The research demonstrates significant progress in the development of women’s entrepreneurship in Central Asia, particularly in Uzbekistan, where the number of women entrepreneurs has increased sevenfold over the past four years, reaching 2.1 million in 2024. Fintech solutions play a key role in overcoming traditional barriers to financing, while the credit gap for women-owned businesses in Uzbekistan amounts to 916 million USD. Alternative credit-scoring systems, mobile financial platforms, and specialized banking products are creating new opportunities for women’s economic participation. However, the digital gender gap remains a major challenge: women’s digital skills are 24% lower than those of men.
Current state of women’s entrepreneurship in Uzbekistan
Statistical indicators and growth dynamics
Uzbekistan demonstrates impressive growth in women’s entrepreneurship. According to UNDP data, the number of women entrepreneurs in the country increased from approximately 300,000 in 2020 to 2.1 million in 2024—a sevenfold rise in four years. As a result, women entrepreneurs now account for 35% of all employed women in the national economy. The structure of women’s entrepreneurship includes 1.7 million self-employed women, more than 129,000 individual entrepreneurs, and around 88,000 women who own legal entities.
The sectoral distribution of women’s entrepreneurship shows a concentration in traditional industries. According to the State Committee of Statistics, as of early 2022, the largest number of women entrepreneurs worked in trade (14,147), services (10,057), and manufacturing (5,543). The net profit of small enterprises and micro-firms led by women reached 22.6 trillion UZS, an increase of nearly 7 trillion UZS compared to the previous year. However, the predominance of women in low-productivity sectors such as trade and agriculture—which require relatively fewer skills and generate lower income—remains a challenge for ensuring long-term economic stability.
Legal framework and government support
The Government of Uzbekistan has established a comprehensive system to support women’s entrepreneurship. Presidential Decree No. 4235 of March 7, 2019 introduced the creation of Women’s Entrepreneurship Centers as non-governmental, non-profit organizations. These centers provide key services such as retraining women on maternity leave, offering startup support for aspiring women entrepreneurs, and consulting on business plan development. In 2019 alone, more than 170,000 jobs were created for women, and 172,000 women received loans totaling 4.9 trillion UZS.
Barriers to financing for women entrepreneurs
Structural constraints of the financial system
Women entrepreneurs in Central Asia face significant structural constraints in accessing finance. In Uzbekistan, the credit gap for women-owned micro, small, and medium enterprises (MSMEs) is estimated at 916 million USD. While MSMEs generate more than 50% of the country’s GDP, many of them struggle with limited access to financing, with the overall credit gap for the sector estimated at approximately 11.8 billion USD. State-owned commercial banks dominate the financial sector, while microfinance institutions that provide inclusive financing account for only 0.5% of the banking system.
Gender inequality in financial access is exacerbated by traditional cultural barriers and gender roles. According to the Global Findex 2021, only 44% of adults in Uzbekistan have an account at a formal financial institution—significantly lower than the Central Asian regional average of 58%. Women entrepreneurs face challenges in accessing financial resources, cultural constraints, and insufficient support from both government and private institutions, making it more difficult to balance business and family responsibilities.
Traditional creditworthiness assessment models
Traditional credit-scoring systems often fail to consider the specific characteristics of women’s entrepreneurship. Many women entrepreneurs lack sufficient credit history or formal collateral, which complicates their ability to obtain bank loans. Observations show that in restaurants, boutiques, and training centers, women often pay in cash or use their husbands’ bank cards, indicating low usage of financial products in their own name. This may be due to the fact that existing banking products do not adequately address women’s needs and lifestyle patterns.
Fintech Solutions for Inclusive Banking
Alternative Credit Scoring Systems
The development of alternative credit-scoring systems holds significant potential for improving women’s access to finance. A study of an alternative credit-scoring model conducted on a sample of 600 women entrepreneurs demonstrates the potential of using alternative data—such as group lending performance, business income indicators, and cash-flow metrics—to assess creditworthiness. The model ranks applicants based on their credit capacity by evaluating the probability of repayment or default within the next six months.
The training algorithm identified 3–4 behavioral factors that clearly indicate the likelihood of loan repayment or delinquency. Collecting and validating this data at the time of application enables lenders to quickly and easily identify high-quality candidates for loan approval. This approach is particularly important for microfinance institutions and cooperatives in Kenya, whose market characteristics closely resemble those of Central Asia.
