Research Article: 2022 Vol: 21 Issue: 4
Territorial Features of Entrepreneurship Organization in the Cluster Method
Mahkamov Ibrohim, Namangan Institute of Engineering and Technology
Shahobov Hamidjon Muhammadovich, Namangan Institute of Engineering and Technology
Rashidov Rahmatullo Alojonovich, Namangan Institute of Engineering Technology
Citation Information: Ibrohim, et al., (2022). Territorial features of entrepreneurship organization in the cluster method. Journal of International Business Research, 21(4), 1-8.
Abstract
The article provides a theoretical overview of the role of clusters, in particular, agroindustrial clusters in the development of regional economies. The role of agro-industrial clusters in the development of agriculture in the regions, including Namangan region, their features and directions of their development are described.
Keywords
Region, Cluster, Entrepreneurship, Employment, Fruits and Vegetables, Technopolis, Technopark, Integration, Export, Competitiveness, Food Products.
Introduction
Given the rapidly changing land and water resources in our country, it is necessary to take innovative approaches to agricultural development. One of the urgent tasks today is to attract foreign direct investment in the further development of agriculture, create infrastructure based on advanced technologies, increase economic and export potential, deep processing of products in the industry through the creation of a single technological chain, creating new jobs. Without it, it is impossible to achieve the set tasks and high productivity. The future prospects of the agricultural sector are associated with innovative system-clusters formed in the new stage of today's economic reforms. As the President said: “Clusters and interests are the future of agriculture in Uzbekistan. Without the introduction of science and innovation, this sector cannot be made competitive ” (ECO, 2020).
Our President Sh. The Action Strategy for the five priority areas of development of the Republic of Uzbekistan for 2017-2021, adopted at the initiative of Mirziyoyev, began with largescale reforms in all areas to deepen democratic reforms, modernize and diversify key sectors to increase the competitiveness of the economy. A number of concepts related to these processes, such as technopolis, technopark, cluster, have entered our way of life (Rashidov, 2017; Rashidov, 2021).
There are different views on the concept of cluster. Initially, in the 19th century, Johann Henry von Tunen and his followers W. Launhard and A. The cluster theory was advanced by the Webers. Then B. Lundva and B. Johnson showed that through the concept of "Development Blocks" related to cluster theory, regional production associations are a source of development and competitiveness of the national economy through regular population surveys throughout the country.
Literature Review
The word “cluster” is derived from English and has been used as an independent unit with the combination, aggregation, and specificity of several similar elements. In the 70s of the last century, Swedish economists K. Fredrickson and L. Lindmarks used the term cluster to describe the concentration of enterprises in a limited area.
In the 80s of the XX century M. By Porter, the term “cluster” was introduced into scientific processes as an economic category. In his view, a cluster is recognized as a geographically inter-sectoral association of companies and institutions operating in a particular field.
In particular, there are views that the enterprises cooperating with each other in a particular field, as well as the geographical proximity of production links. While this prioritizes geographic location as a clustering, others prioritize the network and still others innovate. The main emphasis is on the interaction between enterprises and organizations to ensure the economic efficiency of the cluster. The content of agroclusters organized in agriculture A.A. Covered in detail by Nastin. According to him, “agro clusters are geographically located, interconnected and complementary, family farms, farmers' cooperative enterprises, located at the same time and in cooperation to solve production tasks and unite in environmental protection. a system of market entities consisting of social and scientific organizations, educational institutions and consulting services”. The theoretical interpretation of agroclusters as an economic category reveals its essence more broadly. According to AV Glotko, "entrepreneurial agrocluster in the agro-industrial complex is a region-specific innovationoriented integration structure based on the principle of the technological chain, implementing the common economic interests of the participants, with a certain culture of interaction in this system." R.R. Tokhchukov describes the "entrepreneurial agro-cluster as a merger of organizations engaged in various activities that combine all stages of production, from the production of agricultural products to the sale of finished products, in a single reproduction, the end result of which is a synergistic effect." Economists who have conducted research on agroclusters in our country Ch. Murodov, Sh. Hasanov and I. The Ganievs are an example. In their research, they have shown that clusters play a special role in the socio-economic development of regions (Alojonovich, 2016; Alojonovich, 2019; Alojonovich & Sardorbek2021; Alojonovich, et al., 2021; Saidboev & Zulfiqarova, 2021).
