Navoiy Region is turning mahallas into local business hubs as authorities combine subsidized lending, vocational training and infrastructure support to reduce unemployment and expand household incomes. The approach is designed to move beyond one-off assistance by creating enterprises, formal jobs and sustainable sources of revenue at community level.
Small projects drive local employment
During the period under review in 2026, 2,218 microprojects in small-scale manufacturing, trade and services were launched in Navoiy Region with the participation of legal entities. Their combined value reached 493.1 billion soums and created jobs for 5,537 people.
Individual initiatives received additional support through preferential loans, grants and subsidies. These instruments helped finance 8,226 microprojects and bring 16,623 people into income-generating employment. The figures illustrate the role that small businesses can play in addressing social challenges, particularly by creating jobs, stabilizing family incomes and strengthening the economic base of local communities.
At the beginning of the year, around 42,000 people in the region were living below the poverty line. Both the poverty and unemployment rates stood at 4.2%, while the number of unemployed residents reached 20,500. Measures were subsequently introduced to secure permanent employment in 241 mahallas, raise household incomes in 198 communities and formalize jobs in 228 mahallas.
According to the reported results, 11,725 people increased their incomes through business infrastructure projects, 24,573 benefited from poverty-reduction and employment measures, and 70,931 gained income through lending to small and medium-sized businesses. The inclusive employment programme Equal Opportunities – Inclusive Employment covered 1,336 people with disabilities, while the Industrious Woman programme provided support to 2,727 women.
Preferential finance tied to business performance
For 2026, Navoiy Region has allocated 350 billion soums in preferential loans under family entrepreneurship programmes. The scale of financing creates room for new ventures, but regional specialists stress that the impact of support should be measured by how effectively the funds are used, rather than by the volume of lending alone.
Equipment purchases, the opening of sewing workshops and the launch of service businesses are expected to generate jobs and establish stable income streams. Key priorities therefore include post-loan assistance, help with finding customers and sales channels, financial-planning training, and monitoring whether newly created jobs remain sustainable.
Mahallas that achieve a three- to fourfold increase in household incomes through better skills and more efficient use of local resources may qualify for an additional 2 billion soums to improve roads, water supply and irrigation infrastructure. Linking household income growth with local infrastructure upgrades could strengthen the operating environment for small companies and improve access to markets and services.
Training builds a pipeline of entrepreneurs
Financing is being paired with measures to address the shortage of qualified workers. During the first nine months of 2026, 3,632 residents were sent to courses in occupations demanded by the labour market and in entrepreneurial skills through a voucher system. Training was organized by 35 public and non-governmental professional education providers.
Of those enrolled, 2,156 completed their courses successfully. Employment was secured for 1,621 graduates: 644 found permanent jobs, 973 registered as self-employed and four became individual entrepreneurs. The results suggest that vocational education can connect social support with local economic development by enabling residents to enter the labour market, provide services or start their own businesses.
From January to September, 4,396 people obtained permanent employment in the region, including 1,156 residents from socially vulnerable groups. A total of 209 job fairs brought together 2,548 enterprises and organizations, which offered 9,754 vacancies. The events attracted 6,670 visitors; 2,969 were placed in permanent jobs and another 737 were referred for professional training.
By mid-autumn, the authorities expected the number of unemployed residents to fall by 17,300 and the unemployment rate to decline to 3.5%. The number of people living below the poverty line was projected to decrease to 26,800, or 6,900 families, with the poverty rate falling to 2.4%.
For international companies in furniture, construction, interior and exterior manufacturing, trade, design and architecture, Navoiy’s programme signals a gradual expansion of the region’s small-business ecosystem. Preferential finance, a growing pool of trained workers and investment in local roads, utilities and commercial infrastructure may create entry points for suppliers of equipment, materials and business services, as well as for companies seeking local production or distribution partners. The main commercial test will be whether financial support translates into durable enterprises, formal employment and reliable demand.