Mobile Financial Platforms and Digital Transformation
Digital payments in Uzbekistan are experiencing rapid growth, and the expansion of financial technologies plays a key role in supporting financial inclusion. Mastercard highlights fintech development as a priority within its Digital Partnership Agreement with the Central Bank of Uzbekistan. Strong demand for Islamic finance is driving rapid growth in this sector, creating additional opportunities for women entrepreneurs who cannot use traditional financial products for religious reasons.
Islamic fintech is developing in response to the needs of a significant part of the population: 38% of businesses and 56% of individuals avoid taking loans from traditional banks due to religious beliefs, while 61% of businesses and 75% of individuals express willingness to use Islamic financial services. Digital halal “buy now, pay later” (BNPL) services are gaining popularity, with many platforms certified for Sharia compliance.
Successful Banking Programs Supporting Women Entrepreneurs
International Finance Corporation (IFC) Initiatives
IFC is implementing major programs to support women’s entrepreneurship in Uzbekistan. In October 2024, IFC signed an agreement with Ipak Yuli Bank to provide a syndicated loan of up to USD 42 million to expand access to finance for small businesses and women entrepreneurs. Twenty-five percent of the funding is allocated specifically for women-led businesses as part of IFC’s broader efforts to promote inclusive economic growth. The USD 42 million loan represents the first tranche of a larger financial package totaling up to USD 72 million.
Saidabror Saidakhmedov, Chairman of the Management Board of Ipak Yuli Bank, noted that the partnership with IFC will enable the bank to expand support for existing and new MSME clients—particularly women entrepreneurs—by providing accessible credit. This investment continues a longstanding partnership between IFC and Ipak Yuli Bank, which began in 2018, during which IFC has already provided USD 20 million in financing to support small enterprises.
Asian Development Bank (ADB) Programs
The ADB has approved a USD 300 million sector development program to support the Government of Uzbekistan in expanding access to finance for microenterprises. The Inclusive Financial Sector Development Program will back structural reforms to improve the policy environment for inclusive finance, enhance institutional capacity of financial service providers, and diversify funding sources. Kanokpan Lao-Araya, Country Director of the ADB Uzbekistan Resident Mission, emphasized that the loan strengthens the partnership with Uzbekistan by ensuring equal access to financial products and services for entrepreneurs—particularly women.
Innovative Banking Products
Ipak Yuli Bank has developed the first bank card in Uzbekistan specifically designed for women—the Woman Card. The project was initiated by the bank’s marketing team and launched within just one month after analyzing consumer behavior. Research revealed women’s specific needs, including investment in education and business development, managing household budgets, and prioritizing health and fitness. The Woman Card offers an ecosystem of benefits, including discounts at educational centers, retail stores, dry cleaners, sports clubs, and wellness centers.
Digital Literacy and Financial Literacy of Women
The Gender Digital Divide
An assessment of the gender digital divide in Uzbekistan reveals significant disparities in digital skills between men and women. Women’s digital skill levels are 24% lower than men’s, with a gender gap of 23% in basic digital skills, 21% in standard skills, and 26% in advanced digital skills. Age is a critical factor: the share of women over 35 with digital skills is nearly 10% lower than that of women under 35.
Interestingly, smartphone ownership in Uzbekistan is higher among women (87%) than men (83%), which contrasts with the global trend where men typically have 15% higher mobile usage rates. However, smartphone penetration remains relatively low in some areas; for example, in Bakhmal, 52% of men and 55% of women own smartphones. Income also affects digital literacy: individuals with higher income levels are 36% more likely to possess advanced digital skills.
Financial Literacy Initiatives
The international women's foundation SHARQ AYOLI implemented a major project titled “Women and the Digital Economy” from 2020 to 2025. More than 5,365 rural women received training in e-commerce, labor law basics, and financial literacy. All participants received official certificates, opening new opportunities for professional advancement. As a result of the program, around 2,000 women—including women with disabilities—obtained collateral-free microloans from Xalq Banki worth 33 million UZS each.
The project was carried out in close cooperation with local authorities, the Women’s Committee, and the Ministry of Employment and Poverty Reduction, with strong support from the Senate of the Oliy Majlis. All participants were registered as self-employed through the soliq.uz platform and gained the ability to work from home. Within the broader “Five Important Initiatives,” 21,500 women completed short-term professional training courses.
International Best Practices
Grameen Bank Model
Grameen Bank in Bangladesh represents a successful model of social entrepreneurship focused on supporting women. Since 1983, the bank has been providing collateral-free microloans primarily to poor rural women. Over 95% of Grameen Bank’s borrowers are women. The bank’s founder, Dr. Muhammad Yunus, is a pioneering social entrepreneur who established Grameen Bank as a mission-driven financial institution.
