Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Private Sector Development and Access to Finance
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Figure 4.8 shows the extent to which SME categories in Uzbekistan have 
engaged in product and process innovation and the level of their access to 
bank credit.
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The number of SMEs that introduce new products and services 
is small compared to the number of large enterprises that introduce them. 
Few SMEs have access to technology licensed from foreign companies, and 
some SMEs are still state owned, which may impede their active involvement 
in innovation.
Limited access to finance is a structural problem for business development 
in SMEs. The World Bank’s Enterprise Surveys identified a relatively high 
rejection rate of loan applications from small businesses in Uzbekistan (World 
Bank 2013). Also, no SME spending on R&D is evident in the surveys (even 
large enterprises spent little on R&D). Such investments were mostly self-
financed by SMEs. The limited use of external finance or a lack of available 
sources of long-term finance contribute to SMEs’ dearth of investment in R&D. 
It is therefore not surprising that only a small number of SMEs introduce new 
products and services. Diversification of finance sources beyond traditional 
bank credit is vital for SMEs, especially tech-based start-ups and ventures. An 
appropriate government support framework is needed to remedy the situation. 
The next section reviews the country’s financial sector development in detail.
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The latest World Bank Enterprise Survey in Uzbekistan was in 2013. The survey’s classification of SMEs 
follows the World Bank’s standardized definition, with a threshold of fewer than 100 employees.
R&D = research and development.
Note: Data as a percent of firms.
Source: World Bank. 2013. Enterprise Surveys. Uzbekistan (2013). http://www.enterprisesurveys.org/data/
exploreeconomies/2013/uzbekistan.