Entrepreneurship: at a New Stage of Development

29 January 2021

The main goal of the economic strategy of the President of Turkmenistan is to create the society-centred market economy, to develop a highly efficient system with effective entrepreneurship and a modern market infrastructure that provides social guarantees to all segments of the population and to build a highly competitive national economy capable of ensuring the stable long-term progress of the country. In this regard, the priority aspects of the national economic policy include the encouragement of entrepreneurial activity and support of small business. Entrepreneurship in a developed market economy is a key market segment, as it serves as a catalyst for economic growth. Firstly, this is due to its ability to adapt quickly to new market requirements and sustaining competitiveness consequently. Secondly, SMEs are capable of offering employment to the population on a par with large-scale enterprises. Thirdly, unlike large-scale enterprises, business entities, due to their mobility, can immediately adopt advanced technologies and innovations. Thus, small businesses, as the most massive form of entrepreneurial activity, are capable of tackling such issues as involving a significant number of the population into active economic activity, expanding a competitive environment, weakening monopolisation, reorienting small-sized businesses to produce scarce commodities and services, filling in the corresponding open niche markets and promoting economic and social stability in society.

The world practice of economically developed countries shows that sustainable socioeconomic development of a country directly depends on the level of activity of SMEs. The important advantages of the private sector also include flexibility, which makes the entire national economy more flexible. The President says that through encouraging entrepreneurship, economic growth and prosperity can be achieved, a resource-based economy can be transformed into an innovative one, a high level of employment can be ensured and an enabling environment for human resources can be created. Moreover, this can promote economic relations within international agreements and the production of domestic goods that will be more competitive, and thereby prevent low-quality goods from flooding the domestic market. By ensuring the flexibility of the economy, small-sized enterprises can also ensure relations with our other potential partners, on the one hand, and mitigate the negative impacts of the COVID-19 pandemic, on the other hand.

the Head at the Department of Study of Commodity Circulation in External Markets, Directorate of Study of Commodity Circulation in Internal and External Markets, Ministry of Trade and Foreign Economic Relations of Turkmenistan. Photos: Hasan MAGADOV
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