EXPANDING BANK CREDIT OPPORTUNITIES FOR FAMILY-OWNED ENTERPRISES IN UZBEKISTAN
DOI:
https://doi.org/10.5281/zenodo.18985620Keywords:
Family entrepreneurship, family business development, bank financing, access to credit, micro and small enterprises, financial inclusion, UzbekistanAbstract
Family entrepreneurship plays an important role in Uzbekistan’s socio-economic development by contributing
to employment creation, poverty reduction, and regional economic stability. Family-owned micro and small enterprises
operate in sectors such as agriculture, handicrafts, trade, services, and small-scale manufacturing, providing income
opportunities and supporting local economic activity. Despite government programs and preferential lending initiatives
aimed at supporting entrepreneurship, limited access to affordable financial resources remains a major constraint for the
sustainable development of family businesses.
Several structural barriers restrict access to bank financing, including insufficient collateral, limited financial literacy, weak
accounting transparency, and relatively high interest rates. In addition, rural enterprises face geographic and informational
challenges that reduce their access to formal financial services. Although the overall volume of loans to small businesses
has increased, the share of long-term investment financing remains limited, and lending practices in the banking sector
still rely heavily on collateral-based assessment.
To improve access to bank credit, it is necessary to expand credit guarantee mechanisms, introduce risk-based lending
models, support concessional financing programs, promote digital financial services, and strengthen the financial
capacity of entrepreneurs. Improving financial inclusion and developing more flexible lending mechanisms will allow
family entrepreneurship to realize its full potential as an important driver of sustainable economic growth in Uzbekistan
References
Beck, T., & Demirgüç-Kunt, A. (2006). Small and Medium-Size Enterprises: Access to Finance as a Growth Constraint.
Journal of Banking & Finance, 30(11), 2931–2943.
Berger, A. N., & Udell, G. F. (2006). A More Complete Conceptual Framework for SME Finance. Journal of Banking &
Finance, 30(11), 2945–2966.
OECD. (2018). Financing SMEs and Entrepreneurs: An OECD Scoreboard. Paris: OECD Publishing.
OECD. (2020). SME and Entrepreneurship Policy in Uzbekistan 2020. Paris: OECD Publishing.
World Bank. (2021). Financing Small and Medium Enterprises in Central Asia. Washington, DC: World Bank Group.
World Bank. (2022). Uzbekistan Country Economic Memorandum: Toward a New Economy. Washington, DC: World
Bank Group.
Asian Development Bank (ADB). (2021). Supporting Small and Medium-Sized Enterprises in Uzbekistan. Manila:
ADB.
International Finance Corporation (IFC). (2019). MSME Finance Gap: Assessment of the Shortfalls and Opportunities
in Financing Micro, Small and Medium Enterprises in Emerging Markets. Washington, DC: IFC.
Levine, R. (2005). Finance and Growth: Theory and Evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of Economic
Growth. Amsterdam: Elsevier.
Stiglitz, J. E., & Weiss, A. (1981). Credit Rationing in Markets with Imperfect Information. American Economic Review,
(3), 393–410.
Demirgüç-Kunt, A., Beck, T., & Honohan, P. (2008). Finance for All? Policies and Pitfalls in Expanding Access.
Washington, DC: World Bank.
State Statistics Committee of the Republic of Uzbekistan. (2023). Annual Economic Report. Tashkent.
Central Bank of the Republic of Uzbekistan. (2023). Annual Report. Tashkent.
United Nations Development Programme (UNDP). (2022). Entrepreneurship and Inclusive Growth in Uzbekistan.
Tashkent.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 MUHANDISLIK VA IQTISODIYOT
This work is licensed under a Creative Commons Attribution 4.0 International License.