Poverty reduction in Uzbekistan has significantly improved in the last few years, supported by various initiatives and entrepreneurship programs designed to enhance economic opportunities and standards of living. One initiative implemented as part of Uzbekistan’s poverty reduction strategy is the Every Family Entrepreneurship Program. The program aims to provide financing, skills development and business support to help vulnerable households build long-term financial security. This is one of several programs and initiatives that have been implemented as part of Uzbekistan’s wider strategy to reduce poverty.

The Every Family Entrepreneurship Program

Adopted on June 7, 2018, the program encourages Uzbeks to enter entrepreneurship and expand income opportunities.

According to Microcreditbank, the program also provides access to bank loans of up to 33 million soums (about $2,750 at the Oct. 29, 2026 exchange rate) to eligible individuals, with loan terms varying from three to seven years. Annual interest rates range from 12% to 17.5%, with the lower figure applied to difficult-to-reach districts and mahallas. Loans must be repaid in line with agreed conditions. Eligible sectors include agriculture, minor services and handicrafts.

According to the president’s office, the program aims to help citizens generate increased incomes through financial assistance, equipment and support toward entrepreneurship. The long-term goal is for these citizens to generate income and therefore become consumers, enhancing economic activity.

How Entrepreneurship Can Reduce Poverty

Entrepreneurship can reduce poverty in ways beyond job creation, as it can develop and provide solutions that meet vulnerable communities’ needs. Innovation could potentially generate employment and drive grassroots economic development.

Entrepreneurship can provide women and other marginalized groups with opportunities to generate their own income. Formal employment opportunities may be scarce, but entrepreneurship lets disadvantaged groups earn their own income and manage their finances. With funding, training and support, individuals can build sustainable livelihoods that lift them out of poverty and improve their standard of living.

The Impact of Entrepreneurship Programs and Initiatives

In 2025, the From Poverty to Prosperity program supported 523,000 low-income households, allocating 2.2 trillion soums (about $183 million) in loans and 265 billion soums (about $22 million) in financial assistance.

Furthermore, the European Bank for Reconstruction and Development (EBRD) approved financing of up to $50 million for Uzbekistan’s third-largest state-owned lender, SQB, for onward lending to support entrepreneurs, as part of its Youth in Business program for Central Asia.

According to European Pulse, Fazilat Jo’rayeva said she opened a traditional Uzbek food business, where she employs around 35 people and indirectly benefits close to 100 families in the supply chain and related services. Citing government figures, European Pulse reports that more than 700,000 entrepreneurs have set up stable businesses over the last eight years.

Uzbekistan has a local community structure known as the mahalla system. This system plays a crucial role in connecting residents with job opportunities. In one mahalla in the Pastdarg’om district, assistant hokim Jahongir Normo’minov told European Pulse that the number of small businesses rose from 18 to 61 in a year. He reported that in this mahalla, poverty fell from 19% to 2.9% over two years. These businesses specialized in metal production and export-oriented cherry production.

There are clear improvements regarding poverty reduction in Uzbekistan, with the percentage of the population living below the national poverty line decreasing from 17% in 2021 to 5.8% in 2025. In late 2025, Uzbekistan’s national poverty line stood at 669,000 soums (about $56 at the Oct. 29, 2026 exchange rate) per month. This particular threshold is used by the government to identify changes in living standards and measure poverty within the country.

Supporting Continued Poverty Reduction in Uzbekistan

Poverty reduction in Uzbekistan has significantly improved in the last five years, with the percentage of people living below the national poverty line falling from 17% in 2021 to 5.8% in 2025. Several factors have impacted this, including entrepreneurship as an important aspect of Uzbekistan’s poverty reduction strategy.

The Every Family Entrepreneurship Program allows underserved communities and households the opportunity to access loans, business support and training to increase sources of income. Entrepreneurship can help create employment opportunities and financial gain beyond individual households. Despite this, it is difficult to demonstrate the extent to which this program alone has contributed to poverty reduction in Uzbekistan. Although it is difficult to measure the specific impact of these programs, they highlight how entrepreneurship can contribute to wider poverty reduction efforts and improve standards of living.

– Oliver Doole

Oliver is based in Ipswich, Suffolk, United Kingdom and focuses on Business and New Markets, and Politics for The Borgen Project.

Photo: Flickr