Small turn, one way to encourage small businesses

Small
business – entrepreneurship, based on the activities of small firms, small
businesses that are not formally part of the association.The significance of
the development of the small business sector is determined by developing
countries as a fundamental task for raising the level of the economy as a
whole. Thus, about 90% of industrial production in Taiwan is in the hands of
small and medium-sized businesses, small and medium businesses account for
over 70% of all employed, more than 55% % Of GDP and about 99% of the total
number of registered enterprises. Recently, the state authorities have
stepped up their actions to support small and medium-sized businesses, a
package of laws has been adopted to stimulate the development of
entrepreneurship, reducing the administrative burden on business. But despite
this, a number of serious problems prevent the successful development of this
sector of the Russian economy. The main step on the way to stimulating the
development of small business has been the creation of various associations
that provide both legal and financial assistance. To the primary tasks of
such organizations is the information support of individuals who are only
making their first steps in developing their business. Often, entrepreneurs
who have the necessary ideas and a desire to work face legal problems and
find the money needed to organize or develop a small business. In turn, one
way to encourage small businesses is to provide grants or soft loans that can
help entrepreneurs. Based on the experience of foreign countries, it is
possible to adopt ideas about the construction and development of technology
parks, which are original business incubators, where necessary conditions for
business development are created. Competitions are held on the basis of which
the best entrepreneurs are determined who receive grants for the development
of their own business. Within the financial crisis, one of the most promising
methods for overcoming negative consequences is to stimulate the development
of small and medium-sized businesses. Based on the foregoing, one of the
first tasks of the state is the creation of such proposals that will improve
the legislative mechanism for protecting the rights of small businesses from
administrative pressure. In turn, the problems of property support and tax
incentives for small businesses are discussed very actively. During the
crisis, such measures are especially necessary, because at all times
countries have emerged from economic difficulties due to these market
participants. Do not forget also about the scope of financial legislation,
which requires a lot of attention. The most common fact is that loans
intended for small businesses are the basis for the successful and stable
development of such organizations. Based on research, small and medium-sized
enterprises account for 83% of bank customers. However, at the present time,
this trend has declined, therefore it should be ensured that domestic
entrepreneurs do not experience excessive difficulties in obtaining loans in
our banks and with their neyshem redemption.To increase the number of new
small enterprises, increase their output, sales and services, it is necessary
to reduce the tax burden, primarily for beginners. In this case, it is
necessary to take decisive measures – up to the introduction of tax holidays
for the first two years of work for new industrial, innovative, construction,
“officer”, “invalid” small businesses, which will be for
them an adaptation period, as well as for social small business-medical
centers, educational institutions, libraries, etc. It also needs to consider
the possibility of canceling the requirement to justify the necessary
expenses when calculating the taxable base, since this requires keeping a
staff of accountants. Taxes from small businesses should be fully channeled
into regional and local budgets. will be interested in collecting such
payments and, consequently, in the development of small businesses. At the
same time, marginal rates of taxes on small businesses should be fixed. Based
on the analysis undertaken by foreign countries GOVERNMENTAL States to
support measures in the field of taxation for small businesses and individual
entrepreneurs, we should note the following basic forms and its direction:
Lowering tax rates. First of all, it concerns the main taxes, such as: profit
tax, property of organizations, value added tax, etc. Based on tax laws, the
US provides for two rates of income tax for small businesses – in 15% and 28%,
and for corporations – 34% and 46%. In turn, within the framework of the tax
policy in Vietnam, the income tax for small businesses is set at 30%. This
measure was in effect during 2009. The state subsequently declared its desire
to reimburse the costs of companies engaged in the export of goods, which set
the Government the task of reimbursing costs for the payment of VAT on
materials used in the production of exported goods. “Tax holidays”
for income tax. This method of tax incentives for small businesses is used in
