Tashkent, Uzbekistan (UzDaily.com) — A State Target Fund for Youth Entrepreneurship Development is being established in Uzbekistan, as stipulated by the presidential decree "On Measures to Improve the System of Support for Youth Entrepreneurship and Business Projects Aimed at Ensuring Youth Employment."

The Fund will operate under the Agency for Youth Affairs, based on the existing Young Entrepreneurs Support Fund. Its capital is expected to reach the equivalent of US$100 million through designated funding sources.

One of the key performance indicators for the Fund will be its contribution to youth employment and the involvement of at least 50,000 young citizens in entrepreneurial activities.

To implement business projects aimed at developing the services sector and creating recreational and entertainment zones along riverbanks and canals, land plots will be allocated through electronic online auctions in accordance with established procedures.

The Fund will also establish a Venture Fund with a charter capital of US$10 million. This fund will finance promising youth startups, utilizing funds allocated by the Agency for Youth Affairs.

According to the decree, startups that successfully complete incubation or acceleration programs, as well as winners of prestigious competitions, will receive investment support from the Venture Fund, up to 2 billion soums.

Financing will be provided through equity investments in the companies and will be distributed as follows:

— Up to 500 million soums for startups at the stage of developing a typical model (MVP) with high potential;

— Up to 1 billion soums for projects already implemented in the Uzbek market;

— Up to 2 billion soums for startups focused on entering foreign markets.

The Chamber of Commerce and Industry and local government authorities will assume personal responsibility for supporting the development of business projects supported by the Fund.

In addition, they will be required to submit quarterly proposals for financing promising initiatives aimed at creating high added value.