In The Shadow of Financial Illiteracy: The Decline of Small Businesses and The Growing Debt Burden

In Uzbekistan, the development of small and medium-sized enterprises plays a crucial role in state economic policy. However, insufficient financial knowledge and skills, inefficient use of credit resources, and improper risk assessment have led to a decline in the number of entrepreneurial entities and an increasing debt burden. This article analyzes these challenges and proposes solutions aimed at improving financial literacy based on the experiences of South Korea and Germany. High dependence on credit, a lack of personal savings, and a weak culture of financial planning among the population are identified as key factors hindering economic activity and the development of entrepreneurship.