Uzbekistan invests $10 billion in small and medium-sized businesses
President Shavkat Mirziyoyev Unveils Large-Scale Program to Support Small and Medium-Sized Businesses
President Shavkat Mirziyoyev of Uzbekistan recently hosted a meeting with representatives of small and medium-sized businesses (SMEs) to announce the launch of a comprehensive program aimed at fostering the development of the sector. The initiative, developed with the assistance of foreign experts, will see an investment of approximately $10 billion, equivalent to 120 trillion UZS, from various funding sources — an unprecedented amount in the country.
A significant portion of the allocated funds, amounting to 22 trillion UZS, will be directed towards providing preferential loans to encourage citizens to venture into entrepreneurship. Specifically, 2.5 trillion UZS will be earmarked for youth-led business projects, with a similar amount set aside for businesses led by women. In a show of appreciation for the efforts of women entrepreneurs who balance business responsibilities with household duties, a 2% reduction in interest rates will be applied to loans granted to them.
Eligible entrepreneurs looking to expand their microenterprises into small businesses or small businesses into medium-sized companies can secure unsecured loans of up to 150 million UZS, provided they have no outstanding overdue loans. Furthermore, under family business programs, entrepreneurs can access up to 50 million UZS without the need for collateral.
In a bid to promote alternative financing sources, discussions also centered on supporting venture capital investments. The president expressed his dissatisfaction with the current level of investment from venture funds in startup projects and highlighted the establishment of three venture capital firms by state banks earlier this year. With a collective fund volume of $50 million, these firms aim to provide aspiring entrepreneurs with vital financial support, paving the way for innovation and technological advancements in the economy.
As part of the program, successful products and services developed by startups will be integrated into technical regulations and standards, granting them access to lucrative government contracts. President Mirziyoyev also endorsed the idea of allocating a portion of venture capital funds towards artificial intelligence projects, signaling a progressive approach towards fostering growth and innovation in the SME sector.
