“We wanted to democratise entrepreneurship,” reflects the founder of Uzbekistan’s Startup Garage, Mukhammad Khalil.

It’s not hard to make the case that over the past five years, Central Asia’s second largest economy has emerged as a dynamic frontier in delivering the digital economy. And companies like Startup Garage are driving that forward. Fintech companies in the country of 37mn, the most populous ex-Soviet state outside Russia, have since 2020 multiplied fourfold, attracting over $260mn in foreign investment this year alone.

Those on the scene see government reforms as fuelling the creation of accelerators, venture funds and innovation hubs. A generation of young founders no longer see entrepreneurship as an unreachable dream, but as a career. Among them is Khalil.

When Khalil launched his first startup in Uzbekistan, the challenge wasn’t ambition – it was access. There were no accelerators, no venture funds and very few mentors to turn to. The culture was still cautious on risk. Guidance was scarce.

“The toughest part was building with limited resources,” he recalls. “No venture funding, little guidance and a culture still learning to embrace failure. That experience taught me resilience – and that learning by doing matters more than theory.”

Startup Garage, an initiative designed to help others overcome the hurdles Khalil once faced alone, emerged out of these struggles. At first simply a community hub for mentoring and resources, it has evolved to the point where it is operating SG Founders School, Uzbekistan’s first free academy for entrepreneurship. Launched in April, SG Founders has already turned out more than 1,000 graduates, the first step in realising an ambition to train 50,000 young founders by 2030.

An end to fragmentation

Uzbekistan’s startup landscape is no longer fragmented. Today there are accelerators, co-working spaces, venture capital funds and those all-important reforms in play. The Ministry of Digital Technologies, IT Park and AloqaVentures are active players in supporting early-stage ventures.

“The ecosystem has shifted dramatically in just a few years,” Khalil says. “Uzbekistan is moving from aspiration to execution. Young people now see entrepreneurship as a genuine career path.”

Back in 2018, the country had 24 fintech enterprises. This year, it boasts 103 today. The fintechs in 2025 have attracted around $260mn in foreign investment. That total is fourfold what was recorded last year.

Uzbekistan is preparing to establish a fintech office at the central bank, an innovation hub that will help to accelerate startups, foster fresh ideas and attract investment and build up its presence in artificial intelligence (AI) and blockchain.

Not just theory

“By graduation, our students don’t just leave with theory — they leave with the experience of building, pitching and testing in real time,” Khalil says of SG Founders. Students prototype, present to investors and mentors and adapt as they go along, with activities mirroring the hurdles of real startup life, he adds.

Measuring impact, the school counts actual startups, assesses the pipeline of investor-ready founders and weighs up progress in the cultural shift necessary in Uzbekistan to normalise entrepreneurship among young people.

Financial barrier removed

Too often, Khalil notes, access to entrepreneurial training depends on the ability to pay. SG Founders aims to level the playing field. It has removed the financial barrier. “We wanted to democratise entrepreneurship,” he emphasises. “By making the programme free, we ensure anyone – not just those with resources – can prepare to lead Uzbekistan’s economic future.”

That philosophy has inspired a series of spin-offs. In July, Startup Garage and the Ministry of Digital Technologies launched SG Women, Uzbekistan’s first nationwide accelerator for women in tech. Its programme gives female founders mentorship and training and offers visibility in closing the opportunity gap.

“We recognised the gap,” Khalil says. “Women weren’t under-represented because of talent, but because of opportunity. SG Women is about changing that.”

In May, Startup Garage published Uzbekistan’s first startup guidebook series in Uzbek. For many young entrepreneurs outside major cities, English is their first barrier. “By creating resources in Uzbek, we’ve made business education inclusive and unlocked talent across the country, not just in Tashkent,” Khalil says.

Thriving startup nation

“Startups inspire a cultural shift,” Khalil says, refecting on where such enterprises fit in in Uzbekistan’s modernising economy. “They show young people they can be the architects of their own future. That’s as important as any investment.”

“Government, private investors and community initiatives each play a role,” Khalil reflects. “When they align, you create the conditions for a thriving startup nation. And that’s exactly what’s happening in Uzbekistan right now.”