President: Supporting entrepreneurship is our strategic path

On March 19, President of Uzbekistan Shavkat Mirziyoyev held a meeting with representatives of small and medium-sized businesses, the press service of the head of our state reports.

This sector plays a key role in the country’s economy, providing jobs, attracting investment, introducing innovations, increasing competitiveness and stimulating exports. Over the past five years, the number of small and medium-sized enterprises has doubled. They employ 10.5 million people, which is 74 percent of the total working population. More than half of the economy, a third of industry and exports account for this sector.

These figures clearly demonstrate the importance of small and medium-sized businesses for the country. The President emphasized that support for entrepreneurship will remain a priority area of ​​​​state policy.

‘Support for entrepreneurship is our strategic path’, – said Shavkat Mirziyoyev.

The meeting discussed priority tasks for the development of small and medium businesses. In particular, the following goals are outlined for 2025:

– increase the share of the sector in the economy to 55 percent with the creation of added value in the amount of 70 billion dollars;

– expand small business exports from 9 to 12 billion dollars, providing support in transportation, certification and standardization of products;

– increase the share of small businesses in the areas of water supply, sewerage, road construction, utilities, logistics, migration, culture and social services by 2-3 times;

– create 1.5 million permanent jobs and increase the share of the employed population in this sector to 75 percent;

– increase the number of enterprises with more than 100 employees to 4 thousand;

– develop 100 new brands in the small business sector;

– finance 200 start-up projects with the participation of small businesses.

To achieve these goals, a comprehensive program has been developed jointly with international experts. In 2025, 10 billion dollars will be allocated for its implementation from various sources.

The President spoke in detail about the new opportunities that will be created for small and medium-sized businesses.

In particular, preferential resources in the amount of 22 trillion soums are provided to involve the population in entrepreneurial activity. Of these, 2.5 trillion soums will be directed to support youth entrepreneurship and the same amount to projects of women entrepreneurs. The interest rate on loans for women will be 2 percent lower than for other borrowers.

Since this year, small businesses have begun to receive loans of up to 300 million soums. Now entrepreneurs who have become small or medium-sized enterprises over the past year will be able to receive up to 150 million soums without collateral. In addition, under family entrepreneurship programs, unsecured loans of up to 50 million soums will be provided.

Alternative business financing is expanding. Over the past five years, 53 start-up projects worth $145 million have been implemented through venture funds. To further develop this area, three new venture funds with a total capital of $50 million have been created, and an additional $50 million has been attracted from abroad. This will allow entrepreneurs to launch projects by implementing advanced technologies and innovations.

Innovative products and services developed by startups will be included in technical regulations and standards, which will facilitate their participation in public procurement.

Over the past three years, 250 thousand new enterprises have been registered in the country. However, their further development requires expansion of production areas. In this regard, heads of regions have been instructed to put up for auction those sites that will be attractive primarily to entrepreneurs wishing to expand their activities.

Another innovation: in Kungrad, Chimbay, Asaka, Gijduvan, Gallyaral, Yakkabag, Khatyrchin, Chartak, Bulungur, Syrdarya, Denau, Kuva, Shavat districts and the cities of Yangiyul and Margilan, all government agencies will be transferred to multi-story buildings, and the vacated 150 administrative buildings will be put up for auction for businesses.

Changes are also envisaged in the agricultural sector. In the Republic of Karakalpakstan, Jizzakh, Tashkent and Fergana regions, more than 5 thousand hectares of land are leased under the new system. Entrepreneurs will be able to grow crops on these plots at their own discretion, as well as build storage facilities, sorting and packaging facilities. This year, another 30 thousand hectares will be put up for auction under this system.

The recently created holding ‘Uzagrostar’ has 16 companies specializing in processing fruits and vegetables. In each region, it is planned to build agro-industrial complexes. For this, 200 billion soums are allocated at the first stage.

To support the manufacturing business, project offices for the development of small and medium-sized enterprises will be opened in 20 districts. They will attract foreign specialists – engineers, technologists, designers, accountants and marketers. 100 billion soums will be allocated for this in 2024.

Special programs will be adopted to support entrepreneurs working in the field of equipment, electronics, medical devices, logistics and other promising areas.

For new entrepreneurs, the first year of work is important. In this regard, the ‘first opportunity’ principle is introduced: if a small business commits an administrative offense for the first time, it will be given the opportunity to correct the error without fines.

The procedure for liquidating small businesses is simplified. Companies with an annual turnover of less than 10 billion soums and no tax arrears will be able to terminate their operations without inspections.

As is known, VAT and income tax rates will not be increased in the country until 2028. Now a three-year moratorium on the adoption of new regulations that impose new obligations on small and medium businesses is being introduced.

An important decision has been made for farmers: previously accrued penalties in the amount of 1 trillion soums for late payment of taxes will be written off.

Favorable conditions will be created for the development of artificial intelligence, digital and environmentally friendly technologies, as well as creative industries.

The strategy for supporting small businesses in Uzbekistan is receiving support from international financial institutions. The President heard from the heads of representative offices of the Asian Development Bank, the European Bank for Reconstruction and Development and the French Development Agency, who were present at the meeting, and expressed gratitude to them for their contribution to the development of entrepreneurship in our country.

The entrepreneurs who spoke at the meeting proposed measures to expand their businesses, enter new markets, implement standards, create brands and develop startups. The President supported the initiative to create the Small Business Association.

It was noted that entrepreneurs are under the constant protection of the law and the state.

‘I will always be your most reliable assistant and support. Do not get tired of introducing innovations, and I will not get tired of supporting you’,– Shavkat Mirziyoyev emphasized.

Following the meeting, taking into account the proposals made, a presidential decree will be adopted aimed at implementing the discussed measures. All preferences provided for in it will be effective immediately, without the need to adopt additional regulations.