Formation of financial resources from external sources for small business entities in the conditions of new Uzbekistan economy: problems and solutions

Аннотация

This article thoroughly analyzes the issues of forming financial resources for small business entities from external sources. Small business plays a significant role in the economy of Uzbekistan, accounting for 55-60% of GDP. The article discusses the problems in their development, particularly the difficulties in obtaining credit, resource shortages, and bureaucracy. In addition to traditional sources, modern methods such as investment funds, government grants, and crowdfunding are proposed for forming financial resources. The importance of improving financial literacy, developing cooperation with external sources, and utilizing government programs is emphasized. Furthermore, the "Robotic Financial Assistant" program is suggested to help small businesses analyze financial data and obtain loans. The article presents important solutions that can stimulate the development of small businesses and lead to positive changes in the economy. Keywords: Small business, financial resources, external sources, credit acquisition, investment, grants, financial literacy, robotic assistant. in implementing innovations and creating new Introduction: Small business is one of the important products, thereby increasing job opportunities and components of Uzbekistan's economy, and its impact invigorating the market.[3] Additionally, small on the country's economic landscape is significant. businesses contribute to ensuring social and economic Currently, small businesses account for 55-60% of stability within the local community and strengthen Uzbekistan's GDP, clearly demonstrating the local economic structures. For this reason, small importance of this sector. The primary tasks of small business is considered one of the main pillars of businesses include creating jobs, fostering economic Uzbekistan's economy, and its development positively development, providing local products and services, impacts the country's social and economic progress. [5] implementing innovations, and increasing competitiveness. This sector plays a crucial role in Today, there are over 523,000 small business entities developing the local economy, enhancing economic operating in our country. (Table 1) Each year, more activity, and stimulating overall economic growth in the than 86,000 new entrepreneurial entities are country. Active participation in the production of local established, leading to an increase in the number of products and the provision of services reduces the businesses. However, the number of entities that have need for imports. Small businesses are actively involved ceased operations or terminated their activities is also International Journal of Management and Economics Fundamental 56 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) rising. Several factors may contribute to this, such as problems, and technological changes. financial issues, competition, economic conditions, demand for products and services, management Table 1 Regional Demography of Small Business Entities in Uzbekistan [19] Total Share Numbe Number of Active Number of Number of r of of Newly Entities in No Region Name Active Inactive Termin Establish Regions Entities Entities ated ed (Percentage Entities ) Republic of Uzbekistan 86 030 523 556 32 415 30 229 100.00% Of which in regions: 1 Republic of Karakalpakstan 6 247 22 863 1 143 1 851 4.40% 2 Andijan Region 4 185 39 038 3 128 1 621 7.50% 3 Bukhara Region 5 633 30 082 2 073 2 341 5.70% 4 Jizzakh Region 4 424 22 474 1 777 1 856 4.30% 5 Kashkadarya Region 5 922 36 421 2 564 3 108 7.00% 6 Navoi Region 3 796 22 844 1 153 1 848 4.40% 7 Namangan Region 4 636 32 305 1 293 2 405 6.20% 8 Samarkand Region 7 570 47 943 3 082 3 751 9.20% 9 Surkhandarya Region 3 804 27 368 1 557 1 710 5.20% 10 Syrdarya Region 2 203 15 036 1 172 639 2.90% 11 Tashkent Region 6 940 49 145 4 816 1 538 9.40% 12 Fergana Region 8 036 46 350 2 682 2 260 8.90% 13 Khorezm Region 6 347 25 616 1 891 2 225 4.90% 14 Tashkent City 16 287 106 071 4 084 3 076 20.30% From the data in Table 1, it can be seen that nearly them effectively. 11.9% of all small business and private entrepreneurial Every business entity primarily aims to establish entities are terminating their activities or have operations and manage them efficiently to achieve suspended operations due to various problems. As high income (profit). To achieve this goal, they select a noted above, various economic scholars have solid business plan and implementation strategies. thoroughly studied the existing issues affecting the However, to implement these projects, entrepreneurs effective continuation of entrepreneurial activities and require financial resources. There are two traditional conducted scientific research addressing their sources for forming financial resources. These include resolution. In this article, we aim to explore the issues internal sources, meaning the entrepreneur's own related to forming financial resour