This article examines the  innovative  activities  of  small  businesses  and  micro-firms in  the  Republic  of  Uzbekistan,  focusing  on  their  contribution to  the  nation’s  socio-economic development. It highlights the strategic importance of innovation as a driving force for enhancing competitiveness, productivity, and sustainability in small enterprises.  The  study  explores  the current  state  of  innovative  practices,  identifying  key  areas  where  these  businesses  have  excelled, such  as  adopting  digital  technologies,  developing  new  products,  and  improving  services.  It also analyzes the challenges they face, including limited access to financing, insufficient infrastructure, and a lack of skilled personnel.

The article evaluates government initiatives and reforms aimed at fostering innovation in small businesses, including   financial   incentives, tax   benefits,   and   the   establishment   of   business incubators.  Drawing on empirical  data,  it  provides  insights  into  how  these  measures  have influenced  the  entrepreneurial  ecosystem.  By presenting examples of successful innovative projects, the study underscores the potential of small businesses to become engines of economic growth.  The article concludes with recommendations for enhancing the innovation capacity of small    businesses    through    policy    adjustments, increased    investment, and    international collaboration.

Innovation, small businesses, micro-firms, Uzbekistan

Ibrohimov, B. (2024). O ‘zbekiston Respublikasida tadbirkorlik subyektlarida innovatsion faoliyatning ahamiyati va o ‘rni.

To’rayevna, S. N. (2024). O’ZBEKISTONDAGI XUSUSIY TADBIRKORLIKNI RIVOJLANTIRISHDA AHOLINI ISH BILAN BANDLIGINI TASHKILETISHNING INNOVATSION XUSUSIYATLARI.Scientific Journal of Actuarial Finance and Accounting,4(08), 113-118.

Rustam, T. (2024). TADBIRKORLIK SUBYEKTLARINI RIVOJLANTIRISHDA BULUTLI TEXNOLOGIYALARNING OʻRNI.Kokand University Research Base, 549-552.

O’zbekiston Respublikasi prezidenti huzuridagi statistika agentligi ma’lumotlari (stat.uz):

Ibrahimovich, R. B., Ugli, I. B. B., & Ugli, I. B. B. (2023). INNOVATIVE REFORMS IN AGRICULTURE DEVELOPMENT.The American Journal of Management and Economics Innovations,5(03), 9-13.