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DEVELOPMENT FOR SMALL BUSINESS IN MAHALLAS
Tukhtasinov Zafarjon Odiljonovich
Researcher of Tashkent State University of Economics
https://doi.org/10.5281/zenodo.13300127
Mahallas are community groups that have existed for centuries in Uzbek
culture. In every community of our people there is a group of elders who are
expected to help solve any social problems and conflicts that arise in the
community. Although mahallas are not religious organizations, they promote
traditional Islamic ideas about social roles and behavior. They help organize
weddings, funerals and circumcisions - the main events in the life of the people.
They also try to prevent divorces (married couples must appear before the
mahalla before legal divorce proceedings begin), the mahalla must also ensure
that the elderly are taken care of, and criminals are punished (criminals may be
forced to leave the mahalla) [3,42].
The Uzbek makhalla committee organizes various forms of public works.
For example, the mahalla organizes the cleaning of streets from garbage and
supervises operations to clean irrigation canals. Another important function of
the mahalla is the organization of "hashara". This is a traditional Uzbek way of
mutual assistance, when community members form a group that helps one or
another family build a house or harvest a crop. The most important thing from
the point of view of social assistance is that the mahalla traditionally provides
care for the elderly residents and children of the community.
There are about 14 thousand makhalla committees in the country, the
number of families in them varies from 150 to 5.5 thousand. Mahallas were not
closed during the Soviet period, but their activities were not encouraged. Since
1992, they have been officially supported by state authorities and given
administrative responsibilities. Chairmen and secretaries of mahalla
committees, in which there are more than 500 families, now receive salaries
from local authorities (khokimiyats). The chairman is elected by the community,
but candidates must be approved by the local district khokim.
Development for small businesses in the mahallas (neighborhoods or local
communities) of Uzbekistan is a crucial aspect of the country's economic and
social progress. Here’s an overview of the key elements involved in fostering
small business development in these areas:
1. Government Support and Policies
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Incentives and Grants: The Uzbek government has been providing various
incentives, including tax breaks, low-interest loans, and grants to encourage
entrepreneurship in mahallas.
Simplified Registration: Efforts have been made to simplify the process of
registering a small business, reducing bureaucracy, and making it easier for
locals to start their ventures.
Training and Development Programs: Government agencies and NGOs often
organize workshops and training sessions to equip local entrepreneurs with
essential business skills.
2. Access to Finance
Microfinance Institutions: These play a vital role in providing small loans to
entrepreneurs who may not have access to traditional banking services.
Credit Unions: Locally operated credit unions are often more accessible to
the residents of mahallas, providing loans tailored to their needs.
Government-Backed Funds: Special funds have been established to support
the development of small businesses, especially those led by women and young
people.
3. Infrastructure Development
Improving
Local
Infrastructure:
Enhancing
road
networks,
telecommunications, and electricity supply in mahallas can significantly impact
the growth of small businesses.
Marketplaces and Trade Centers: Developing local markets and trade
centers within mahallas can provide business owners with direct access to
consumers.
4. Community Engagement and Social Capital
Mahalla Committees: These local governance bodies play a significant role
in supporting small businesses by facilitating connections, offering advice, and
sometimes even providing financial support.
Cooperatives: Encouraging the formation of cooperatives allows small
business owners to pool resources, share risks, and increase their market reach.
5. Digitalization and Innovation
E-commerce Platforms: Expanding access to digital marketplaces allows
small businesses in mahallas to reach a broader audience.
Digital Skills Training: Providing training in digital literacy and online
business management helps entrepreneurs modernize their operations.
6. Challenges
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Access to Markets: Small businesses in mahallas often struggle to access
broader markets, limiting their growth potential.
Financial Literacy: A lack of financial literacy can hinder the ability of
entrepreneurs to manage their finances effectively.
Regulatory Challenges: Despite improvements, navigating regulatory
requirements can still be a hurdle for many small businesses.
7. Success Stories
Highlighting successful businesses that have grown from mahallas can
inspire others and provide models for replication.
8. Future Prospects
Sustainability Initiatives: Encouraging sustainable business practices, such
as eco-friendly production methods, can open up new opportunities.
Youth and Women Entrepreneurship: Continued focus on empowering
youth and women through targeted programs can drive further development in
the mahallas.
The development of small businesses in Uzbekistan’s mahallas is essential for
local economic growth, reducing poverty, and fostering community resilience.
With ongoing support and targeted interventions, these businesses can thrive
and contribute significantly to the country's overall development.
References:
1. Nosir Khisrav. Safarnoma. Tashkent. "Shark." 2003.
2. Saidova G. Human development in Uzbekistan. Tashkent. 2000.
3. Ubaydullaeva A.T. Sociology as a science. Lecture course. Tashkent. 1999.
4.https://cyberleninka.ru/article/n/mahallya-kak-osnova-mestnogo-
samoupravleniya.
5. https://parliament.gov.uz/ru/articles/992
6.https://ru.wikipedia.org/wiki/%D0%9C%D0%B0%D1%85%D0%B0%D0%B
B%D0%BB%D1%8F
