THE SIGNIFICANCE OF HYBRID FINANCING OF ENTREPRENEURIAL ACTIVITY AND MODELS FOR ITS LEGAL REGULATION

Abstract

In the rapidly developing contemporary business landscape, improving financing procedures and expanding alternative funding methods for entrepreneurial activity is of paramount importance. Every financing method that provides capital to an enterprise has its own specific features. Traditional methods such as credit, leasing, and factoring have already demonstrated their shortcomings in global practice. The heavy burden of interest or excessive formalities often creates difficulties for the entrepreneur rather than providing support. This article provides a comparative study of the significance of hybrid financing (the synergy of debt and equity instruments) for entrepreneurial activity and the international models for its legal regulation. The research objective is to establish the legal and theoretical foundations for introducing hybrid financing into Uzbekistan's developing capital market and to develop practical recommendations based on advanced foreign experience. The study illustrates the role of hybrid instruments in risk diversification and enhancing company flexibility. Unlike traditional financing methods (bank loans or common stock issuance), hybrid instruments such as convertible bonds and mezzanine financing are considered the most effective way to raise capital for early-stage enterprises.