Business Development In The Service Sector Of Kashkadarya Region: Analysis And Prospects For Improvement

This study examines contemporary approaches to the digitalization of management of small business development in the service sector of Kashkadarya Region. The relevance of the study is determined by the increasing role of digital technologies in enhancing the efficiency of managerial processes, expanding channels of interaction with consumers, optimizing costs, and ensuring the resilience of small businesses amid the structural transformation of the regional economy. The empirical basis of the study comprises official statistical data for Kashkadarya Region, including indicators for January-June 2026.
The findings indicate that, in January-June 2026, the volume of market services in the region reached UZS 31,302.3 billion, representing an increase of UZS 5,904.8 billion compared with the corresponding period of 2025, while the growth rate amounted to 115.8%. The largest share was accounted for by accommodation and food services, which reached UZS 10,473.3 billion, or 33.5% of the total volume of market services. The highest growth rate was recorded in architectural and engineering services, technical testing, and analysis, at 143.7%.
Based on the analysis, the study substantiates that further development of small businesses in the service sector requires a transition from the fragmented use of individual digital tools to an integrated digital management system. Such a system should encompass digital infrastructure, electronic interaction with government authorities, CRM and ERP solutions, digital payment systems, data analytics, employee digital competencies, and performance monitoring mechanisms. The study proposes an author-developed model of digital management for small business development in the service sector, aimed at improving managerial efficiency, competitiveness, and the resilience of regional enterprises.