countries such as: USA, Germany, France, Sweden, Switzerland, Romania,
Slovakia, Czech Republic. The main goal of this measure is to facilitate the
process of establishing a new enterprise and overcoming the inevitable difficulties
of the initial stage of activity. The introduction of special tax regimes for
small businesses. This tool is actively used both in Western states (France,
Spain) and in CIS countries, Latin America,and etc. In the event that the
legislation on taxes and fees does not provide for a special regime of
taxation for small businesses, various tax benefits should be granted for the
main taxes provided for by the tax system. Such a measure of impact is in
force in the United States, England, Switzerland, Sweden, the Netherlands and
some other countries. The benefits of this kind may be both material
(reduction of the tax burden, exemption from certain taxes) and procedural
(simplification of the calculation procedure and collection of taxes, tax
reporting). There is also a second way when states develop and implement
special tax regimes for small businesses that provide an estimate of the
potential average income of an entrepreneur and the establishment of a single
fixed amount of payment with the replacement of one or several taxes (France,
Spain, Turkey, Belarus). There is also a comprehensive approach to resolving
this issue, providing for combining within the framework of one tax system
the approaches considered. In this case, when one or several special tax
regimes for small businesses are introduced, some tax privileges for certain
taxes paid under the general taxation regime are preserved.Progressive scale
of taxation. It is used in countries such as the United States, Great
Britain, Austria, Belgium, Switzerland. Attention when using this measure is
the application of the element of tax rate regression for the enterprises of
the latter category (the largest). This to some extent prevents artificial
deterrence economic growth of the enterprise, deliberate underestimation of
indicators of economic activity, and also creates incentives for the further
development of economic entities. Exemption from payment of taxes ha, the
value added of small businesses with small turnover operates, for example, in
countries such as: England, France, Germany, Sweden and the Czech Republic.
There is a single tax for organizations with a small amount of income, within
which the exemption from the obligation to calculate and pay VAT. As for
such, certain privileges are provided that avoid situations of failure of
cooperation with small business of entrepreneurs who are VAT payers. Creation
of a non-taxable profit minimum. In Canada Individuals controlled by private
corporations receive a tax credit that reduces the federal income tax by 16%
if their annual taxable income from activities does not exceed $ 200,000. In
turn, in Japan it is practicable to establish a non-taxable minimum profit.
As a rule, these benefits are enjoyed by those small enterprises, the
dominant part of their income goes to wages. Under such a system, the income
of a family member of a small business owner from working in an enterprise
falls under the wage category you, and not profit. Thanks to this, the total
profit of the enterprise may well meet the legal limit of the tax privilege
established by law. Tax relief for paying taxes and social charges. It must
be noted that social tax rates in foreign countries, which are paid by
employees, and employers, including private entrepreneurs, are quite large.
The highest social tax rates for individuals reach 39.9% of wages
(Netherlands), but here, as a rule, they use In addition, non-taxable
minimums or marginal income are established: in the Netherlands social taxes
are not levied on the amount of annual income not exceeding 44,950 euros. Tax
preferences that do not directly reduce the tax burden but significantly
facilitate the interaction of the taxpayer and tax Such benefits include, for
example, the provision of a simplified tax return, the use of cash accounting
for income (Sweden). Tax benefits s for small businesses implement innovative
way razvitiya.K example, Japan has long introduced tax relief to 50% of
companies that produce products based on the latest technology, which will
attract investments and specialists (so-called “golden collars”),
which provided a breakthrough for small and medium-sized businesses in the
Hi-Tec sphere.Tax incentives aimed at the effective renewal of fixed assets.
So, in the USA in 1981, the Law on Accelerated Depreciation was adopted,
which significantly reduced the time for amortization and extended the
depreciation system to small businesses. A tax policy aimed at supporting
certain groups of entrepreneurs, their activities or business sectors. For
example, in the United Kingdom since 1983 the “Young Entrepreneurs”
program operated, which envisaged the exemption from income tax on capital,
real estate, and business transactions. Small business in our country is
distinguished in many respects with small business in certain foreign states.
