Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Private Sector Development and Access to Finance
145
Note: Data collected on forms specially designed by the author.
Sources: Author’s calculations based on data received from Uzbekistan Statistics 0n 3 October 2018.
Figure 4.6: Gross Value Added by Small Businesses, Uzbekistan, 
2003, 2015, 2017, and 2018
2015
Q3 2018
a. By Sector 
(% of total)
2003
135.5
260.7
224.3
177.1
283.1
109.8
212.6
386.1
211.1
131.6
363.6
365.0
151.7
521.5
3,957.6
8,618.3
7,422.9
4,135.4
8,284.4
4,326.3
6,105.4
11,045.4
7,145.9
2,962.3
11,715.4
8,750.6
5,150.0 
23,295.1
Q3 2018
b. By Area 
(SUM billion)
Agriculture
Karakalpakstan
Andijan region
Bukhara region
Jizzak region
Kashkadarya region
Navoi region
Namangan region
Samarkand region
Surkhandarya region
Sirdaryo region
Tashkent region
Fergana region
Khorezm region
Tashkent city
2003
0.5
0.5
0.6
0.8
0.7
0.7
0.6
0.7
0.6
0.7
0.7
0.6
0.6
1.0
8.2
9.6
13.5
11.5
9.6
20.2
8.9
10.0
9.7
12.2
13.9
8.7
9.2
36.5
2017
c. Labor Productivity of Small Business by Area 
(SUM million per worker)
d. Labor Productivity of Small Business by Sector 
(SUM million per worker)
Karakalpakstan
Andijan region
Bukhara region
Jizzak region
Kashkadarya region
Navoi region
Namangan region
Samarkand region
Surkhandarya region
Sirdaryo region
Tashkent region
Fergana region
Khorezm region
Tashkent city
Industry
Construction
Trade
Catering
Information and communication
Transport
Others
33.4%
34.5%
18.5%
18.6%
8.9%
9.8%
15.3%
15.3%
9.7%
8.5%
12.5%
11.4%
1.2%
1.3%
0.5%
0.6%
0
5
10
15
20
25
Agriculture
Industry
Construction Transport and
communication
Trade and
catering
Others
2015
2016
2017
SUM million

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Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
146
Given that small business development is a key policy priority toward 
sustainable economic growth in Uzbekistan, a strategic approach is required 
to realize the growth potential of small businesses and young entrepreneurs. 
Services-related businesses (60% of small businesses) employ 40% of small 
business workers and produce 40% of small business GVA. Three labor-
intensive sectors (40% of small businesses—agriculture, industry, and 
construction) employ 60% of small business workers and produce 60% of small 
business GVA. Services-related businesses, especially knowledge-intensive 
and capital-intensive industries such as education, health, transport, tourism, 
and information technology, have good potential to create more good quality 
jobs in the country and help boost national productivity. Small businesses are 
concentrated in the capital city, and they contribute a large share of GVA but 
employ only 6% of small business workers. Tashkent city has yet to become a 
hub of growth-oriented SMEs, but has the potential to create a base of good 
quality jobs by encouraging the development of innovative small businesses 
and entrepreneurs, including those in high-tech service industries. 
Small businesses have influenced Uzbekistan’s international trade. They 
accounted for 28% of the total value of exports and 57% of the total value 
of imports in Q3 2018: 10 times and 8 times more, respectively, than in 2003 
(Figure 4.7). While small business imports are trending upward, their exports 
are on a declining trend. Internationalization can help vitalize small businesses 
and encourage structural changes in their business models, moving from being 
domestically focused and import-competing to being export-focused and 
globally competitive.