THE IMPACT OF DIGITAL TRANSFORMATION ON THE ECONOMIC EFFICIENCY OF SMALL BUSINESS AND ENTREPRENEURSHIP IN UZBEKISTAN

This article examines the influence of digital transformation on the economic efficiency of small business and private entrepreneurship in the Republic of Uzbekistan over the period 2021–2026. Small enterprises and individual entrepreneurs generate more than half of national value added and remain the principal source of employment, yet their productivity has historically been constrained by limited access to finance, weak digital infrastructure in rural areas, and low technology adoption. Drawing on official statistics of the National Statistics Committee of the Republic of Uzbekistan, IT Park Uzbekistan, KPMG, and international trade data, the study documents the rapid expansion of the country's digital economy — including internet penetration, mobile connectivity, e-commerce turnover, and IT-service exports — and assesses how these trends correlate with indicators of small-business efficiency such as sectoral value added, export diversification, and investment in fixed capital. The findings indicate that digitalization has become a structural driver of small-business growth, particularly through e-commerce platforms, digital payment systems, and IT-outsourcing exports, while regional disparities and cybersecurity gaps continue to limit the sector's full potential. The article concludes with policy recommendations for accelerating inclusive digital transformation among micro, small, and medium-sized enterprises (MSMEs).