GROWTH OF SME SECTOR AND WAYS OF IMPROVING ACCESS TO FINANCIAL SERVICES IN UZBEKISTAN

  • Turaboy Koraliev Tashkent Financial Institute, Credit-Economic faculty, Bank accounting and audit department, Amir Timur street, 60-A, 100000, Tashkent, Uzbekistan
  • Narzullo Oblomurodov Tashkent Financial Institute, Credit-Economic faculty, Bank accounting and audit department, Amir Timur street, 60-A, 100000, Tashkent, Uzbekistan
DOI: https://doi.org/10.12955/ejbe.v9i1.433
Keywords: Private sector, access to financial services, bank loans

Abstract

Private sector is recognized as the driving force and the engine for economic growth in many countries. It delivers important goods and services, provides jobs, generates revenue for public sector, and creates and maintains infrastructure. SMEs in particular create jobs and lead to more equitable distribution of incomes. In Uzbekistan the share of SMEs in GDP steadily increased from 30% in 2000 to 54% in 2012. The sector accounts for 75% of total employment in the country and it is forecasted that SMEs will add around half a million of new jobs in 2013.

Despite these improvements, SMEs’ productivity and competitiveness potential have been affected by regulatory and institutional constraints. Access to adequate financial services is a key component for sustainable growth of the private sector, economic diversification and creation of more and better jobs. Adequate access to finance includes not only bank loans, but also a host of financing instruments that are geared to meet the diverse needs of enterprises and entrepreneurs with different characteristics and profiles. In addition, access to a broader range of efficient and reliable financial services, including electronic payment services, enables enterprises to manage the financial resources available to them more effectively.  

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Published
2014-04-30
Issue
Vol 9 No 1 (2014)
Section
Articles
Copyright (c) 2014 Turaboy Koraliev, Narzullo Oblomurodov

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