Small Business Models in The Field of Freight and Passenger Transportation in Uzbekistan

Abstract

The use and combination of different business models in regional transport sectors has become an important approach to achieving sustainable mobility. This study aims to examine the factors and conditions that influence the participation of small businesses in logistics services in the freight and passenger transport sectors. The analysis shows that, despite institutional and infrastructure-related constraints, entrepreneurial initiatives remain highly resilient and adaptable; this indicates a fragmented but effective system. This study contributes to the formulation of transport policies and lays the foundation for the development of targeted support mechanisms to promote inclusive mobility solutions. The results of the study can inform future territorial planning decisions and the process of integrating small businesses into transport network management.

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Sevara Aytieva. (2025). Small Business Models in The Field of Freight and Passenger Transportation in Uzbekistan. Journal of Management and Economics, 5(06), 17–22. Retrieved from https://inlibrary.uz/index.php/jme/article/view/108208
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Abstract

The use and combination of different business models in regional transport sectors has become an important approach to achieving sustainable mobility. This study aims to examine the factors and conditions that influence the participation of small businesses in logistics services in the freight and passenger transport sectors. The analysis shows that, despite institutional and infrastructure-related constraints, entrepreneurial initiatives remain highly resilient and adaptable; this indicates a fragmented but effective system. This study contributes to the formulation of transport policies and lays the foundation for the development of targeted support mechanisms to promote inclusive mobility solutions. The results of the study can inform future territorial planning decisions and the process of integrating small businesses into transport network management.


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Journal of Management and Economics

17

https://eipublication.com/index.php/jme

TYPE

Original Research

PAGE NO.

17-22

DOI

10.55640/jme-05-06-04



OPEN ACCESS

SUBMITED

08 April 2025

ACCEPTED

10 May 2025

PUBLISHED

12 June 2025

VOLUME

Vol.05 Issue06 2025

COPYRIGHT

© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.

Small Business Models in
The Field of Freight and
Passenger Transportation
in Uzbekistan

Sevara Aytieva

PhD, Associate Professor of the Department of Business Administration,
Tashkent State University of Economics, Uzbekistan






Abstract:

The use and combination of different business

models in regional transport sectors has become an
important approach to achieving sustainable mobility.
This study aims to examine the factors and conditions
that influence the participation of small businesses in
logistics services in the freight and passenger transport
sectors. The analysis shows that, despite institutional
and infrastructure-related constraints, entrepreneurial
initiatives remain highly resilient and adaptable; this
indicates a fragmented but effective system. This study
contributes to the formulation of transport policies and
lays the foundation for the development of targeted
support mechanisms to promote inclusive mobility
solutions. The results of the study can inform future
territorial planning decisions and the process of
integrating small businesses into transport network
management.

Keywords:

Entrepreneurship-based transport models,

inclusive mobility solutions, regional logistics networks,
small business participation, transport system
resilience.

Introduction:

Several studies have examined the

development of small business models among regional
transport operators and found that the development of
flexible logistics solutions by small businesses has a
positive impact on mobility efficiency [1]. The use of
decentralized transport models has been shown to be
effective in overcoming infrastructure gaps and
improving service quality, especially in underserved
areas [2]. A sustainable transport system develops on
the basis of a balanced combination of entrepreneurial


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capacity, political support and infrastructural flexibility
[3].

However, existing studies have not distinguished
between different dimensions of transport model
operations, which highlights the need to identify the
interrelationships between different business types
and spatial constraints.[4] It remains unclear whether
small-scale innovations can overcome the functional
limitations or structural barriers of traditional logistics
systems.[5]

Although data are collected from various national
databases, field interviews and business surveys are
the most commonly used methods due to their
availability and relevance [6]. In addition, the informal
sector has been found to contain micro-enterprises
that have similar characteristics to formal operators
but are more flexible [7]. Most of the existing studies
are descriptive in nature and based on cross-sectional
samples [8]. However, current studies have not
analyzed how business models affect transport
efficiency in terms of the territorial political
environment [9].

To our knowledge, no research has yet focused on
modeling resilience capacities and systemic constraints
across subnational regions [10]. In contrast to single-
region studies, in this study we attempted to construct
and analyze a participatory framework using a mixed
methodology [12]. In order to successfully implement
entrepreneurial

interventions

in

transport

management, a deep understanding of the drivers and
barriers to their implementation is necessary.
Therefore, this study focused on examining the
determinants of small business participation in
improving mobility services in different regional
economies of Uzbekistan [13]. In this regard, we
summarized empirical research on the perspectives of
small firms, regional planners, and transport users on
the opportunities and barriers to the implementation
of entrepreneurial models in freight and passenger
transport management [14].

