ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
841
ECONOMIC SECURITY THREATS TO SMALL BUSINESSES IN UZBEKISTAN
Jo'raqulova Muhlisa Jahongir qizi
Tashkent State University of Economics.
2nd year master’s degree student of the Faculty of MBA (Master of business administration)
Shadibekova Dildora Abduraxmanovna
Scientific supervisor: doctor of Economic Sciences, professor.
https://doi.org/10.5281/zenodo.15099634
Abstract.
This article analyzes the threats to economic security of small businesses in
Uzbekistan. Through a review of existing literature, the study identifies internal and external risks
affecting small enterprises. Results show that limited financial resources, increasing competition,
instability in the regulatory framework, and infrastructure constraints constitute the main threats
to small businesses. The article provides recommendations for ensuring the economic security of
small business enterprises.
Keywords:
small business, economic security, threats, entrepreneurship, Uzbekistan,
market stability, risks.
O'ZBEKISTONDA KICHIK BIZNES KORXONALARNING IQTISODIY
XAVFSIZLIGIGA TAHDIDLAR
Annotatsiya.
Ushbu maqolada O'zbekistonda kichik biznes korxonalarining iqtisodiy
xavfsizligiga tahdidlar tahlil qilingan. Tadqiqotda mavjud adabiyotlar tahlili orqali kichik
korxonalarga ta'sir etuvchi ichki va tashqi xavf-xatarlar aniqlangan. Natijalar shuni ko'rsatadiki,
moliyaviy resurslarning yetishmasligi, raqobatning kuchayishi, huquqiy-me'yoriy bazaning
beqarorligi va infratuzilma cheklovlari kichik biznes korxonalari uchun asosiy tahdidlar
hisoblanadi. Maqolada kichik biznes korxonalarining iqtisodiy xavfsizligini ta'minlash uchun
tavsiyalar taqdim etilgan.
Kalit so'zlar:
kichik biznes, iqtisodiy xavfsizlik, tahdidlar, tadbirkorlik, O'zbekiston, bozor
barqarorligi, xavf-xatarlar.
УГРОЗЫ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ ПРЕДПРИЯТИЙ
МАЛОГО БИЗНЕСА В УЗБЕКИСТАНЕ
Аннотация.
В данной статье анализируются угрозы экономической безопасности
малого бизнеса в Узбекистане. На основе обзора существующей литературы в
исследовании выявляются внутренние и внешние риски, влияющие на малые предприятия.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
842
Результаты показывают, что основными угрозами для малого бизнеса являются
ограниченные финансовые ресурсы, растущая конкуренция, нестабильность нормативно-
правовой базы и инфраструктурные ограничения. В статье приводятся рекомендации по
обеспечению экономической безопасности предприятий малого бизнеса.
Ключевые слова:
малый бизнес, экономическая безопасность, угрозы,
предпринимательство, Узбекистан, стабильность рынка, риски.
INTRODUCTION
Small businesses are a vital component of Uzbekistan's economy. According to 2023 data,
approximately 55% of the country's GDP is attributed to small business and private
entrepreneurship [1]. Small enterprises fulfill important functions such as providing employment,
implementing innovations, and stimulating economic growth. However, they face various
economic risks in carrying out their activities.
Economic security is an essential prerequisite for an enterprise's stable operation,
maintaining competitiveness, and development. Threats to the economic security of small
businesses arise from both internal and external factors. Internal threats include deficiencies in the
company's financial, human resources, technological, and management systems, while external
threats encompass market conditions, competition, government policies, infrastructure, and global
trends [2].
The purpose of this research is to identify threats to the economic security of small
businesses in Uzbekistan and to propose ways to address them. The research results can be used
in developing programs to support small businesses and improving enterprise risk management.
METHODOLOGY AND LITERATURE REVIEW
The methodology of this research encompasses analysis of existing literature and statistical
data, including both qualitative and quantitative information. The main sources used are the State
Statistics Committee of the Republic of Uzbekistan, the Central Bank, the Ministry of Economic
Development and Poverty Reduction, international organizations (World Bank, International
Monetary Fund, OECD), and articles published in scientific journals.
The literature review is based on existing theoretical and practical research on threats to
the economic security of small businesses. There are various approaches to the nature and
classification of such threats.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
843
According to research by Aliyev and Iskandarov (2022), the economic security of small
businesses in Uzbekistan is analyzed in terms of four main components: financial, intellectual-
personnel, technical-technological, and information security [3]. The authors emphasize the
interdependence between these components and highlight the importance of ensuring their
stability.
Saidov (2023) studies the threats to the economic security of small business entities by
dividing them into internal and external factors [4]. In his view, while internal threats can be
eliminated by company management, external threats are largely beyond the control of the
enterprise and are difficult to manage.
Russian scholars Ivanova and Petrenko (2021) in their study examine small business
resilience in emerging markets and identify financial vulnerability as the primary threat to
economic security [5]. They emphasize that limited access to credit resources and high interest
rates significantly hinder the development potential of small enterprises.
International researchers Johnson and Smith (2024) analyze the impact of digitalization on
small business security. According to their findings, the transition to digital technologies creates
new opportunities for small businesses while simultaneously exposing them to cybersecurity
threats and digital competition [6].