Results
The concept of "agro-industrial cluster" is defined in the draft Regulation "On the status of agro-industrial clusters and the organization of their activities", developed by the Ministry of Agriculture: "Agro-industrial cluster - the production of agricultural products by one or more groups of legal entities and individuals. Creating a value chain for the cultivation, processing, storage, production and sale of finished products is a form of activity based on scientific, innovative methods " (Rahmatullo, 2020).
Taking into account these theoretical definitions, it can be said that in agriculture agrocluster-agricultural production, processing and sale of agricultural products through a single chain and the use of high-tech innovations to increase the competitiveness of agricultural products in domestic and foreign markets, the formation of infrastructure in rural areas. It can be concluded that the development of employment, the level of employment of the rural population and, on this basis, increase incomes and improve the environment. The formed clusters will have a positive impact on the following areas that determine the sustainable development of the region (Figure 1).
Figure 1: Influence Of Clusters On Joints That Ensure Sustainable Development Of Regions.
Because the organization of production in the cluster method, the agricultural sector is industrialized through the cultivation of agricultural products, primary and deep processing of raw materials, the systematic organization of sales of finished products. At the same time, there will be mutual integration of agriculture and industry, which are important sectors of the national economy, which will ensure the integration of the interests of employees and ensure high economic efficiency. This is achieved by timely delivery of agricultural raw materials to an industrial enterprise for processing without loss of quality. Today's experience shows that in order to make large-scale changes in the agricultural sector, it is necessary to abandon the previous outdated system and create a completely new continuous chain, that is, a system of cooperation and cluster. Because this method is proving itself in practice in the world economy.
One of the most important issues in the development of the modern economy is the problem of creating innovation clusters. The development of clusters took place in Western Europe, the United States, and the United Kingdom in the mid-twentieth century. Also, in the 90s of the last century, the cluster organization of the economy of countries such as South Korea, Finland and Brazil became a key issue. The experience of other countries shows that cluster organization of the economy is recognized as an effective tool to increase competitiveness in each country. A cluster is not a formal relationship, but a new cooperative mindset of entrepreneurship, and they are not necessarily involved in clusters. Also, it is impossible to mechanically apply the Western experience in the organization of clusters in our country.
Experience shows that it is necessary to study the experience of the United States in the development of science and information technology in agriculture, in particular in the development of melons and vegetables, the United Kingdom in fruit growing, Austria in grain, the Netherlands in plant protection, Germany in plant nutrition and cell biology. application to agriculture is becoming a necessity.
It should be noted that one of the main factors in the achievements of the country's agriculture in recent years is the transfer of land to the real owner and the organization of production on the basis of a cluster system. Our President Sh. As Mirziyoyev noted: “Along with supporting the farming movement in the agricultural sector, we will continue our research on the gradual transition of cotton and grain production to cluster form. We will continue to work to create clusters that meet today's needs in other sectors, such as fruit and vegetables, rice, livestock and silk” (Rahmatullo, 2016).
This new structure has recently become a driving force in the agricultural sector. It is connected not only to agriculture, but also to the perspective-cluster method of industries directly related to it. Today, there are 147 fruit and vegetable clusters in the country, with 122,394 hectares of land attached to them.
Systematic work is being carried out in the regions of the country to increase the production of high-quality export-oriented fruits and vegetables, melons and potatoes and grapes. At the same time, the location of each region, the productivity of arable land, the culture of farming, the specialization of the population in the cultivation of one or another type of agricultural products differ from each other. In this regard, Namangan region is distinguished by a number of high opportunities for the cultivation, processing and export of fruits, vegetables, grapes, melons and other products. One of the peculiarities of the development of fruit and vegetable growing in the region is the fertility of the soil, the convenience of climatic conditions, that is, the total temperature during the growing season of plants is above 30-40 degrees.
In such a climate, there are opportunities to prepare different varieties of fruits and grapes, different apples and grapes that ripen and be stored for a long time, as well as dried fruits, raisins and various juices rich in juice. Expanding the export of wet and processed fruits and vegetables to domestic and foreign markets will be the basis for increasing the export potential of Namangan region. Three years ago, fruits and vegetables were exported for $ 76 million a year, compared to $ 155 million last year. Also, the geography of exports has expanded, and for the first time in the last 3 years, various products have been exported to 7 European and Middle Eastern countries, in particular, Portugal, Azerbaijan, Iraq, Lebanon and Oman.
