Ministry of Economy, Environment and Agriculture, and UNDP launch Phase 3 of project to strengthen sustainability and competitiveness of Ukrainian entrepreneurs

The Ministry of Economy, Environment and Agriculture of Ukraine and the United Nations Development Programme (UNDP) have prepared and agreed on a joint action plan for 2025–2028 for the third phase of the project “Strengthening Member Business Associations of Micro, Small, and Medium-sized Enterprises in Ukraine.”

The project, implemented with the support of the Swiss government, defines common priorities, roles, and coordination mechanisms for the parties. It aims to provide systematic support to business associations as key institutions for the development of micro, small, and medium-sized enterprises (MSMEs), strengthen public-private dialogue, and increase the sustainability and competitiveness of Ukrainian small businesses.

In the third phase, UNDP and the Ministry are focusing on working with platforms, networks, and business associations that can systematically influence the development of MSMEs at both the national and regional levels.

“Business associations help shape policy based on the real needs of entrepreneurs and ensure effective dialogue at the local level. Together with UNDP, we are establishing a systemic model of support for MSMEs that works for long-term economic development,” said Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine.

The third phase of the project involves a transition from crisis response to scaling up proven solutions. The goal is to ensure the sustainability of business associations as drivers of regional economic development and to strengthen their ability to consolidate, develop, and represent the interests of small and medium-sized businesses.

Particular emphasis was placed on institutional capacity building of business associations, development of services for BA members, including business development services, and formation of partnerships with government agencies, educational, and international organizations. They also focused on expanding and institutionalizing public-private dialogue and integrating business associations into a single, coordinated ecosystem.

"Strong business associations are the infrastructure of trust between entrepreneurs and the state. In the third phase of the project, we are moving from ad hoc support to systemic solutions: we are strengthening the capacity of associations to provide quality services, influence policy, and be real partners in economic recovery at the regional level," said Auke Lootsma, UNDP Resident Representative in Ukraine.

The two previous phases focused on supporting business associations and creating training, mentoring, and new membership formats. In the first phase, seven business associations received support, and in the second, 27.

In total, over the 10 years of the project's implementation, about 100 business associations across the country have received support. In addition, 24 partner organizations have introduced a multi-tiered membership model, covering nearly 25,000 MSMEs. Business associations supported by UNDP are implementing voluntary transparency standards, expanding the range of business services, and actively participating in advocacy for reforms. This has contributed to the adoption of dozens of laws and regulations that improve the business environment in Ukraine.

The project “Strengthening Member Business Associations of Micro, Small and Medium Enterprises in Ukraine” is part of a broader cooperation between UNDP and the Ministry of Economy, Environment and Agriculture. One example of such partnership is the development of the Made in Ukraine office network, which provides entrepreneurs with access to consultations, services, and government support programs.

To date, UNDP has supported the opening of 13 of 100 Made in Ukraine offices, as well as the development of the capacity of the entire network, which helps local entrepreneurs navigate government support tools and develop their own businesses.

Background information

The project “Strengthening Member Business Associations of Micro, Small and Medium Enterprises in Ukraine: Phase 3” is implemented by UNDP in cooperation with the Ministry of Economy, Environment and Agriculture of Ukraine with the support of the Swiss Government through the Swiss State Secretariat for Economic Affairs (SECO).