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Therefore, the court decided that the enterprises which are invested by foreign investors, and which are registered before the Law N320 – II dated 07.12.2001 entered into the force, i.e. until January 19, 2002, which are employing people with disabilities, as described before, have the full rights to use the given incentives within 10 (ten) years from the date of company registration, and access to the economic court to protection of their rights. The process of cancelling these incentives for the enterprise with foreign investments (because, it is not owned by the public associations of disabled persons, “Nuroniy” Fund and “Chernobylci Uzbekistana” Fund) was recognized as the conditions worsens investment.
The main reason for this illegal collection of taxes, is that the current legislation is not fixed an Article (Article 3 of the Law “On guarantees and measures to protect the rights of the foreign investors”) which recognizes the true cancelling of the enterprises with the foreign investments as the circumstances “deteriorating investment conditions” for foreign investors (Law No. 611, 1998).
In conclusion, it should be noted that there is a great requirement to improve the legal regulation of the foreign investors taxation, in particularly, the issues of the tax incentives, given that the tax regulation is the part of attraction of the foreign investors into the economy of the country. Creating clear and understandable rules of the Law in the field of taxation is an additional guarantee to save and protect the rights of foreign investors.
REFERENCESAnthony B.Atkinson & Joseph E. Stiglitz, “Lectures on public economics”. M-UNITY, 1995. P. 137-176, Speech by the Minister of the Foreign Economic Relations and Trade of the Republic of Uzbekistan – E.
Ganiev, on the VII-th International Investment and Finance Forum in Tashkent, May 19-23, 2014.
Tashkent city, Republic of Uzbekistan. http://saipro.uz/archive/2014/tiiff/smi_29_r.html Official web-site of the MFERIT/Stats/http://www.mfer.uz/ru/news/statistics/ GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 357 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Presidential Decree No. PD-4116 from 17.06.2009, “On Amendments and Repeal certain decisions of the President of the Republic of Uzbekistan in connection with the ordering the tax incentives” Decree of the President of the republic of Uzbekistan No. PD-2598 from 28.04.2000, “On measures to attract the direct foreign investments to the oil-and-gas-recovery and exploration” The Official web-site of the MFERIT of the Republic of Uzbekistan. Incentives (privileges) and preferences. http://www.mfer.uz/ru/investments/privileges-and-preferences/ In the dispute on the applicatio of the tax exemptions on foreign investments” is published in “Tax and Customs News”, financial-economic newspaper 47 (487) on November 19, 2003 “In the disute about the usage of the exemptions from the payment of income tax” is published in “Tax and Customs News”, financial-economic newspaper 38 (582) on September 19, 2005 The Law No. 611-I of the Republic of Uzbekistan, dated 30.04.1998, “On the guarantees and measures to protect the rights of foreign investors” GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 358 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1
Research shows that minority entrepreneurs experience challenges with growth of their businesses in the United States. The challenges that minority entrepreneurs experience and the impact of growth in their businesses are not clearly defined. Research explores the levels of entrepreneurial drive among entrepreneurs and the effect of growth in their businesses in the United States. Previous studies about entrepreneurial drives does not provide an in-depth analysis about minority entrepreneurs and the influence of business growth in the United States. This paper shows the existing challenges and various levels of entrepreneurial drive among minority entrepreneurs in the United States. It reveals the relationship of existing challenges and various levels of entrepreneurial drive among minority entrepreneurs and the impact of business growth in the United States.
JEL: P230 KEYWORDS: Entrepreneurship, Business, Minorities
INTRODUCTIONEntrepreneurial drives are psychological responses exhibited through internal motivation to fulfill personal needs during the journey of entrepreneurship, despite, race, gender and creed. The psychological focus of entrepreneurship comes from the internal desires and principals of entrepreneurs. Businesses are established based on entrepreneur’s values and beliefs from their frame of reference within their professional and personal lives. In many organizations, whether large or small, entrepreneur’s values and beliefs are classified as core values, in order to follow and execute in daily activities with peers, vendors, management, and customers. Entrepreneurship is a continuous and evolving process that changes with successes and lessons learned through entrepreneurial drives and practical experience. High levels of entrepreneurial drives that entrepreneurs possess creates desires to fulfill internal motivational factors within their environment. Examples of internal motivational factors include self- actualization and esteem needs. The five entrepreneurial drives include mental cognition, ability to create new ideas, take risks, identify one’s abilities through challenges, and possess entrepreneurial vision known as having faith beyond one’s current situation into future (Ensley, Carland & Carland, 2000).
In spite of entrepreneurial drives, minority entrepreneurs experience additional concerns, such as socioeconomic issues through the entrepreneurship process. Socioeconomic perspective focuses on external needs within the environment, in order to initiate, and sustain business growth. It has a tremendous impact with the success and growth of minority-owned businesses. Socioeconomic status is the integration of sociological and economic factors that are controlled for power, wealth and resources. The historical perspective of socioeconomic status derives from the need of minorities that were considered as people of color in the United States. The establishment of the United States Constitution excluded Non-Whites, especially Blacks for opportunities to increase financial opportunities through land and employment before
1865. Instead, the content of the United States Constitution identified Blacks as opportunities to increase financial gains, power and wealth. In the late 1800-1900’s, immigrants settled and were used for cheaper labor rather than using Blacks for cheaper wages. Since the establishment of the United State Constitution, the competition has been classified as a race between Whites and Non-Whites, in order dominate for control GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 359 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 of money, power and resources. According to Anderson (1995), Whites control the majority of wealth, power and resources compared to Non-Whites.
