24.09.2020

On September 24, President Shavkat Mirziyoyev chaired a video session with officials to discuss additional measures for the promotion of entrepreneurship in regions.

Small business and free enterprise is one of drivers of economic growth, an important source of employment for the population. Therefore, special attention is paid in Uzbekistan to the development of this sector. Conditions essential for this have been created by decrees and resolutions of the head of state. And now it is crucial that hokims and sector leaders competently organize work, take measures to open and support continuous production, boost the volume of products and the number of jobs.

In line with the 1 May 2020 decree of the President, a rating system was introduced for assessing the socio-economic development of regions. Accordingly, economic indicators, business support environment, infrastructure and the level of use of available resources in districts and towns were studied for the first time. Building on the analysis of results, territorial units were assigned the categories “good”, “average” and “unsatisfactory” in accordance with the state of entrepreneurship development. Thus, the situation in 48 units was recognized as good, 119 districts and towns were dubbed average on this specified front, and the work in 33 ones was deemed unsatisfactory.

At the video session, the President discussed measures to address problems on the ground with an eye to the results of the analysis and to provide assistance to areas with low outlook.

Shavkat Mirziyoyev noted that the ministries and departments of the economic complex should turn into organizations “serving entrepreneurs”. The importance of using the potential of districts and towns with ‘disappointing’ situation and popularizing the experience of ‘good’ areas was emphasized.

For example, in the Samarkand district, the volume of industrial production amounted to 1.1 trillion soums, or 4.5 million soums per capita. This is the highest figure in the region. In addition, 508 business entities were created, 71 percent of new jobs accounted for small businesses. Local budget revenues have doubled over the past three years.

Over the same period of time, 802 new business entities were created in the Kamashi district, and 132 inactive enterprises were restored. Compared to last year, exports increased 1.5 times.

And vice versa, the situation in Nukus, Balykchi, Bekabad, Khavast, Bakhmal, Mirzachul, Yangikurgan, Shavat, Kasbi, Kumkurgan, Uchtepa districts is found unsatisfactory, notwithstanding the availability of tremendous potential and infrastructure.

Thus, the Kumkurgan district is one of the most lagging in the Surkhandarya region in terms of entrepreneurship. And this is despite the fact that there are 124 thousand hectares of pastures and 48 thousand hectares of lands retired from circulation. No projects have been developed for their effective use, it was said at the meeting.

The share of small business in the local domestic product of the Bekabad district is one of the smallest in the country. It produces 36 thousand tons of cotton and 100 thousand tons of grain per year, but they are not processed.

Responsible executives were instructed to improve engineering communications in areas rated as unsatisfactory, create small industrial zones, develop livestock, astrakhan breeding, horse husbandry on pastures, border trade and services.

It was indicated that hokims of districts and towns and their deputies, who have achieved exemplary indicators, will be assigned a 30% salary increase, and penalties will be applied to the heads of territories with inadequate efforts.

“An official who does little to improve people’s lives will not work even a day,” the President stressed.

It was determined that in the districts and cities assessed unsatisfactory and average in terms of entrepreneurship promotion, the system of anti-crisis management will be introduced. Anyone who has expressed desire to govern the territory can present their program for the development of a district or town in the local councils of people’s deputies. Applicants who have defended their programs before the people’s representatives will be appointed hokims with the right to engage in their team in governance.

“Hokims must be elected by the people. We will definitely come to this,” Shavkat Mirziyoyev said.

The meeting participants also discussed issues of organizing new and supporting existing enterprises.

For eight months of this year, more than 60 thousand small businesses were launched. They provide an average of 38 million soums in tax revenues and create at least 2 jobs. But more than 31 thousand enterprises have not yet restored their activity. There are also many people who want to start their own business.

The leadership of the Chamber of Commerce and Industry and the Business Ombudsman were recommended to on-site solve problems that hinder the establishment of entrepreneurship, especially to help young people and women in the implementation of their initiatives.

The President gave instructions to finance business projects of families included in the “iron book”, to launch projects that received funds from banks, but suspended their activities because of the lack of raw materials, energy resources or due to logistics problems.

It was noted that it is important for commercial banks to offer entrepreneurs a “package of preferential services” depending on the results of their activities.

Tax revenues from small businesses and local resource taxes are current left in full at the disposal of the regions. Consequently, budgetary stability and the development of regions in general are directly related to entrepreneurial activity.

For example, in the Kanimekh district, tax revenues to the local budget for 8 months of this year increased by 141 percent compared to the same period last year. A tax break for 20 businesses that faced financial hardship during the pandemic saved 100 jobs.

The State Tax Committee has been instructed to organize similar work in all regions and to strengthen local budgets.

The meeting participants discussed measures to ensure additional revenues to minimize the expected budget deficit by the end of the year. The need for a thorough study of the tax potential of the regions, identification of sources of additional revenues, increase in the income of budgetary organizations from paid services, and the effective use of buildings and structures was indicated.

Over the past 4 years, many small businesses have grown thanks to the opportunities delivered. The head of state today stressed the importance of stimulating this trend and creating even more favorable conditions for the enlargement of enterprises.

For this, as was noted at the meeting, it is necessary to differentiate the benefits provided to business entities. It is advisable to help enterprises that are able to move into the category of medium-sized businesses through the allocation of earmarked funds from the Entrepreneurship Support Fund, assistance in product certification, partial coverage of the costs of science and innovation, and other measures.

The hokims who spoke at the video session outlined their plans for the development of entrepreneurship and the use of additional reserves.