SMALL BUSINESS AS A CATALYST FORREGIONAL ECONOMIC DEVELOPMENT: AN EMPIRICAL ANALYSIS WITH EVIDENCE FROM UZBEKISTAN
DOI:
https://doi.org/10.5281/zenodo.20632131Keywords:
small and medium-sized enterprises; regional economic development; employment generation; economic diversification; Uzbekistan; SME policy; territorial cohesion.Abstract
This article examines the multidimensional developmental role of small businesses in regional
economies through a systematic literature review and comparative statistical analysis. Drawing on data from the
OECD, World Bank, IFC, ILO, and Uzbekistani statistical authorities, the study demonstrates that SMEs account
for approximately 90% of enterprises globally and employ more than half of the world’s workforce. Uzbekistan’s
experience is particularly noteworthy: by 2024, small enterprises contributed approximately 56% of national GDP
and accounted for 86% of total employment, significantly exceeding OECD averages. Regional disaggregation
reveals considerable territorial diversity, with the Bukhara, Namangan, and Fergana Valley regions exhibiting SME
activity levels substantially above the national average. The findings also highlight significant opportunities for
further development through productivity enhancement, expanded access to finance, and accelerated technological
modernization. The article concludes with targeted policy recommendations aimed at strengthening financial inclusion,
promoting sectoral modernization, and advancing region-specific development strategies to support sustainable
economic growth.
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