly with the territorial institutes of support of small business.
Thus, as a result of realization of the above-named events the effectiveness of system of small enterprises support that will lead to growth of number of small enterprises, an improvement in employment and their effective development.
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