THE SIGNIFICANCE OF STATE SUPPORT IN THE LEGALIZATION OF SMALL BUSINESS IN THE REPUBLIC OF UZBEKISTAN AS A PRIMARY FACTOR

Abstract

This thesis proposes a methodology for assessing the role of state support in the legalization of small and medium-sized businesses, highlighting that state support measures (financial, informational, consultative, and property assistance) and the simplified tax regime (professional income tax) have led to rapid growth in the number of self-employed individuals, yet as a result, the share of budget revenues from special regimes has, on the contrary, shown a declining trend. This contradiction is explained as creating a gap between the quantitative (number of subjects) and qualitative (budget efficiency) indicators of legalization. The share of small businesses in the country's GDP (50.5%), significant regional disparities (from 75.8% in Surkhandarya to 23.5% in Navoiy), and the evolution of the self-employment institution (from the preferential regime of 2020 to the introduction of the social tax in 2025–2026) are analyzed. In conclusion, the thesis proposes a multi-stage support model based on monitoring legalization not by the number of subjects, but through tax revenues and the stages of the business life cycle.