THE ROLE OF SMALL AND MEDIUM BUSINESSES IN THE ECONOMY AND DEVELOPMENT PROSPECTS

Small and medium-sized enterprises (SMEs) play a crucial role in the development of modern economies by promoting employment, innovation, and inclusive growth. This article examines the economic significance of SMEs in the global economy and analyzes their role in the development of emerging markets with a particular focus on Uzbekistan. The study highlights the structural importance of SMEs in job creation, regional development, technological innovation, and sustainable economic transformation. Using statistical data and analytical methods, the paper explores the contribution of SMEs to GDP, employment, and sectoral diversification in Uzbekistan. In addition, it discusses major challenges faced by SMEs, including limited access to finance, technological barriers, and institutional constraints. The research concludes that strengthening digital transformation, financial inclusion, and innovation capacity is essential for enhancing SME competitiveness and ensuring sustainable economic growth in developing economies.