THE ROLE OF COMMERCIAL BANKS IN FINANCIAL SUPPORT OF BUSINESS ACTIVITY

Abstract

This article examines the main directions of entrepreneurship support in the new Uzbekistan. After the political and economic reforms initiated by President Shavkat Mirziyoyev, there have been serious changes in the business environment in Uzbekistan. The article discusses the main strategies and policies implemented by the government to develop entrepreneurship and attract investments in various sectors. It emphasized the importance of creating a favorable business environment, reducing bureaucratic obstacles, and providing financial support to entrepreneurs. In addition, it examines the role of technological innovation, education and skills development in promoting entrepreneurship. At the end of the article, special attention is paid to the problems and opportunities that may arise for entrepreneurs in the developing landscape of the economy of Uzbekistan.

European International Journal of Multidisciplinary Research and Management Studies
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Aliyev Matkarim. (2024). THE ROLE OF COMMERCIAL BANKS IN FINANCIAL SUPPORT OF BUSINESS ACTIVITY. European International Journal of Multidisciplinary Research and Management Studies, 4(10), 59–62. Retrieved from https://inlibrary.uz/index.php/eijmrms/article/view/47545
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Abstract

This article examines the main directions of entrepreneurship support in the new Uzbekistan. After the political and economic reforms initiated by President Shavkat Mirziyoyev, there have been serious changes in the business environment in Uzbekistan. The article discusses the main strategies and policies implemented by the government to develop entrepreneurship and attract investments in various sectors. It emphasized the importance of creating a favorable business environment, reducing bureaucratic obstacles, and providing financial support to entrepreneurs. In addition, it examines the role of technological innovation, education and skills development in promoting entrepreneurship. At the end of the article, special attention is paid to the problems and opportunities that may arise for entrepreneurs in the developing landscape of the economy of Uzbekistan.


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THE ROLE OF COMMERCIAL BANKS IN FINANCIAL SUPPORT OF BUSINESS ACTIVITY

Aliyev Matkarim

Graduate student of the Academy of Banking and Finance, Uzbekistan

AB O U T ART I CL E

Key words:

Entrepreneurship; Economy;

Entrepreneurship; Efficiency.

Received:

10.10.2024

Accepted

: 15.10.2024

Published

: 20.10.2024

Abstract:

This article examines the main

directions of entrepreneurship support in the new

Uzbekistan. After the political and economic

reforms

initiated

by

President

Shavkat

Mirziyoyev, there have been serious changes in
the business environment in Uzbekistan. The

article discusses the main strategies and policies

implemented by the government to develop

entrepreneurship and attract investments in
various sectors. It emphasized the importance of

creating a favorable business environment,

reducing bureaucratic obstacles, and providing

financial support to entrepreneurs. In addition, it
examines the role of technological innovation,

education and skills development in promoting

entrepreneurship. At the end of the article, special

attention is paid to the problems and
opportunities that may arise for entrepreneurs in

the developing landscape of the economy of

Uzbekistan.

INTRODUCTION

The emergence of new Uzbekistan as a result of political and economic reforms created many

opportunities for entrepreneurship. Entrepreneurship has gained attention as a catalyst for economic

growth and job creation, as the focus on private sector development has grown. This article aims to

highlight the main directions of entrepreneurship support in the developing landscape. In recent years,

various measures are being implemented in Uzbekistan to promote entrepreneurship. Financial

assistance programs have been introduced to ensure access to capital and investment opportunities for
startups. Infrastructure development initiatives have improved communication between city centers

and created favorable conditions for business activities. In addition, policy reforms aim to reduce

VOLUME04 ISSUE10

DOI:

https://doi.org/10.55640/eijmrms-04-10-10

Pages: 59-62


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EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
AND MANAGEMENT STUDIES

