STATE POLICY OF SUPPORTING PRIVATE ENTREPRENEURSHIP AND ITS RESULTS

Аннотация

This article discusses the content, directions and effectiveness of the state policy on supporting private entrepreneurship in Uzbekistan. It analyzes the contribution of economic reforms, legislative initiatives and financial mechanisms to the development of the private sector. It also highlights the practical results of this policy based on statistical indicators and expert assessments, and provides strategicrecommendations forimprovement. Keywords: private entrepreneurship, state support, economic policy, financial instruments, business development, Uzbekistan. 1.Introduction. Entrepreneurship, as a key component of any market economy, plays an important role in increasing the country's economic potential, providing employment and increasing the income of the population. Among the types of entrepreneurship, traditional entrepreneurship occupies a special place, as it is a form of activity that is widespread in the early stages of economic reforms, is notcomplex interms oforganization andinnovation1. Traditional entrepreneurship is usually understood as a form of economic activity that has been formed over a certain period of time and has been mastered by the general public, has a relatively stable market demand and does not require a high level of creativity, innovative technologies or advanced management solutions in its operation. This type of activity is often aimed at taking advantage ofexisting conjunctural situationstoprofit. 1 Saidova M. "The Activities of Commercial Banks in Financial Support of Small Businesses". // Scientific Journal "FinancialAnalysis",No.2,2022. 342 INTERNATIONAL MULTIDISCIPLINARY JOURNAL FOR RESEARCH & DEVELOPMENT SJIF2019:5.2222020:5.5522021:5.6372022:5.4792023:6.5632024:7,805 eISSN:2394-6334 https://www.ijmrd.in/index.php/imjrd Volume12,issue06(2025) 2.Analysisofliterature onthe topic. In world experience and scientific literature, entrepreneurship is recognized as an important driver of economic development. Scholars such as Schumpeter (1934)2 and Acs & Audretsch (2003) have emphasized the role of the state in creating a favorable environment for private business3. In Uzbekistan, Khakimov (2021) studied the effectiveness of tax incentives, microfinance, and administrative reforms4. The role of state policy in the development of private entrepreneurship has been widely covered in global and local studies. Scientific sources recognize entrepreneurship as a driverof economic growth andput forward different approaches to theregulatory, stimulating, and institutionalizing role of the state. J.A. Schumpeter (1934) in his work “The Theory of Economic Development” argues that entrepreneurs achieve economic growth through innovation. In this process, the state mediates in creating an entrepreneurial environment. Khakimov A. (2021) in his monograph “Development of the Private Sector in Uzbekistan” provides an in-depth analysis of the reforms carried out in recent years, especially the simplification of the taxation system, the digitization of public services, and the role of bank loans. The annual reports of the Central Bank and the State Statistics Committee (2020–2024) show the results of state policy through indicators such as the share of the private sector in GDP, the number of registered entrepreneurs, and thevolumeof loans allocated. 3.Research methodology. This article studies and analyzes the state policy of supporting private entrepreneurship and its results. In the research process, the methods of dialectics, economic analysis, comparative comparison, statistical grouping, monographic observation, induction, deduction, logical and abstract thinking, and prospective forecasting were widely used. 4.Analysisandmain results. In the early years of Uzbekistan's independence, especially in the 1990s, during the country's transition to a market economy, against the backdrop of resource scarcity and high demand for consumer goods, the population paid wide attention to traditional forms of entrepreneurship. In particular, such activities as trade, small-scale production, and the provision of household services served as a source of income for many citizens. In these conditions, the lack of economic knowledge and experience was not a decisive factor; there was an opportunity to earn income through simplepractical approaches based onthebalance ofsupply anddemand. Nevertheless, in today's competitive and dynamic environment of a market economy, such approaches are beginning to lose their effectiveness. Innovation, digital technologies, strategic management, and adaptability to rapid changes in the market are becoming the main factors of successful entrepreneurial activity. Nevertheless, someentrepreneurs stillrely on traditional forms of entrepreneurship, taking into account factors such as the relative simplicity of operations and thespeed ofcapital turnover. 2Schumpeter,J.A.(1934).TheTheoryofEconomicDevelopment. 3Acs,Z.&Audretsch,D.(2003).HandbookofEntrepreneurshipResearch. 4Khakim