Tashkent, Uzbekistan (UzDaily.com) -- Rapid development of the national economy and ensuring high growth rates are one of the most important priorities of the development strategy of “New Uzbekistan” for 2022-2026.

In recent years, the government of our country has been carrying out large-scale work to create decent living conditions for the population, improve the business environment, and ensure employment by supporting the socio-economic development of the country, active entrepreneurship, innovative ideas and creative potential.

Thus, small business and private entrepreneurship are considered the main and most important link in the economy of our country, and today work is underway to actively develop this area, support the activities of entrepreneurs, and further expand their ranks.

In particular, as of 1 April 2024, the number of enterprises and organizations operating in Uzbekistan (excluding dehkan farms and farms) is 469,100 units, of which 401,300 units – small enterprises and microfirms.

Also during this period, 695,900 enterprises and organizations were registered, and the growth rate, compared to the same period of last year, amounted to 7.0%.

As of 1 April 2024, the number of operating enterprises and organizations amounted to 469,100. When compared with the same period in 2020, the growth rate was 12.9%.

A significant share of enterprises when distributed by type of economic activity (share in the total number) falls on trade - 33.3%, industry - 13.4%, agriculture, forestry and fisheries - 7.3%, construction - 6.8% , and in a regional context - to the city of Tashkent - 21.2%, Tashkent - 9.2%, Samarkand - 9.1%, Ferghana - 8.3% and Kashkadarya - 6.6% regions.

As of 1 April 2024, the number of active business entities reached 404.7 thousand. When compared with the same period in 2020, the growth rate was 14.1%.

Their distribution by type of economic activity (share in the total) was as follows: trade - 38.5%, industry - 15.5%, agriculture, forestry and fisheries - 8.3%, construction - 7.8 %, accommodation and food services - 6.9%, transportation and storage - 4.2%, information and communications - 2.5%, healthcare and social services - 2.3%, other types - 14.0%.

An important factor for assessing the “health” of a country’s economy is the functioning of small businesses, which is an indicator of flexibility and the ability to adapt to a constantly changing economic situation.

Thus, in January-March 2024, the number of newly created small businesses compared to the corresponding period in 2023 increased in the accommodation and food industry from 1,454 to 1,601 units. (an increase of 147 units), healthcare and social services – from 353 to 383 units. (increase by 30 units).

Regionally, the largest number of small businesses operate in the city of Tashkent (21.8%), Tashkent (9.3%), Samarkand (9.1%), Ferghana (8.1%) and Bukhara (6.6). %) areas. In these regions, over 50% of small businesses are recorded from their total number.

Based on the total number of enterprises and organizations, the number of industrial enterprises amounted to 13.4%, of which 94.1% belong to the manufacturing industry, 3.5% to the mining industry and quarrying, 1.6% to water supply, sewerage, waste collection and disposal, 0.8% - electricity supply, gas, steam and air conditioning.

In Uzbekistan, the construction industry is identified as a priority sector of the economy.

The analysis carried out by section in the construction industry showed that:
-the share of enterprises in the construction of buildings and structures reached 54.0%;
-the share of enterprises in the specialized construction work section was 29.9%;
-the share of enterprises in the construction of civil facilities section is fixed at 16.1%.

The analysis showed that every third operating enterprise in the republic operates in the trade sector, of which 99.6%, or 155.3 thousand, are small businesses.

The distribution by section in the trade sector is as follows:
- the share of retail trade enterprises, except for the sale of cars and motorcycles, reached 59.4%;
- the share of wholesale trade enterprises, except for trade in cars and motorcycles, was fixed at 31.3%;
- the share of enterprises in the wholesale and retail trade of cars and motorcycles and their repair was 9.3%.

As of 1 April 2024, the growth rate of the number of operating enterprises and organizations in the accommodation and food services industry, compared to the same period in 2020, amounted to 4.2%.

Analysis by section in this service industry showed:
– hotels, tourist camps, recreation and entertainment parks represent the bulk of activity in the accommodation services section and, as of 1 April 2024, the share of these enterprises and organizations amounted to 11.0% of the total number of operating enterprises and organizations in the accommodation services industry and nutrition;
– restaurants and services for the delivery of food and food to order, included in the section of services for the provision of food and beverages, amounted to 89.0%.

A significant part of the total number of enterprises and organizations operating in the healthcare and social services sector – 9,451 units, or 86.7% – is accounted for by business entities.