At the same time, we used descriptive statistics and
inductive analysis methods to identify the factors,
conditions and behavioral patterns of entrepreneurs
that influence the development of small logistics
services [15]. Systematic reviews of territorial mobility
allow us to collect and analyze evidence from different
settings and are increasingly used to inform the design
and implementation of inclusive mobility solutions. We
hypothesized that small business models can enhance
integration or, conversely, reinforce fragmentation.
The results of the analysis of the local context were
combined with survey data.

METHODOLOGY

The survey areas include, but are not limited to, regional
centers, small towns, suburban areas, border districts,
and industrial clusters. The sample included registered
transport operators in the eastern region of Uzbekistan.
Data were collected by region between 2020

2023 and

by other administrative levels between 2018

2023. The

unit of analysis is the enterprise, with the main source
of information being the opinions of owners of firms
with fewer than 50 employees, as defined in accordance
with the national SOE (Small and Private Enterprises)
classification [16,17].

Structured questionnaires were sent through regional
business support centers, and a total of 423 valid
questionnaire responses were received. The data set
reflected the use of business models in transport
services, covering ownership form, scope of activity, and
innovation implementation. Data were collected by
independent reviewers using a standardized coding
protocol and a manual data extraction form [18].

The inclusion criteria for this review were as follows: we
excluded duplicate articles and editorials that relied on
unsupported or unsupported assumptions that were
not based on empirical data. The search was limited to
the period 2010

2023, as most regional innovations

occurred after 2010.

The field study procedure has been described in detail
previously. For spatial selection, a grid-based corridor
was created in the Fergana Valley, with a linear zone of
15 km in length and 2 km in depth [12]; this zone was
selected based on an operational classification by
vehicle type within the administrative boundaries close
to the core of the transport zone. This approach helps
to overcome the limitations caused by the multi-
factorial effects observed in urban and rural areas.

The analysis model and evaluation were carried out in
three stages: (i) formation of a matrix of variables
through a questionnaire, (ii) implementation of data
collection within the regions after the pilot phase, (iii)
classification of responses for qualitative assessment
and statistical analysis after 4, 8 and 12 weeks. Data
collection was in two stages: the first stage was
interviews with stakeholders, which were mainly used
to identify views and problems; the second stage was
quantitative questionnaire analysis, which was used to
check the reliability of the responses. Our synthesis
consisted of three stages: coding of initial findings,
grouping codes into second-level themes, and the
formation of final summarized themes.

The model structure was then tested. Significance was
assessed by the position of the true value within the
confidence interval [19]. Repeated measurements allow
for an assessment of the stability of the model and the
determination of statistical significance.


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The quality assessment checklist consists of 12
questions that measure the reliability of the data
source, representativeness of the sample, and
methodological transparency. The dependent variable
is defined as enterprise participation, which represents
the level of acceptance of the model. To measure
satisfaction, respondents were asked to rate whether
the level of transport reliability in their area was
satisfactory or not on a scale of 1 to 5, where 1 means
very low and 5 means very high.

The final scale consists of two dimensions: accessibility
and operational flexibility; each contains four items.
Based on this method, the companies were divided
into four transport model categories: fixed-route,
demand-driven, general freight and mixed operations
[20]. Descriptive themes were analyzed sequentially
and used to generate inductive themes. The narrative
synthesis

approach

recommended

by

the

Transportation Research Framework was used to
contextualize and integrate the results on model
performance.

The thematic synthesis process was based on the
qualitative research synthesis methodology of Thomas

and Harden. Coding categories, interpretation rules, and
visualization formats were adjusted to clarify the
findings. This synthesis allows for more precise
identification of conclusions that are free from
contextual bias and have practical implications.

RESULTS

Respondents frequently noted that they found it
convenient to use demand-based transportation
models in periurban centers and shared freight
terminals on local industrial corridors, as this allowed
them to avoid delays, route inefficiencies, and excessive
fuel consumption.

Table 3 presents the results of the linear regression
analysis and the significance test of the coefficients.

According to model 1, the indicators “entre

preneurship

flexibility” and “service accessibility squared” are

statistically significant and highly significant, indicating
that there is a strong positive relationship between
flexible

business

participation

and

enterprise

participation. This means that enterprises with flexible
structures contribute more to the provision of local
transport services than firms with less flexibility.

Table 1. Normalized and actual scores of transport sector criteria

Name

Ideal

Normal

Real

Entrepreneurial potential

0.784

0.245

0.122

Infrastructure compatibility

1.000

0.312

0.156

Political and regulatory support

0.804

0.251

0.126

Access to services

0.616

0.192

0.096

However,

infrastructure

constraints,

policy

differences, service coverage, and the level of
innovation were not uniform across regions, which
reduced the predictive power of the statistically
positive associations. Participants noted that political
coherence improves planning stability and operational
coherence, which leads to higher satisfaction. Some of
these effects were observed in the Fergana Valley
Corridor and border district clusters, while others were

limited to the central urban areas.

