Mahalla-Based Small Business Development and Local Institutional Dynamics in Uzbekistan
DOI:
https://doi.org/10.31150/ajebm.v8i5.3534Keywords:
Mahalla, small business development, local governance, entrepreneurship, institutional barriers, community-based economy, Uzbekistan, hybrid institutions.Abstract
This study investigates the organisational and economic mechanisms influencing the development of small businesses and entrepreneurship within Uzbekistan’s mahalla system—traditional neighbourhood institutions that function as both administrative and socio-cultural units. While national policies emphasise entrepreneurship as a driver of inclusive economic growth, a persistent gap exists between policy formulation and effective implementation at the community level. Despite increased investment in SME development and support programs, many entrepreneurs remain excluded due to limited access to financial services, weak institutional coordination, and inadequate integration of digital infrastructure. To address this gap, a qualitative methodology was employed, involving semi-structured interviews with local entrepreneurs and mahalla representatives, alongside content analysis of policy documents and secondary data. The findings reveal that successful entrepreneurship in mahallas is hindered by inconsistencies in policy execution, lack of autonomy for local institutions, and the absence of regionally differentiated strategies. Urban mahallas show greater entrepreneurial activity due to better infrastructure and institutional support, while rural mahallas remain marginalized. The results suggest that empowering mahalla committees, investing in ICT-based support systems, and tailoring interventions to local conditions are essential for fostering sustainable entrepreneurship. This research contributes to the broader literature on community-based economic development and highlights the importance of hybrid governance models in transitional economies. Future studies are encouraged to explore comparative and longitudinal analyses to refine policy recommendations and theoretical frameworks for localized entrepreneurship.
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