Innovation Activity of Small Businesses and Micro firms In The republic Of Uzbekistan

Аннотация

This article examines the innovative activities of small businesses and micro-firms in the Republic of Uzbekistan, focusing on their contribution to the nation’s socio-economic development. It highlights the strategic importance of innovation as a driving force for enhancing competitiveness, productivity, and sustainability in small enterprises. The study explores the current state of innovative practices, identifying key areas where these businesses have excelled, such as adopting digital technologies, developing new products, and improving services. It also analyzes the challenges they face, including limited access to financing, insufficient infrastructure, and a lack of skilled personnel. The article evaluates government initiatives and reforms aimed at fostering innovation in small businesses, including financial incentives, tax benefits, and the establishment of business incubators. Drawing on empirical data, it provides insights into how these measures have influenced the entrepreneurial ecosystem. By presenting examples of successful innovative projects, the study underscores the potential of small businesses to become engines of economic growth. The article concludes with recommendations for enhancing the innovation capacity of small businesses through policy adjustments, increased investment, and international collaboration. Keywords: Innovation, small businesses, micro-firms, Uzbekistan, entrepreneurship, competitiveness, digital technologies, government reforms, economic growth, sustainability. after the introduction of the *Strategy of Actions on Introduction: Small businesses and micro-firms play a the Development of Uzbekistan for 2017-2021*. This pivotal role in the economic development of the strategic framework emphasized modernization, Republic of Uzbekistan, contributing significantly to technological advancement, and innovation as key job creation, poverty reduction, and regional priorities for the nation’s socio-economic development. Over the past decade, the government of development. For example, the adoption of digital Uzbekistan has recognized the importance of fostering technologies in agriculture, textiles, and services has innovation in this sector to sustain economic growth significantly improved efficiency and output. and adapt to the challenges of globalization and technological advancement. According to the State In 2022, exports from small and micro-enterprises Statistics Committee, as of 2023, small businesses and reached $5.8 billion, driven largely by innovative micro-firms accounted for approximately 56.2% of the practices. country’s GDP and employed over 78% of the Despite these achievements, challenges remain. workforce. These figures underscore the sector’scritical Small businesses and micro-firms in Uzbekistan often role in the nation’s economy. The innovative capacity face barriers such as limited access to financing, of small businesses is crucial in increasing insufficient infrastructure, and inadequate legal productivity, diversifying economic activities, and support for intellectual property protection. enhancing competitiveness in both domestic and According to a 2021 report by the Ministry of international markets. Uzbekistan has seen a steady Economic Development and Poverty Reduction, only increase in innovation-driven enterprises, especially 32% of small businesses engaged in innovative International Journal of Management and Economics Fundamental 93 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) activities, with the majority citing financial barriers and leveraging opportunities for growth, constraints as the primary obstacle. Additionally, the these enterprises can become key drivers of lack of skilled personnel and outdated technologies sustainable development, aligning with the continues to hinder the full realization of their government’s vision of transforming Uzbekistan into a innovative potential. modern, competitive economy. In recent years, the government has intensified its METHODOLOGY efforts to address these challenges by implementing Turaevna, S. N. (2024). The author's research reforms aimed at creating a more conducive analyzes innovative approaches to ensuring environment for innovation. Key initiatives include employment of the population in the process of the establishment of innovation support funds, tax developing private entrepreneurship in the Republic incentives for research and development (R&D), and of Uzbekistan. The article considers new innovative the launch of business incubators and technology opportunities in the fields of digital economy, remote parks. For instance, the Yashnobod Innovation jobs, startups and technoparks, green economy and Technopark in Tashkent has been instrumental in ecological entrepreneurship, as well as agribusiness fostering partnerships between small businesses and and services. The methods of creating new jobs research inst