Of the 50 participants, 38 expressed interest in testing a
mixed freight and passenger model on their routes,
based on logistical and economic reasons that support
their growth goals. A positive spatial spillover effect was
found, where clusters of businesses integrated into the
corridor

matrix

outperformed

micro-businesses

associated with isolated and limited use models.

Table 2. Matrix of relationships between criteria and alternatives in transport sector modeling

Criteria /

Alternatives

Entrepreneurial

potential

Infrastructure

compatibility

Political

and

regulatory

support

Access

to

services

Demand-

driven

transportation

model

Micromodel

with a

specific

orientation

Freight-

passenger

mixed
model

Purpose

Entrepreneurial
potential

0.00000

0.00000

0.00000

0.00000 0.19526

0.13807

0.39052

0.12238

Infrastructure
compatibility

0.00000

0.00000

0.00000

0.00000 0.39052

0.39052

0.13807

0.15603


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Political and
regulatory
support

0.00000

0.00000

0.00000

0.00000 0.27614

0.27614

0.19526

0.12550

Access to
services

0.00000

0.00000

0.00000

0.00000 0.13807

0.19526

0.27614

0.09609

Demand-
driven
transportation
model

0.00000

0.00000

0.00000

0.00000 0.00000

0.00000

0.00000

0.24669

Micromodel
with a specific
orientation

0.00000

0.00000

0.00000

0.00000 0.00000

0.00000

0.00000

0.09790

Freight-
passenger
mixed model

0.00000

0.00000

0.00000

0.00000 0.00000

0.00000

0.00000

0.15541

Purpose

0.00000

0.00000

0.00000

0.00000 0.00000

0.00000

0.00000

0.00000

Table 3. Results of linear regression analysis

Variable

Coef.

Std. error

t-value

p-value

[95% Confidence Interval]

Ahem.

entrepreneurial_adaptability

0.589

0.191

3.09

0.004

0.204 – 0.973

***

infrastructure_constraints

-0.429

0.117

-3.66

0.001

-0.666 – -0.193

***

political_support

0.410

0.167

2.46

0.018

0.074 – 0.746

**

service_usage_level

0.911

0.178

5.13

0.000

0.553 – 1.270

***

innovation_implementation

0.238

0.212

1.12

0.268

-0.190 – 0.667

transportation_satisfaction

0.064

0.090

0.71

0.483

-0.118 – 0.246

Constanta

-0.427

1.396

-0.31

0.761

-3.241 – 2.388

Satisfaction with transport reliability did not have a
significant effect on participation. Political support had
a moderate but significant effect on participation.
Among the alternatives modeled, demand-driven
hybrid models had a high level of acceptance, while
fixed-route models had a low level of acceptance.
However, the impact of these groupings on
neighboring businesses in expanding transport
systems remains relatively limited.

DISCUSSIONS

Our results suggest that the interaction between
entrepreneurial flexibility and service accessibility can
increase enterprise participation, which helps to
understand approaches to aligning transportation
service models with regional business ecosystems.

Empirical results show that the concentration of small
firms on the same or similar transport corridors
effectively enhances logistics integration. According to
the survey results, the level of participation among
enterprises separated from different administrative

clusters has a high variability. The micro-firms
considered in this study showed operational stability
and behavioral consistency due to their territorial
location within the regional network, acting as flexible
nodes in the logistics matrix, but not being able to
reshape the entire system or macrostructure. This is
similar to the results observed previously in urban areas.

This can be explained by the fact that firms are located
on the same or similar routes, which reduces
uncertainty and eliminates coordination barriers,
thereby reducing the risk of fragmentation. The
tendency of the model to adapt to local conditions, as
previously demonstrated in the case of near-urban
transport units, is replicated, albeit on a limited scale, in
mixed-hybrid models, which are considered the
preferred organizational form in decentralized logistics
systems based on shared vehicles.

We explain the lack of broader network effects in this
cluster formation and the difficulty of scaling up of
isolated micro-firms by the low impact of business
innovations on regional planning systems, which are less


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responsive to bottom-up initiatives and informal
models. Independent organizations, on the other
hand, are unable to scale up systematically due to
institutional invisibility and resource constraints.

The results of this analysis enrich the concept of
inclusive mobility and the evidence base for regional
policies. The results of the study show that the
influence of political support and infrastructure
flexibility factors has a different impact on business
participation. According to the results of interregional
transport surveys, the use of on-demand logistics in
industrial corridors is associated with cost-
effectiveness. Regional satisfaction surveys, on the
other hand, show that positive relationships between
local government and business increase planning
efficiency, service reliability, business confidence and
network cohesion.

