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YOUTH EMPLOYMENT AND THE DEVELOPMENT OF STARTUP CULTURE
Shirinova Shahnoza Abdinabiyevna
Navoi State University of Mining and Technology,
Assistant of the Department of "Economics and Management"
shahnozashirinova070@gmail.com
https://orcid.org/0009-0008-8958-9857
Qarshiboyeva Sadoqat Laziz qizi
Navoi State University of Mining and Technology 5-23 Logistics 2nd year student
https://doi.org/10.5281/zenodo.15527237
Annotation:
This thesis study examines the problem of youth employment in Uzbekistan
and the role of startup culture in solving it. The work analyzes the main causes of youth
unemployment, problems in the current labor market, and opportunities for creating new jobs
through innovative entrepreneurship. It also provides information on the formation of the
startup ecosystem in Uzbekistan, existing programs, and their effectiveness. At the end of the
work, proposals and recommendations were developed for the development of startup culture
to increase youth employment. The thesis is written on the basis of scientific and theoretical
approaches and practical examples, and is relevant in the framework of youth policy and
economic reforms.
Keywords:
youth employment, startup culture, unemployment, innovative
entrepreneurship, labor market, Uzbekistan, youth policy, startup ecosystem, economic
development, digital economy.
In today's globalization environment, innovative approaches play an important role in all
sectors of the economy. In particular, increasing the economic activity of young people,
successfully attracting them to the labor market and ensuring their employment are among the
priorities of state policy. In the Republic of Uzbekistan, great attention is paid to fully utilizing
the potential of young people, forming them as enterprising, innovative-thinking personnel
with modern knowledge and skills.
At the same time, the development of a startup culture is becoming increasingly important
in ensuring youth employment. Because startups are not only business projects based on new
ideas, but also a means of creating new jobs for young people and forming an innovative
environment in the economy. In recent years, Uzbekistan has been implementing large-scale
measures to support the startup environment through IT Parks, technoparks, grants and
incubation programs.
The purpose of this thesis is to analyze youth employment problems and study the role
and importance of startup culture in solving them.Ushbu maqsadga erishish uchun quyidagi
vazifalar belgilangan:
-to highlight the theoretical foundations of youth employment;
-to analyze the formation and development of startup culture;
-to study the current state of youth employment in Uzbekistan;
-to assess the opportunities for creating jobs for young people through startups;
-to develop problems and proposals
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The object of the study is the processes of youth employment in Uzbekistan, and the
subject is the role and influence of startup culture in these processes. The work uses
comparative analysis, statistical methods, a logical approach, and systematic analysis methods.
Youth employment is the opportunity for the able-bodied young generation to have a
permanent job, participate in economic activity, and earn an income. Employment is one of the
factors that ensures not only economic stability, but also social harmony in society. In
particular, youth is considered the most active, growth-oriented, and potential period in a
person's life. Therefore, the effective involvement of this category in the labor market is of
strategic importance for the development of the country.
According to the UN and the International Labor Organization, young people make up a
significant portion of the world's unemployed. Uzbekistan is also implementing large-scale
reforms to increase youth employment and actively involve them in economic life. The concept
of a startup and its main characteristics:
A startup is a business initiative that aims to grow rapidly based on innovation,
technology, or an innovative approach, unlike traditional businesses. Startups are often created
by small teams and are associated with a high level of uncertainty and risk. However, they also
have high returns and broad development opportunities.
Startup culture is a socio-economic environment that encourages innovative thinking,
creativity, independent work, and the creation of competitive products. This culture is closely
related to technological progress, modern knowledge, and the needs of the global market.
Youth and startups: theoretical approaches. Young people are open to innovation, quickly
adopt technologies, and are willing to take risks, and they play a huge role in promoting startup
initiatives. The experience of developed countries shows that startups created by young people
not only provide employment, but also bring new directions to the economy. According to the
theory of innovative economics, creating innovations allows for more efficient use of resources.
