DIRECTIONS FOR FINANCING AND IMPROVING SMALL BUSINESSES IN UZBEKISTAN

Аннотация

The government of Uzbekistan aims to improve the small business financing system in Uzbekistan by attracting foreign experience. Cooperation with influential individuals and organizations, as well as cooperation with financial centers and consulting firms, is an important initiativein thisregard. Keywords:small business financing, foreign experience, financial reporting, financial management, investor attraction, increased financing, foreign investments, tax assistance, economicdevelopment. The small business financing system in Uzbekistan is brought into line with world standards, creating a favorable environment for economic development and entrepreneurship. The use of foreign experience is an integral part of creating a favorable environment that supports small businesses and contributes to the sustainable growth of the Uzbek economy. Small businesses play an important role in the economic development of Uzbekistan, accounting for a significant part of the country's GDP and employment. However, access to financing remains a significant problem for small businesses in the country and hinders their growth and development. In this article, we analyze the current system of small business financing in Uzbekistan, compare it with financing systems in foreign countries, and make recommendations for improving the financing opportunitiesof smallbusinesses in Uzbekistan. In Uzbekistan, the small business financing system is dominated by banks, which provide various types of loans, including working capital, investment loans, and leasing. However, the current financing system faces several challenges, including high interest rates, collateral requirements, and limited access to credit for startups and micro-firms. In addition, the lack of financial literacy among small business owners and the absence of credit bureaus make it difficult for small businesses to access financial resources. To gain insight into potential solutions to the problems facing small businesses in Uzbekistan, it is possible to compare financing systems in foreign countries. For example, in the United States, small businesses can obtain finance through a variety of sources, including banks, venture capital, and crowdfunding. In China, small businesses can access finance through online lending platforms and peer-to-peer lending. These financing systems offer several advantages, including low interest rates, flexible collateral requirements, and access to financing forstartups and microenterprises. To improve the small business financing system in Uzbekistan, the state and financial institutions can adopt several best practices from foreign financing systems. For example, the government can establish credit bureaus to improve the exchange of credit information and increase the financial literacy of small business owners. Financial institutions can also offer alternative financing options, such as venture capital and crowdfunding, to provide small businesses with access to financing without requiring collateral. In addition, the government can provide tax incentives and subsidies to financial institutions to encourage them to lend to small businesses. The attention paid by the Uzbek government to improving the small business financing system based on foreign experience is an important step towards improving the country's economic landscape. page283 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue03,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai Uzbekistan can create a favorable environment for the growth and development of small businesses, incorporating advanced international practices. The Government's cooperation with influential figures and organizations, financial centers and consulting companies shows that our country is actively approaching the use of foreign experience in improving the small business financing system. The identified areas for strengthening improvement based on foreign experience cover important aspects of the success of small businesses in Uzbekistan. These areas include financial reporting and distribution, financial management systems, attracting investors, increasing financing, cooperation with foreign investments, and tax support. By focusing on these key areas, O‘zbekiston kichik biznesni moliyalashtirish tizimini jahon standartlari va amaliyotiga moslashtirish, iqtisodiy farovonlik va tadbirkorlik rivoji uchun qulay muhit yaratishni maqsad qilgan. Bundan tashqari, moliyalashtirishni ko‘paytirish va moliya tizimini xorijiy tajriba asosida optimallashtirishga yo‘naltirilgan yo‘nalishlar kichik biznesning rivojlanishi uchun zarur bo‘lgan qo‘llab-quvvatlash va resurslarni ta’minlashda muhim ahamiyat kasb etadi Bunday yondashuv O‘zbekistonda kichik biznes subyektlarining barqaror o‘sishi va rivojlanishiga xizmat qiladi , Bu yerda ko‘rib chiqilishi mumkin bo‘lgan eng yaxshi xalqaro tajribagaasoslangan birnechta yo‘nalishla