Transforming remittances and savings of labor migrants into a source of financing for entrepreneurship as well as other development projects is the focus of the migration policies of many governments in migrant sending countries. Unilateral transfers from overseas play an increasingly important role globally in the economies of the majority of developing countries. Remittances and savings of labor migrants have facilitated the development of Uzbekistan's financial sector, by prompting the development of sophisticated money transfer operators. However, the extent of the impact of these flows on financing needs of business enterprises is still unclear. The aim of this research is to analyze the impact of remittances from labor migrants on easing the financial constraints of small businesses in Uzbekistan. In other words, the research sheds light on the significance of remittances and savings of labor migrants for entrepreneurship. As such, this research has important policy implications. Small businesses are believed to be crucial for job creation and economic growth. The results of this paper indicate that the link between labor migration and business investment in Uzbekistan is rather equivocal. Data on the use of remittances from relatively larger scale surveys show that a small number of recipient households invest in entrepreneurship. This may be due to the fact that remittances Uzbek households receive are small and mainly used to address immediate consumption needs.