The challenges of commercial banks for financing project: In case of small-medium enterprises

Small-medium enterprises (SMEs) are crucial for creating job opportunities, generating profit, and supporting social stability in low-income nations, contributing dynamically to private sector development. However, accessing financial resources remains a significant challenge for SME development, primarily due to inadequate financing from commercial banks. This often leaves new startups struggling to obtain credit due to a lack of credit history, marking them as high-risk prospects. Commercial banks face numerous challenges in lending to SMEs, including risk identification, managing operational costs, lending decision quality, and controlling bad loans. This research paper explores the role of commercial bank loans in the economy and examines the specific challenges that Uzbekistan's commercial banks encounter when financing SMEs.