For domestic small business is inherent in combining within one small
enterprise several types of activities in combination with significant
innovation potential, insufficiently high level of management, activity in
the conditions of underdevelopment of the infrastructure for supporting small
enterprises, and high monopolization of the economy. Summarizing the
aforesaid, it is necessary to note the importance of a weighted approach within
the framework of applying the experience of foreign countries in the sphere
of tax incentives for the activities of economic entities, and in particular
small business entities. It should also be noted that the thoughtless
transfer of methods of tax regulation of entrepreneurial activity applied in
other countries to our tax system can lead to a general decline in economic
development, the collapse of certain spheres of the national economy, the
emergence of dependency sentiments among business entities and a host of
other negative consequences for our state.In the world of the greatest number
of businesses it operates in a small business, and Azerbaijan – not
isklyuchenie.V 2010 in the country in all sectors of the economy operated
207.120 units of small businesses, which at that time accounted for about 60%
of the total number of registered taxpayers in the country. Basically, these
entities act as individual entrepreneurs (individuals), whose number in 2010
reached 192.588 edinits.Po According to the State Statistics Committee, over
the year the subjects of small business in the country produced goods in the
amount of 3.835 billion manatov.To is, small business makes a 9.2% of
Azerbaijan’s GDP, while in developed countries this indicator reaches 50-60%.
Weak development of production in small businesses is a common problem for
all post-Soviet countries. So, in Russia the share of small businesses in GDP
is 10-12%. Small business is most productive in construction Every year, the
average small business entities in Azerbaijan produces goods in the amount of
18.518 thousand manat, including individual entrepreneurs -.. 10.688 thousand
manatov.Obychno formal structures are often the public detailed information
about the activity of small business about 10 podsektorah.Analiz information
on them shows that small business in Azerbaijan works most productively in
the construction sector. In 2010, according to the SCS, 1,534 small
entrepreneurs are operating in construction, which produce products worth
807.7 million manats. In 2010, compared to 2009, there was a sharp jump in
productivity. So, last year per capita a small businessman produced goods
worth AZN 526,53,000, which is 3.5 times more than in 2009 (at that time the
indicator was at the level of 148,24 thousand manats). Perhaps this is due to
the fact that here the number representatives of small businesses are
relatively small at large volumes of production a. Further, in the second
stage, the productivity in small business is followed by the industry related
to information and communication services. Interestingly, in contrast to
construction here in 2010 there was a decline in productivity by almost 14%.
So, last year the productivity of small businesses operating in this sector,
amounted to 89.07 thousand manats a year, while in 2009 this figure was
102.51 thousand manats. In the field of communications and information, there
are 183 small businesses that produced products in 2010 the amount of 16.7
million manats atov. At the third stage, productivity is followed by
industry. In recent years, there has been a steady growth in productivity,
which in 2010 amounted to 83.79 thousand manats per small business unit, and
in 2009 – 79.83 thousand manats. In the industrial sector, according to the
SCS, there are 4616 units of small businesses, which in 2010 produced
products worth 386.8 million manat. The smallest number of small
entrepreneurs operates in the sphere of education Productivity in other
subsectors is at least 3.5 times less than in the top three. So, in the
fourth place is transport and granary economy, where in 2010 the productivity
per unit of small business amounted to 22.07 thousand manats. 22,148 small
businesses operate in this sector, which last year produced products worth
489 million manat. Productivity in the social services sector of the
population is 19.69 thousand manat, 198 small business entities operate
there, which last year made services for the amount of 3.9 million manat. The
six of the education sector, where the productivity reaches 18.51 thousand
manats. Here there are the least number of small entrepreneurs (108
entities), out of the ten subsectors noted above, which in 2010 rendered
services for 2 million manat. Despite the sometimes low productivity, small
business still gives the economy momentum, effectively acting in those areas
where large business may prove ineffective.In Azerbaijan, there are some
legislative acts aimed at stimulating the growth of production in small
business, in particular, the Law “On State Aid to Small
Entrepreneurship” of June 4, 1999. However, these legislative acts are
not properly implemented. Thus, according to Article 13.1 of the Law, the
relevant executive authorities are obliged to implement measures aimed at
transferring to the subjects of small business at least 15% of orders for the
production of products, performing works and providing services for state
needs. If the current legislation on assistance to small businesses is
applied at the proper level, this will be a new impetus for the significant
development of this segment. In the end, the Azerbaijani economy is
developing at a very rapid pace and integrating into the world market. During
the period of independence, Azerbaijan has achieved much that not every
country can. I think that at such rates of development, Azerbaijan will
achieve even more, the shortcomings that exist over time will be overcome
through proper economic policy , as well as education, improvement of human
resources.