Government Mechanisms to Support Small Entrepreneurship: Comparative Analysis and Practical Insights

10-SON 1-JILD OKTABR 2025 – YIL 1-QISM 4 TA’LIM FIDOYILARI JIFactor: 8.2 ISSN 2181-2160 Abdullayeva Dilnoza Bahodir qizi Master of Education Management, TSUE E-mail: [email protected] Government Mechanisms to Support Small Entrepreneurship: Comparative Analysis and Practical Insights Abstract This article presents a concise analytical review of government support mechanisms for small and medium-sized enterprises (SMEs) in Uzbekistan, Russia, and the United States in 2024. The paper examines financing tools, infrastructure measures, and digital services, and evaluates the effectiveness of these mechanisms based on key indicators. Recommendations are provided for implementing monitoring systems, improving project selection criteria, and expanding regional infrastructure. The material includes a table of key indicators and two comparative charts. Introduction Small and medium-sized enterprises play a vital role in economic flexibility and job creation. Government support remains a critical factor, particularly in periods of structural change and post-crisis recovery. The goal of this study is to identify the most effective practices and provide actionable recommendations that can be applied in countries with different levels of institutional development. Methodology The analysis relies on official statistics and reports from 2023–2025. Key comparison metrics include SME share of GDP, number of enterprises, primary financing programs, and infrastructure support measures. The approach combines quantitative comparisons with qualitative assessment of policy implementation. 10-SON 1-JILD OKTABR 2025 – YIL 1-QISM 5 TA’LIM FIDOYILARI JIFactor: 8.2 ISSN 2181-2160 Key Indicators for 2024 Figure 1. SME share of GDP by country, 2024 Figure 2. Number of SMEs, latest available data Country SME Share of GDP Number of SMEs Main Instruments Uzbekistan 54.3% 643,851 Simplified tax system, concessional loans, digital services Russia 21.7% ≈ 6,590,000 Interest rate subsidies, support centers, grants United States 43.5% 34,800,000 Credit guarantees, microloans, R&D grants 10-SON 1-JILD OKTABR 2025 – YIL 1-QISM 6 TA’LIM FIDOYILARI JIFactor: 8.2 ISSN 2181-2160 Analysis of Effectiveness Uzbekistan shows a high SME share of GDP (54.3%), reflecting a broad base of microenterprises and agricultural firms. The country benefits from rapid digitalization of registration and credit services but lacks a unified monitoring and evaluation system, which limits the ability to track business survival rates and revenue growth after receiving government support. Russia records a large number of registered SMEs with a relatively low GDP contribution. This indicates low average profitability and strong regional disparities. Many programs focus on subsidized lending, but their return on investment needs careful evaluation. The United States combines credit guarantees with a well-developed private ecosystem, ensuring a higher GDP share and job creation. Government instruments complement market financing and emphasize outcome measurement. Critical Gaps and Risks Uzbekistan lacks a nationwide monitoring system to evaluate program effectiveness. Russia faces bureaucratic hurdles and uneven regional performance. In the United States, access to finance remains challenging in depressed and remote areas. All three countries 10-SON 1-JILD OKTABR 2025 – YIL 1-QISM 7 TA’LIM FIDOYILARI JIFactor: 8.2 ISSN 2181-2160 face a shortage of reliable data on the survival rates and revenue growth of businesses receiving government support. Recommendations 1. Establish a public monitoring dashboard with open data on beneficiaries, funding amounts, and survival indicators. 2. Revise project selection criteria to prioritize expected economic returns and scaling potential rather than application volume. 3. Expand regional infrastructure through mobile incubators and outreach consulting services. 4. Pilot return-on-investment evaluations of key programs in selected regions and use findings for budget reallocation. 5. Support microfinance and dedicated programs for entrepreneurs from vulnerable groups. Conclusion Comprehensive SME support is most effective when financial measures are combined with infrastructure and robust monitoring. The proposed steps can improve transparency, enhance project selection quality, and increase the return on government investment in the SME sector. References 1. Izvestia (2025) Experts spoke about growth in the number of SMEs in the Russian Federation to 6.7 million. Available at: https://en.iz.ru/en/1878412/2025-04-29/expertsspoke-about-growth-number-smes-russian-federation-67-million (Accessed: 27 September 2025). 2. Izvestia (2025) Ministry of Economic Development reported 3% increase in number of small and medium-sized companies in Russia. Available at: https://en.iz.ru/en/1918647/2025-07-10/ministry-economic-development-reported-3increase-number-small-and-medium-sized-companies-russia (Accessed: 27 September 2025). 10-SON 1-JILD OKTABR 2025 – YIL 1-QISM 8 TA’LIM FIDOYILARI JIFactor: 8.2 ISSN 2181-2160 3. Kun.uz (2025) Uzbekistan sees 18% surge in the number of individual entrepreneurs in 2024. Available at: https://kun.uz/en/news/2025/01/17/uzbekistan-sees-18-surge-in-thenumber-of-individual-entrepreneurs-in-2024 (Accessed: 27 September 2025). 4. OECD (2024) Financing SMEs and Entrepreneurs 2024: An OECD Scoreboard. Paris: OECD Publishing. Available at: https://www.oecd.org/en/publications/2024/03/financingsmes-and-entrepreneurs-2024_015c0c26.html (Accessed: 27 September 2025). 5. SBA Office of Advocacy (2024) SBA 2024 Capital Impact Report. Washington, D.C.: U.S. Small Business Administration. Available at: https://www.sba.gov/document/reportsba-2024-capital-impact-report (Accessed: 27 September 2025). 6. Stat.uz (2025) The number of active enterprises and organizations in Uzbekistan continues to decline. Available at: https://kun.uz/en/news/2025/02/28/statistics-agency-the-numberof-active-enterprises-in-uzbekistan-is-sharply-declining (Accessed: 27 September 2025). 7. Trend News Agency (2025) Uzbekistan to allocate $9.6 billion for supporting SMEs in 2025. Available at: https://www.trend.az/casia/uzbekistan/4021378.html (Accessed: 27 September 2025). 8. World Bank Group (2024) Annual Report: Financial Summary. Washington, D.C.: World Bank. Available at: https://www.worldbank.org/en/about/annual-report/financial-summary (Accessed: 27 September 2025). 9. Zamin.uz (2025) Number of active companies in Uzbekistan reduced by 100,000 from 2022 to 2025. 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