• Українською
  • Supporting Small and Medium Businesses

    The reform is aimed at creating favourable environment for the development of a strong and competitive SME sector in the context of temporarily limited financial support and the significant challenges facing the country.

    Why change anything?

    Small and medium businesses play a key role in Ukraine’s economy ensuring about 64% of added value, 81.5% of jobs and 37% of tax revenues.

    The restrictive measures introduced in Ukraine to prevent the spread of acute respiratory disease COVID-19 caused by SARS-CoV-2 coronavirus have severely impacted business due to full or partial closure of enterprises, complicated logistics, low demand and destruction of supply chains.

    In its Resolution No. 534 dated 27 May 2020, the Cabinet of Ministers of Ukraine approved the 2020—2022 National Economy Stimulus Plan to overcome the impact of the restrictive measures aimed at preventing the occurrence and spread of acute respiratory disease COVID-19 caused by SARS-CoV-2 coronavirus. The plan should help introduce a comprehensive system of new opportunities in 2020—2022 for the stabilisation and sustainable development of Ukraine’s economy and addressing unemployment by preserving existing and promoting the creation of new decent, highly productive jobs.

    What does the reform include? 

    The reform includes measures supporting small and medium businesses aimed to:

    • provide access to finance;

    • provide access to markets;

    • create the infrastructure for small and medium business development.

    In particular, the reform will:

    • deal with the small and medium businesses liquidity issue by implementing measures aimed at preserving jobs, streamlining access to finance and cutting business costs. It is also planned to create and ensure the effective operation of the Fund of Funds to improve access to finance;

    • enhance access to markets by engaging small and medium businesses in the socio-economic development of certain regions;

    • optimise regulation of and streamline administrative processes for small and medium businesses by creating an effective infrastructure to support entrepreneurship.

    Goals and Objectives

    • To improve access to finance for small and medium businesses, including by continued implementation, improvement and promotion of the Affordable Loans 5-7-9 Plan, introduction of a portfolio loan guarantee facility, development of an alternative financing methodology, creation and promotion of financial literacy training programmes and materials.

    • To develop online platforms offering access to an alternative financing methodology (such as a public procurement factoring platform).

    • To develop an infrastructure for small and medium business operation and implementation of innovations, including: the creation of a national network of innovative business centres according to the standards of the European Network of Business and Innovation Centres (EBN) through training and certification of the existing infrastructure (business centres, incubators, regional agencies, etc.), and expanding the network of points of business information at local government bodies.

    • To develop grant and training support programmes for creating sustainable and competitive business models, restoring or adapting value chains.

    • To increase institutional empowerment of public authorities for the implementation of the national business development policy by establishing the Small and Medium Business Development and Support Agency.

    • To prepare a two-year strategy for the development of small and medium businesses with an action plan to ensure SME support in the post-crisis period.

    Entities involved in the reform implementation

    The Ministry of Economythe Ministry of Financethe National Bank of UkraineOffice for Small and Medium Business Development at the Ministry of EconomyState-owned Enterprise “ProZorro”the Ministry of Digital Transformation of Ukrainethe Ministry of Education and Science of Ukraine.

    References and Links