Most technology startups operating in Uzbekistan face a number of common difficulties. These include a lack of financial support, a shortage of qualified personnel, and the absence of necessary skills for promoting their products. These problems prevent many promising projects from moving to an active scaling stage.
These findings were made by analysts from the Stanbase platform based on the conducted study Uzbekistan Founder Portrait 2026. This research is based on the results of a survey that covered 229 startup founders, as well as 25 in-depth interviews.
According to the study data, between 67% and 72% of startups experience problems obtaining funding in their initial stages of existence. The market shows a certain pattern: investors tend to direct funds to projects that already have a confirmed customer base and sales history. At the same time, new companies cannot enter the market without an initial capital injection.
Another significant problem for 56% of respondents was the recruitment process. Founders find it difficult to attract experienced developers because offering equity in the project as compensation is not always competitive compared to the stable salary offered by large corporations.
As the business develops, the main challenges change. More than half of entrepreneurs admit that they lack marketing knowledge, and 39% need to improve their business development competencies. The study authors emphasize that despite engineers creating high-quality products, they often face difficulties in promoting them and attracting investment.
It was also found that existing state support mechanisms are not being used to their full extent. Almost 36% of startup founders have never approached state programs or business incubators. The most valuable tools for entrepreneurs turned out to be meetings with private investors (scoring 4.46 out of 5) and closed business communities (4.24 points). Universities ranked last in the rating with a score of 3.25.
It was previously reported about plans to launch the Talent Hub program in Uzbekistan, which will provide foreign IT specialists and investors with the opportunity to remotely register companies and open corresponding bank accounts.
The International Monetary Fund (IMF), in its Selected Issues report on Uzbekistan, conducted an assessment of the financial condition of state-owned enterprises and the associated risks to the state budget.
According to data from the State Assets Management Agency, cited by the IMF, out of a total of 2,148 state enterprises in 2024, only 982 were profitable, accounting for 46%. The remaining enterprises either showed losses, were inactive, were undergoing liquidation procedures, or did not provide data on their profitability.
The mining sector demonstrated the highest profit as a percentage of GDP. This was followed by the oil and gas sector, as well as the banking and finance sectors. The most problematic areas were electricity, housing and communal services, and water management. The IMF links the unprofitability in these sectors to the fact that enterprises provide services to the population for which they receive only partial or no compensation.
The structure of dividend revenues to the budget also indicates a high dependence on the mining industry. The Fund noted that about 80% of state enterprise dividends in 2024 came specifically from the mining sector, while the oil and gas sector contributed 9.5%, and other profitable industries contributed 10.5%.
The IMF concluded that the state, acting as a shareholder, receives low returns from a significant portion of its investment portfolio. Furthermore, the fund conducted a special audit of the financial condition of 21 largest non-financial state companies that have audited IFRS reports. The aggregate value of assets of these companies was estimated at approximately 48% of GDP.
The analysis included assessments of solvency, liquidity, and profitability. Between 2021 and 2023, four out of 21 companies consistently remained in the moderate risk zone, primarily belonging to the mining sector. Seven companies had a higher level of risk, including enterprises in the electricity, gas, and chemical industries. Another ten companies were in the 'grey zone' of moderate risk, mainly due to weak debt burden and liquidity.
As of 2024, indicators for 16 out of 21 companies showed improvement compared to the previous year. The IMF attributes this mainly to the 'significant increase in regulated tariffs for electricity and gas,' which occurred in May 2024 and positively affected three companies in the energy and gas sectors.
Overall, there has been a 'moderate improvement' in risk indicators over the period from 2021 to 2024. Of the fifteen companies for which data is available for the entire period, six improved their performance, and three worsened. Six of the companies that improved operated in the electricity and gas supply sectors.
State enterprises receive support in various forms: this can include budgetary subsidies, external loans, redirected loans from the Reconstruction and Development Fund, internal banking system credits, and state guarantees. The World Bank also indicated that support is provided through non-financial methods, such as exemptions from laws aimed at stimulating market discipline, or preferential access to land and public procurement.
The Fund acknowledges that the share of such support as a percentage of GDP is gradually decreasing due to stricter conditions for its provision. Nevertheless, the IMF believes that 'soft budgetary constraints' continue to weaken the motivation of state enterprise management to improve efficiency and restructure. The regulatory framework lacks a clear separation between commercial activities and the fulfillment of socially significant obligations, which leads to a blurring of responsibility for final results.
Moreover, the absence of a requirement for state enterprises to ensure profitability comparable to the market contributes to the persistence of inefficiency. Existing legal exemptions grant these enterprises unjustified advantages. The IMF insists that obligations must be defined, calculated, and fully compensated from the budget. State aid, if necessary for reforms, must be based on convincing restructuring plans, tied to reform outcomes, and gradually phased out.
The blurring of accountability and responsibility occurs due to the overlap of ownership functions among local authorities, sectoral ministries, and the State Assets Management Agency. The IMF also noted that strict criteria for justifying state participation in the economy, established by the Law 'On State Property Management,' have not been implemented. In corporate governance, supervisory boards suffer from a lack of autonomy due to a limited number of qualified independent members, and their powers are often restricted. The application of corporate governance principles to state enterprises is uneven.
Regarding transparency, the AUMA register of state enterprises has an inconsistent structure and does not contain a clear definition of what constitutes a state enterprise. There is also a lack of centralized control over privatization programs. These two factors hinder adequate monitoring and evaluation of the privatization process. Achieving the goal of having audited financial statements under IFRS for all state enterprises remains an unfinished task.
The IMF also pointed out that about 84% of enterprises with state participation in Uzbekistan operate in competitive sectors where justifying the state's presence is difficult. Such sectors include agriculture, tourism, pharmaceuticals, services, and markets. By the end of 2024, the assets of state enterprises exceeded the country's GDP, reaching 101% of GDP. According to Fitch Ratings, between 2021 and 2025, state assets worth about $5.1 billion were privatized in Uzbekistan, after which the agency upgraded its outlook from 'stable' to 'positive'. Preliminary calculations by Fitch Ratings show that only in 2025 will the volume of privatization reach $1.6 billion.
Uzbekistan authorities plan to create a new program to support local brands. This initiative is driven by the fact that a significant share of companies with their own trademarks have not yet been able to export.
During a meeting dedicated to the results of socio-economic development in the first half of the year and setting tasks for the remaining period, it was noted that the existing system for supporting national brands shows positive dynamics: their number has significantly increased in recent years. Over the past two years, entrepreneurs have received financial assistance totaling 15.5 billion soums.
Nevertheless, the potential of these companies has not been fully realized. Of the total 309 firms that have registered their brands, approximately one-third have still not entered international markets.
The head of state emphasized that entrepreneurs who have created their own brands have already gained recognition in the domestic market due to product quality, competitive prices, and provided guarantees. He noted that with additional assistance, such enterprises can successfully establish themselves in foreign markets.
A serious obstacle for local producers remains high competition from imports. Goods offered at dumping prices, as well as counterfeit products, enter the market, which violates the principles of equal business conditions.
In this regard, responsible state bodies were instructed to prepare and present a brand support program within two weeks, aimed at facilitating their entry into exports and strengthening their positions both domestically and abroad.
