THE ROLE OF SMALL BUSINESS IN DEVELOPING LOCAL PRODUCTION IN THE CONTEXT OF UZBEKISTAN

Abstract

Small and medium-sized enterprises (SMEs) play a critical role in developing local production and advancing Uzbekistan’s transition toward a diversified and sustainable economy. Representing more than half of the national GDP and the majority of employment, SMEs contribute to industrial growth, import substitution, and regional development through activities in textiles, agro-processing, construction materials, and services. However, their potential remains constrained by limited access to finance, outdated technology, weak infrastructure, and administrative barriers. To address these challenges, the Government of Uzbekistan has implemented comprehensive initiatives such as “Har bir oila — tadbirkor”, “Yoshlar — kelajagimiz”, and “Mahallabay ishlash tizimi”, which provide financial, educational, and institutional support to entrepreneurs. The national Uzbekistan 2030 Strategy also emphasizes green industrialization, digitalization, and inclusive regional growth. Sustainable progress requires continued expansion of industrial and green financing, development of vocational education, promotion of SME–large enterprise partnerships, and digital transformation of production networks. Strengthening these foundations will empower small businesses to drive local value chains, enhance national economic independence, and ensure Uzbekistan’s long-term industrial resilience and innovation capacity.