This article is dedicated to the study of the theoretical and practical aspects of self-employment. It examines research on the concept of self-employment by foreign and domestic scholars, its specific characteristics, and factors that have a direct impact. The role and significance of self-employment in reducing youth unemployment are revealed, and its age and regional characteristics are analyzed. The work being done in the republic to develop this sector and the opportunities being created are highlighted.

The purpose of this article is to determine the role of small business in the national
economy of Karakalpakstan. Statistical data for 2015-2022 were used to solve this problem. The article shows the role of small business for the national economies of developed and developing countries, a comparative analysis is carried out on such characteristics as employment, the structure of small business according to macroeconomic indicators, the contribution of small business to the replenishment of the budget and extra-budgetary funds. The problems of comparing statistical data on small business in Karakalpakstan are shown. A special feature of the article is the consideration of self-employment as a structural element of small business in
Karakalpakstan. 

The article describes the role of self-employment in the legalization of informal employment and bringing business out of the “shadow”, the conditions and opportunities created, foreign experience in this regard and measures implemented in our country. The article also provides proposals for further improving the regulation of self-employment through taxes.