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VOLUME 06 ISSUE11
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PUBLISHED DATE: - 08-11-2024
DOI: -
https://doi.org/10.37547/tajpslc/Volume06Issue11-04
PAGE NO.: - 20-26
LEGAL REGULATION OF ENTREPRENEURIAL
NETWORKS AND THEIR ROLE IN
SUPPORTING WOMEN ENTREPRENEURS IN
UZBEKISTAN
Markhabo Nazarova
Lecturer at the Department of Management, British Management
University, Uzbekistan
ORCID: https://orcid.org/0009-0006-4667-706X
INTRODUCTION
The significance of integrating women into the
business environment is recognised globally. At the
74th session of the United Nations General
Assembly, the Women’s Entrepreneurship Support
Program was initiated with the objective of
maximising
the
impact
of
women’s
entrepreneurship on achieving Sustainable
Development Goals by establishing a supportive
ecosystem for women entrepreneurs worldwide.
In Uzbekistan, this issue has also gained
considerable
attention,
as
the
women’s
entrepreneurship sector is becoming a means of
addressing numerous gender and social policy
challenges. For instance, it facilitates expanding
women’s opportunities in the labour market,
achieving gender equality in employment, and
enhancing access to credit resources to boost
financial independence.
RESEARCH ARTICLE
Open Access
Abstract
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With the growth of the digital economy and shifts
in the labour market, women in Uzbekistan are
increasingly involved in entrepreneurship.
However, they face various challenges, including
limited access to resources, legal insecurity, and
insufficient
support
from
entrepreneurial
networks. Entrepreneurial networks play an
essential role in expanding economic opportunities
for women and helping them integrate into the
market. This article examines the legal regulation
of these networks and evaluates their impact on
supporting women entrepreneurs [1].
Entrepreneurial networks are vital in business
development and are especially significant for
women entrepreneurs, who encounter additional
barriers in establishing and growing their
businesses. In Uzbekistan, fostering female
entrepreneurship is a priority within state
programs aimed at expanding economic
opportunities for women. Nevertheless, the legal
support for entrepreneurial networks remains
underdeveloped,
which
restricts
women
entrepreneurs’ ability to fully engage in the
country’s economic landscape [2].
Purpose of the Article
The purpose of this article is to examine the legal
regulation of entrepreneurial networks in
Uzbekistan and evaluate their role in supporting
women entrepreneurs, identify existing barriers,
and propose recommendations to improve the
legal framework for more effective development of
female entrepreneurship.
Women’s entrepreneurship plays a key role in the
economic development of any country. In
Uzbekistan, where women constitute a significant
portion of the working-age population, their active
participation in entrepreneurship is a crucial factor
in boosting economic well-being and creating jobs.
Government programs and initiatives aimed at
supporting women in business have significantly
increased the proportion of female entrepreneurs.
However, legal and infrastructural barriers remain
substantial issues. Weak legal regulation of
entrepreneurial networks limits their capacity to
offer support and resources for women, thus
hindering their access to markets, capital, and
modern technologies [3].
When analysing the characteristics and trends of
female
entrepreneurship
development
in
Uzbekistan,
the
term
“self
-
employed”
is
increasingly used alongside “entrepreneurship.” In
international documents, such as the Beijing
Platform for Action and the Millennium
Declaration, the term “self
-
employed women” is
widely used to encompass both informal micro-
entrepreneurs and owners of small and medium-
sized enterprises.
In Uzbekistan, “self
-
employed women” can be
viewed not merely as a general category but as an
important metric for analysing the development of
female entrepreneurship. This classification aligns
with the country’s national legislation and existing
data collection and statistical practices. Unlike
countries like the United States, where the term
“self
-
employed women” is rarely used in studies on
female entrepreneurship, in Uzbekistan, as in some
other countries like England and Canada, women
engaged in self-employment are substantially
included in studies of economic activity and
entrepreneurship [4].
In
international
practice,
entrepreneurial
networks are instrumental in supporting women’s
businesses. For example, in the European Union,
specialised programs and initiatives such as the
European Network of Female Entrepreneurship
Ambassadors and the European Network of
Mentors for Women Entrepreneurs are designed to
promote female entrepreneurship through
mentoring, training, and experience sharing. In
these networks, women entrepreneurs gain access
to professional consultations, startup resources,
and financing, which significantly improves their
market
position
and
enhances
their
competitiveness.
