President met with representatives of small and medium-sized businesses

Yesterday, President Shavkat Mirziyoyev met with representatives of small and medium-sized businesses, along with the heads of international financial institutions. During the meeting, they discussed key priorities for the development of small and medium-sized enterprises and announced important news.

Small and medium-sized businesses face various challenges today. To address these issues, the President gathered business representatives to listen to their concerns and discuss goals and objectives. A similar meeting was held with national champions in December last year. A key question raised at the meeting was: What needs to be done to make you a champion too? 

In Uzbekistan, small and medium-sized businesses play a crucial role in job creation, investment, innovation, competition, added value, and exports. This sector accounts for more than half of the economy, one-third of industry, and exports. These figures clearly show the importance of small and medium-sized businesses for the economy. Therefore, the Head of State emphasized that supporting this sector will remain a priority of state policy. 

“Supporting entrepreneurship is our strategic path,” said President Shavkat Mirziyoyev. The goal is to increase the share of small and medium-sized businesses in the economy to 55% by 2025, generating an added value of $70 billion. A key challenge is finding markets for Uzbek products. The government is committed to assisting businesses with transportation, certification, and meeting international standards to enter new markets. If markets are secured, exports will grow. 

The meeting set specific goals: increasing small business exports from $9 billion last year to $12 billion, expanding small businesses' share in drinking water, sewage, roads, construction, utilities, delivery, waste management, migration, culture, and social services by 2-3 times. As a result, 1.5 million permanent jobs will be created, increasing employment in this sector to 75%. The number of enterprises with over 100 employees will grow by 4,000, and 100 new brand products will be introduced by small businesses. Additionally, 200 startup projects will receive funding with the participation of small businesses. 

President Shavkat Mirziyoyev highlighted four key factors for business development: an idea, financial support, a suitable location, and skilled specialists. With these in place, significant progress can be achieved in the sector. 

A comprehensive program has been developed with foreign experts, and in 2025, $10 billion will be allocated from various sources to support business growth. New opportunities will be created for small and medium-sized businesses, including a preferential resource of 22 trillion soums to encourage entrepreneurship. Of this amount, 2.5 trillion soums will be allocated to young entrepreneurs and another 2.5 trillion soums to women entrepreneurs. The loan interest rate for these groups will be 2% lower than for others.

This year, small businesses can receive loans of up to 300 million soums. Entrepreneurs who have grown into small or medium-sized enterprises in the past year will be eligible for 150 million soums without collateral. Additionally, family businesses can obtain unsecured loans of up to 50 million soums.

Venture funds are becoming an increasingly popular alternative for business financing. Over the past five years, 53 startup projects worth $145 million have been implemented with their support. To expand this, state banks will establish three more venture companies and create a $50 million fund, with an additional $50 million to be attracted from abroad. This will provide more opportunities for entrepreneurs starting businesses. Most importantly, such projects introduce new directions, technologies, innovations, and high added value to the economy. Highly effective innovative products and services created through startups will be incorporated into technical regulations and standards, paving the way for them to secure government contracts.

Over the past three years, 250,000 new enterprises have been established thanks to favorable business conditions. Now, they need space and buildings to expand their operations. Therefore, it was emphasized that when selecting land, mayors should prioritize auctioning locations requested by entrepreneurs who want to start or grow their businesses. 

A new initiative has also been introduced: this year, all government agencies in Kungrad, Chimboy, Asaka, Gijduvon, Gallaorol, Yakkabog, Khatirchi, Chortok, Bulungur, Syrdarya, Denov, Kuva, and Shovot districts, as well as the cities of Yangiyul and Margilan, will be relocated to a single multi-story building. As a result, 150 vacated buildings will be auctioned to entrepreneurs. 

There are also innovations in the agricultural sector. More than 5,000 hectares of land in Karakalpakstan, Jizzakh, Tashkent, and the valley regions are being leased under a new procedure. Entrepreneurs can plant any crops they choose and build storage, sorting, and packaging facilities. Additionally, another 30,000 hectares of land will be made available for sale under this system this year. 

Recently, the Uzagrostar holding company was established, consisting of 16 companies specializing in fruit and vegetable production. These companies will build agro-industrial complexes for processing fruits and vegetables in each region, with an initial investment of 200 billion soums. 

In the manufacturing sector, many people in the regions aspire to start production, but not all know where to begin or how to find specialists and technology. To address this, project offices for small and medium-sized industrial enterprises will be opened in 20 districts. These offices will bring in foreign engineers, technologists, designers, accountants, and marketers. This year alone, 100 billion soums will be allocated for this initiative. 

Additionally, special programs will be introduced to support entrepreneurs in key industries such as equipment and devices, medical devices, electronics, and logistics, which will drive small business growth. 

The first year is crucial for new entrepreneurs to establish themselves. To support them, the "first chance" principle will be introduced. Entrepreneurs who commit an administrative offense for the first time will be exempt from liability and given the opportunity to correct their mistakes. 

Currently, the same requirements apply to all entrepreneurs seeking to close their businesses. This process will now be simplified. Enterprises with a turnover of no more than 10 billion soums over the past three years and no tax debts will no longer require an inspection for voluntary liquidation. 

It has been confirmed that value-added tax and profit tax rates will not increase in Uzbekistan until January 1, 2028. Additionally, a three-year moratorium has been announced on new regulatory documents imposing extra requirements and obligations on small and medium-sized businesses. 

There is also good news for farmers: penalties totaling 1 trillion soums for late tax payments have been canceled.  Favorable conditions will be created for projects in artificial intelligence, digital and green technologies, and creative industries, which are rapidly growing worldwide. 

International financial organizations also support Uzbekistan's small business development strategy. At the meeting, the President held discussions with representatives from the Asian Development Bank, the European Bank for Reconstruction and Development, and the French Development Agency.

At the meeting, entrepreneurs discussed expanding their activities, entering new markets, studying standards, creating a brand, and launching startups. The President supported the initiative to establish a Small Business Association for this purpose. It was emphasized that entrepreneurs are always protected by the law and the state. 

"The President will always be your closest supporter and foundation. You should never stop innovating, and I will never stop supporting you," said Shavkat Mirziyoyev. 

Based on the issues and proposals discussed, a Presidential Decree was adopted, and its benefits will be implemented immediately without waiting for additional documents.