The Government has approved the Strategy for the Recovery, Sustainable Development and Digital Transformation of Small and Medium-Sized Enterprises (SMEs) until 2027 and the operational action plan for its implementation for 2024-2027. The decision was made at a meeting held on 30 August 2024.

“Supporting SMEs is one of the key priorities of the state. The new strategy is a response to the urgent needs of business. It is inclusive and will promote business activities of women, people with disabilities, and veterans. It has been agreed with business, the public sector, and experts. It also takes into account the regional aspect. It was also supported by our international partners. And we have already achieved a practical result: together with Germany, we have launched the SME Resilience Alliance to coordinate efforts to develop the SME ecosystem. The main objective of the Strategy is to create conditions for the development of SMEs and give our partners guidance on where to invest both now and during the post-war recovery,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

The Strategy defines key areas of state policy in the SME sector, including the restoration of destroyed enterprises based on the principle of “build back better”. It pays special attention to the green transition, digital transformation, innovative development and business inclusiveness, involving women, people with disabilities, internally displaced persons (IDPs) and veterans. The document takes into account the OECD recommendations, is in line with the EU-Ukraine Association Agreement, and is also aligned with the Ukraine Facility Plan. The Strategy details the directions of development of the Ukrainian economy, as defined in the Plan, in terms of creating complex value chains and developing the processing industry. In addition, it envisages the development of SMEs in line with the National Energy and Climate Plan until 2030. Experts from the Ministry of Digital Transformation and the Entrepreneurship and Export Promotion Office also worked on its development.

“At the Ministry of Digital Transformation, we are actively working to develop the SME ecosystem. In 2020, we created the national project Diia.Business, where entrepreneurs can find information to start, transform or scale their business. Thanks to Diia.Business, we have made significant progress in supporting entrepreneurs across Ukraine and abroad. In particular, we have initiated the opening of 14 Diia.Business centres, including one in Warsaw. However, it is important for us to have a common strategy to make our movement coherent and even more effective. I am convinced that the implementation of the Strategy will allow entrepreneurs to receive up-to-date information and access to free opportunities, and will help our country move up in the entrepreneurship rankings,” said Valeriya Ionan, Deputy Minister of Digital Transformation for European Integration.

The strategy has four main objectives:

1. Restoring and facilitating the process of doing business. This includes access to capital, deregulation and the introduction of new support instruments. First of all, this will be facilitated by the Government’s “Made in Ukraine” policy programmes: grants for processing companies, Affordable Loans at 5-7-9 programme, and war risk insurance. New programmes are being added to the existing ones, such as greater involvement of SMEs in public procurement. Deregulation and new communication channels, such as the Pulse platform, will improve the quality of public services.
2. Innovative development, digital transformation and green transition. The Strategy envisages an approach of smart specialisation, the creation of industry clusters and science parks that will help attract investment and develop regions. These processes will also be strengthened by the digitalisation of business processes, artificial intelligence technologies, electronic invoicing tools, and instant payments by the NBU, subject to cybersecurity. An online tool for self-assessment of the carbon footprint of enterprises and professional energy audits will be available to facilitate the green transition of SMEs.
3. Human capital and entrepreneurship development. This includes dual education and programmes for women, veterans and people with disabilities. Expanding the network of regional “Made in Ukraine” offices to support micro and small enterprises.
4. Improving competitiveness and increasing exports. The strategy envisages cooperation with international networks such as Enterprise Europe Network, Erasmus for Young Entrepreneurs, development of the Made in Ukraine brand, support in finding partners, negotiating and launching joint chains, and expansion of the Export Credit Agency.

As estimated by the Ministry of Economy, the implementation of the Strategy will lead to an improvement in the index of economic freedom of business by at least 14 points to 75+/100, an increase in the knowledge intensity of gross domestic product to +0.7%, and an increase in the number of exporters to more than 35,000. The unemployment rate is also expected to decrease from 18.3% to 11%.

“Our task is to provide Ukrainian SMEs with the necessary support for successful operations both in Ukraine and abroad. That is why we, together with our partners, have created a strategy that puts the Ukrainian entrepreneur at the centre of attention, providing them with opportunities for development, innovation and growth. New initiatives, such as involving SMEs in public procurement, cooperation with international networks, support for innovation and digital transformation, will allow Ukrainian small and medium-sized enterprises not only to meet current trends but also to be one step ahead, increasing their competitiveness in foreign markets,” said Andrii Remizov, Director of the Entrepreneurship and Export Promotion Office.

Considering the high priority given to the development of small and medium-sized businesses, Ukraine and Germany have launched the SME Resilience Alliance to coordinate efforts in developing the SME ecosystem. The aim of the Alliance is to mobilise new resources and coordinate actions to support small and medium-sized businesses.

The activities of the SME Resilience Alliance are guided by the strategic objectives set out in the SME Strategy.

Source: https://www.kmu.gov.ua/