LEGAL FOUNDATIONS OF SMALL BUSINESS AND ENTREPRENEURSHIP

Abstract

 This article provides a comprehensive analysis of the economic, social, 
and legal foundations underlying small business and entrepreneurial activities, with a  specific focus on the Republic of Uzbekistan. The study highlights the strategic  importance of the private sector as a primary driver of sustainable economic growth,  employment generation, and the formation of a competitive market environment. By  synthesizing the works of classical economists (such as Richard Cantillon and J.B. Say)  and contemporary Uzbek scholars, the paper explores the theoretical and  methodological aspects of entrepreneurship, particularly the dynamic relationship  between business initiatives and consumer demand. 
The article further examines the impact of recent state reforms and legal 
frameworks aimed at simplifying registration processes, reducing regulatory  interference, and providing financial incentives to foster a favorable business climate. It  analyzes the social significance of small business in fostering stability, reducing  inequality, and utilizing local resources. Additionally, the study offers a comparative  perspective on the legal definitions and categorization of small enterprises across  different countries, including the USA, the European Union, and Australia, noting the 
unique approaches to defining employee limits and financial thresholds. The research  concludes that the integration of economic, legal, and social support mechanisms is  essential for the continued prosperity and development of the small business sector.