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The Role of Financial Mechanisms in Enhancing the Competitiveness of The Service Sector

SAMIEV SARDOR ISKANDAROVICHActing professor at Department of Finance and Banking, Karshi State Technical University, UzbekistanShakhzod NaimovMaster's degree in corporate finance and securities markets, Karshi State Technical University, Uzbekistan
ABI

Abstract

The service sector has become a dominant force in the global economy, contributing significantly to GDP and employment. However, increasing competition requires service-oriented firms to constantly innovate and upgrade their operational capacities. This study explores the impact of various financial mechanisms—including preferential credit lines, venture capital, tax incentives, and digital payment integration—on the competitiveness of service firms. Using an analytical approach, the paper demonstrates how targeted financial instruments can lower operational barriers and foster a more resilient service infrastructure.

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