INVESTMENT BASIS AND DEVELOPMENT TRENDS OF SMALL BUSINESS AND ENTREPRENEURSHIP IN UZBEKISTAN

Аннотация

The article describes the investment basis, historical factors and development trends in the development of small business and entrepreneurship in the years of independence of Uzbekistan. It describes the state policy to increase the attractiveness of the investment climate, important factors, conditions and some problems in attracting foreign investment. The article notes that the integration of the industry into the world economic system has allowed Uzbekistan to improve the domestic socio-economic environment, ways to actively attract investment and use it wisely by further encouraging entrepreneurs. KEYWORDS: - Small business, entrepreneurship, historical factor, investment, investor, credit, enterprise, property, privatization, market, bank, capital, industry, import, joint venture. sectors of the national economy. Uzbekistan's I NTRODUCTION consistent approach to the denationalization and privatization of property, the development of The socio-economic development of any country, entrepreneurship and business is creating real the growth of incomes, the improvement of living conditions for intensifying the process of standards depend on the volume and attracting foreign investment to the country's composition of foreign investment in various economy. sectors of the national economy. If we look at the new historical period of Uzbekistan (1991- T HE MAIN RESULTS AND FINDINGS 2020), we can see that a number of measures have been taken to increase the attractiveness of In the early years of Uzbekistan's independence, the investment climate in the development of a number of normative and legal acts were small business and private entrepreneurship in adopted on the development of small business the country. In accordance with the Action and private entrepreneurship and attracting Strategy for the five priority areas of investment in them. Among them was the development of the Republic of Uzbekistan for adoption of the Law "On Foreign Investment in 2017-2021, significant work has been done in the Republic of Uzbekistan" on June 14, 1991, recent years to deepen structural changes in the which defined the legal, organizational aspects state program, increase its competitiveness and procedures for the introduction of foreign through modernization and diversification of key investment in the country. This law was adopted CURRENT RESEARCH JOURNAL OF HISTORY 1 ISSN – 2767-472X https://masterjournals.com/index.php/CRJH CURRENT RESEARCH JOURNAL OF HISTORY 2(6): 01-06, June 2021 DOI: https://doi.org/10.37547/history-crjh-02-06-01 ISSN 2767-472X ©2021 Master Journals Accepted 05th June, 2021 & Published 10thJune, 2021 in 1998 on a new basis [1. 1998 №7. p 12]. the total disbursed capital, and in 2000 - 21.7%. This confirms the growth of only 2% in three According to historical analysis, before years. independence in 1990 there was almost no foreign investment in the investment portfolio of The bulk of foreign capital came from joint the former Soviet Union, in 1994 there were 586 ventures. For example, as of January 1, 2001, joint ventures in Uzbekistan, 560 were foreign there were 1,796 joint ventures with investments, in 1995 1,000 joint ventures which entrepreneurs from 70 countries in Uzbekistan. were about 1 billion soums. About 10,000 In particular, joint ventures with large firms from entrepreneurs, mostly farmers, have been the United States, Germany, South Korea, Russia supported by money from privatization. and other countries have been successful, Researchers note that, for example, in 1997, total Akhmediyeva writes. For example, in 1997, total investment was $271.6 billion soums, of which investments amounted to 271.6 billion UZS, of 217.6 bln. UZS (78%) national investment, 54 which 78% is national investment, 54 billion. billion soums (22%) was foreign investment. soums, 22% of which was foreign investment. 2.3% of investments are directed to production, That is, two-thirds of the investment was which specializes primarily in the introduction of directed to production, which was primarily new technologies, the production of marketable directed to the introduction of new technologies, products [2. 2000, p.64-65]. the production of marketable products. In 1994-1996, the second phase of small But at the same time, there were some problems business and private entrepreneurship and in the industry. One of them was to register foreign investment, the government took investors and create the necessary opportunities important measures related to small-scale for them. In fact, the law provides for the privatization. As a result, in 1995, Uzbekistan registration of investors and the creation of was one of the first CIS countries to achieve opportunities for their activities in the absence of positive results in terms of economic growth. violations in the activities of investors. According The favorable business environment created for to the law, foreign legal entities have the right to foreign investors, a wide ra