Essay from Madinabonu Mamatxonova

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THE ECONOMIC ROLE OF GLOBALIZATION IN THE RAPID DEVELOPMENT OF ENTREPRENEURS IN UZBEKISTAN

Madinabonu Mamatxonova Kamol qizi – 2^nd-year student, Faculty of Tourism and Economics, Department of Economics, Kokand University

mamatxonovamadinabonu60@gmail.com

Abstract

This article examines the strategic role of globalization, innovation, and investment in ensuring the sustainable development of entrepreneurial activity. In particular, globalization is seen as a driving force in the introduction of new technologies and the achievement of environmental sustainability, while investment serves as the key instrument for implementing these processes. The study analyzes the experiences of Uzbekistan and other countries, offering modern approaches and recommendations aimed at sustainable economic growth. Furthermore, it considers the role of globalization, innovation, and investment in the sustainable development of entrepreneurship, their interrelation, and effectiveness, using Uzbekistan as a case study. Based on international experiences, the paper explores crucial strategies and directions for contemporary entrepreneurship. These findings are of practical importance not only for business entities but also for institutions engaged in economic policy-making.

Keywords: Innovative economy, digital technologies, economic reforms, opportunities, transformation, global cooperation, environmental security.

Introduction

Today, sustainable development in the global economy has become a key objective not only for state policy but also for entrepreneurial activity. Innovations help address socio-economic challenges through technological solutions, while investments provide the financial basis for implementing these solutions. “Globalization involves economic and industry integration with the rest of the world, removing restrictions on imports and foreign investment… Globalization has created a knowledge-intensive economy, making firms’ search for the foreign market opportunities necessary in order to survive.”

Therefore, the sustainable development of entrepreneurs remains one of the key topics in the modern economy. For entrepreneurs, innovation is not merely technological advancement but also new approaches and solutions that lead to economic efficiency and social sustainability. Through innovation, it is possible not only to improve the quality of products and services but also to create new markets and opportunities. At the same time, investment serves as the financial foundation for the development of entrepreneurial activity. “Globalization boosts the process of market predictions in the pursuit of economic growth. When economic, political, and social forces gain traction by promoting policies and the climate favoring globalization, entrepreneurial results reach out.”

They provide the resources necessary to support innovation, enhance competitiveness, and meet market demands.

Analysis of the Literature Used

Scientific literature and research on sustainable entrepreneurship, innovation, and investment are important sources for gaining an in-depth understanding of these areas and developing effective strategies based on them. The reviewed literature can be thematically divided into the following groups:

Theoretical Research

Theoretical research focuses on studying the essence of economic development, innovation, and investment. For example:

As Schumpeter (1942) emphasized in his work “Capitalism, Socialism, and Democracy, innovation is regarded as a “creative destruction” mechanism of economic development.” It contributes to increasing competition and producing high-quality goods in the market by creating new technologies and products.

Porter and Kramer (2011): This study highlights the important role of innovation in addressing social and economic problems. The authors put forward the concept of “creating shared value,” stressing that directing business activities toward social issues can lead to more effective results.

Practical Research

Practical research examines the effectiveness of innovation and investment based on real-life examples and experiences. Studies in this group include the following:

McKinsey (2022): The company’s report analyzed digital technologies as a means of improving efficiency in entrepreneurship. The report noted the importance of automated systems, artificial intelligence, and digital services in business development.

OECD (2023): The report focused on the role of small and medium-sized enterprises (SMEs) in innovative development. Recommendations were provided on promoting sustainable economic growth through supporting SMEs.

Methodology

This study examines a number of similarities and differences between Uzbekistan and Germany—one of the world’s developed countries—in terms of entrepreneurship financing. Therefore, the use of a Venn diagram in this article is considered one of the most effective methods. The Venn diagram makes it possible to clearly illustrate the common and distinct aspects of the policies and practices of Uzbekistan and Germany in financing entrepreneurship.

