IMPROVING THE MECHANISM OF REDUCING FINANCIAL RISKS OF INNOVATIVE ACTIVITIES IN TEXTILE ENTERPRISES

Authors

  • Rashidov Jamshid Associate Professor of the Department of Management, International School of Finance Technology and Science, Tashkent, Uzbekistan

Keywords:

financial risk management, innovation risks, textile industry, risk mitigation mechanisms, Uzbekistan, investment risks, innovation insurance, financial sustainability.

Abstract

The dynamic development of Uzbekistan’s textile industry, accounting for over 60% of the country’s non-commodity exports in 2024, demands new mechanisms to mitigate financial risks associated with innovation. This study identifies the primary financial vulnerabilities faced by innovative textile enterprises, such as credit risk, cash flow volatility, and innovation investment uncertainty. Through comparative analysis, the paper proposes a multi-layered mechanism incorporating financial hedging instruments, innovation insurance models, and government-backed risk-sharing schemes. Empirical data from 130 Uzbek textile firms highlight that adopting structured financial risk management systems could reduce financial losses by up to 18% annually. The findings serve as a theoretical and practical guide to enhancing financial sustainability in the context of Uzbekistan’s ongoing industrial modernization.

References

Teece, D. J. (2018). Dynamic Capabilities and Strategic Management: Organizing for Innovation and Growth. Oxford University Press.

Rothaermel, F. T. (2019). Strategic Management: Concepts and Cases. McGraw-Hill Education.

Park, S., & Lee, K. (2020). Financial Risk and Textile Innovation: A Global Survey. Journal of Textile Economics, 45(3), 234–252.

Tursunov, B. O., & Burkhanov, A. (2023). Financing Innovations in Uzbekistan’s Textile Sector. Vlakna a Textil, 30(1), 58–65.

World Bank. (2023). Uzbekistan Economic Update: Strengthening Innovation Ecosystems. World Bank Publications.

State Committee of Statistics of Uzbekistan. (2024). Statistical Review of the Textile Industry 2023. Tashkent: State Statistics Press.

Ministry of Investments, Industry and Trade of the Republic of Uzbekistan. (2024). Annual Report on Textile Innovation Performance. Tashkent.

OECD. (2022). Enhancing Innovation Resilience in Emerging Economies. OECD Publishing.

Chamber of Commerce and Industry of Uzbekistan (CCIU). (2023). Innovation Barriers Survey Report. Tashkent.

UNIDO. (2022). Industrial Development Report: Innovation for a Sustainable Future. United Nations Industrial Development Organization.

Downloads

Published

2025-04-29

How to Cite

Rashidov Jamshid. (2025). IMPROVING THE MECHANISM OF REDUCING FINANCIAL RISKS OF INNOVATIVE ACTIVITIES IN TEXTILE ENTERPRISES. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE & INTERDISCIPLINARY RESEARCH ISSN: 2277-3630 Impact Factor: 8.036, 14(04), 98–108. Retrieved from https://www.gejournal.net/index.php/IJSSIR/article/view/2607