In the United States, programs as the National
Association of Women Business Owners (NAWBO)
offer women entrepreneurs broad opportunities
for networking, access to capital, and legal support.
These networks facilitate information and
experience exchange among participants, promote
training and skill development for women in
business, and influence the creation of a favourable
business climate through advocacy and lobbying
for women entrepreneurs’ interests [5].
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In Japan, despite a traditionally strong patriarchal
societal structure, efforts are being made to
strengthen the role of women in the economy
through
government
initiatives
and
the
establishment of support
networks. The Women’s
Economic
Empowerment
(WEE)
program
encourages women’s participation in the economy
and stimulates their entrepreneurial activity by
developing networks and providing preferential
lending.
In Uzbekistan, associations such as the Business
Women’s Association of Uzbekistan offer
networking, mentoring, and training opportunities.
However, these efforts are more fragmented
compared to organized European networks, which
provide extensive mentorship programs and
access to funding [6].
In Uzbekistan, there is growing attention on the
development of more formal entrepreneurial
networks, which could integrate international
experience, especially for women. Some
international partnerships, namely, projects with
UNDP and other organizations, aim to provide
women with greater access to education and
financial support, though these networks are not
yet as established and widespread as those in the
EU.
METHODS
This research incorporated legal analysis of
Uzbekistan’s current legislation regulating
entrepreneurial
networks,
alongside
a
comparative analysis of international experiences
in supporting women in entrepreneurship. The
empirical basis of the study included interviews
with women entrepreneurs and representatives of
business communities.
The research will examine international practices
for comparison and recommendations to improve
the legal framework and create favourable
conditions for the development of female
entrepreneurship. The proposed measures will
help overcome existing barriers and increase the
number of women entrepreneurs, positively
impacting Uzbekistan’s economy overall.
RESULTS
The research findings reveal that although the legal
framework exists to support entrepreneurship,
women
face
challenges
in
accessing
entrepreneurial networks due to limited access to
loan and insufficient awareness of available
resources. Recommendations have been proposed
to improve legal support, including strengthening
interaction mechanisms between business
networks and the state. However, the examination
of current regulations indicates that existing legal
tools require further enhancement, especially in
light of the need to implement international
standards and best practices. Key legislative acts
and their impact on the development of
entrepreneurial networks and the role of women in
entrepreneurship in Uzbekistan are examined [7].
The study shows that Uzbekistan has developed
the
legal
foundation
for
supporting
entrepreneurship, including subsidy and training
programs. However, specific support for women
through entrepreneurial networks remains
limited. The main barriers for women
entrepreneurs include:
Insufficient information about existing support
programs.
Difficulty accessing financing and loans.
Lack of specialized legal mechanisms
supporting
w
omen’s
entrepreneurial
networks.
International experience indicates that effective
entrepreneurial networks can significantly
contribute to the growth of women-led businesses
by providing resources, training, and expanded
market access.
Legal regulation plays a key role in ensuring the
sustainability and functionality of entrepreneurial
networks. In countries with well-developed legal
systems, entrepreneurial networks have legal
frameworks that provide protection and enable
interaction with government institutions. These
networks are regulated regarding financial
transparency, legal support, and adherence to anti-
discrimination norms, allowing women to develop
their businesses safely and effectively.
In Uzbekistan, however, legal regulation of
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entrepreneurial
networks
for
women
entrepreneurs is in its early stages. Some support
measures, such as preferential loans and tax
benefits, exist, but there is currently no
comprehensive approach to the development and
legal regulation of entrepreneurial networks. This
creates barriers for women’s entrepreneurship,
such as limited access to information, financial
resources, and opportunities for professional
growth.
Goal No. 69 of the New Uzbekistan Development
Strategy (2022
–
2026) provides the support and
promotion of
women’s entrepreneurship through
education and skill-building initiatives, as well as
the creation of conditions for their participation in
entrepreneurial networks. However, the legal
regulation of networks still lacks clear mechanisms
for their functioning, limiting the effectiveness of
this strategy [8].
Article 20 of the Law “On Guarantees of Equal
Rights and Opportunities for Women and Men”
states: “The state guarantees equal rights and
opportunities for women and men in the conduct of
entrepreneurial
activities” [11]. The legislation
includes the following measures for the
development of women’s entrepreneurship:
•
Allocation of preferential loans for women’s
small business projects.
