THE ROLE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE DEVELOPMENT OF A MARKET ECONOMY IN UZBEKISTAN

Abstract

Small and medium-sized enterprises (SMEs) are one of the most significant institutional elements of a market economy and link together entrepreneurship, employment, competition, innovation and local economic development. The shift from a centrally planned economy to a market-oriented economy in Uzbekistan has fostered a growing space for the private sector.The private sector has developed in a wider space in Uzbekistan due to transition from a centrally planned economy to a market-oriented economy. Since 2017, the reform process has been rapid and has involved the liberalisation of currency, tax reforms, changes of business climate, privatisation programs, the increase in the use of digitalisation, and measures in order to increase access to finance. However, the impact of SMEs on the gross domestic product (GDP) is still low compared to many transition and developed economies, leaving a large potential to be tapped. This thesis first analyzes the role of SMEs in the development of the market economy in Uzbekistan, then provides an identification of the main factors that affect SME development, and finally examines the situation in different regions and creates a scenario for the development of SMEs until 2030.