ENHANCING ECONOMIC MECHANISMS FOR SMES IN THE REGIONS OF UZBEKISTAN: COMPARATIVE ANALYSIS AND POLICY RECOMMENDATIONS

The development of small business at the regional level is one of the key factors ensuring sustainable economic growth, employment expansion, and reduction of territorial disparities. In emerging economies, particularly in Uzbekistan, small business entities play a significant role in generating income, stimulating entrepreneurial activity, and strengthening regional economic resilience. However, despite large-scale reforms aimed at supporting entrepreneurship, substantial differences remain among regions in terms of access to finance, infrastructure quality, market opportunities, and institutional efficiency.
This article examines the economic mechanisms of small business development in the regions of Uzbekistan through a comparative analysis of international practices, including the experiences of the United States, Germany, and South Korea. The study applies comparative, statistical, institutional, and analytical methods to evaluate the effectiveness of financial-credit instruments, tax incentives, innovation infrastructure, and decentralized governance models.
The findings demonstrate that successful regional small business development depends on the coordinated interaction of three major factors: effective financial mechanisms, adaptive institutional systems, and developed entrepreneurial infrastructure. The study identifies the main constraints in Uzbekistan, including centralized management, weak regional financial institutions, and uneven territorial development.
Based on the results, several policy recommendations are proposed, including decentralization of support mechanisms, expansion of regional financing instruments, development of business incubators and technology parks, and implementation of differentiated regional entrepreneurship strategies. The practical significance of the study lies in developing proposals aimed at improving the competitiveness and sustainability of small business entities in the regions of Uzbekistan.