WAYS TO INCREASE THE RATING LEVEL OF SMALL BUSINESS ENTITIES THROUGH THEIR FINANCIAL INDICATORS

Аннотация

This article analyzes the factors influencing the rating level of small businesses in Namangan region and explores effective ways to improve it. Particular focus is placed on financial stability, tax discipline, innovation activity, and marketing strategies. Based on the research findings, practical recommendations are provided to enhance theeconomic efficiency of smallbusiness entities andimprovetheir credit ratings. Keywords: small business, rating score, financial stability, innovation, Namangan region, marketing strategy, economic efficiency In the process of transition to a market economy, small business and private entrepreneurship are manifested as an important strategic factor in the sustainable development of the economic system of Uzbekistan. Especially in recent years, systematicreforms have been carried out in our country to support small business entities in every possible way, strengthen their financial potential and improve international rating assessments. However, the rating level of small business enterprises is still rated below its capabilities. This situation is limiting their chances of attracting foreign investment, free access to bank loans and increasing competitiveness. In particular, financial openness, tax discipline, transparency of management, innovative activities and insufficient development of marketing approaches have a negative impact on their rating assessment. In this article, on the example of the Namangan region, the factors that form the rating of small business enterprises are analyzed and scientific-theoretical approaches to increasing the rating level of these enterprises and practical recommendations are developed. The results of this analysis can serve to improve the policy of sustainable development of small businesses onanational scale. LITERATURE ANALYSIS The issue of improving the economic efficiency of small business enterprises and improving their rating level is one of the most relevant topics not only in Uzbekistan, but also in the experienceof developed and developing countries. Inlocal literature,including Z. A.Hakimov, Sh. A. Yuldashev, G. M. On the role, financial stability and innovative development of small businesses in economic activity by economists suchas Toshmatovaresearch has been conducted. In Particular, G. Toshmatova's work on the development of rating indicators based on the analysis of financial indicators in small business entities is significant. Also, the decisions of the president of the Republic of Uzbekistan and the relevant documents of the Cabinet of Ministers enshrined regulatory framework aimed at supporting small businesses. Among Russian scientists, E. G. Animitsa, A. V. Chayanov and L. I. The work of the abalkins emphasizes the methodology for rating small enterprises, indicators for assessing the activities of enterprises and their role in obtaining loans. In particular, corporate rating systems developed by organizations such as Sberbank, the Russian Entrepreneurship Agency offer personalized methodologies for small businesses. And in foreign literature, M. Porter, J. Stiglitz, D. Storey and B. Berger's https://ijmri.de/index.php/jmsi volume 4,issue5,2025 582 work highlights the strategic role of small businesses in the economy, the place of rating systems in determining their competitiveness. Small business valuation methodologies developed by international financial institutions, notably World Bank, OECD and IFC, ESG (Environmental, Social, Governance) Rating approaches serve as the theoretical basis for the article. Based on these literary sources, the factors that serve to increase the ranking of small business enterprises in Namangan region are determined through a systematic approach. Number ofsmall business entities byDistrict ofNamangan region as ofJanuary 1,2024 № District/City Number ofsmall business entities Share(%) 1 Namangan sh. 13440 31,2 2 Chust 3792 8,8 3 Pop 3104 7,2 4 Uchqo‘rg‘on 3016 7,0 5 Kosonsoy 2880 6,7 6 To‘raqo‘rg‘on 2704 6,3 7 Uychi 2640 6,1 8 Chortoq 2464 5,7 9 Yangiqo‘rg‘on 2288 5,3 10 Norin 2112 4,9 11 Namangan tumani 1936 4,5 12 Mingbuloq 1760 4,1 Total 43136 100 Source:Department ofStatistics, Namangan region, January 2024. The table” number of small business entities by District of Namangan region " shows that the highest share of small business entities is in the contribution of Namangan city (13,440 units or 31.2%). This is due to the development of the city's infrastructure, high levels of Service and trade. Also, population density in the city, the development of a market environment, the convenience of logistics and banking services create a positive environment for small businesses. Districts such as Chust, Pop, Uchkurgan also have a significant share, indicating the active development of traditional handicrafts and agro-business sectors in these areas. Mingbuloq, Namangan district and Norin, on the other hand, have relatively low rates, implying the need to strengthen incentives for s