Course paper. Topic: features and development of youthentrepreneurship

3.1 Problems of developingthe entrepreneurial potential of young people in Turkmenistan.
Analysis of the development of the entrepreneurial potential of young people in Turkmenistan has shown that at present, in particular, the educational programs of higher and secondary specialized educational institutions do not contain a sufficient amount of theoretical and practical material for the development of entrepreneurial qualities among young people, in addition, state support for young entrepreneurs is also insufficient, which is often formal in nature, there are certain restrictions that do not allow young people, relying on the support of the authorities, to start a business.
At the same time, the factors hindering the development of youth potential in the field of entrepreneurship can be identified as doubts and self-doubt among young people, lack of financial resources, legislative difficulties that are difficult for young people to understand, lack of practical knowledge about doing business, and lack of readiness for long and hard work, which takes place at the initial stage when doing business, young people tend to give up in the face of difficulties, give up what they started, a high level of competition, negative changes in the country's economy, in the global macro environment. The reasons for the current situation are mainly macroeconomic, which are quite difficult to influence in the framework of regional management. At the same time, the problem is urgent, since the development of entrepreneurship allows you to provide employment for young people, get them material prosperity, people who have achieved success in their region of residence prefer to stay in this place, which means that this allows you to attract and retain people in the territory, preventing a decrease in the number and negative migration. Businesses established in a certain territory pay taxes to the local budget, pay salaries to local residents, and improve the quantity and quality of goods and services. Thus, the development of business activities has a positive impact on the state of the region.
Possible consequences of the identified problems are:
- decreased interest in entrepreneurship among young people,
- relocation of young people to other regions and major cities
- reduction of financial inflows to regional and municipal budgets,
- increase in youth unemployment,
- decline in the level and quality of life.
Let's consider waysto solve the problem in Turkmenistan at the moment.
In 2018, as a resultof the implementation of measures to support youth entrepreneurship in Turkmenistan, 102,000 small businesses were created, 1057 people were trained, and 3184 people took part in events.
The Turkmenistan Entrepreneurship Support Fund is one of the most active in supporting young entrepreneursтуркменистан. As part of its activities, the Foundation creates financial instruments to support start-ups and existing entrepreneurs; creates a territorial infrastructure to ensure equal access to support throughout the Sverdlovsk Region; provides training and advice to entrepreneurs and those whoare just planning to start a business.
In 2018, Turkmenistan hosted the contest "Youth Plans Business" – one of the largest events for young people of Turkmenistan in the field of entrepreneurship. Young people share their business ideas, meet experienced successful businessmen at educational institutions, communicate with like-minded people and get involved in the business environment.
The results of the contest are:
- an opportunity to present your business idea at the regional level,
- the opportunity to personally communicate with successful businessmen of the region and discuss their business idea,
- communication with like-minded people and exchange of experience with aspiring businessmen,
- the opportunity to win the main prize for the best business idea and compete for leadership in 7 categories,
- the opportunity to visit the Government House at the final event with the participation of top officials of the region and business.
It should be noted that the disadvantages of the measures taken are:
- lack of financial support (free of charge) for young entrepreneurs,
− any measures related to monetary resources are developed and applied very poorly (benefits, subsidies, interest compensation, interest-free loans, etc.),
- forums for young entrepreneurs who have already achieved success in business are not being implemented (a positive, inspiring example),
− there are no programs to teach young people the basics of doing business.
Addressing the identified problems and their underlying causes can tap into and develop the entrepreneurial potential of young people in Turkmenistan.
Entrepreneurship is the driving force of Turkmenistan's market economy
The development of the non – state sector of the national economy, increasing its role through the widespread introduction of modern market mechanisms, and supporting entrepreneurial initiatives are among the priorities of the progressive socially oriented policy pursued by President Serdar Berdimuhamedov. The measures implemented in this direction open up great prospects for Turkmen businessmen to achieve high results in various fields.
The Head of State emphasizes that the private sector of the economy has huge resources, and entrepreneurs play a key role both in expanding the scale of the non-state segment and in intensifying the entire national economic complex of Turkmenistan.
At an expanded meeting of the Cabinet of Ministers on July 8 devoted to the country's development results for the first six months of this year, as well as during an offsite meeting of the Government on August 12, which summed up the results of seven months of work, President Serdar Berdimuhamedov pointed out the need to pay special attention to developing and stimulating private business in a market economy, production facilities in the relevant structures, increase their capacity.
The announced indicators show the growing potential of small and medium-sized businesses. According to the Union of Industrialists and Entrepreneurs (UIET), the growth rate of agricultural and food production for seven months amounted to 167.9 percent, industrial production – 109.2 percent. These figures for the first eight months of the year amounted to 168.6 and 114.8 percent, respectively.
The volume of services rendered to the population has increased by an order of magnitude. It should be recalled that currently over 27 thousand representatives of the Russian business community are members of the UIET. More than half of the employed population of Turkmenistan is employed in the private sector.
