The main aspects of developing small and medium sized business in transition economy
Introduction
Developing small and medium sized business in transition economy is clearly evident, pressing in issues of economic growth and dominance from within former Soviet Union, transition economy of Uzbekistan. The collapse of the Soviet political and economic system as well as culminated a dramatic economic slowdown experienced by the Soviet bloc countries over the preceding three decades. The resulting transition from central planning to a market economy has been difficult. The performance of the transition economies has fallen short of expectations for several reasons like the, advanced western economies did unusually well during the early part of 2000 which raised the bar for perceptions of economic success; the economic problems associated with the transition were widely underestimated; and policymakers made a number of questionable choices. Nevertheless, progress has been made in a number of dimensions.
Research Aims and Objectives
For research aim, the assessment of SME transition economy is needed putting in applications to Uzbekistan SMEs, assessing of strategies and outcomes of transition years, from plan to market, and outline of the principal challenges faced by the Uzbekistan economies. For the objective, considering in the main aspects of SMEs for economic transition and the assimilating relevance of points that assume policy development into SMEs and its transition economies is of essential value, as placed emphasis on the development of functioning legal framework and corporate governance of firms have performed better than those that did not. Evidence also suggests that large scale privatization can be handled in a variety of ways as SMEs face the discipline of needing to earn their way without government bailouts and as long as new firms appear through new creation, breakups of old firms, and foreign investment.
Research Questions
1. What is meant by SMEs? Economic Transition? Discuss
2. What are some of the main aspects of SME economic transition? Is there impeding account of the matter into Uzbekistan?
3. What are the strategies for economic transition of SMEs within the Soviet Union, Uzbekistan in particular? Discuss
4. What are some of the performance of transition economies placed at SMEs? Give examples
5. What are certain SME development policies in such stages of Economic transition? Explain
Overview of Literature Studies
The conventional approach to economic transition, based upon neo-classical economic theory, has been that the development of the small and medium sized enterprises sector will occur spontaneously following a process of stabilization, liberalization and privatization. Blanchard (1997), asserted a theoretical contribution to the economics of transition, has stressed the role of reallocation of resources from the old state sector to the new private sector, which must implicitly include a large contribution from newly created small firms. However, although many hundreds of thousands of SMEs have been established in the transition economies, they still face severe barriers which hinder their expansion and the realization of their full potential. The transition economies, from the former Soviet Union is similar in one important respect, the planned economies had been dominated by large producing of consumer goods. Small and medium-sized enterprise has a huge part of the transition economies than typical for the market economy. “There have been major differences among these world regions in the contexts created for the development of new enterprises: in the pace of change, the extent to which state control and the rule of law have been maintained or created, whether there has been economic growth, decline or stagnation, the degrees of political continuity and the length of the communist period. Despite the contrasting contexts, there have been many similarities in the characteristics of new private businesses, but alongside some major differences: in the types of business with which beginners have usually commenced, the match with their specialties, whether self-employment has normally been a full-time or part-time occupation, whether or not the state has been perceived as basically supportive, in uses of the second economies and whether partnership has been the normal initial business arrangement from within economic growth and the rule of law. Thereafter everything seems to depend on creating a favorable configuration of conditions which, our evidence suggests, is most likely when countries have maximum scope to plot their own transitional routes. It is argued that imposing one allegedly correct approach will usually be counter-productive” (Roberts and Zhou, 2000 p. 187) SMEs have been explicitly recognized as important but appropriate programs have only started recently, there have not been significant changes in the legal framework regarding SMEs. In addition, privatization efforts have been slow. Furthermore, physical and financial infrastructures remain an obstacle to SME development.
Research Methodology
The methodology to be used for the study is case study, multiple sources of qualitative and quantitative date, the study implies to the main aspects of SME economic transition? Is there impeding account of the matter into Uzbekistan, the strategies for economic transition of SMEs, the performance and SME development policies of economic transition. There will be series of interviews to be conducted at the SMEs in Uzbekistan; SME managers will be asked several questions indicating paths to economic transition ways and will consists of 10 SME managers, case approach will determine an interview session for about 40 minutes aside, to make sense of respondents’ perceptions towards transformational leadership and change management and the ways in which responses interact acceptable views. The interview questions have to be open ended and guided by case study analysis paradigm. The questions are to be open-ended yet specific in intent, allowing individual responses, questions will be reasonably objective, yet it allows for probing, follow-up, and clarification to assume purposeful conversations where contents and evolution is not priority, from within variations among such interviews (Paton, 2002).
References
Blanchard, O.J., The Economics of Post-Communist Transition, Oxford: Clarendon
Press, 1997
Paton, M.Q., Qualitative evaluation and research methods (2nd ed.). Newbury Park: Sage Publications, 2002
Roberts, K. and Zhou, C., New Private Enterprises in Three Transitional Contexts: Central Europe, the Former Soviet Union and China, Post-Communist Economies, Volume 12, Issue 2 June 2000 , pages 187 – 199
Credit:ivythesis.typepad.com
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