Policymakers can take full advantage of the flexible
nature of these business models to strengthen the
mobility infrastructure of economies in transition. This
study suggests that the impact of grassroots transport
models on service integration at the regional level may
not always be uniform. That is, the combination of
informal and formal transport elements does not
always increase systemic coherence. However, these
regional differences are similar to those studied in
recent years in the diffusion of transport innovations
through bottom-up policy pilot programs. These
observations are consistent with the participation
patterns noted in our analysis, namely that the
fragmentation we observe is likely due to the entry of
unregulated operators into zones where policy is not
considered.

Like many previous studies, this study has some
limitations that point to future research directions.
First, due to the limited sample size, we did not
examine how these business models change over time
and only analyzed a cross-section of the sample.
Although the problem of selection bias is not
significant, researchers with a good understanding of
the regional business environment can ensure the
robustness of the findings by comparing different
measures of model performance.

Although we conducted a multi-level analysis, our
study has some limitations. Nevertheless, this model
creates a practical framework for the transportation
sector, but does not have the potential to change the
scale of the industry architecture at a strategic level.

CONCLUSION

Our research findings may be useful in designing future
transport policy mechanisms and applying them in
practice to support territorial mobility. Policymakers
can fully exploit the adaptive potential and integrative

role of business models in the transport sector.
Although the level of innovation adoption in this study
was not found to be statistically significant, a deeper
understanding of the operational conditions may lead to
successful

interventions

for

inclusive

logistics

development.

To strengthen the link between entrepreneurial
resilience and access to services in the local context,
policymakers can act in several ways, including:
coordinated planning, capacity-building programs, and
supporting infrastructure investments. The results of

the study show that a firm’s satisfaction with the local

transport environment has a significant impact on its
participation rate, so it will be important to better
understand the factors that encourage participation in
local settings.

This study also suggests that business models that lack
institutional support and political alignment may be
difficult to scale up, and that planners need to consider
shaping practices that support mainstream innovation
alongside regulatory integration. This study opens up
new possibilities for more inclusive approaches in the
transport sector. More specifically, it would be
worthwhile to examine which types of regulatory
instruments and governance models influence the
evolution of the transport system, depending on the
level of political support, and thereby how they may
influence business decisions.

REFERENCES

Abdullayev, A., Raimova, D., and Utkirov, F. (2024).
Development trends of small business enterprises in the
automotive transport sector in Uzbekistan. Bulletin of
Science and Practice , 10(2), 412

417.

UzDaily . (2025). In 2024, the volume of transport
services in Uzbekistan exceeded 145 trillion soums.

Uzbekistan Statistical Agency. (2024). Main indicators of
the services sector in the Republic of Uzbekistan.

Trend News Agency . (2024). Overview of the main
events in the transport sector of Uzbekistan in 2024.

Saygınlar Nakliyat . (2025). Freight transportation prices

in Uzbekistan in 2024.

AGL

Arrow Global Logistics . (2025). International

freight: Arrow Global Logistics transport company.

YB Case . (2025). A look at the business environment in
Uzbekistan in 2025.

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2024.

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Change

(UNFCCC)

.

(2024).

Fourth

National

Communication of the Republic of Uzbekistan.

United Nations Economic Commission for Europe


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(UNECE) . (2024). National Environmental Report for
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ACM Digital Library . (2023). Current trends in the
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References

Abdullayev, A., Raimova, D., and Utkirov, F. (2024). Development trends of small business enterprises in the automotive transport sector in Uzbekistan. Bulletin of Science and Practice , 10(2), 412–417.

UzDaily . (2025). In 2024, the volume of transport services in Uzbekistan exceeded 145 trillion soums.

Uzbekistan Statistical Agency. (2024). Main indicators of the services sector in the Republic of Uzbekistan.

Trend News Agency . (2024). Overview of the main events in the transport sector of Uzbekistan in 2024.

Saygınlar Nakliyat . (2025). Freight transportation prices in Uzbekistan in 2024.

AGL – Arrow Global Logistics . (2025). International freight: Arrow Global Logistics transport company.

YB Case . (2025). A look at the business environment in Uzbekistan in 2025.

Enterprise Surveys . (2024). Uzbekistan Country Profile – 2024.

United Nations Framework Convention on Climate Change (UNFCCC) . (2024). Fourth National Communication of the Republic of Uzbekistan.

United Nations Economic Commission for Europe (UNECE) . (2024). National Environmental Report for Uzbekistan.

ACM Digital Library . (2023). Current trends in the development of e-commerce in Uzbekistan.

ResearchGate . (2023). Stages of Entrepreneurship Development in Uzbekistan.