Currently, studies on the establishment of agro-clusters in the Namangan region show that Kosonsoy, Chartak and Yangikurgan districts have a high potential for fruit and vegetable production. Fruit and vegetable cluster - the production of fruits and vegetables by one or more independent legal entities using modern production technologies or their primary processing from contract purchase, production of high value-added products (canning, high-flavored juices, jams) , dried products), is a method of forming a new management system, which includes the process of storage, sorting, packaging, transportation and sale, and combines several enterprises and organizations in a single technological chain.
The above districts are relatively densely populated, have a large labor force, the land is hilly and foothill, and there are certain problems with water supply. With this in mind, intensive orchards with drip irrigation and low water requirements, walnuts, almonds, apricots and grapes are being established.
In the specialized areas, 2-3 types of agricultural crops will be planted in stages, with a serious focus on integrity. At the same time, agricultural crops are planted taking into account the specialization of each region, soil and climatic conditions, land reclamation, fertility, water supply, as well as the requirements of processing, procurement and exporting organizations. To do this, it is necessary to specialize crops, taking into account such factors as the specificity of each district, the historically formed farming skills in the regions, water supply.
Experience has shown that an important factor in increasing the yield of fruit, vegetables, grapes, melons, potatoes is the placement of these crops in accordance with the natural climatic conditions, depending on the specialization of the previously formed areas.
From this point of view, in our opinion, the organization of agro-industrial clusters in the regions should take into account the experience and skills of indigenous peoples in the field of fruit, vegetables, melons and grapes, processing enterprises, infrastructure and transport and communication networks (Maxkamov & Alojonovich, 2021).
All this is based on the implementation of the Decree of the President of the Republic of Uzbekistan dated October 23, 2019 "On approval of the Strategy of agricultural development of the Republic of Uzbekistan for 2020-2030" PF-5853, export of fruits and vegetables and viticulture. This is evidenced by the fact that measures are being taken to increase the size of arable land, to develop fallow lands, to increase the planting of food-safe crops on reduced areas of grain and cotton, as well as to effectively use the potential of orchards, vineyards and greenhouses.
Discussion
This process will ensure the implementation of priority tasks, such as the introduction of industry in rural areas, the creation of new jobs in remote areas, the production of value-added products and increase exports, which are set before the clusters in the agricultural sector. The strategic goal of developing clusters in the agro-industry of Namangan region is to develop small business and private entrepreneurship in rural areas (Tursunalievich & Alojonovich, 2021).
It is a cross-integration of market entities belonging to different industries, creating a complementary production association. The most important strategic direction of the development of agricultural clusters is the formation of a mass cooperative movement. There are some successes and prospects in this direction. In particular, cooperatives have been set up to receive fruits and vegetables, grapes and milk grown on farms and backyards.
Due to the ongoing reforms in agriculture, 12,000 people will be employed. In particular, 4,500 people will be employed in Kosonsoy district, 3,000 in Yangikurgan district and 4,500 in Chartak district. In addition, Yangikurgan district is gradually specializing in the cultivation of organic fruits and vegetables, melons, potatoes and grapes. At the same time, Nanay, Aktam and Kokyor areas of the district will be transformed into organic agricultural areas in 2021-2022 and all areas by 2025. The following table shows that the export potential of Yangikurgan district is growing from year to year.
The table 1 shows that in 2020, the agricultural products grown in the district grew by all types of crops, including vegetables by 3.2%, fruits by 2.8%, grapes by 1.2% and legumes by 3.5%.
| Table 1 Changes In The Volume Of Exports Of Agricultural Products Grown In Yangikurgan District In 2019-2020 |
||||||
|---|---|---|---|---|---|---|
| ?/? | Indicators | 2019 | 2020 | Change compared to 2019, (%) | ||
| Amount, t | Total,% | Amount, t | Total,% | |||
| 1 | Total exports | 18933 | 100 | 19320 | 100 | 102.0 |
| 2 | Including: | |||||
| 3 | Vegetables | 3392 | 17.9 | 3500 | 18.1 | 103.2 |
| 4 | Fruit | 4231 | 22.3 | 4350 | 22.5 | 102.8 |
| 5 | Grapes | 10112 | 53.4 | 10230 | 53.0 | 101.2 |
| 6 | Legumes | 1198 | 6.3 | 1240 | 6.4 | 103.5 |
Today, 13 agro-clusters specializing in fruit and vegetable growing in Namangan region are showing their advantages in practice. They cultivate agricultural products, process them into finished products and supply them to domestic and foreign markets.