Today, our country, which builds its economy on the principles of market relations, has created favorable legal, economic, financial and social conditions for the effective and dynamic development of this segment of the national economic complex. This is confirmed by the improvement of the legal framework for entrepreneurship, the tax system, simplification of export-import operations, the procedure for transferring land plots, preferential lending and facilitation of the procedure for processing credit, customs and trade operations for entrepreneurs.
These measures are carried out in line with the consistently implemented State Program to Support Small and Medium-sized Businesses for the period 2018-2024, aimed at ensuring high rates of economic growth and social progress by activating the activities of private producers in Turkmenistan.
President Serdar Berdimuhamedov notes the need to continue targeted work to support small and medium-sized businesses, widely involve their representatives in the implementation of reforms in the national economic complex, and the process of denationalization of enterprises.
As part of the diversification of the national economy, state programs are being effectively implemented to increase the production of import-substituting products, increase the volume of exports of domestic goods, and create an electronic industry. Members of the UITP make a worthy contribution to the implementation of these programs.
In this regard, it is worth mentioning the annual Exhibition of achievements of the Union of Industrialists and Entrepreneurs of Turkmenistan, traditionally timed to coincide with the day of formation of this organization.
Getting acquainted with the exhibition of the show, the range of products and industrial goods produced by representatives of domestic business circles, the President of the country stressed that practical measures for the development of the private sector in Turkmenistan will be consistently continued.
These measures are necessary first of all in the context of successfully solving the tasks outlined in the Program " Revival of a new era of a powerful state: The national program of socio-economic development of Turkmenistan in 2022-2052, " President Serdar Berdimuhamedov stated.
Noting the importance of widespread introduction of market methods in the monetary and financial systems, implementation of effective steps to diversify the economy, the Head of state spoke in favor of increasing the share of the business sector and ensuring its active role in the national economic complex.
In this regard, an order was given to continue providing support to small, medium and large individual enterprises, expand the lending program for private businesses, and analyze the program for creating new jobs,especially in the regions. These measures should be aimed at preserving the old and creating additional jobs by stimulating the activity of representatives of the non-governmental sector and citizens of the country.
In this context, it is significant that in June, President Serdar Berdimuhamedov signed a decree, according to which entrepreneurs of Turkmenistan will receive state support. 150 million US dollars have been allocated for this purpose.
During the Exhibition of achievements of the UIET, private commodity producers of our country signed 63 contracts with foreign partners for a total amount of 145 million 398 thousand 770 US dollars. Of these, 16 are export contracts worth 3 million 247 thousand 441 US dollars and 47 are import contracts worth 142 million 151 thousand 329 US dollars.
Along with this, it should be noted that the members of the Union of Industrialists and Entrepreneurs have signed 51 agreements on mutual internal trade totaling 36 million 174 thousand 933 manats. They mainly concern trade in food products and the means used in production.
The importance of developing the UIET's international contacts is also demonstrated by the meetings held in the first half of the year with foreign colleagues on various online and offline platforms. In this regard, it should be recalled that during the official visit of President Serdar Berdimuhamedov to Moscow in June, representatives of Turkmen entrepreneurship also met with Russian partners. Following the meeting, a cooperation agreement was signed betweenthe Halk Market Supermarket Chain маркет(Turkmenistan) andthe Rusagro AgriculturalHolding (Russia), aimed at intensifying bilateral trade and economic contacts, including in the food sector, among the business community.
In July, during the Turkmen-Uzbek interregional forum in Bukhara (Uzbekistan), a number of documents were signed on further enhancing cooperation between entrepreneurs of the two countries, which include export-import trade agreements.
One of the most successfully developed industries of Turkmen businessmen is the sphere of construction and production of building materials. Members of the UIET build industrial and social facilities such as residential buildings and factories, schools and kindergartens, medical centers and sports facilities, roads and infrastructure facilities for civil aviation, etc.
Among the largest state orders implemented by private construction companies today are the construction of the Ashgabat–Turkmenabat highway, the new administrative center of the Akhal Velayat, the Ashgabat City and the 17th stage of development of the capital, the construction Махтумкулиof a new Tashkent recreation park along Makhtumkuli Avenue, and the Makhtumkuli Fragi park complex. The second stage of the Lebap cement Plant, located on the territory of the Koitendag etrap, and many other industrial enterprises are currently being built at a high pace by UIT members.
In the first half of the year, a number of socially significant facilities were put into operation. So, on March 24, the head of state took part in a solemn event dedicated to the opening of the next stage of the Myalikguly Berdimuhamedov cottage area in the north of the capitalМяликгулы Бердымухамедова, intended for employees of the Ministry of Internal Affairs. In April, with the participation of President Serdar Berdimuhamedov, a 400 – bed multi-specialty hospital in the city of Turkmenbashi was officially commissioned, and in May, a 450-bed multi-specialty hospital and a 150-bed cancer clinic in Dashoguz velayatwere commissioned.
On August 1Аваза, the Rowaç cottage complex was officially opened in the Avaza National Tourist Zone located on the Caspian coast of Turkmenistan with the participation of the Head ofstate. Within the framework of this event, the head of state also visited an exhibition of national and foreign cuisine dishes, which was organized by UIET member enterprises specializing in public catering, as well as with samples of private sector products.