•
Creation of centres and clusters of women’s
crafts in each region.
•
Improvement of women’s entrepreneurship
centres and measures for establishing regional
centres.
•
Assistance in the promotion of products
manufactured by women entrepreneurs.
•
Training
in
entrepreneurship
and
encouraging women’s involvement in business.
Entrepreneurial networks play an important role
in
supporting
and
promoting
women’s
entrepreneurship [9]. They help create favourable
conditions for experience sharing, access to
resources, and development of business skills.
However, despite the state’s
strategic goals,
Uzbekistan’s
legislation
still
lacks
clear
mechanisms for regulating and supporting such
networks.
International experience shows that legal support
for
women’s
entrepreneurship
and
the
establishment
of
effective
entrepreneurial
networks play a crucial role in economic
development.
Implementing
international
standards and best practices can significantly
enhance support for women entrepreneurs in
Uzbekistan.
UN Convention on the Elimination of All
Forms of Discrimination Against Women
(CEDAW).
Uzbekistan ratified this convention,
which requires member states to adopt
measures to eliminate discrimination against
women, including equal access to economic
resources. However, despite the introduction
of gender policies, the implementation of
CEDAW
provisions
regarding
entrepreneurship remains fragmented.
Recommendations from the World Bank
and the International Labour Organization
(ILO).
These organizations emphasize the
importance of creating business networks for
women, through which they can access
knowledge,
funding,
and
training
opportunities. In countries with a well-
developed
entrepreneurial
support
infrastructure, women benefit from specialized
services and programs, enabling them to
develop their businesses effectively. In
Uzbekistan, these recommendations are only
beginning to be implemented, and legal acts
have yet to fully reflect all the essential
elements of international standards.
DISCUSSION
The discussion of results shows that additional
legislative changes are necessary to strengthen the
role of entrepreneurial networks in supporting
women. These changes should aim to encourage
women’s participation in these networks and
improve their access to financing. It is essential to
consider
international
experiences
where
entrepreneurial networks play a crucial role in
developing women-led businesses.
The study reveals that existing legal mechanisms
supporting
entrepreneurial
networks
are
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insufficient to ensure women’s full participation in
economic life. Key issues include:
Limited access to credit:
Despite preferential
loan programs, women often face difficulties in
obtaining financing due to high collateral
requirements and insufficient information
about available support.
Lack of information:
Many women are
unaware of existing entrepreneurial networks
and the opportunities they offer. This gap is
tied to inadequate legal support for networks
that
focus
on
entrepreneurial
skill
development and training.
Bureaucratic barriers:
The processes for
business registration and obtaining state
benefits
are
often
administratively
burdensome, limiting women’s access to
entrepreneurial networks.
Legal scholars and economic experts emphasize
the importance of legal support for entrepreneurial
networks to stimulate female entrepreneurship.
For example, researcher S. Khodjaeva argues that
legislative
recognition
and
support
of
entrepreneurial networks are vital for developing
an inclusive entrepreneurial sector. Khodjaeva
notes that without a clear legal status for these
networks and mechanisms for their interaction
with the state, their potential for supporting
women remains unrealized [11].
L. Burkhanova, an expert on gender aspects of
entrepreneurship, underscores that adopting
international best practices for establishing and
supporting entrepreneurial networks, such as
specialized networks for women, should be a key
component of reforms in Uzbekistan. Burkhanova
points out that women’s entrepreneurial networks
abroad, for instance, in the U.S. and the EU, play a
significant role in economic success due to a well-
defined legal foundation and tax benefits [12].
International experience shows that legal
regulation
of
entrepreneurial
networks
significantly influences their success and
effectiveness [13]. For example, in the EU,
entrepreneurial networks for women, such as the
European Women’s Lobby, are regulated and
supported at the state level through specific
programs and grants. These networks not only
provide a platform for experience and knowledge
exchange but also grant access to financial and
professional resources.
In the United States, numerous legal mechanisms
support women’s business networks, such as the
National Association of Women Business Owners
(NAWBO). These networks are non-profit
organizations with a clear legal status and receive
government support [14], allowing women to
develop their businesses effectively through access
to consultations, grants, and training.
The implementation of international standards and
practices in Uzbekistan could significantly
strengthen the legal foundation for supporting
women’s entrepreneurship [15]. For example,
introducing provisions that incentivize the
creation of entrepreneurial networks through tax
benefits and government subsidies would help
remove barriers for women in business.
