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. The main body of the article compares some key legal regulation models for hybrid financing. Based on the analysis, the necessity of introducing relevant amendments to Uzbekistan's legislation, primarily to the Laws "On the securities market" and "On joint-stock companies and protection of shareholders' rights" is substantiated for the implementation of hybrid instruments. Key tasks include establishing a clear legal status for convertible debts, strengthening investor protection mechanisms, and simplifying disclosure requirements.

hybrid financing, convertible bonds, mezzanine financing, legal regulation, capital market, entrepreneurship, investor.

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