Entrepreneurial Initiative as a Factor of Economic Growth

At a government meeting dedicated to the results of the industries' activities for six months of the year, President Gurbanguly Berdimuhamedov highlighted a set of tasks related to the further development of the non-state sector of the economy among the relevant vectors of the upcoming work.

Let us remind that today the Union of Industrialists and Entrepreneurs unites in its ranks more than 24 thousand members, carrying out activities in practically all sectors of the national economy. Over the 12 years since the foundation of the UIET, a number of large projects have been implemented, indicating the success and prospects of public-private partnerships.

Entrepreneurship makes a significant contribution to expanding import substitution and increasing the country's export potential, the development of competitive industries.

In recent years, a huge amount of work has been done in the country for the dynamic and effective development of small and medium-sized businesses and private initiatives. Favorable legal, economic, financial and social conditions have been created. These include improving the tax system, simplifying the procedure for registering and licensing business activities, and preferential lending.

Many of the tasks set by the head of state for legal support of the non-state sector were reflected in the new edition of the Law "On the Union of Industrialists and Entrepreneurs of Turkmenistan", adopted by the Mejlis in October 2019. This document expands the powers of the UIET, specifies the rights and obligations of the Union.

The enormous attention paid by the Government of the country to stimulating small and medium-sized businesses contributes to the cardinal modernization of its activities.

And work in this direction continues. Thus, on February 20, the President of Turkmenistan signed a Resolution allowing the State Bank for Foreign Economic Affairs to conclude a loan agreement with the OPEC Fund for International Development to finance projects carried out by entrepreneurs - individuals and legal entities.

These measures are being taken in order to attract funds to the domestic economy, support small and medium-sized businesses, and provide financial assistance to the development of private entrepreneurship.

The resolution on the allocation of funds in the amount of about one and a half billion US dollars from public funds, signed by the President of Turkmenistan this year, is also directed to the successful implementation of a large-scale and unique project of its kind - the construction of a new administrative center in Ahal velayat. As you know, private construction companies - members of the UIET act as contractors for many projects being built here.

On March 24, the head of state held a working meeting on the development of trade and entrepreneurship in the context of the implementation of the Concept for the Development of the Digital Economy in Turkmenistan for 2020-2025.

The President emphasized the important role of the non-state sector in modernizing the national economy, increasing the output and range of competitive products, ensuring food abundance and increasing the country's export potential, creating new import-substituting industries and jobs.

At a meeting of the Cabinet of Ministers held on June 5, President Gurbanguly Berdimuhamedov, noting the importance of stimulating entrepreneurship, ordered to develop regular measures for state support of the private sector of the economy and submit relevant proposals.

Along with this, the head of state instructed to increase the output of consumer goods, as well as to activate the work of private companies involved in the production of agricultural products, the construction of industrial refrigerated storage facilities for fruit and vegetable products.

At a meeting of the Cabinet of Ministers dedicated to the results of the six-month work of the industries, among the measures for state support of the private sector of the economy, the provision of financial and material and technical assistance to small and medium-sized businesses was identified. In particular, the head of state ordered to simplify the procedure for transferring land plots, to facilitate the procedures for registering credit, customs and trade transactions for entrepreneurs.

Among the priority tasks, the intensification of the creation of free economic zones in the regions through the introduction of export preferences, as well as the study of the possibilities of introducing privileges on visa, registration, registration of land plots, issuance of loans and mutual settlements is also indicated.

Despite the difficulties in the economy due to the spread of the COVID-19 pandemic in the world, domestic small and medium-sized businesses remain resilient. Thus, 66 percent of the structure of production in the country falls on the share of private business. Since the beginning of this year, representatives of the non-state sector have increased the volume of industrial production by 18.9 percent, agricultural and food products - by 28.7 percent.

Entrepreneurship is developing today in all regions, taking an active part in the implementation of large-scale projects and tasks to ensure