Assessment of Financial Risks of Innovative Activities in Textile Enterprises

Abstract

This article investigates the financial risks associated with the implementation of innovative activities in textile enterprises, with a focus on developing economies such as Uzbekistan. The integration of digitalization, sustainable technologies, and product innovation in textile production introduces significant uncertainties related to cost overruns, return on investment, funding limitations, and market volatility. Using a mixed-methods approach, this study combines financial ratio analysis, Monte Carlo simulations, and fuzzy logic models to identify, quantify, and mitigate financial risks. The findings reveal that financial risk is most acute during the implementation phase of innovation projects, particularly in enterprises lacking structured budgeting systems and risk monitoring tools. The article concludes with strategic recommendations for financial risk management and policy interventions that support innovation-led growth in the textile industry.