INTEGRATING AGRICULTURAL SMALL BUSINESS ENTITIES INTO DIGITAL LENDING SYSTEMS AND INTRODUCING INNOVATIVE FINANCING MECHANISMS VIA COMMERCIAL BANKS

Аннотация

This article analyzes the integration of small business entities into digital lending systems and the effectiveness of innovative financing mechanisms through commercial banks. Digital lending plays a crucial role in providing small businesses with quick and easy access to financial resources, thereby promoting economic growth and enhancing competitiveness. The article examines innovative financing tools used by commercial banks, including online credit platforms, microloans, artificial intelligence, and blockchain technologies. The research findings confirm the positive impact of digital lending mechanisms on the development of small businesses and offer recommendations for improving the efficiency of this process. Additionally, the article emphasizes the importance of financial literacy, legislation, and digital infrastructure for the advancement of digital financing systems. Keywords: small business, digital lending, commercial banks, innovative financing, financial technologies, blockchain, artificial intelligence, microloan, digital transformation, economicdevelopment. Introduction: Small business entities play a crucial role in the sustainable development of the national economy. They contribute to job creation, the implementation of innovations, the development of local markets, and the enhancement of economic activity. However, the effective operation of small businesses depends on many factors, particularly access to financial resources. Traditional lending mechanisms often pose challenges for small businesses, as they are frequently perceived by banks as high financial risks or are unable to provide the required collateral. Therefore, the introduction of modern digital lending systems is opening new opportunitiesfor financing small businesses. Digital lending systems refer to mechanisms employed by banks and financial institutions that use advanced information and communication technologies to automate and accelerate the loan approval process. These systems facilitate easier access to financial services, reduce borrower risks, and increase the transparency of the lending process. In particular, commercial banks are striving to enhance economic efficiency by integrating small business entitiesinto digital lending systems. Globally, digital lending systems have demonstrated successful outcomes in meeting the financial needs of small businesses. For example, according to the World Bank’s 2023 98,7:ROTCAFTCAPMI .SECNEICSLACIDEM ,5202, enuJ,5emuloV gro.srehsilbupcimedaca.www report, in countries where digital financial services have been implemented, the volume of small business loans increased by an average of 30%. Similarly, in recent years, the volume of loans extended to small businesses by commercial banks in the Republic of Uzbekistan grew by 25% from 2020 to 2024, with 60% of these loans being granted through digital platforms. Scientifically, thistopicinterconnects modern financial technologies, theinnovative development oftheeconomy, and the support ofsmall businesses. Research shows that the widespread adoption ofdigital lending systems not only enhances theoperational efficiency ofcommercial banks but also serves as a crucial factor in ensuring thefinancial stabilityof smallbusiness entities. In terms of content, this article analyzes the role of digital lending tools in financing small businesses, the innovative mechanisms employed by commercial banks, and the effectiveness of the integration process. Additionally, practical indicators and challenges in financing are examined using theexampleofUzbekistan, and solutionsare proposed. In terms of scope, the introduction emphasizes the broad significance of the topic, drawing on the latest statistical data and scientific research. Therefore, the successful integration of small business entities into digital lending systems creates significant opportunities for the sustainabledevelopment ofthe national economy. Literature Review. Small business is a vital sector of any national economy, and its stability and development play a crucial role in stimulating economic growth, employment, and innovation. However, the financial needs of small business entities are often not fully met through traditional lending mechanisms. In recent years, digital lending systems— particularly innovative financing tools offered through commercial banks—have played an increasingly important role in facilitating access to financial services for small businesses. From this perspective, the effective integration of small businesses into digital lending systems is of significant scientific and practical relevance, as it contributes to enhancing economicefficiency and ensuring financial inclusion. Local scholars, in their research within the field, have thoroughly examined the impact of digital lending on the development of small businesses and the accessibility of financial services in Uzbekistan, highlighting the importance of rapid and convenient access. They emphasize th