The Role of Small Business in the Formation of Household Incomes and Regional Disparities in Poverty

In a modern market economy, small businesses and private entrepreneurship serve as vital catalysts for boosting household incomes and Alleviating poverty. This study investigates the strategic role of small business entities in driving economic expansion, generating sustainable employment, and mitigating regional economic imbalances within Uzbekistan during the 2020–2025 period. Utilizing data from the National Statistics Committee and institutional theories from the World Bank, OECD, and the Asian Development Bank, this paper analyzes regional variations in Gross Regional Product (GRP), retail trade turnover, and industrial contribution. The findings reveal that while small businesses accounted for 52.2% of the national GDP in 2025, their economic impact is highly stratified by region. In predominantly agrarian or labor-abundant areas such as Surkhandarya and Namangan, small businesses comprise over 73% of the local GRP, acting as the primary driver of household income generation. Conversely, industrial hubs like the Navoi region exhibit a lower small-business dependency (21.1%) due to the dominance of large-scale state enterprises.