In recent years, Uzbekistan has undertaken significant economic reforms aimed at improving the business environment, supporting small and medium-sized enterprises (SMEs), and attracting foreign investments. As a result, the country has witnessed a steady increase in the number of operating businesses, particularly in the trade, services, and industrial sectors. This article provides an in-depth analysis of the key trends shaping entrepreneurship in Uzbekistan based on the latest statistical data.

Current Business Landscape: Growth and Expansion

According to data from the Agency of Statistics under the President of the Republic of Uzbekistan, as of February 1, 2025, the number of registered enterprises and organizations in Uzbekistan reached 431.5 thousand, with 363.6 thousand being small enterprises and microfirms. Compared to the same period in 2024, the growth rate of new business registrations was 105.5%, indicating a thriving entrepreneurial environment.

Among the regions, the highest increase in the number of new enterprises was observed in:

• Khorezm region (+216 new enterprises)
• Fergana region (+198 new enterprises)
• Kashkadarya region (+179 new enterprises)

The steady increase in new business formations reflects the effectiveness of Uzbekistan’s pro-business policies and economic incentives.

Industry Breakdown: Where Businesses Are Thriving

Entrepreneurial activity is distributed across various sectors, with the highest concentration in:

• Trade (32.2%) – A dominant sector reflecting the growth of retail and wholesale businesses.
• Industry (13.0%) – Driven by manufacturing and industrial production.
• Agriculture, Forestry, and Fisheries (7.3%) – Essential for food security and exports.
• Construction (6.5%) – Supported by government infrastructure projects.
• Health and Social Services (6.2%) – A rapidly growing sector, adding 1,044 new enterprises in January 2025 alone.

Additionally, the information and communication sector (3.7%) is expanding, highlighting Uzbekistan’s increasing digital transformation.

Regional Business Distribution

Business activity is concentrated in key economic hubs, with Tashkent city (22.6%), Tashkent region (9.5%), Samarkand region (8.8%), and Fergana region (8.1%) accounting for over half of all registered enterprises.

While business growth is strong in urban centers, rural and less-developed regions such as Navoi, Syrdarya, and Karakalpakstan still require targeted economic support to boost local entrepreneurship.

Foreign Investments: A Key Driver of Growth

Uzbekistan has made significant progress in attracting foreign investments, with 15,163 enterprises now operating with foreign capital, an increase of 1,000 enterprises compared to 2024. The leading investor countries include:

• China (22.9%)
• Russia (19.6%)
• Turkey (12.3%)
• Kazakhstan (7.0%)
• South Korea (4.4%)

Foreign direct investment (FDI) has played a crucial role in expanding Uzbekistan’s industrial and trade sectors, bringing new technologies and international expertise.

The Role of Small and Medium Enterprises

SMEs form the backbone of Uzbekistan’s economy, representing over 84% of all registered businesses. As of early 2025, there were 363.6 thousand active small enterprises and microfirms.

Sector-wise SME distribution:

• Trade (37.9%)
• Industry (15.3%)
• Agriculture (8.4%)
• Construction (7.5%)
• Accommodation and Food Services (7.2%)

Government initiatives such as tax incentives, loan programs, and digitalization efforts continue to facilitate SME growth and innovation.

Challenges and Areas for Improvement

Despite strong growth, several challenges need to be addressed to ensure sustained business expansion:

• Bureaucracy and Administrative Barriers – Although the business environment has improved, further simplification of registration and licensing procedures is needed.
• Digitalization Gaps – Many businesses still rely on outdated accounting and management systems.
• Regional Disparities – Economic development is uneven, with some regions lagging behind in business activity.

Addressing these issues through automation, e-governance, and infrastructure investment will be key to long-term success.

Future Outlook for 2025-2026

Entrepreneurial activity in Uzbekistan is expected to continue growing, supported by:

• Government programs for start-ups and innovation
• Expansion of SME financing and credit accessibility
• Development of industrial zones and free economic areas
• Simplification of tax regulations and business administration

Additionally, increased trade cooperation within Central Asia and new foreign investment partnerships will provide further opportunities for expansion.

Conclusion

Uzbekistan’s business sector is experiencing a period of strong growth, driven by policy reforms, foreign investment, and SME development. While challenges remain, such as bureaucratic inefficiencies and regional disparities, ongoing efforts to improve the business climate and promote digitalization are setting the stage for long-term economic success.

By fostering innovation, supporting local entrepreneurs, and enhancing investment attractiveness, Uzbekistan is positioning itself as a dynamic hub for business and economic activity in the region.