STRENGTHENING THE FINANCING OF FAMILY-OWNED ENTERPRISES IN UZBEKISTAN THROUGH BANK CREDIT

Abstract

Family entrepreneurship plays an important role in the socio-economic development of Uzbekistan by contributing
to employment generation, poverty reduction, and balanced regional development. In the context of ongoing economic
reforms and structural transformation, the development of family-owned micro and small enterprises (MSEs) has become
a strategic priority for achieving inclusive and sustainable economic growth. Family businesses in Uzbekistan operate
across various sectors, including agriculture, handicrafts, trade, services, and small-scale manufacturing, providing
income opportunities for households and supporting rural development.
Despite government initiatives aimed at supporting entrepreneurship through preferential lending and subsidies, access
to affordable financial resources remains a major challenge for family enterprises. Limited collateral, low levels of financial
literacy, insufficient accounting transparency, high interest rates, and complex lending procedures restrict their ability to
obtain bank credit. Statistical analysis indicates that although lending to micro and small enterprises has increased in
recent years, the share of long-term investment loans remains relatively low.
The study highlights the importance of improving financial accessibility through the expansion of credit guarantee
schemes, the development of risk-based lending models, the promotion of digital financial services, and the strengthening
of entrepreneurial capacity. Enhancing access to bank financing will contribute to improving the sustainability and
competitiveness of family enterprises and support inclusive economic growth in Uzbekistan