The experience of the newly industrialized countries testifies that improving the industrial structure and increasing the competitiveness of the national economy can be very effective.
Small and medium entrepreneurship is one of the main driving forces for the development of a market economy. Its development positively affects the economic growth, the saturation of the market with goods and services of the required quality, that is, it solves many pressing economic problems.
In recent years, the number of such business entities has increased in Turkmenistan: individual enterprises, business associations, and entrepreneurs, without the formation of a legal entity. Although entrepreneurship, like other sectors, fulfills the basic functions inherent in the development of the real sector of the economy, its development reacts more sensitively to various changes in the conditions for carrying out its activities. Large-scale projects implemented with the help of the domestic entrepreneurs now have a positive impact on the progressive development of all sectors of our country and the growth of the economic power of industry. To achieve these goals, the State and the Government are doing everything possible in the form of direct assistance, including through the allocation of preferential credit funds.
Thus, non-state sector industrialists have access to obtaining a soft loan. It is issued for a maximum term of 10 years, subject to payment of 1% per annum for its use.
The process of obtaining a loan consists of two stages. First, an entrepreneur or a private enterprise applies to the Union. The statement contains information about what kind of production the potential producer intends to do, what kind of financial investments this will require. It is noteworthy that the loan can be obtained not only for the creation of a new production but also for the modernization and reconstruction of the existing one.
The Commission for Industry, consisting of directors of private industrial enterprises and members of the Board of the Union, carefully examines the submitted documents for the project. The previous activity, consumer feedback, turnover of the enterprise or entrepreneur is studied. The obligatory aspect is also the social orientation, namely the creation of new jobs.
With the approval of the commission, the second stage of registration of the loan begins. The minutes of the meeting are sent to the Joint-Stock Commercial Bank "Rysgal", being the holder of financial resources and the credit department of the bank begins the standard procedure for registration. The necessary package of documents is being prepared, the value of the collateral is estimated. In the absence of a pledge, it is possible to choose a guarantor or underwriter of the return of the issued funds. This is a natural process since in the market conditions there is a possibility of the unpredictability of this or that production. An important aspect of obtaining a loan is a competently drawn up business plan. The business plan, in fact, is a 3-D model of the future enterprise, shop, factory, plant etc.
It should be noted that the practice of issuing a loan is based on certain conditions: one of them is the mandatory availability of at least 30% of the borrower's own funds.
Thus, the system of concessional lending is already bearing fruit: the range of manufactured goods for various purposes is expanding, additional production is opening, and the level of professionalism of both entrepreneurs and personnel working in new industries is growing.