CHALLENGES AND CONSTRAINTS OF STRATEGIC MANAGEMENT IN SMALL ENTERPRISES IN UZBEKISTAN

Abstract

Small enterprises play a pivotal role in Uzbekistan’s economy, yet they face significant challenges in formulating and implementing effective strategic management. This paper examines the main problems and limitations that hinder strategic management in Uzbek small businesses, situating the discussion in the country’s post-Soviet transition context. Key constraints include limited financial resources and difficulty accessing credit, insufficient managerial expertise and strategic planning skills, bureaucratic and regulatory barriers, and underdeveloped infrastructure (including digital infrastructure)[1][2]. Many small firms operate with constrained capital and human resources, leading to short-term decision-making instead of long-term strategy. External factors – such as complex tax and licensing procedures, limited access to markets, and competition from dominant state-owned enterprises – further complicate strategic initiatives. The analysis highlights how these factors collectively impede the adoption of robust strategic management practices. The paper concludes with practical recommendations for policymakers and entrepreneurs to overcome these obstacles, emphasizing capacity-building, regulatory reforms, improved access to finance, and support for digital transformation. These measures are critical for empowering Uzbekistan’s small enterprises to contribute fully to sustainable economic growth.