This report is a result of the second phase of the Socio-Economic Impact Assessment of COVID-19 pandemic, as well as economic policies implemented by the Government, on the Small and Medium-sized enterprises (SMEs) of Uzbekistan conducted jointly by UNDP and the Center for Economic Research and Reforms. 

The report is built on the findings of the second round of questionnaire-based survey of SMEs conducted in October 2020 as well as the analysis of the key macroeconomic trends. This includes the analysis of perceived effects of COVID-19 and lockdown measures on SMEs of various categories; the nature of problems faced by the SMEs; gender aspects of the impact of the pandemic and the lockdown on employment in the SME sector; and copying strategies taken by companies during the pandemic.

This report finds that the COVID-19 pandemic had different effects on different categories of businesses, urban and rural areas, regions and sectors of the economy. The pandemic primarily affected the industries that produce durable goods and investment goods, the hospitality sector, the light industry and wholesale trade. Small enterprises in the urban areas were affected more than their counterparts in the rural areas. The major problems the SMEs had to face due to pandemic among other things included the shutdown of the operations, decrease in demand for their goods and services, disruptions in the supply chains, increased transportation costs, restrictions for the movement of the employees to their workplaces, shortages and availability of financial resources, etc.  

The Report also provides an assessment of Covid-19 response measures taken by the government to support businesses, which were effective to various extends and included the reduction of tax rates or temporary tax exemptions, suspension of rental payments and changing the loan repayment schemes. In conclusion the report provides recommendations to the government to pursue a support measures taking into account the sectoral and regional disparities, more effective methods of regular data collection and assessment of economic situation.