THE ROLE OF SMALL BUSINESS AND ENTREPRENEURSHIP IN DEVELOPING THE GREEN ECONOMY (THE CASE OF NAMANGAN REGION)

Abstract

The article analyzes the role of small business and entrepreneurship in the transition to a green economy using the case of Namangan region. Uzbekistan’s green economy transition strategy identifies the insufficient involvement of small business in adopting innovative solutions as one of the factors impeding the achievement of sustainable development goals. At the same time, it is precisely this sector that constitutes the backbone of the regional economy: by the end of 2025, small business accounted for 73.6 percent of the gross regional product of Namangan region and approximately 82 percent of the employed population. The aim of the study is to identify the structural causes of this discrepancy and to substantiate directions for engaging small business in the green transition. The methods of statistical grouping, comparative, structural, and institutional analysis are employed. The results reveal the uneven sectoral participation of small business: while its share exceeds 90 percent in agriculture, trade, and transport, it amounts to 55.3 percent in industry. The predominance of microfirms within the sector (92.5 percent of active entities) limits the capacity for capital accumulation required to introduce green technologies. At the same time, in 2025 the share of active entities rose from 51.7 to 67.5 percent, indicating an improvement in the institutional quality of the sector. In conclusion, three directions for engaging small business in the green transition are substantiated: financial incentives, cooperation chains, and a territorially differentiated approach.