-                        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.) [1, p. 116-117].

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 [3].

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 [2, p. 71-72].

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.

First of all, the parties must clearly formulate the own aims of cooperation. For an enterprise such purpose is providing of favorable operating conditions at the market due to the presence of permanent financial and consultative support of bank. For bank is a creation of the conditions providing constant increase of demand for the services from the side of the served enterprise in a combination to minimization of client risks.

Providing of small business comes forward a natural obligation all complex of services in calculation-cash service, with the use for this purpose most effective from present at disposal of bank technologies. Small enterprise obligations in relation to bank are connected with protection of financial interests of bank. A small enterprise must undertake an obligation not to apply in other credit organizations for any other services. Full transparency of financial and economic activities of small enterprises provides the bank with ability to control it [3, p. 124].

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.

References

Kurpayanidi KI (2010) Modern trends of development of entrepreneurship in manufacturing: a regional perspective. Monograph. – T.: Iktisodiet, 2010.

Kurpayanidi KI (2008) Trends in the development of small businesses in the industrial sector of Uzbekistan. Issues of Economic Sciences, № 5.

Kurpayanidi KI (2007) On the regulatory framework promoting small businesses in Uzbekistan. / / Electronic resource: www.lomonosov-msu.ru/2007/25/g7777 @ mail.ru.pdf – Moscow: Publishing Center of the Faculty of Journalism of Moscow State University. MV Lomonosov Moscow State University.

Zaitsev NL (2008) Economics, Organization and Management predpriyatiem.M.: Infra-M.

In spite of limitations the sole proprietorship is well adapted to many kinds of small businesses and suits the temperament of many people who like to exercise initiative and their own bosses. Some economic contributions of small business are:

• Small business is often the starting point for developing a new product or service. One person tries out an idea. If it is successful, the business grows, or the product may be bought by a larger firm.
• The small business can give an individual a chance to gain experience, which the person may use later on a larger scale.
• Small businesses are particularly well suited for meeting specialized local needs.
• Artisans can provide individualized products for customers who have grown weary of mass produced goods.
• Small business provides a service where knowing one’s customers is important.
• Sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.

In the beginning some of the main advantages of small and private enterprise were mentioned, but they were mostly economic ones. Now, let’s turn to social aspects of our question. Small and private enterprise forms a middle class, which allows, to some extend, to soften some social tensions between wealthy and poor people. Moreover, creation of small and private enterprise – means creation of new work places, which in its turn, increases level of employment of population and level of real income. In this case, it would be more profitable for government to support small and private enterprise (at least at the beginning of their economic activities) than to allocate subsidies to indigent people endlessly. Besides, government could spend more financial resources to other national purposes. Furthermore, facing the fact that birth rate and, as a consequence, number of dependents is very high, small and private enterprise in this situation plays a role of balance mechanism, which allows to enable work force even in the absence of special qualification. Therefore, one can say, that small and private enterprise is of high importance in diminishing the poverty.

A ten-year development of small and private enterprise in Uzbekistan can be reviewed through three main stages of economic development.

-     First Stage (1991-1995);

-     Second stage (1996-1999);

-     Third stage (1999-up today).

In a ten-year period of independence of Uzbekistan small and private enterprise has been widely adopted and still is on its path to development and prosperity.

Thus, in 2000 total number of microfirms increased to 85 %, in comparison with 47% in 1991.

For last three-four years small and private enterprises were engaged in agriculture, and the main agents were farmers. Besides, an increase in other sectors of economy (transport, communication, health protection, etc.) became perceptible. So, nowadays share of small and private enterprise in GDP amounts to 29%, where 16,5% relates to individual enterprises and 12,5% – to others.

Activity analysis has shown that small and private enterprises have begun to expand their foreign-economic activities. So, in 1999 the share of small and private enterprises in total export increased by 1,8 and in comparison with 1998 reached 29,4%. The main export articles of small and private enterprises were – production of agriculture, textile manufacture, processing of goods, electrical industry and also goods of homecraft.

Currently the development of small and private entrepreneurship (SPE) is one of the most actual problems in Uzbekistan. In 2013 in this sphere there was created around 55.8 percent of GDP compared to 31 percent in 2000. Small businesses now accounts for 23 per cent of the total volume of industrial output, practically the whole volume of market services, 18 percent of exports, 75 percent of all employment in the economy. As it can be seen, despite its small forms, this business is playing an increasingly important role in the sustainable development of the economy, solving the problems of employment and wellbeing of our people. Although the weight and value of SPE in the economy grows, the value of these indicators is lower than in developed countries and some developing countries.

Today, unfortunately, there still some problems deterring the development of small and private enterprise. The main of them can be described below.

Finding startup capital is the first difficult task in establishing small businesses. Of course in comparison with big companies small enterprises need not so much deal, but still they do. While speaking on this problem it is necessary to remind that the citizens of the former USSR on the average were not wealthy, and inflation in the beginning of the 90s covered all private savings and made it impossible even for banks to make credits. The problem connected to lack of money accompanies small and private enterprises at the beginning of their activity as well as during their production cycle. Besides the financial problem there is also another one directly connected to inventories acquisition. Moreover, the cost of equipment, transport and other means of production is so high that small and private enterprises are not able to obtain production basis. Of course, leasing can solve this problem but the level of its development is very low.

Secondly, presence of official circumlocution (bureaucracy) appears together with establishment of small and private enterprises and presents while obtaining credits and entering foreign markets (complex procedures of paper work).

Thirdly, imperfect legal system also causes disorder. Since many normative documents are referential then vagueness in issues emerges. Besides, in some questions there is harmony among state departments and as a result of this variance some documents contradict each other.

Fourthly, non-business use of credits brings to many problems. On the one hand, it leads to increase in the account payable. On the other hand, out-of-sequence repayment adversely affects the activity of credit institution.

Fifthly, nescience and inexperience of small and private enterprises in market, especially in foreign one restrain the development of small and private enterprises. This problem is mostly related to the lack of reliable information.

And, of course the presence of macroeconomic instability (exchange rate, etc.) is the last problem.

In order to eliminate above mentioned problems and shortages and meet some desires of small and private enterprises many measures were taken into consideration.

-     Taxation;

-     Supervision;

-     Crediting.

An alternative solution for the problems… Small enterprises can perform orders of big and even medium enterprises on the basis of subcontract. Franchising can be another form of business.

Besides, it is necessary to set up a center, which would provide small and private enterprises with necessary information or help.

Of course, 10 years is relatively short period of time, and it would be incorrect to reckon up the sum for development of economy, and small and private enterprise in particular. Analysis has shown that tendency of small and private enterprises’ development leads to growth, but on the way of the former there exist certain difficulties, which hamper the development of small and private enterprises. Numerous measures to stimulate and support the participants of small and private enterprises sector have been undertaken, but state-of-the art practice still needs to be improved.

As far as I consider, developing of small and private enterprises is the best way to increase national income for this stage of transition in Uzbekistan.