ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
717
THE MACROECONOMIC IMPORTANCE OF SUPPORTING SMALL
BUSINESSES AND STARTUPS
Mehri Tuygunova
a student of the Republican Academic.
S. H. Sirojidinov
Lyceum named after.
https://doi.org/10.5281/zenodo.17492102
Abstract.
This article analyzes the role of small businesses and startups in national
economic development and examines the macroeconomic impact of government support policies.
It also highlights the positive effects of promoting these sectors on economic growth,
employment, innovation, and competitiveness
.
Keywords:
small business, startup, economic growth, innovation, employment,
government support, macroeconomics.
Аннотация.
В данной статье анализируется роль малого бизнеса и стартапов в
национальном экономическом развитии, а также рассматривается макроэкономическое
влияние государственных мер поддержки. Особое внимание уделяется положительным
эффектам развития этих секторов на экономический рост, занятость, инновации и
конкурентоспособность.
Ключевые слова:
малый бизнес, стартап, экономический рост, инновации,
занятость, государственная поддержка, макроэкономика.
In recent years, supporting small businesses and startups has become one of the key
priorities of economic policy worldwide. These sectors ensure flexibility, stimulate innovation,
and create new jobs, thereby contributing to sustainable economic growth. Uzbekistan has also
adopted an active approach in this regard. Through the initiatives of the President, broad reforms
have been implemented to promote entrepreneurship, provide tax incentives, and develop a
national startup ecosystem.
The role of small businesses in economic growth
.
Small business entities contribute
significantly to the Gross Domestic Product (GDP) by operating in various sectors of the
economy. They play an essential role in expanding production capacity and diversifying goods
and services. Compared to large enterprises, small businesses are more adaptive to changing
market conditions and can maintain operations even during economic crises.
The importance of startups for innovation.
Startups are enterprises based on new ideas
aimed at applying innovative technologies in practice. Their development enhances the
technological independence of a country and paves the way for emerging industries. Supporting
startups also encourages scientific research and accelerates the creation of innovative solutions
that drive national competitiveness.
Employment and social stability.
Small businesses and startups help reduce
unemployment by creating new job opportunities. This contributes to higher household income
levels and social stability. In particular, programs promoting youth and women’s
entrepreneurship play a vital role in achieving social inclusion and sustainable development.
Tab 1. Analysis of government mechanisms for supporting small businesses and startups
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
718
№
Support
Mechanism
Description
Purpose
Practical
Impact
Examples in
Uzbekistan
1
Preferential
loans
Providing low-
interest loans
through banks
and financial
institutions
To facilitate access
to financial
resources for small
business entities
Expands
production and
services, new
enterprises are
established
“Youth – Our
Future” Fund,
“Business
Support Fund”
programs
2
Tax
incentives
Reduction of tax
rates or
temporary
exemption from
certain taxes
To stimulate
entrepreneurial
activity and attract
investment
Increases
company profits,
reduces the
shadow
economy
Simplified
taxation system
for small
enterprises
3
Grants and
subsidies
Allocation of
public funds to
support
innovative and
startup projects
To promote
startups and
introduce new
technologies into
practice
Strengthens
research
activities and
leads to new
technological
solutions
Innovation
Development
Agency’s startup
grant programs
4
Business
incubators
and
accelerators
Centers providing
office space,
mentorship, and
infrastructure
support for new
enterprises
To assist young
entrepreneurs and
strengthen
business ideas in
the market
Increases startup
success rates
and encourages
knowledge
exchange
“IT Park
Uzbekistan,”
“Youth Startup
Accelerator”
programs
5
Export
promotion
Providing
marketing,
certification, and
logistics support
to access foreign
markets
To improve
product
competitiveness
and increase
foreign currency
earnings
Expands export
volume and
develops
internationally
recognized
brands
“Export Support
Fund,” “Made in
Uzbekistan”
program
6
Consulting
and training
services
Offering advisory
and educational
programs on
business
management,
marketing, and
legal issues
To enhance
entrepreneurs’
knowledge and
management skills
Improves
business
efficiency and
reduces
mistakes
Training by the
Chamber of
Commerce and
Youth Affairs
Agency
7
Digital
platforms
and e-
services
Online systems
for obtaining
loans, registering
licenses, and
submitting tax
reports
To simplify
business
operations and
promote
digitalization
Reduces
bureaucracy,
saves time and
administrative
costs
“my.gov.uz” and
“business.gov.uz”
platforms
8
Regional
development
programs
Implementing
local programs to
support
entrepreneurship
in each region
To reduce regional
economic
disparities and
ensure inclusive
growth
Establishes new
industrial zones
and improves
local
infrastructure
“Entrepreneur in
Every Family,”
“Mahalla
Entrepreneur”
programs
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
719
Tab 2. Analysis of the impact of small business and startup development on macroeconomic
stability
№ Area of Impact
Mechanism of
Influence
Macroeconomic
Outcome
Explanation
1
Ensuring GDP
Growth
Small businesses and
startups expand
production and
increase the supply of
goods and services
Sustainable growth of
Gross Domestic
Product (GDP)
Small enterprises
stimulate economic
activity and attract
new resources into
the economy
2
Increasing
Employment
New enterprises create
additional job
opportunities
Reduced
unemployment and
higher household
income
Especially positive
impact on youth and
women’s
employment
3
Rising Tax
Revenues
Growth in the number
of small businesses
expands the tax base
Stable and increased
government budget
revenues
Temporary tax
benefits lead to long-
term fiscal stability
4
Improving the
Investment
Climate
Favorable conditions
for entrepreneurship
increase investor
confidence
Growth in domestic
and foreign
investments
A transparent and
predictable business
environment reduces
economic risks
5
Strengthening
Innovation
Activity
Startups develop and
implement new
technologies
Increased scientific
and technological
capacity, formation of
an innovation-based
economy
Innovation ensures
technological
independence and
competitiveness
6
Expanding
Export
Potential
Small enterprises help
local products enter
foreign markets
Higher foreign
currency inflows and
improved trade
balance
Government export
support enhances ex
The development of small businesses and startups:
1.
serves as a sustainable source of economic growth;
2.
increases employment and income levels;
3.
fosters innovation and competitiveness;
4.
strengthens macroeconomic stability.
When these factors interact harmoniously, the national economy becomes more resilient
to both internal and external shocks.
Conclusion
Supporting small businesses and startups is a crucial factor for ensuring economic
independence and sustainable growth. These sectors not only create jobs but also foster
innovation, strengthen competition, and enhance export potential. Therefore, prioritizing
entrepreneurship and innovation in state policy serves as a guarantee of macroeconomic stability
and long-term national development.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
720
References
1.
Decree of the President of the Republic of Uzbekistan “On Further Improving the System
of Supporting Entrepreneurial Activity,” 2023.
2.
World Bank. Doing Business Report, 2024.
3.
Ministry of Economy and Finance of the Republic of Uzbekistan, Statistical Data, 2025.
4.
OECD (2023). Entrepreneurship and SMEs in Economic Development.
5.
Agency for Innovative Development. Directions for Building a Startup Ecosystem in
Uzbekistan, 2024.
