Innovation Activity of Small Businesses and Micro firms In The republic Of Uzbekistan

This article examines the innovative activities of small businesses and micro-firms in the Republic of Uzbekistan, focusing on their contribution to the nation’s socio-economic development. It highlights the strategic importance of innovation as a driving force for enhancing competitiveness, productivity, and sustainability in small enterprises. The study explores the current state of innovative practices, identifying key areas where these businesses have excelled, such as adopting digital technologies, developing new products, and improving services. It also analyzes the challenges they face, including limited access to financing, insufficient infrastructure, and a lack of skilled personnel. The article evaluates government initiatives and reforms aimed at fostering innovation in small businesses, including financial incentives, tax benefits, and the establishment of business incubators. Drawing on empirical data, it provides insights into how these measures have influenced the entrepreneurial ecosystem. By presenting examples of successful innovative projects, the study underscores the potential of small businesses to become engines of economic growth. The article concludes with recommendations for enhancing the innovation capacity of small businesses through policy adjustments, increased investment, and international collaboration.