BRB: Non-financial services to drive SME growth in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — At the 59th Annual Meeting of the Asian Development Bank Board of Governors held in Samarkand from May 3 to 6, the Business Development Bank of Uzbekistan (BRB) organized a thematic session focused on the role of non-financial services in supporting small and medium-sized enterprises (SMEs) and transforming the bank into a full-scale business support ecosystem.

BRB Chairman Sakhiy Annaklichiev outlined the central idea of the event, stating that financing alone is not sufficient for sustainable business growth. He said the bank’s role is not limited to providing access to capital, but also includes creating an environment where entrepreneurs receive practical tools for development—knowledge, mentoring, advisory services, and access to new markets. According to Annaklichiev, the value of a development bank should be measured not by financial indicators, but by the number of people it helps to unlock their potential.

A macroeconomic overview presented by Akmal Palvanov, Director of the Department for Cooperation with International Financial Institutions, highlighted the scale of the challenges facing the country.

As of early 2024, Uzbekistan had 417,000 SMEs—25% more than in 2020. The sector accounts for 54.3% of GDP and provides employment for 74% of the workforce. The national SME development strategy through 2030 aims to increase these figures to 60% of GDP and 78% of employment, while capital attracted from international financial institutions has already exceeded US$466 million.

However, Palvanov pointed to a structural constraint limiting further growth. SME lending in Uzbekistan stands at only 5% of GDP, compared to a target of 7% by 2030, while the OECD average is 58%. At the same time, only 8% of small businesses have externally audited financial statements, which significantly restricts access to credit.

He concluded that the main barrier for Uzbek SMEs is no longer the lack of capital, but insufficient capacity to manage it in a way that ensures long-term creditworthiness.

A BRB study conducted in the third and fourth quarters of 2025 surveyed more than 1,000 business owners across seven sectors and all regions of the country. The findings showed a strong demand for non-financial support: nearly half of respondents described their situation as unstable or crisis-level, while only 9% reported readiness for scaling up.

The most represented sectors in the survey were agriculture, manufacturing, and services.

In response, BRB is developing a three-tier non-financial services system based on a “phygital” delivery model combining physical and digital channels. The basic level includes financial literacy, accounting fundamentals, and credit preparation. The intermediate level focuses on growth strategy, cost optimization, and sales development. The advanced level provides digitalization support, legal and tax consulting, and sector-specific advisory services for agriculture, textiles, and technology industries.

The infrastructure supporting this system includes 14 SME support centers across the country, more than 40 bank branches, and a digital portal under development. In cooperation with UNCTAD, the SME Academy has been launched based on the Empretec methodology, aiming to train over 700 entrepreneurs within three years.

BRB emphasized that every advisory interaction should ultimately lead to the establishment of banking relationships. Non-financial services are therefore viewed not as philanthropy or cost centers, but as tools for building a stronger client base.

Entrepreneur Sherzod Niyazimbetov shared his experience entering European markets. Andrew McCartney discussed SME formalization programs and the bank’s transformation process. The session was moderated by Suhail Yaqub Khan, with an ADB representative presenting international best practices.

Participants agreed that sustainable SME development requires an integrated approach where non-financial support complements access to capital rather than replacing it. Expanding entrepreneurial skills through training, digital tools, and global value chain integration creates a multiplier effect for the country’s broader business environment.