President of Uzbekistan Shavkat Mirziyoyev held a meeting with small and medium-sized businesses on March 19, discussing their key role in the economy and further steps to develop the sector.
Business growth and plans for 2025
Over the past five years, the number of small and medium-sized enterprises in the country has doubled, employing 10.5 million people (74% of the working population). This sector accounts for more than 50% of the economy, a third of industry and exports. The President stressed that supporting entrepreneurship remains a strategic direction.
Ambitious goals are set for 2025:
- Increase the share of small and medium-sized businesses in the economy to 55% with a value added of $70 billion.
- Expand small business exports from $9 billion to $12 billion.
- Increase the share of small businesses in infrastructure and utility projects by 2-3 times.
- Create 1.5 million jobs and increase employment in the sector to 75%.
- Increase the number of companies with more than 100 employees to 4 thousand.
- Develop 100 new national brands.
- Support 200 startups with funding.
To achieve these goals, a comprehensive program was launched with funding of $10 billion.
Financial support for entrepreneurs
In 2025, businesses will be granted preferential loans worth 22 trillion soums, including 2.5 trillion soums for youth and women's entrepreneurship. For women, the rate is 2% lower than the standard one.
Small businesses will be able to receive loans of up to 300 million soums, and recently transferred to medium-sized businesses-up to 150 million soums without collateral. Also, family business programs will allow receiving up to 50 million soums of unsecured loans.
Government support and new initiatives
Administrative buildings for businesses: in 15 districts and 2 cities, state institutions will be transferred to multi-storey complexes, and 150 vacant buildings will be put up for auction for entrepreneurs.
Land for business: in Karakalpakstan, Jizzakh, Tashkent and Ferghana regions, entrepreneurs will lease 5 thousand hectares of land with the possibility of building storage facilities and processing enterprises. In 2025, another 30 thousand hectares will be allocated under this system.
Agricultural support: Uzagrostar Holding has opened 16 processing companies. Agro-industrial complexes will be created in the regions with financing of 200 billion soums.
Project offices: small business support centers will be opened in 20 districts with the involvement of international specialists. 100 billion soums will be allocated for this purpose.
Tax benefits and business protection
- VAT and income tax rates will not be increased until 2028.
- A 3-year moratorium on new business commitments has been introduced.
- The procedure for liquidating small businesses has been simplified.
- Farmers will be charged penalties of 1 trillion soums.
- The "first opportunity" principle has been introduced: at the first administrative violation, the business will get a chance to correct the error without penalties.
New opportunities for entrepreneurs
Special attention will be paid to digital technologies, artificial intelligence and creative industries. Introduction of innovations will provide small businesses with access to public procurement.
The entrepreneurship development strategy was supported by international financial institutions. The meeting ended with the discussion of initiatives to create a Small Business Association and the signing of a presidential decree that will immediately enter into force.
«I will always be your reliable assistant and support. Don't get tired of innovating, and I won't get tired of supporting you", - the President assured entrepreneurs.
