ECONOMIC MECHANISMS FOR THE DEVELOPMENT OF SMALL BUSINESS AND PRIVATE ENTREPRENEURSHIP IN UZBEKISTAN

Abstract

This article examines the economic mechanisms for developing small business and private entrepreneurship in Uzbekistan. Small enterprises and private entrepreneurial entities perform an important role in creating employment, increasing household income, developing competitive markets, expanding the domestic supply of goods and services, and stimulating regional economic activity. The study analyses financial, tax, institutional, infrastructural, investment, and organizational mechanisms that influence entrepreneurial development. Particular attention is paid to access to credit, preferential financing, loan guarantees, taxation, administrative regulation, property protection, digital public services, business infrastructure, innovation support, vocational training, and export promotion. The research identifies limited financial resources, insufficient collateral, high borrowing costs, administrative burdens, inadequate entrepreneurial skills, regional disparities, and restricted access to technology and foreign markets as major constraints on business growth. It is argued that isolated incentives cannot ensure sustainable entrepreneurial development unless they are supported by transparent institutions, fair competition, predictable regulation, effective financial markets, and reliable infrastructure. The findings indicate that differentiated support measures should be introduced according to enterprise size, sector, development stage, innovation potential, and regional conditions. The article emphasizes the importance of improving the evaluation of public support programmes through measurable indicators such as enterprise survival, employment creation, productivity, investment, tax compliance, and export growth. Strengthening coordination among public authorities, commercial banks, educational institutions, business associations, and local communities can increase the effectiveness of economic support mechanisms. A comprehensive and market-oriented policy framework can transform small business and private entrepreneurship into a stronger source of inclusive growth, innovation, income generation, and long-term economic resilience.