Publication Details
Abstract
This paper explores the innovation activities of small businesses and micro-enterprises in the Republic of Uzbekistan as compared to their impact on social and economic development of the country. It accentuates how strategic innovation is a way to enhance efficiency, competitiveness and sustainability within small businesses. The report explores how innovative these businesses are, considering where they beat the broader business community – including in their use of digital innovations and in developing and bringing to market new products and services. It also deals with the constraints they face, which include credit constraint, poor infrastructure and lack of skills. The article analyses the government's initiatives and reforms in promoting innovation in small businesses such as financial incentives, duties benefits, creation of business incubators. It uses real data to offer a glimpse on the impact of these policies in the entrepreneurial ecosystem. By featuring successful examples of innovative ventures, the research highlights the possibility of microenterprises fueling economic expansion _ENREF_55. It ends with a series of policy suggestions for boosting the innovation capabilities of small firms through modified policies, higher levels of government investment and international cooperation.