On March 19 President of Uzbekistan Shavkat Mirziyoyev met with the representatives of small and medium-sized enterprises.
This sector plays a key role in the country’s economy, providing jobs, attracting investment, introducing innovations, improving 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, accounting for 74 percent of the total working population. This sector accounts for more than half of the economy, a third of industry and exports.
These indicators 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 government policy.
– Supporting entrepreneurship – our strategic path, – said Shavkat Mirziyoyev.
The meeting discussed priority tasks for the development of small and medium-sized businesses. In particular, the following goals for 2025 were outlined:
– increase the sector’s share 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 billion to $12 billion with support for transportation, certification and standardization of products;
– increase the share of small businesses in water supply, sanitation, 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;
– raise the number of enterprises with more than 100 employees to 4,000;
– develop 100 new small business brands;
– finance 200 startup projects involving small businesses.
To achieve these goals, a comprehensive program has been developed in cooperation with international experts. In 2025, $10 billion from various sources will be allocated for its implementation.
The President elaborated on the new opportunities that will be created for small and medium-sized businesses.
In particular, favorable resources in the amount of 22 trillion soums are envisaged to involve the population in entrepreneurial activity. Of these, 2.5 trillion soums will be allocated to support youth entrepreneurship and the same amount for the projects of women entrepreneurs. The interest rate on loans for women will be 2 percent lower than for other borrowers.
Starting this year, small businesses began to receive loans of up to 300 million soums. Now, entrepreneurs who have moved to the category of 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, collateral-free loans will be provided up to 50 million soums.
Alternative business financing is expanding. In the last five years, 53 startup projects worth $145 million were 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 raised from abroad. This will allow entrepreneurs to launch projects by introducing advanced technologies and innovations.
Innovative products and services developed by startups will be included in technical regulations and standards, facilitating their participation in government procurement.
Over the past three years, 250,000 new enterprises have been registered in the country. However, their further development requires the expansion of production facilities. In this regard, the heads of regions have been instructed to put up for auction those plots that will be attractive primarily for entrepreneurs wishing to expand their activities.
Another innovation: in Kungrad, Chimbay, Asaka, Gijduvan, Gallaral, Yakkabag, Khatyrchi, Chartak, Bulungur, Syrdarya, Denau, Kuva, Shavat districts and the cities of Yangiyul and Margilan all state institutions will be transferred to multi-storey buildings, and the vacated 150 administrative buildings will be auctioned for business.
Changes are also envisaged in the agricultural sphere. 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 discretion, as well as build storage, sorting and packing facilities. This year another 30 thousand hectares will be put up for bidding under this system.
As part of the recently established holding “Uzagrostar”, 16 companies specializing in fruit and vegetable processing have been opened. It is planned to build agro-industrial complexes in each region. For this purpose, 200 billion soums will be allocated at the first stage.
To support production 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 purpose in 2024.
Special programs will be adopted to support entrepreneurs working in equipment, electronics, medical devices, logistics and other promising areas.
The first year of work is important for new entrepreneurs. 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 mistake without fines.
The procedure for liquidation of small businesses is simplified. Companies with an annual turnover of less than 10 billion soums and without tax debt will be able to complete their operations without inspections.
As is known, VAT and profit tax rates will not be increased in the country until 2028. Now a three-year moratorium on adopting new regulations imposing new obligations on small and medium-sized businesses is introduced.
An important decision has been made for farmers: penalties of 1 trillion soums accrued earlier 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 to support small business in Uzbekistan is supported by international financial institutions. The President listened to the heads of the representative offices of the Asian Development Bank, the European Bank for Reconstruction and Development and the French Development Agency 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 business, enter new markets, introduce 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 supporter and backbone. Do not be tired of introducing innovations, and I will not be tired of supporting you, – emphasized Shavkat Mirziyoyev.
Following the meeting, with consideration of all proposals a presidential decree will be adopted aimed at implementing the discussed measures. All preferences provided in it will be effective immediately, without the need to adopt additional regulations.