They are also researching the creation of new jobs, the introduction of new technologies, investments, the creation of the necessary human resources. Taking this into account, by the end of this year, 11 more clusters will be created in the region, and it is planned to increase the share of fruit and vegetable lands attached to them to 50%.
Based on the experience of advanced foreign countries and in a short period of time in various regions of the country in the organization of the agro-cluster, we can note the following:
a). agro-clusters ensure the continuity of interests of cluster participants in improving the quality and competitiveness of products by integrating the technological processes of cultivation-storage-processing-sale of fruit and vegetable products into a single integration system;
b). as well as a reliable relationship between the cluster participants, such as not only market economy, competitiveness, but also the common goal to achieve a common goal - the joint use of strategic plans, contracts, brands and intangible assets;
c). due to the perfect division of labor, regional and inter-farm specialization and labor cooperation in the established agro-clusters, it is possible to increase production efficiency, as a whole integrated system of production of final products with high added value will be formed;
d). coordination of joint activities of state-higher educational institutions-research institutions-farmsprocessing enterprises-procurement and sales structures in agro-clusters, accelerates the introduction of modern technologies and innovations in production;
e). agro-clusters have a positive impact on increasing the export potential of products made through the development of marketing systems, ie clustering provides access to the world market with quality and competitive products;
f). Established clusters allow for the rational use of material and labor resources in the regions and have a positive impact on solving the socio-economic problems accumulated in the regions;
The competitiveness of regions will be increased through the formation and development of clusters. The economic entities operating within the cluster are shown in the following diagram (Figure 2).
Figure 2: Structural Structure Of Agroclusters.
Economic relations between the enterprises of the cluster will take on a new character. By changing their place, role and peculiarities, there is an opportunity to increase the competitiveness of the regions. With this in mind, the prospects for socio-economic development of the regions are determined.
Also, increasing the competitiveness of the regions will ensure the competitiveness of the country's economy. This is because in world practice, clusters are formed primarily to increase international competitiveness. In this regard, the state plays a special role in creating the institutional and legal conditions for clusters.
Conlcusion
In different regions of the country, especially in Namangan region - in Kosonsoy and Chust, in Chartak and Yangikurgan - in the production, storage, processing and sale of fruits and vegetables and grapes, livestock and in other areas of the region - cotton, grain and melons. When organizing agro-clusters, it is advisable to pay attention to the following:
-organization of agro-clusters in different areas, taking into account the economic potential of the region and specialization in the cultivation of agricultural products, and ensuring their systematic sustainable operation;
-Increase production through the establishment of modern intensive gardens and the establishment of drip irrigation systems for the efficient use of land and water resources;
- Establishment of special refrigerated warehouses and agro-logistics centers for processing, storage of fruits and vegetables and grapes, as well as their quality supply to domestic and foreign markets;
- Establishment of specific measures to increase the level of competitiveness of products produced by agro-clusters and their export, as well as the cultivation of export-oriented agricultural products, their selection and development in the cluster areas, cooperation with research institutions;
-study of advanced foreign experience in fruit and vegetable growing, their widespread use in regional and territorial conditions, the involvement of foreign experts in the field of fruit and vegetable growing;
- pay special attention to improving the quality packaging and design, appearance of agricultural products for export in different weights;
-practical assistance in finding foreign partners and concluding export contracts for entrepreneurs engaged in agribusiness in our country by organizing trade houses, fairs for the promotion and sale of products of agro-clusters specializing in fruits and vegetables in foreign countries, as well as studying which products are in high demand abroad;
In short, clusters are a modern intermediary in shaping an innovative, competitive and efficient economy. Because the cluster: firstly, increases the production efficiency of enterprises in the region, secondly, identifies innovations that will affect future production efficiency growth, and thirdly, launches new business enterprises that will ensure the sustainable operation of the cluster and expand their activities. It also serves to increase economic efficiency through the growth of production volumes, the timely delivery of finished products to consumers, the development of productive forces and production relations. It should be noted that the organizational, economic and financial support of the state is of great importance in the development of agro-clusters established in the regions and ensuring their sustainable operation.
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Received: 01-Jul-2022, Manuscript No. JIBR-22-12373; Editor assigned: 02-Jul-2022, PreQC No. JIBR-22-12373(PQ); Reviewed: 16-Jul-2022, QC No. JIBR-22-12373; Revised: 19-Jul-2022, Manuscript No. JIBR-22-12373(R); Published: 26-Jul-2022