Analysis of their sections showed that:

- 95.2% were enterprises in the field of healthcare; the number of residential care providers was 2.6%; the number of enterprises providing social services without providing accommodation in the healthcare and social services sector amounted to 2.2%.

As of 1 April 2024, the number of operating enterprises and organizations in the transportation and storage industry amounted to 3.7% of the total number of enterprises in the country.

Analysis by section in this industry showed:

- the number of enterprises and organizations in the section of land and pipeline transport operating in the transportation and storage industry amounted to 69.5%;
- in warehousing and auxiliary transport activities - 26.4%;
- in postal and courier services – 3.5%;
- in the air transport section – 0.5%;
- in water transport – 0.1%.

Of the 404.7 thousand operating commercial enterprises and organizations, as of 1 April 2024, limited liability companies account for 298.3 thousand and occupy first place among enterprises in terms of their organizational and legal form. Based on this, we can come to the conclusion that these societies are the most common form of business activity in the country.

A significant share of enterprises when distributed by type of economic activity (share in the total number) falls on trade - 37.6%, industry - 14.2%, construction - 9.1%, agriculture, forestry and fisheries - 8.8% .

The highest figures for their number were recorded in Tashkent - 7,755 units, Kashkadarya region - 6,915 units and Ferghana region - 6,520 units. By type of economic activity, private enterprises were distributed in the trade sector - 26,313 units, industry - 8,409 units, accommodation and food services - 4,893 units, construction - 3,592 units.

The number of operating family enterprises that have undergone state registration as a legal entity, as of 1 April 2024, compared to the corresponding period in 2020, increased by 12,423 units.

A significant share of enterprises when distributed by type of economic activity (share in the total number) falls on trade - 39.6%, industry - 25.2%, accommodation and food services - 17.6%, agriculture, forestry and fisheries - 6.3%, and in the regional context - to Samarkand - 17.8%, Khorezm - 10.9% and Ferghana - 10.8% regions.

As a result of active work to develop international economic cooperation, the number of enterprises with foreign investment in our country is increasing significantly.

Thus, in January-March 2024, the growth rate of the number of newly created enterprises and organizations with foreign investment, compared with the corresponding period in 2023, amounted to 108.0%.

Over the past five years, the number of operating enterprises with foreign investment has increased 1.3 times.

The leading place is occupied by the Russian Federation - 3,019 enterprises with full or partial participation, which is 21.2% of the total number of operating enterprises with foreign investment in the republic. Among the countries pouring their capital into the economy of Uzbekistan, a special place is also occupied by China (17.6% of the total number of operating enterprises with foreign investment in the republic), Turkey (13.3%), Kazakhstan (7.7%) and South Korea (5.1%).

Uzbekistan is carrying out comprehensive economic and social reforms aimed at accelerating economic growth, expanding international relations and creating favorable legal conditions for foreign direct investment. The country’s strategic geographical location and rich and diverse natural resources present enormous potential for investment and growth. The government of the republic pays close attention to increasing foreign investment in order to stimulate business development and introduce modern technologies to improve the well-being of its citizens.

The main features of Uzbekistan’s new foreign policy are openness, attention to the priorities of long-term sustainable development, strengthening good neighborly relations with neighboring countries, and expanding international cooperation on an impartial basis.

As a result, it is noted that today consistent reforms are being implemented in various sectors of the economy of Uzbekistan aimed at stimulating the process of creating internal conditions necessary for conducting business and attracting investments.

Based on this, out of 14,226 units operating enterprises with foreign investment, 4,576 units are joint, and 9,650 units – foreign enterprises.

In order to create the most favorable investment climate in the country to attract direct investment, large-scale measures have been implemented to liberalize the economy, limit interference in the activities of business entities, reduce and simplify licensing and permitting procedures, ensure free access to goods (works and services), as well as the creation in the regions of the necessary infrastructure. As a result, every year there is an increase in enterprises with foreign investment.

Thus, as of 1 April 2024, the number of registered enterprises with foreign investment, compared to the same period of last year, increased by 2,836 units and reached 19,869 units.

In recent years, Uzbekistan has carried out an accelerated transformation of its economy and is increasingly appearing in the international community as one of the symbols of openness, innovation and determination in removing various kinds of barriers to business and investment.

Thus, the increase in the number of enterprises with foreign investment is primarily due to political stability and improvement of the legal framework for investment activity in the country.

The significant growth of business entities was expressed by an increase in the number of operating small businesses from 334.8 thousand as of 1 January 2020 to 417.1 thousand as of 1 January 2024.