Organizational and economic mechanisms for developing small business in the personal services sector: analysis of territorial differentiation (the case of Kashkadarya region)

Abstract

This study analyzes the organizational and economic mechanisms underpinning the development of small business entities operating in the personal services sector, based on the official statistical data of the National Committee of the Republic of Uzbekistan on Statistics for the period 2010-2025. The research employs structural analysis, interregional comparative analysis, and territorial differentiation assessment using the Gini coefficient and the coefficient of variation. The findings indicate that the volume of services provided by small business entities in the Kashkadarya region increased by 13.6 times during 2015-2025. However, in terms of the volume of services per employed worker, the region ranks 11th among the 14 administrative-territorial units of the Republic of Uzbekistan, indicating considerable potential for improving labor productivity. The study also reveals that the share of the service sector in the structure of small business in the region accounts for 27.1%, which is below the national average of 28.3%. Based on the empirical findings, a three-level organizational and economic model for the development of the service sector is proposed. The model is grounded in the principles of territorial differentiation and is aimed at improving the operational efficiency of small business entities while reducing interregional disparities.