Also, according to Schumpeter's theory of entrepreneurship, startups provide an impetus for
renewal in the existing economic system through "creative destruction". This requires the
active participation of young people.
Youth employment situation in Uzbekistan: statistical analysis.
In the Republic of Uzbekistan, as of 2024, young people will make up about 60 percent of
the population. This indicates that the main part of the labor resources is made up of the young
generation. According to the State Statistics Committee, the unemployment rate among citizens
aged 16–30 is around 8–10%, which is a serious challenge for the country's development.
Several factors contribute to low youth employment:
-increased competition in the labor market;
-mismatch between professional skills and market demand;
-insufficient access to financial and information resources;
-regional inequality (more job opportunities in cities, fewer in rural areas).
There is a growing need for modern and innovative approaches to address this situation.
One such solution is to develop a startup culture among young people.
Startups and youth: practical examples from Uzbekistan.In recent years, great attention
has been paid to the development of startups in Uzbekistan. In particular:
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More than 800 startups were registered as part of the IT Park project in 2023; Thousands
of young entrepreneurs have been provided with preferential loans and grants through the
state program "Youth is our future"; Startup Academies and technoparks in the regions are
becoming centers of knowledge and practical skills for young people. For example, the Sunar
Solar Tech startup, created by young people in the Namangan region, produces compact power
sources based on solar energy. This is not only environmentally beneficial, but also serves to
create dozens of jobs. Such examples exist in every region, through which young people are
putting their ideas into practice and joining the economy.
There are several challenges in the formation of a startup environment:
-limited funding sources;
-lack of experience and knowledge;
-weak mechanisms for contacting investors;
-fear of making mistakes, i.e. cultural fear.
-at the same time, the existing opportunities are worth noting:
-government grants, soft loans and tax breaks;
-startup competitions and accelerator programs supported by international
organizations; the widespread use of digital technologies.
A number of practical proposals have been developed to develop youth employment and
a startup culture in Uzbekistan:
1. Strengthening entrepreneurship promotion: It is necessary to encourage young people
to create startups, expand preferential credit and grant programs to provide them with initial
capital. It is also important to establish cooperation with private investors and international
organizations for innovative projects. Young entrepreneurs should be provided with consulting
and mentoring services, helping them in their business development.
2. Improving experience exchange and educational programs: Create special educational
programs for young people on the development of innovative ideas and startups. It is also
necessary to organize training courses and seminars in the fields of high technology and the
digital economy. This will not only keep young people busy, but also give them the opportunity
to understand the global market.
3. Creating preferential conditions for startups: It is necessary to create free zones for
startups, reduce tax rates for them, and provide them with technological infrastructure and
digital resources. It is also necessary to introduce a system of short-term preferential loans for
startups by state organizations and banks.
Conclusions
This thesis analyzes important issues related to youth employment and the development
of startup culture. Despite the high effectiveness of the reforms implemented in Uzbekistan on
youth employment and the development of startups, there are still many problems in this
regard. More effective measures should be taken to increase the activity of young people in the
labor market, expand innovative approaches, and develop startup culture.
References:
Используемая литература:
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Foydalanilgan adabiyotlar:
1.
State Statistics Committee of the Republic of Uzbekistan. (2023). Youth employment and
unemployment rate in the labor market. Official statistics of the Republic of
Uzbekistan.
2.
Agency for Youth Affairs of the Republic of Uzbekistan. (2022). Youth policy and
entrepreneurship support programs.https://yoshlar.gov.uz.
3.
IT Park Uzbekistan. (2023). Startup development and opportunities created for young
people.https://it-park.uz.
4.
“Yoshlar – kelajagimiz” "fund and program. (2023). Programs aimed at developing youth
entrepreneurship in Uzbekistan. https://yoshlarjamgarmasi.uz.
5.
World Bank. (2022). Youth employment and economic development in
Uzbekistan.https://www.worldbank.org/en/country/uzbekistan.
6.
UNDP Uzbekistan. (2023). Human Development and Youth: Growth and Innovation.
https://www.undp.org/uzbekistan.