LITERATURE REVIEWThe psychological perspective of individuals becoming entrepreneurs derive from innate responses to fulfill. Entrepreneurs desire the need to create unique possibilities into execution of products or services for a financial exchange with potential customers (Iyigun & Owen, 1999). Innate responses comes from internal stimuli, such as mental cognition. Cognition are mental processes and thoughts that are exhibited through one’s behavior. For example, positive thinking among entrepreneurs are classified as predicting high levels of self-confidence. The levels of confidence enable entrepreneurs to believe the positive perspectives about the purpose of starting their businesses into manifestation, despite the circumstances. In fact, entrepreneurs that possess high levels of confidence believe positive thoughts despite one’s ability to make decisions. (Saravathy, Memon and Kuechle, 2011). Additional research supports that entrepreneurs possess in high levels of positive thinking about opportunities and expectations of their business, despite the actual performance or status of the company. The positive thinking is a great attribute, however, it can lead to inaccurate point of view and problems with realistic expectations, financial status and important decisions to implement based on existing circumstances of businesses or decisions to start business. Bergen & Bressler (2011). Also, entrepreneurs seem to possess high levels of confidence that can hinder decision making processes, in order to start and maintain growth of their businesses (Holland and Garrett, 2015).
The high levels of confidence derive from a well-known psychological theory, Vroom’s Expectancy Theory that focuses on the quality of input toward the fulfillment of a goal, such as time, hard work and effort that leads to output, such as, growth and success in areas of revenue, quality, customer retention, and expansion of services or products. The foundation of the entrepreneurial drives are contributed to Maslow’s Hierarchy of Needs. The model focuses on motivation to fulfill external and internal needs. Initially, one’s desires is to fulfill external needs, such as physiological needs, including food, water and air. Once the physiological needs are met, then one is motivated to fulfill the next external need, safety. Examples of safety needs include the ability to maintain a secure environment and maintenance of personal health. When safety needs are met, then an internal need, belongingness is desired to become fulfilled. Examples of belongingness needs include the need to become a part of a group, maintenance of friendships and relationships. When belongingness needs are met, then esteem needs are desired to fulfill. Examples of esteem needs include self-esteem, self-confidence, and respect from others. When esteem needs are met, then self-actualization are desired to fulfill. Examples of self-actualization is the highest level to fulfill. Examples of selfactualization include the ability to understand one’s purpose, problem solving and creativity. Maslow’s Hierarchy of Needs demonstrates that low levels of needs, such as physiological and safety needs are classified as external needs, because they are needed for survival purposes from the environment. As the lower needs are fulfilled, then a person is motivated to fulfill internal needs, such as esteem and selfactualization (Gordon Rouse, 2004).
Based on Maslow’s Hierarchy of Needs, Carland suggests that entrepreneurs with low entrepreneurial drives focus on fulfilling lower level needs, such as physiological and safety needs. Entrepreneurs that possess high entrepreneurial drives focus on fulfilling internal needs, such as esteem and self-actualization, because they have fulfilled the lower level of needs (Carland & Carland, 2000). Additional research supports that successful entrepreneurship leads to internal factors, such as mentally transitioning from employees to employers, consider ventures that solves issues or needs in society, previous experiences, and resources to possess a solid network of resources. Most importantly, they are able to recognize and execute their opportunities to market through entrepreneurship (Singh & Gibbs, 2013). Based on the socioeconomic perspective, the term racism is not used to define one group of people versus another, however, it is process of competing for power, money and the ability to access resources (Anderson, 1995). As time progressed, the Civil Rights and Affirmative Action programs were established to include Non-Whites, especially GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 360 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Blacks for the perception of equality with employment, financial and educational opportunities that started in 1964. Based on the changes for equality, the jargon was modified to provide politically correct identification of other races, such as Pacific Islanders, Hispanics, African Americans, Asian Americans, Native Americans, as well as the term, Minorities. Women were included as minorities for the perception of equality with employment, financial and educational opportunities, as well. Throughout decades to the present, the race continues for socioeconomic status through domination of power, wealth and use of resources between Caucasians and Minorities (Lottie & Noda, 2003).
Socioeconomic circumstances have motivate people to become entrepreneurs when they are unable to obtain gainful employment, despite the competitive job market. Statistics have shown that unemployment rates and length of unemployment are twice as high for Minorities compared to Caucasians. African Americans compared to any other minority group are more likely to experience increase levels of discrimination and stigmatization in financial, legal and educational sectors (Hirsh & Jack, 2012). As a result, Caucasians are motivated to start businesses based on opportunities of personal pursuit (internal motivation) however, African Americans are motivated to start businesses due to the shortage in the job market (external motivation). Therefore, individuals who are start businesses based on internal motivational factors exceed in longevity and growth in businesses, revenue and human capital compared to individuals who start businesses for external motivational factors (Singh & Gibbs, 2013).
Despite previous research, Minorities, especially African Americans possess higher levels of positive thinking, attitude, and greater desire toward entrepreneurship than non-minority people, however, positive attitudes and excitement about entrepreneurship do not reflect the actual amount of minorities that have started businesses. In fact, minority owned businesses usually abandoned their entrepreneurial venture at a higher rate than non-minority owned businesses. The reasons for abandonment of businesses include a lack of education. Most minorities have a high school diploma and a limited college education. Higher education is a key factor toward entrepreneurship, because individuals are expected to analyze and synthesize information in depth, in order to plan and execute (Singh & Gibbs, 2013).