Grameen Bank works to reduce poverty by creating self-employment opportunities for poor women in rural areas. It enables women to improve their socioeconomic conditions by engaging in small, independent business activities. The success of the Grameen model shows that although women are traditionally perceived as homemakers and face strong social stigma in economic participation, microfinance can shift this paradigm.
Global Kiva Platform
The Kiva Women’s Entrepreneurship Fund, launched with support from the Inter-American Development Bank and the U.S. Department of State, aims to expand access to finance for women in 84 countries. The fund uses a crowdfunding model, matching contributions from lenders who respond to loan requests posted by women entrepreneurs on the Kiva online platform. Over the next five years, the program aims to mobilize crowdfunded loans between USD 450 and 100,000 for one million women entrepreneurs.
The persistent lack of access to finance for women remains one of the most frustrating paradoxes in social business: putting money into the hands of women yields enormous benefits for their families, communities, and broader economies. Yet an estimated 70% of women-owned SMEs in developing markets remain underserved by financial institutions, contributing to a credit gap of nearly USD 300 billion.
European Bank for Reconstruction and Development (EBRD)
The EBRD has expressed strong support for developing women’s entrepreneurship and advancing gender equality in Uzbekistan. A memorandum of cooperation was signed between Tanzila Narbayeva, Chairperson of the Senate of the Oliy Majlis, and Odile Renaud-Basso, President of the EBRD. A core element of the agreement is the creation of a financial code specifically designed to support women entrepreneurs in Uzbekistan. This code aims to enhance financial support for small and medium-sized businesses, including microenterprises.
The EBRD and Uzbek authorities plan to engage both the public and private sectors in conducting data analysis. Collecting and analyzing this information is expected to help identify the constraints women entrepreneurs face and address existing gaps in financial support.
Economic Impact Assessment
Potential Increase in National Income
Closing the gender gap is essential for driving an inclusive economic transformation in Uzbekistan. According to World Bank analysis, Uzbekistan’s national income would be approximately 29% higher if women participated in the economy at the same level as men. Equalizing pay between working women and men could lift more than 700,000 people out of poverty. As of 2022, women earned on average 34% less than men, significantly exceeding the global average gap of 20%.
In the 2024 Global Gender Gap Report, Uzbekistan ranked 108th out of 146 countries, reflecting significant gender inequalities: only 16% of enterprises are owned by women. Women-owned SMEs represent just 14–16% of all small and medium-sized businesses. These figures highlight the substantial untapped potential for economic growth through greater participation of women in entrepreneurship.
Central Bank and the Women Entrepreneurs Finance Code
In July 2024, the Central Bank of Uzbekistan announced the launch of the Women Entrepreneurs Finance Code. The initiative, developed in partnership with the Business Development Bank and Xalq Bank, marks a major step forward in supporting women entrepreneurs nationwide. The project emphasizes the importance of sex-disaggregated data collection, promoting women’s leadership in financial institutions, and introducing innovative support mechanisms tailored to female entrepreneurs.
International experts note that the Women Entrepreneurs Finance Code was first introduced in October 2023 at the World Bank–IMF Annual Meetings in Morocco and is being piloted in 26 countries. The initiative promises transformative change not only within the financial sector but also across the broader socioeconomic landscape.
Conclusion
The analysis of fintech solutions supporting women’s entrepreneurship in Central Asia demonstrates significant progress while highlighting ongoing challenges. Uzbekistan shows impressive momentum, increasing the number of women entrepreneurs sevenfold over four years, reaching 2.1 million in 2024. However, the persistent USD 916 million credit gap for women-owned businesses and the 24% gender gap in digital skills indicate the need for a comprehensive approach to financial inclusion.
Fintech tools—such as alternative credit-scoring systems, mobile platforms, and gender-specific banking products—are creating new pathways to overcome traditional barriers. Successful initiatives such as IFC’s USD 42 million syndicated loan, ADB’s USD 300 million inclusive finance program, and innovative products like the Woman Card highlight the effectiveness of targeted support mechanisms. International best practices, including the Grameen Bank model with 95% women borrowers and Kiva’s global crowdfunding initiative for one million women, offer valuable insights for adaptation to the Central Asian context.
Unlocking the potential to increase Uzbekistan’s national income by 29% through equal economic participation underscores the economic rationale for investing in women entrepreneurs. Achieving this requires continued development of digital infrastructure, strengthening financial and digital literacy among women, and creating innovative financial products tailored to their specific needs. These efforts will not only accelerate economic growth but also support broader goals of sustainable development and gender equality across the region.
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