Publication Details
Abstract
The service sector has become one of the key drivers of regional economic growth, employment generation, and improvements in living standards. In Uzbekistan, the introduction of a mahalla-based development model has created new opportunities for identifying local socio-economic challenges and promoting entrepreneurship at the grassroots level. This study aims to examine the institutional mechanisms for strengthening mahalla-based service sector development in the Samarkand region and to assess their effectiveness in stimulating local economic activity. The research employs a mixed-methods approach, including statistical analysis, comparative assessment, and institutional analysis based on regional socio-economic indicators, government reports, and service sector performance data. Particular attention is paid to the role of local governance institutions, community participation, digital platforms, and public support mechanisms in enhancing service delivery and business development within mahallas. The findings indicate that effective coordination between local authorities, entrepreneurship support institutions, and community organizations contributes significantly to the expansion of service activities, job creation, and income growth. The study identifies several institutional constraints, including uneven access to financial resources, insufficient digital infrastructure, and disparities in managerial capacity across mahallas. Based on the empirical evidence, a comprehensive framework is proposed to improve institutional cooperation, strengthen digital governance, and enhance the efficiency of service sector development policies at the local level. The study contributes to the growing literature on community-based economic development by providing empirical evidence from Uzbekistan and offering practical recommendations for policymakers seeking to promote inclusive and sustainable regional growth through mahalla-centered development strategies.