TRANSFORMING ORGANIZATIONAL AND MANAGERIAL MECHANISMS FOR SERVICE SECTOR DEVELOPMENT IN SMALL BUSINESS: EVIDENCE FROM THE KASHKADARYA REGION, UZBEKISTAN

Abstract

The service sector has become one of the principal drivers of sustainable economic growth, employment generation, and regional competitiveness in developing economies. In Uzbekistan, strengthening small business through the expansion of service activities constitutes a strategic priority of socio-economic policy. Nevertheless, significant institutional, organizational, and managerial constraints continue to limit the efficiency and competitiveness of service enterprises, particularly at the regional level. This study investigates the organizational and managerial mechanisms for developing the service sector in small business using the Kashkadarya region as a case study.

The research employs comparative, statistical, institutional, and economic analytical methods. The Herfindahl-Hirschman Index (HHI) and localization coefficient are applied to evaluate the regional concentration and specialization of service activities. Empirical findings reveal substantial disparities in the spatial distribution of services, limited institutional coordination, insufficient digital infrastructure, and inadequate managerial support mechanisms. To address these challenges, the study proposes an Integrated Organizational and Managerial Mechanism that combines institutional coordination, digital governance, financial support, human capital development, and cluster-based cooperation.

The proposed mechanism is expected to improve the efficiency, competitiveness, and sustainability of service enterprises while strengthening regional economic resilience and supporting balanced territorial development. The findings contribute to the literature on regional service sector development and provide practical recommendations for policymakers seeking to enhance the role of small business in achieving sustainable economic growth in Uzbekistan.