FINANCING AND MANAGEMENT OF START-UP PROJECTS IN THE REGIONAL ECONOMY: CURRENT PROBLEMS AND PROSPECTS

INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 364 FINANCING AND MANAGEMENT OF START-UP PROJECTS IN THE REGIONAL ECONOMY: CURRENT PROBLEMS AND PROSPECTS Abduvokhidov Javohir Abduvohidovich Senior lecturer, Faculty of Management, Tashkent State University of Economics, Tashkent, Uzbekistan https://doi.org/10.5281/zenodo.17266429 Abstract. This article analyzes the importance of start-up financing mechanisms and management systems in the development of regional entrepreneurship. Start-ups play an important role in increasing the innovative potential of the regional economy and creating new jobs. However, problems such as limited access to financial resources, high investor risk, lack of financial services, and weaknesses in management systems limit their development. The article examines the advantages and disadvantages of financing mechanisms such as venture capital, business angel investments, crowdfunding, government grants, and microfinance. It also discusses ways to improve start-up management systems, digital platforms, training qualified personnel, and increasing the role of incubators. The need for effective cooperation between the state, private sector, and financial institutions in supporting regional entrepreneurship is emphasized, as well as the creation of innovative financing systems and modernization of management processes. This study aims to stimulate regional economic growth through the development of start-up financing and management systems. Keywords: Regional entrepreneurship, Start-up projects, financing mechanisms, management systems, venture capital, crowdfunding, state support, innovative financing, microfinancing, incubators and accelerators. Introduction In a modern economy, the development of entrepreneurship is an important tool for ensuring the stability and competitiveness of regions. In particular, start-up projects are a key factor in introducing innovations, creating new jobs, and solving regional socio-economic problems (Ismailov, 2020). However, start-ups often face obstacles in development due to a lack of financial resources and weak management systems. It is necessary to create effective financing mechanisms and management systems to support regional entrepreneurship. This article analyzes the main problems arising in financing and considers innovative solutions and prospects. 1. The role of regional entrepreneurship and start-up projects Entrepreneurship is the development of new products and services and participation in economic processes. Start-up projects are innovative initiatives based on new business ideas (Shane, 2009). At the regional level, start-ups serve economic diversification, competitiveness, and social stability. Developing regional entrepreneurship in Uzbekistan and other developing countries helps to accelerate economic growth and reduce interregional economic disparities (Kholmurodov, INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 365 2021). Therefore, improving the financing and management systems of start-up projects is an urgent task. 2. Current problems in financing start-up projects 2.1. Limited access to financial resources Start-ups often do not have a credit history, cannot provide collateral and guarantees, which reduces their access to bank loans (Lerner, 2010). Also, investments are limited due to the underdevelopment of regional financial markets. 2.2. High risk for investors Since the probability of start-ups failing is high, investors require additional guarantees to cover the risk or refuse to invest. 2.3. Insufficient and poor quality of financial services In many regions, financial institutions lack qualified specialists and flexible services to serve entrepreneurs. 2.4. Complex management systems and unskilled personnel The success of start-up projects largely depends on effective management. In the regions, the lack of skills in start-up management and project planning slows down development. 3. Prospects for the development of start-up financing mechanisms 3.1. Development of venture capital and business angel investments Venture capital funds and private investors play a key role in financing start-up projects. The establishment of regional venture funds and the provision of tax incentives for investments can encourage investors (Ismailov, 2020). 3.2. Provision of grants and subsidies by the state State financial support is an important factor in generating initial capital for start-ups. It is necessary to expand the grant and subsidy systems, as well as simplify financing. 3.3. Introduction of crowdfunding platforms Internet-based crowdfunding platforms create opportunities for financing from the general public. This allows start-ups to present their projects to a wide audience and attract the necessary funds. 3.4. Improving microfinance and microcredit systems Microfinance systems support the development of small start-up projects by providing short-term small loans. 4. Ways to improve start-up project management systems 4.1. Digital management platforms Management systems created on the basis of modern IT technologies allow you to monitor, analyze and automate the management of financial flows of start-up projects. 4.2. Training qualified specialists Training qualified personnel in the field of entrepreneurship and financial management and involving them in the start-up ecosystem is important for the successful development of start-up projects. 4.3. The role of incubators and accelerators Business incubators and accelerators provide support to start-up projects not only financially, but also through consulting, networking and training services. The development of these institutions increases the efficiency of financing. 4.4. Cooperation and networking systems INTERNATIONAL SYMPOSIUM “ADVANCED RESEARCH IN ECONOMICS AND BUSINESS MANAGEMENT”, SEPTEMBER 19, 2025 366 Creating effective cooperation mechanisms between investment funds, start-up incubators and government agencies increases the efficiency of management systems. 5. Proposals for the development of regional entrepreneurship • Development of special programs by the state for the development of mechanisms for financing start-up projects and expanding financial opportunities. • Introduction of tax incentives for venture funds and business angel investments. • Introduction of digital management systems and development of monitoring systems for start-up projects. • Financial and organizational support for the development of incubators and accelerators. • Training of qualified personnel in the field of financial services. Conclusion Development of mechanisms and management systems for financing start-up projects in support of regional entrepreneurship serves economic stability and innovative development. Improving financial instruments, modernizing management processes, and strengthening publicprivate sector cooperation create new opportunities in the regional economy. REFERENCES 1. Drucker, P. F. (2007). Innovation and Entrepreneurship. HarperBusiness. 2. Ismailov, A. (2020). Regional entrepreneurship development: Challenges and prospects. Journal of Economic Development, 4(2), 45-56. 3. Lerner, J. (2010). The Architecture of Innovation: The Economics of Creative Organizations. Harvard University Press. 4. Shane, S. (2009). The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By. Yale University Press. 5. Kholmurodov, B. (2021). Financing mechanisms in the development of regional entrepreneurship. Journal of Economics and Management, 1(15), 23-30.