Analysis and Results

Figure 1. Venn diagram

The results of the Venn diagram indicate that in both countries, defining entrepreneurship as a priority in state policy, establishing mechanisms to support innovative projects, and offering tax incentives contribute to improving the business environment. In Germany, the diversity of funding sources and the effectiveness of the dual education system, and in Uzbekistan, reliance on technology parks and foreign investment, define each country’s unique strengths and limitations.

Conclusion and Recommendations

Innovation and investment play a central role in the sustainable development of entrepreneurial activity. Innovation enables the introduction of new technologies, products, and services that serve economic and social sustainability. They are essential tools for increasing entrepreneurs’ competitiveness, exploring new markets, and achieving growth without harming the environment. Investment, by financing innovation, ensures the successful implementation of these processes. The experience of Uzbekistan demonstrates that state policies and strategies play a vital role in achieving sustainable development goals. Initiatives such as the Innovation Development Strategy, IT Parks, and free economic zones are creating significant opportunities for business entities.

Based on this analysis, the following recommendations can be proposed:

Workforce Development: Strengthen the focus on innovative knowledge and skills in the education system to train qualified specialists.

Expand International Cooperation: Adopt international experience in innovation and investment, and strengthen relations with foreign investors.

Advance Digital Transformation: Promote the widespread adoption of automated systems, artificial intelligence, and digital services.

Furthermore, the objective of this study is to ensure that innovative ideas go hand in hand with their practical implementation.

Example:

Online Business Simulator – Creating an online simulator for entrepreneurs. Through this interactive platform, users can experience all stages of business development—from starting their enterprise to producing products, and from developing a marketing strategy to bringing it to market. In the simulator, various challenges and opportunities arise, and users learn by choosing how to respond to them.

The principle of operation of the proposed interactive platform is as follows: the user starts a business in the simulator, chooses a product or service, develops a financial plan, and implements a marketing strategy. Each decision affects the user’s success or failure. This provides an opportunity to explore the nuances of starting a business and gain practical skills.

In conclusion, in the context of Uzbekistan, the combination of innovation and investment is a crucial factor not only in ensuring economic growth but also in increasing global competitiveness and achieving sustainable development. To successfully implement this process, it is necessary to strengthen cooperation between the state, entrepreneurs, and research institutions.

References

Abdullajonov, D., & Mamatkhonova, M. (2025). THE ROLE OF INNOVATIONS AND INVESTMENTS IN THE SUSTAINABLE DEVELOPMENT OF ENTREPRENEURS IN UZBEKISTAN. Modern Scientific Research International Scientific Journal, 3(2), 94-97. https://doi.org/10.5281/zenodo.16157291
Jahon Banki. O‘zbekiston iqtisodiy ko‘rsatkichlari, 2023 yil.
McKinsey & Company. (2022). Innovations in Sustainable Business Practices
OECD. (2023). Small and Medium Enterprises and Innovation.
O‘zbekiston Respublikasi Innovatsion rivojlanish strategiyasi (2022-2030)
Porter, M.E., & Kramer, M.R. (2011). Creating Shared Value. Harvard Business Review
Schumpeter, J. (1942). Capitalism, Socialism and Democracy.
UNCTAD. (2022). Investment Trends and Policy Frameworks.
World Economic Forum. (2023). The Future of Sustainable Business Models.
Paul, J. (2015). Does international business education at the pre-experience level make a difference? Journal of International Business Studies, 46(9), 984–1003. https://doi.org/10.1057/jibs.2015.35
Acs, Z. J., & Preston, L. (1997). Small and medium-sized enterprises, technology, and globalization: Introduction to a special issue on small and medium-sized enterprises in the global economy. Small Business Economics, 9(1), 1–6. https://doi.org/10.1023/A:1007927602067
Ahmad, M., Rauf, A., Zeb, A., & Malik, M. S. (2022). Globalization and entrepreneurship: An empirical investigation in developing countries. PLOS ONE, 17(3), e0265757. https://doi.org/10.1371/journal.pone.0265757