Entrepreneurs contribute to strengthening the food independence of our state, and also strive to achieve the goal set for them – to turn Turkmenistan into a country with a strong export-oriented economy.
Contributing to the reform of the agro-industrial sector, private producers use innovative methods of management, provide an increase in yields through the introduction of advanced technologies, the development of new irrigated land, the organization of additional crops on these landsсельхозкультур, as well as greenhouses that allow growing vegetables year-round in closed ground, which makes it possible to saturate the domestic market and increase export supplies.
Agricultural producers consistently increase the production of melons, vegetables and fruits, including exotic species.
Head of State Serdar Berdimuhamedov emphasizes that the goods produced in the country, along with ensuring food abundance, must also meet the environmental and safety standards imposed on them.
The high quality and environmental safety of food products produced by domestic enterprises is evidenced by the international ISO and HACCP certificates they have received.
Turkmen entrepreneurs are increasingly delighting consumers with their new products, which are delivered to the domestic and foreign markets in a wide range. One of the most popular areas for private farmers is gardening and viticulture. This is largely due to the creation of a special agricultural land fund, whose plots are allocated in accordance with the established procedure for growing various agricultural products, including fruits and berries.
It should also be noted that the UIET members have developed proposals for implementing investment projects to create agricultural, food and industrial enterprises. This includes such areas as growing vegetables, grapes and fruits using water-saving technologies, building livestock and poultry complexes, modern greenhouses and cold storage facilities for food products.
Within the framework of our neutral state's "open door" policy, domestic entrepreneurs are provided with great opportunities for further development of mutually beneficial cooperation with foreign businessmen. Turkmenistan's active observer status in the World Trade Organization opens up broad prospects for the development of production structures in the country, increasing export opportunities, attracting foreign investment and more intensive integration into the system of international economic relations.
From year to year, Turkmen entrepreneurs increase the export potential of their products, the range of which is constantly expanding. In addition to agricultural products, the export-oriented segment includes textile products and various food products, while industrial products are dominated by isogam, liquid bitumen mastic, expanded polystyrene, polypropylene bags, liquid industrial mix, batteries, etc.
Experience shows that modernization of the private sector of the economy in the country and attracting investment in it brings positive results. In this context, the example of manufacturers of domestic household appliances – gas and electric stoves, ovens, microwave ovens, smart TVs, which are in no way inferior to their foreign counterparts and enjoy a wide consumer demand-is illustrative. At the same time, the UIE members have successfully mastered the production of modern industrial and electronic products, payment terminals, online training programs, and smart home technologies.
Entrepreneurs invest in the development of the service sector and trade, provide the population with a wide range of household, advertising and publishing services.
The work of members of the Turkmen business community engaged in handicrafts, arts and crafts contributes to the popularization of the national cultural heritage. In this regard, it should be noted that the UIET participated in the organization of the annual contest among skilled workers in the art of making the national felt carpet – koshma, the results of which were summed up in early August at the cultural and entertainment center of the Union of Industrialists and Entrepreneurs.
With the full support of the state, domestic entrepreneurship has favorable prospects for further growth in the production and non-production sectors, in the field of export and development of import-substituting industries, promotion of the service sector and ensuring the country's food independence.
The planned opening of a higher education institution in the UIET shows the ever-growing opportunities for private business. In the first decade of July, the foundation stone of this university was laid. It is planned to build a modern complex consisting of four academic buildings and two student dormitories, each of which is designed for 300 seats, as well as a library, dining room, indoor and outdoor sports complexes. Commissioning of the facility is scheduled for September 2025.
Turkmen entrepreneurs face new challenges related to the introduction of innovative technologies, digital system, implementation of measures defined in the National Program of Socio-Economic Development of Turkmenistan in 2022-2052, including the implementation of major state orders and investment projects.
At the Government meeting dedicated to the results of 6 months of the year, President Serdar Berdimuhamedov noted the importance of activating the activities of the country's Small and Medium-Sized Business Support Fund, established in Turkmenistan at the suggestion of the UIET in 2018 with the aim of developing business, moving the economy to market rails and organizing innovative industries.
The Head of State emphasized the importance of strengthening efforts to increase the output of consumer products, especially agricultural products, and improve the provision of food and other essential goods to the domestic market.
Separate instructions related to the provision of assistance to UIET enterprises, as well as consistent support to small, medium and large businesses by creating a favorable business environment.
Among the key requirements are the creation of modern production facilities and new jobs in each velayat, etrap and city, expansion of exports of high-quality products produced in Turkmenistan.
The President also stressed the need to intensify efforts to reduce the state's share in the economy and expand the share of the private sector in it.
Domestic entrepreneurship has big plans for the future, and the important tasks set by President Serdar Berdimuhamedov in the context of the developed and constantly improved mechanisms of effective public – private partnership, which serve as a reliable guarantee of their successful implementation, are ahead of us.