The Importance of Lending Mechanisms in Financing Small Business and Private Entrepreneurship in Uzbekistan

This article examines the role of lending mechanisms in financing small businesses and private entrepreneurship in Uzbekistan. It discusses the contribution of commercial bank loans to business start-up, working-capital management, investment and expansion, while identifying barriers such as insufficient collateral, limited credit histories, borrowing costs and mismatches between repayment schedules and business cash flows. Drawing on published research and reports by international institutions, the article outlines practical directions for improving access to finance, including cash-flow-based credit assessment, transparent guarantee schemes, digital credit scoring, tailored loan products and financial-literacy support. The article argues that effective lending policy should balance wider access to finance with responsible risk management and the productive use of borrowed funds.