Despite notable achievements in the development
of women’s entrepreneurship in Uzbekistan,
several significant barriers hinder further growth.
Key factors include insufficient gender sensitivity
in entrepreneurial legislation, lack of initial capital,
low levels of legal, financial, and digital literacy
among women, and persistent gender stereotypes.
These factors considerably hinder the process of
integrating women into entrepreneurial activities
[16].
1.
Entrepreneurial Legislation
: Uzbekistan’s
entrepreneurial legislation is gender-neutral,
which limits the creation of special support
conditions for women. The Law on Guarantees of
Freedom of Entrepreneurial Activity [9] lacks
provisions for the specific needs of female
entrepreneurship. Although certain regulations
aimed at supporting women are in place, it is
crucial to ensure gender sensitivity in
entrepreneurship legislation as a whole.
2.
Framework of Gender Legislation
: Gender
legislation in Uzbekistan is largely declarative. The
Law on Guarantees of Equal Rights and
Opportunities for Women and Men affirms rights
for women, yet lacks clear mechanisms for
enforcement, which diminishes the effectiveness of
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these provisions [10].
3.
Coordination Deficits
: There is insufficient
coordination between agencies responsible for
promoting gender equality and developing
women’s entrepreneurship. Multiple mechanisms
created to address these issues often duplicate
functions, leading to inefficient resource use and a
lack of coordinated approaches.
4.
Lack of Indicators
: There is an absence of
clear indicators for monitoring and assessing
progress in developing women’s entrepreneurship.
This lack of metrics hinders the creation of precise
recommendations and strategies to further
improve the sector.
Negative
gender
stereotypes,
such
as
“entrepreneurship is not for women” or “a wife
should not earn more than her husband,” along
with insufficient financial literacy, legal awareness,
and limited access to investment, create additional
barriers for women in business. These outdated
notions need to be reassessed and addressed to
ensure the successful development of female
entrepreneurship
and
equal
economic
opportunities.
Recommendations
Based on the research findings, the following
recommendations have been proposed:
1.
Strengthen Collaboration between the
State and Entrepreneurial Networks
: To
enhance support for women entrepreneurs,
partnerships between entrepreneurial networks
and state agencies should be developed. This could
involve creating platforms for information
exchange, providing financial support to networks,
and clearer regulation of their activities.
2.
Establish Specialized Programs for
Women Entrepreneurs
: It is necessary to develop
legal acts that regulate the creation and functioning
of support networks for women, with a focus on
educational programs, mentorship, and access to
financing.
3.
Implement International Standards into
Uzbekistan’s Legal Framework
: International
standards, such as recommendations from the
World Bank and ILO, should be utilized to develop
a more comprehensive and inclusive approach to
supporting women’s entrepreneurship. The legal
framework should provide preferential conditions
for women’s participation in entrepreneurial
networks and expand their opportunities to gain
knowledge and resources.
4.
Remove Barriers to Accessing Credit
:
Additional guarantees for women starting
businesses, such as government subsidies or
microcredit programs, would help them overcome
financial obstacles and utilize resources from
entrepreneurial networks effectively.
CONCLUSION
The legal regulation of entrepreneurial networks in
Uzbekistan requires refinement to create more
favourable conditions for women entrepreneurs.
The recommended measures include improving
informational support, simplifying procedures for
accessing
entrepreneurial
networks,
and
implementing state-level support programs.
Although the New Uzbekistan Development
Strategy includes measures for promoting female
entrepreneurship, the absence of regulatory
mechanisms to support and facilitate the
functioning of entrepreneurial networks limits
their role. Implementing international standards
and creating a clear legal framework will be
essential steps toward achieving the goals of
economic
equality
and
the
sustainable
development of women’s ent
repreneurship in the
country.
Legal regulation of entrepreneurial networks and
their role in supporting women entrepreneurs is a
crucial
aspect
of
Uzbekistan’s
economic
development. Although the regulatory framework
provides some support mechanisms, their
insufficient
development
limits
women’s
opportunities. Enhancing the role of female
entrepreneurship requires stronger collaboration
between
entrepreneurial
networks
and
government structures, as well as broader
implementation of international standards, which
will enable women to participate fully in the
country’s economic life.
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