Improvement of Organisational and Economic Mechanisms for the Development of Small Businesses and Entrepreneurship in the Neighbourhoods

Abstract

This study examines the organisational and economic mechanisms for developing small businesses and entrepreneurship in Uzbekistan’s mahallas, which are vital grassroots structures for inclusive economic growth. While national policies have increasingly focused on neighbourhood development, a significant knowledge gap remains regarding the practical integration of financial tools, local governance, and community engagement in fostering sustainable entrepreneurship. Utilising a qualitative methodology grounded in policy analysis, comparative literature review, and case-based observations, this research identifies institutional fragmentation, limited microfinance accessibility, and insufficient adaptive training programs as key barriers. The findings suggest that tailored microcredit schemes, decentralised support infrastructure, and participatory planning significantly enhance entrepreneurial viability at the local level. Results indicate that the integration of localised financial models and capacity-building initiatives can catalyse employment, innovation, and socio-economic resilience within mahallas. The study provides theoretical and practical implications for designing more responsive, inclusive, and sustainable entrepreneurial ecosystems in developing contexts.