STATE UNITARE ENTERPRISE

Uzbekistan's State Unitary Enterprise SUE Introduction

A State Unitary Enterprise SUE in Uzbekistan is a form of state-owned enterprise. These entities are established by government bodies such as ministries, agencies, or local authorities to manage state-owned property and conduct specific economic or social activities. Unlike private companies or joint-stock companies where ownership is represented by shares, a SUE does not have its assets divided into shares. The property it operates is fully owned by the state and is assigned to the SUE under the right of operational management or economic management. SUEs are typically created to fulfill public needs, ensure national security, develop specific industries, or manage natural monopolies. They operate on commercial principles, aiming for self-financing and cost recovery, though their ultimate objectives often include broader social and strategic goals beyond pure profit.

Regarding whether they are factories or traders:

A State Unitary Enterprise is an organizational-legal form, not a specific type of business activity. Therefore, a SUE can be either a factory or a trader, or a service provider, or operate in any other sector depending on its established purpose.

Factories Many SUEs function as factories involved in manufacturing and production across various industries. For example, a SUE might operate a textile mill, a machinery production plant, a chemical facility, or a food processing enterprise. These are state-owned production units.

Traders Other SUEs may act as traders, engaging in import and export operations, wholesale distribution of goods, or procurement activities for state needs. They might specialize in trading specific commodities or industrial goods.

Service Providers A substantial number of SUEs also provide essential services such as public utilities electricity, water, gas, transportation, telecommunications, healthcare, or education.

In conclusion, the "State Unitary Enterprise" designation refers to the legal structure and state ownership of the entity. The specific business activity of a SUE dictates whether it primarily functions as a factory, a trader, a service provider, or a combination thereof.

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