Directions for Improving the Practice of Lending to Small Business Entities by Commercial Banks

The development of small business and entrepreneurship is one of the key drivers of sustainable economic growth and employment generation. In this context, commercial banks play a crucial role in providing financial resources and expanding access to credit for small business entities. However, despite the progress achieved in recent years, lending practices remain constrained by issues such as limited collateral capacity, high credit risks, and insufficient use of modern financial technologies. This article analyzes the current state of small business lending in Uzbekistan, identifies the main challenges in the credit process, and examines international best practices in supporting small enterprises. Based on the findings, recommendations are proposed for improving the lending mechanisms of commercial banks, including the introduction of innovative credit risk assessment models, wider use of digital banking solutions, expansion of government-guaranteed loan programs, and strengthening of partnerships between financial institutions and small businesses. The study emphasizes that enhancing lending practices in this sector will contribute significantly to the competitiveness of the national economy, the stability of the banking system, and the achievement of inclusive development goals.