EBRD Funds Youth-Led Enterprises in Uzbekistan
Poinews.com – Uzbekistan’s small businesses are increasingly turning to the European Bank for Reconstruction and Development (EBRD) for vital financial support, with the EBRD committing $50 million (€42.7 million) to O’zsanoatqurilishbank (SQB) to bolster access to credit for young entrepreneurs. This initiative is a key component of the EBRD’s broader Youth in Business programme in Central Asia, designed to empower micro, small, and medium-sized enterprises (SMEs) run by individuals under the age of 35. The move highlights the growing recognition of youth-driven innovation as a catalyst for economic transformation in Uzbekistan, a nation where small businesses play a critical role in job creation and growth.
Uzbek SMEs and the Role of Youth Entrepreneurs
With over 1.2 million active SMEs as of October 1, 2025, and small businesses contributing 51.5% of the country’s GDP during the first three quarters of that year, the need for improved financing mechanisms has never been more urgent. The EBRD backs young entrepreneurs as Uzbek SMEs face unique challenges in securing capital, often due to a lack of collateral and limited access to traditional banking systems. By targeting this demographic, the EBRD aims to foster a more inclusive financial ecosystem that supports innovation and entrepreneurship across all sectors.
According to recent reports, 9.63 million people aged 14 to 30 make up 25.7% of Uzbekistan’s population, underscoring the potential of this group to drive future economic growth. The EBRD’s partnership with SQB is part of a multi-pronged strategy to address these challenges, including investments in digital infrastructure and training programs tailored to young entrepreneurs. This focus aligns with global trends emphasizing the importance of youth entrepreneurship in developing economies, where small firms often act as engines of innovation and employment.
Structural Gaps in SME Lending
Francis Malige, EBRD’s Managing Director for Financial Institutions, noted that while liquidity is abundant, it often fails to reach the real economy. “A lot of it goes to sovereign lending and state borrowing, but not necessarily to financing the real economy,” he explained to Euronews. This structural gap has left many Uzbek SMEs struggling to meet basic operational needs, despite their potential to generate significant economic value. The EBRD backs young entrepreneurs as Uzbek, aiming to correct this imbalance by introducing tools like first-loss cover and technical assistance to reduce risks for lenders and increase access to funding for smaller firms.
“The first barrier for smaller firms isn’t the business idea itself—it’s whether they can present clear records, financial forecasts, and operational history,” Malige added. He emphasized that traditional lending criteria often exclude young entrepreneurs, who may lack the formal documentation required by banks. By partnering with local institutions like SQB, the EBRD seeks to bridge this gap, offering flexible financing options that accommodate the needs of emerging businesses in Uzbekistan.
Ceren Güven Güres, head of the UN Women Central Asia Liaison Office, highlighted the additional barriers faced by women entrepreneurs in Uzbekistan. “Are they aware of their rights? Are they aware of these services?” she questioned, underscoring the need for targeted support beyond mere funding. Women-led SMEs in Uzbekistan often encounter gender-based discrimination and limited access to credit, which the EBRD’s program aims to address by incorporating gender-focused mentoring and tailored financial products. This holistic approach ensures that young entrepreneurs, regardless of gender, have equal opportunities to thrive in the competitive business landscape.
“We need to go back to the root causes, the harmful social norms and gender stereotypes, the care burden on women,” Güres said. Her comments reflect the broader challenge of embedding gender equality into economic development strategies, a goal that the EBRD backs young entrepreneurs as Uzbek by actively promoting inclusive policies and practices. By integrating these elements, the bank not only supports financial access but also contributes to long-term social and economic progress in the region.
As Uzbekistan’s economy continues to evolve, the EBRD’s support for young entrepreneurs is gaining traction. The program’s emphasis on technical assistance, training, and innovative financial tools positions it as a vital resource for SMEs seeking to navigate complex lending environments. With the country’s small businesses accounting for a substantial portion of GDP, the EBRD backs young entrepreneurs as Uzbek by addressing both immediate financial needs and structural challenges that hinder sustainable growth. This dual focus ensures that the next generation of business leaders has the resources and guidance to succeed in a rapidly changing market.
