Small business and private entrepreneurship play a crucial role in ensuring employment generation and sustainable economic development in modern economies. In many developing countries, including Uzbekistan, small and medium-sized enterprises (SMEs) represent the backbone of the labor market and contribute significantly to regional economic stability. Over the past decade, Uzbekistan has implemented a number of economic reforms aimed at improving the business environment, supporting entrepreneurship, and stimulating regional economic growth. This study examines the regional dynamics of employment and the role of small business entities in the labor market of Uzbekistan. The research focuses on identifying regional disparities in employment levels and assessing the contribution of SMEs to job creation. The analysis is based on official statistical data from the Statistics Agency of Uzbekistan. Two complementary datasets are used: regional employment statistics for the period 2020–2023 and the share of SMEs in total employment for the period 2018–2023. The results indicate that small business continues to maintain a dominant position in employment across most regions of the country. However, the analysis also reveals significant spatial disparities in employment dynamics. Tashkent city demonstrates the highest employment growth due to its strong concentration of economic activity and investment flows. At the same time, several regions such as Sirdarya and Jizzakh show stagnation or decline in employment levels. The study highlights the importance of balanced regional development policies and targeted support for small business development in lagging regions in order to ensure sustainable and inclusive economic growth.