This sector plays a crucial role in the country’s economy by creating jobs, attracting investment, fostering innovation, enhancing competitiveness, and promoting exports. Over the past five years, small and medium-sized enterprises have doubled. They employ 10.5 million people, accounting for 74% of the total workforce. More than half of the economy’s output, a third of industrial production, and exports originate from this sector.
These figures illustrate the importance of small and medium-sized businesses in the country. The President emphasized that supporting entrepreneurship will remain a priority direction of state policy.
“Supporting entrepreneurship is our strategic path”, Shavkat Mirziyoyev stated.
Priority tasks for developing small and medium-sized businesses were addressed at the meeting. Specifically, goals set for 2025 include:
– increasing the sector’s share in the economy to 55%, creating added value of $70 billion;
– expanding small business exports from $9 billion to $12 billion by assisting with transportation, certification, and product standardization;
– increasing small business participation in water supply, sanitation, road construction, public utilities, logistics, migration, culture, and social services by 2-3 times;
– creating 1.5 million permanent jobs and increasing the sector’s employment share to 75%;
– increasing the number of enterprises employing more than 100 people to 4,000;
– developing 100 new small business brands;
– funding 200 startup projects involving small businesses.
A comprehensive program has been developed jointly with international experts to achieve these objectives. In 2025, a total of $10 billion from various sources will be allocated for its implementation.
The President provided detailed insights into new opportunities to be created for small and medium-sized businesses.
In particular, preferential resources totaling 22 trillion UZS have been allocated to engage the population in entrepreneurial activities. Of this amount, 2.5 trillion UZS will be dedicated to supporting youth entrepreneurship, and another 2.5 trillion UZS will be allocated for projects led by women entrepreneurs. Interest rates on loans for women entrepreneurs will be 2% lower than other borrowers.
Starting this year, small enterprises have begun receiving up to 300 million UZS loans. Entrepreneurs whose businesses transitioned to small or medium-sized enterprises within the past year can now obtain unsecured loans of up to 150 million UZS. Unsecured loans under family entrepreneurship programs will also be provided up to 50 million UZS.
Alternative business financing is also expanding. Over the past five years, venture capital funds have supported 53 startup projects worth $145 million. Three new venture funds with a combined capital of $50 million have been established to develop this area further, and an additional $50 million has been attracted from abroad. This initiative will enable entrepreneurs to launch projects incorporating advanced technologies and innovations.
Innovative products and services developed by startups will be integrated into technical regulations and standards, facilitating their participation in government procurement processes.
Over the past three years, 250,000 new enterprises have been registered in the country. However, their further development requires the expansion of production facilities. In this regard, regional heads have been instructed to auction land plots primarily appealing to entrepreneurs seeking to expand their activities.
Another innovation is that in the districts of Kungirot, Chimbay, Asaka, Gijduvan, Gallaorol, Yakkabog, Khatyrchi, Chartak, Bulungur, Syrdarya, Denau, Kuva, Shavat, and the cities of Yangiyul and Margilan, all government institutions will be relocated to multi-story buildings. As a result, the vacated 150 administrative buildings will be auctioned off to businesses.
Changes are also planned in agriculture. In the Republic of Karakalpakstan, Jizzakh, Tashkent, and Fergana regions, over 5,000 hectares of land are being leased under a new system. Entrepreneurs can cultivate crops on these plots at their discretion and construct storage, sorting, and packaging facilities. This year, an additional 30,000 hectares will be auctioned under this system.
As part of the recently established holding company Uzagrostar, 16 fruit and vegetable processing enterprises have been opened. There are plans to build agro-industrial complexes in each region, with an initial allocation of 200 billion UZS.
Project offices for small and medium-sized enterprise development will be established in 20 districts to support manufacturing businesses. These offices will attract international specialists – engineers, technologists, designers, accountants, and marketing experts. In 2024, 100 billion UZS will be allocated for this initiative.
Special programs will be implemented to support entrepreneurs working in equipment manufacturing, electronics, medical devices, logistics, and other promising sectors.
For new entrepreneurs, the first year of operation is crucial. Therefore, a principle of the “first opportunity” will be introduced. If a small business commits an administrative violation for the first time, it can correct the mistake without penalties.
The procedure for liquidating small enterprises is being simplified. Companies with an annual turnover below 10 billion UZS and no outstanding tax liabilities can cease operations without undergoing inspections.
As previously announced, VAT and profit tax rates will not be increased in the country until 2028. Furthermore, a three-year moratorium has been introduced on adopting new regulations that impose additional obligations on small and medium-sized businesses.
An important decision has been made for farmers: previously accrued penalties totaling 1 trillion UZS for late tax payments will be written off.
Favorable conditions will be created to develop artificial intelligence, digital and environmentally friendly technologies, and creative industries.
Uzbekistan’s strategy for supporting small businesses is receiving support from international financial institutions. During the meeting, the President heard from representatives of the Asian Development Bank, the European Bank for Reconstruction and Development, and the French Development Agency and expressed gratitude for their contribution to entrepreneurship in Uzbekistan.
Entrepreneurs who spoke at the meeting proposed measures to expand businesses, access new markets, implement standards, develop brands, and foster startups. The President supported the initiative to establish a Small Business Association.
It was emphasized that entrepreneurs remain under the continuous protection of the law and the state.
“I will always be your most reliable assistant and support. Do not tire of introducing innovations, and I will not tire of supporting you”, Shavkat Mirziyoyev stated.
Following the meeting, considering the proposals presented, a Presidential decree aimed at implementing the discussed measures will be adopted. All preferences specified in the decree will take effect immediately without requiring additional regulatory acts.
