Uzbek leader Islam Karimov announced this at the solemn ceremony dedicated to the 18th anniversary of the Constitution of Uzbekistan, which is marked on 8 December. The event was held at Uzbekistan International Forums Palace.

Speaking at the ceremony, the Uzbek leader proposed upcoming 2011 as the Year of small business and entrepreneurship in order to lift social-economic development of Uzbekistan to new level.

Uzbek head said that small and private entrepreneurship plays important role in economy and hold special place in development of the country and society.

President Islam Karimov underlined small business produced 30% of gross domestic product (GDP) of Uzbekistan in 2000 and it is expected that this figure will reach 53% in 2010.

Uzbek President stated that small business and private entrepreneurship is becoming important factor for ensuring employment and source of income of population. He added that that 74% of total employed in Uzbekistan work in this sector.

President of Uzbekistan said that small business and private entrepreneurs created some 480,000 jobs in 2010, of which 60% fell to share of rural areas. He said that some 50% of population lives in rural areas and it is not difficult to see social importance of these figures.

Islam Karimov underlined that currently there are unused potential and opportunities for development of this sector. Uzbek leader said that the state programme “The Year of small business and private entrepreneurship” will be developed and the programme should focus some issues.

First of all, current legislation should re-considered critically in order to protect rights and interests of small business and private entrepreneur, provide them new opportunities for development in this sphere.

He said that barriers, erected by local officials to entrepreneurs, who want to create own business, should not be tolerated any more.

Uzbek President said that Uzbekistan conducted wide-scale work on decreasing interference of state and controlling bodies to financial-economic activity of enterprises and increasing economic rights and freedoms of businesses. But, low skills of some officials in controlling bodies negatively affect to works in this direction.

Islam Karimov said that there are also cases of corruption, bribery, extortion and abuse of power in some regions and districts.

Uzbek President Islam Karimov said that next priority direction is to create more favourable climate for small businesses and private entrepreneurs. He said that the works on simplification of registration procedures for small businesses, submitting reports to tax, financial and statistics bodies were carried out, but more should be done.

At the same time, the programme should have concrete measures on solving such issues as construction and connection of small businesses to engineering-communication networks, electricity and gas utilities, water-pipes and sewerage system, Uzbek head said. He added that rigid control over their implementation should be set.

Other important issues are related with creating terms and preferences on tax and other payments for small and private businesses, Islam Karimov said.

Uzbek leader said that for last several years, tax burden for businesses was decreased from 13% in 2005 to 7%, or fell twice, and this expanded opportunities to development of small businesses and private entrepreneurs.

Islam Karimov said this figure will be decreased from 7% to 6% in 2011, which will be another preference for businesses from the government.

Uzbek President said that the government should limit with ongoing works and adopt practical measures on further improving system on providing mid-term and long-term loans to small businesses and private entrepreneurs to modernization and re-equipment of production and solving existing problems.

President Islam Karimov said that the serious attention should be directed to solving issues of participating small and private businesses in foreign economic activity and their entrance to regional and global markets.

Uzbek head said that small and private businesses in Uzbekistan are mainly working in trade, services and communication, processing agriculture products. He said the country should create necessary opportunities for small and private businesses in industry sectors, organization of modern high-technological production in nano technologies, pharmaceuticals, ICT, use of alternative energy.