ISSN: 2750-8587

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bureaucratic hurdles, simplify regulatory procedures and increase transparency. Despite these

advances, entrepreneurs still face challenges that hinder their growth potential. Limited access to
finance remains a significant barrier for many start-ups, particularly those operating outside of major

cities or in high-risk sectors. In addition, bureaucratic red tape continues to burden entrepreneurs

seeking licenses or permits for their businesses. To effectively address these challenges, policymakers

need to prioritize key areas such as improving access to finance through innovative financial

instruments tailored to meet the needs of entrepreneurs operating in different sectors in different

regions. In addition, efforts should be made to simplify administrative processes through digitization

and automation while ensuring transparency and accountability. By studying the main directions of
entrepreneurship support in the new era of Uzbekistan, this article aims to inform politicians and

interested parties about the current state of entrepreneurship and make recommendations on further

formation of a favorable environment for entrepreneurship. The potential benefits of supporting a

vibrant entrepreneurial ecosystem include job creation, economic diversification and increased global

competitiveness. Therefore, it is important to ensure that entrepreneurs receive adequate support to

thrive and contribute to Uzbekistan's overall development goals.

A credit relationship is created only if the lender is interested in lending funds, and the borrower is
interested in receiving these funds. The matching of interests by the participants of credit relations

ensures the conclusion of credit agreements. In the development of credit relations, it is necessary for

banks to carry out lending processes based on the main characteristics of credit and important

conditions and laws in their operation.

The bank plays the role of a financial intermediary in organizing the lending process. It attracts idle

funds and makes them temporarily available to clients on its own behalf. At the expense of bank loans,
important industries, agriculture, trade, etc. Are financed and become the basis for expansion of

production.

Th

e concept of “credit mechanism” is also found in credit relations. The views of scientists about the

“credit mechanism” are actions aimed at researching this concept and its development. In the work of

a number of scientists, economic categories are considered in an integral relationship

. “Analyzing in

detail, proving that the basis of these two categories is the same, that both of them are based on

monetary relations, he comes to the conclusion that in practice it is correct to call this mechanism a
fina

ncial and credit mechanism.”


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Classical economists associated the “credit mechanism” with specific methods of organizing credit

relations, and the use of these methods in the practice of the form of sharing, taking into account the
circulation of money and the organization of credit relations

, is considered as “credit mechanism”

credit. For example, AA . Azlarova and MMA Abdurakhmanova wrote about the credit mechanism

: “The

credit mechanism consists of a complex of credit system bodies, lending tools and methods, and

principles, with the help of which relevant bodies carry out their tasks and influence the entire national

economy and the economic activity of enterprises. It is considered as one of the economic levers (tools)

of the economic mechanism. the principles of prosperity require the rational and optimal development

of the economic mechanism”.

CONCLUSION

In conclusion, the main directions of entrepreneurship support in the conditions of new Uzbekistan are

of decisive importance in the development of the entrepreneurship ecosystem. By creating a favorable

business environment, encouraging the adoption of innovation and technology, providing access to

financial resources and training opportunities, and focusing on the implementation of effective policies

and regulations, Uzbekistan will unleash the creativity and dynamism of its aspiring entrepreneurs. has

the potential to give. With the combined efforts of the government and the private sector,
entrepreneurship can become a powerful driving force for economic growth, job creation and social

development in the country. As Uzbekistan continues on the path of economic reform and

modernization, it is necessary to give priority to supporting entrepreneurship as a means of fully

opening entrepreneurial talents.

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Махмуджон Зиядуллаев (2021). Право на социальное обеспечение в Узбекистане и радикальные реформы, проведенные в пенсионном секторе в 2017-2021 годах. Общество и инновации, 2 (8/S), 121-127. Doi: 10.47689/2181-1415-vol2-iss8/S-pp121-127 ;

Зиядуллаев, М. (2022). Роль социального обеспечения в стратегии развития Нового Узбекистана . Общество и инновации, 3(4/S), 120–125. https://doi.org/10.47689/2181-1415-vol3-iss4/S-pp120-125 ;

MY Tirkashev, «THE ROLE OF SMALL SCALE BUSINESS IN THE DEVELOPMENT OF MARKET ECONOMY», МОЯ ПРОФЕССИОНАЛЬНАЯ КАРЬЕРА Учредители: Общество с ограниченной ответственностью” Моя профессиональная карьера”, 34, 2022, 97-102 с.;

M Yu Tirkashev, NB Eshtemirov, «FACTORS OF EFFECTIVE USE OF MECHANISMS TO IMPROVE FINANCIAL CONTROL», 2022, Вестник магистратуры, 3-2 (126), 111-112 с.;

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