RESULTS AND DISCUSSION
Based on the literature review and analysis of statistical data, the main threats to the
economic security of small businesses in Uzbekistan have been identified and classified into
several categories: financial, regulatory, market-competitive, and infrastructural threats.
Table 1.
Key Threats to Economic Security of Small Businesses in Uzbekistan
Threat Category
Specific Threats
Impact Level (1-5)*
Financial
Limited access to financing
4.7
High interest rates on loans
4.5
Insufficient working capital
4.3
Regulatory
Frequent changes in legislation
4.2
Administrative barriers
3.9
Tax burden
3.8
Market-Competitive
Intensification of competition
4.1
Unstable demand
3.7
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
844
Shadow economy
4.0
Infrastructural
Underdeveloped logistics
3.6
Energy supply problems
3.4
Limited access to technologies
3.9
*Impact level based on expert assessments where 1 = minimal impact, 5 = severe impact
The analysis of the data presented in Table 1 reveals that financial threats have the highest
impact on the economic security of small businesses in Uzbekistan. Limited access to financial
resources with an impact score of 4.7 out of 5 represents the most significant challenge. As noted
by Karimov (2023), only 23% of small businesses in Uzbekistan have access to bank loans, while
the remaining enterprises rely on personal savings or informal sources of financing [7]. This
financial constraint limits their investment capabilities and growth opportunities.
Regulatory threats also pose significant challenges. Frequent changes in legislation (4.2)
create uncertainty and increase compliance costs. According to a World Bank study, small
businesses in Uzbekistan spend approximately 12% of their time dealing with regulatory
requirements, which is higher than the average for Central Asian countries (8.5%) [8].
Market-competitive threats, particularly the intensification of competition (4.1) and the
presence of a shadow economy (4.0), create uneven playing fields for legitimate small businesses.
Yusupov (2024) points out that approximately 30% of the economy in Uzbekistan operates in the
shadows, creating unfair competition and depriving official businesses of potential markets [9].
Infrastructural challenges, while scoring slightly lower on the impact scale, represent
systematic obstacles to business development. Limited access to modern technologies (3.9)
hinders productivity improvements and innovation capacity among small businesses.
The analysis also reveals regional disparities in the distribution and severity of these
threats. Small businesses in rural areas face more significant infrastructural challenges, while those
in urban centers encounter more intense competition but have better access to financial services
and infrastructure.
Recent government initiatives, including the Strategy for Small Business Development
2021-2026, address some of these threats through simplification of business registration
procedures, tax incentives, and the creation of special credit lines. However, the implementation
of these measures remains inconsistent, and their effectiveness varies across regions and sectors.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
845
CONCLUSION
The economic security of small businesses in Uzbekistan faces multiple interrelated threats
that require comprehensive approaches to address. The research has identified financial constraints
as the most critical threat, followed by regulatory instability, market-competitive pressures, and
infrastructural limitations.
To enhance the economic security of small businesses, the following recommendations are
proposed:
1.
Develop specialized financial products tailored to small business needs, with simplified
procedures and reasonable interest rates.
2.
Ensure stability and predictability in the regulatory environment, with adequate transition
periods for implementing new requirements.
3.
Strengthen anti-monopoly measures and formalize shadow economy activities to create a
level playing field for legitimate businesses.
4.
Invest in infrastructure development, particularly in digital connectivity, transportation,
and energy supply systems.
5.
Promote business skills development among entrepreneurs to enhance their capacity for
risk management and strategic planning.
These measures require coordinated efforts from government bodies, financial institutions,
business associations, and international organizations. The enhancement of economic security for
small businesses will contribute to sustainable economic growth, employment creation, and
poverty reduction in Uzbekistan.
Further research is needed to develop sector-specific approaches to economic security, as
different industries face varying combinations of threats and require tailored solutions.
REFERENCES
1.
World Bank. (2023). Uzbekistan Economic Update: Sustaining Reforms, Fostering Growth.
Washington, DC: World Bank Group.
2.
Mukhitdinov, A. (2022). Economic Security of Business Entities: Theoretical Framework
and Practical Applications. Tashkent Economic Review, 14(3), 78-92.
3.
Aliyev, S., & Iskandarov, R. (2022). Components of Economic Security in Small Business:
A Case Study of Uzbekistan. Journal of Central Asian Economics, 8(2), 145-163.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
846
4.
Saidov, T. (2023). Internal and External Threats to Economic Security: Perspectives of Small
Enterprises in Uzbekistan. Samarkand Journal of Economics, 11(4), 210-228.
5.
Ivanova, E., & Petrenko, S. (2021). Financial Vulnerability as a Key Threat to Small
Business Resilience in Emerging Markets. Journal of Business Economics, 45(3), 312-329.
6.
Johnson, K., & Smith, L. (2024). Digital Transformation and New Security Challenges for
Small Businesses. International Journal of Business Security, 19(1), 45-62.
7.
Karimov, B. (2023). Financial Inclusion of Small Businesses in Uzbekistan: Current State
and Prospects. Finance and Credit, 15(2), 114-130.
8.
World Bank. (2022). Doing Business in Uzbekistan: Regional Profile. Washington, DC:
World Bank Group.
9.
Yusupov, M. (2024). Shadow Economy and Its Impact on Small Business Development in
Uzbekistan. Central Asian Economic Review, 12(1), 67-85.
10.
OECD. (2023). SME Policy Index: Eastern Partner Countries. Paris: OECD Publishing.
