Small businesses now play a central role in Uzbekistan’s growth, with rising output, more jobs and expanding opportunities for entrepreneurs across the country.
Across the country, a new wave of entrepreneurs is reshaping the business landscape. Their work is being supported by reforms aimed at improving access to finance, simplifying regulations and expanding programmes designed to help small businesses grow.
One example is Natalya Klimenko, founder of STEMIO, an ed-tech start-up helping children aged 7 to 18 learn STEM skills, from mathematics to programming and artificial intelligence. After testing her idea while working at another start-up, she launched her own platform roughly two years ago.
“The hardest part for any entrepreneur is understanding the real need you are solving and finding funding,” Klimenko says. “At first, our financing came from personal savings and help from family and friends. Later, bank loans and women-focused support programmes made it easier to grow.”
Today, STEMIO employs about 10 people and is building a gamified education system to strengthen future digital skills in Uzbekistan. Earlier this year, Klimenko joined the Plug and Play accelerator and travelled to Silicon Valley with support from UNDP to learn from global markets. She says the experience has influenced her vision for the company.
Finance reforms easing the path to start up
A significant challenge for new businesses historically has been access to financing, particularly collateral. Government changes now reflect different stages of growth. Small enterprises are eligible for loans up to €23 thousand, while businesses advancing into a higher category can receive up to €11.5 thousand without collateral if they have a positive credit and tax history. Family entrepreneurs may obtain up to €3.8 thousand unsecured, encouraging formalisation.
Women-owned firms benefit from interest rates that are two percentage points lower than regular preferential programmes.
Uzbekistan has also consolidated support services to make assistance more accessible in the regions. New structures under the Business Development Bank, including regional Small Business Support Centres and a dedicated development
fund, now provide financing and advisory support for entrepreneurs across the country. These institutions help deliver state programmes such as long-term family entrepreneurship loans and initiatives aimed at modernising production and boosting export capacity.
This broader infrastructure of support has been especially important for women entrepreneurs.
“These improvements are designed to make financing more inclusive,” says Zulfiya Saburova, Deputy Director at the Business Development Bank. “Entrepreneurs should not be held back just because they do not yet have property to collateralise.”
But according to Saburova, finance alone is not enough. Mobile outreach teams now operate across the country, offering on-site consultations, legal advice and economic education seminars tailored to women entering formal business for the first time. Training is also provided to local bank staff in Karakalpakstan, Fergana, Surkhandarya, Jizzakh, Syrdarya, Namangan and Khorezm to strengthen the quality of SME support.
A key part of this effort is international expertise. The Bank has partnered with the Entrepreneurship Education and Research Centre of Yamagata University in Japan to improve practical learning and design modern entrepreneurial training programmes. In August 2025, the U-HOPE 2025 innovation initiative was launched in Karakalpakstan under the Yuri-I project, bringing new tools for skills development into one of the regions most in need of inclusive economic growth.
Digital tools, including the hamroh.biznes-portal.uz online platform, now streamline the entire loan process, reducing paperwork and improving access for first-time business owners.
Improving the business climate
Policy reforms extend beyond finance. A three-year moratorium on introducing new regulatory obligations for SMEs will take effect from 1 July 2025, allowing new rules only twice a year. First-time violations in commerce will not lead to administrative penalties until 2028, easing pressure on new entrepreneurs.
These changes are reflected in rising confidence among business owners. The Business Climate Index recently reached 63 out of 100, the highest in two years.
“The number of SMEs has nearly doubled since 2017 and enterprises with foreign investment now exceed 17,000,” notes Salimjon Bekmuradov, Head of Entrepreneurial Development at the Institute for Macroeconomic and Regional Studies. His research shows that urban expansion and education directly support entrepreneurship. Every additional 1,000 residents results in around 35 new SMEs, while a single new university can create up to 300.
A new generation of policy approaches
The Uzbek government sees SMEs as critical to long-term growth and aims to increase their contribution to the economy to 55 per cent by 2030. €9.23 billion has been allocated for SME support in 2025, with €1.69 billion specifically for preferential lending. Half of that amount is dedicated to young and women entrepreneurs.
“Small and medium-sized businesses are one of the most essential driving forces of our economy,” says Timur Khusanov, Director of the Department for SME Development in the Ministry of Economy and Finance. “Our strategy supports their sustainability, improves access to finance and helps them enter foreign markets more confidently.”
The plans also aim to increase SME exports from €8.28 billion to €11.04 billion in the near term, supported by improved transport links, certification and access to international standards.
International support driving innovation
International organisations, including the Asian Development Bank and the World Bank, are launching new credit lines to reinforce these reforms. Under the World Bank’s Access to Finance for Jobs and Growth and MUNIS innovation programmes, Uzbekistan’s SMEs will be eligible for grants of up to €46 thousand and improved access to private capital through a Fund of Funds initiative. The Bank’s FINGROW initiative will also establish a Fund of Funds to attract private capital into green and high-growth sectors, backed by loan guarantees and advisory support. The World Bank Group additionally supports structural reforms, from strengthening the banking sector to improving corporate governance, to help create more jobs and build a more competitive private-sector economy.
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