Publication Details
Abstract
This article examines the theoretical, institutional, and empirical foundations for improving small business financing mechanisms in Uzbekistan. The study addresses the persistent gap between the high economic importance of small business entities and their limited access to adequate financial resources. Despite their significant contribution to output, employment, trade, and regional development, small businesses continue to face constraints related to information asymmetry, collateral requirements, weak credit histories, high transaction costs, and the underdevelopment of alternative financing instruments.
The methodology is based on theoretical analysis, comparative institutional assessment, and descriptive statistical analysis using official data from Uzbekistan and selected international practices. The findings show that small business entities accounted for 54.3 percent of Uzbekistan’s GDP in January–December 2024, while data for January–September 2025 confirm their substantial role in agriculture, retail trade, construction, investment, services, imports, and exports. Comparative evidence from the United States, Japan, and Germany indicates that effective small business financing systems rely on a combination of state guarantees, development finance institutions, relationship banking, venture capital, fintech platforms, and targeted public support.
The article concludes that Uzbekistan needs to transform its small business financing architecture from a predominantly bank-centered model into a diversified, digitally enabled, and institutionally coordinated ecosystem. Such a transition may reduce collateral dependence, expand access to long-term capital, strengthen financial inclusion, and support sustainable entrepreneurial growth.