International Grants and Small Business Support: Opportunities for Entrepreneurs in Small Towns of Ukraine

International Grants and Small Business Support: Opportunities for Entrepreneurs in Small Towns of Ukraine

Kyiv  •  UNN

October 30 2024, 01:35 PM • 205171 views

International donors provide support to small businesses in small towns in Ukraine through grants and consultations. Brovary community attracted over UAH 466 million in investments and created almost 600 jobs during the war.

There are now many opportunities for entrepreneurs thanks to international grants and advisory support. New business support centers are currently being opened for them with the support of local authorities. Business Ombudsman of Ukraine Roman Vashchuk outlined in an exclusive commentary to UNN the current situation with local businesses' access to foreign grants and international support, as well as the problems that hinder the full development of small and medium-sized businesses in Ukraine, in particular at the level of small cities. 

Small towns have access to various advisory services, including international projects. I have to say that Ukraine now has a lot of different support for small and medium-sized businesses in particular. My colleague just showed me 5 pages - it's just a list of the titles of the projects that exist

- said Roman Vashchuk.

According to him, foreign donors and organizations such as USAID, the US Ukraine Moldova Foundation, Pro-Integrity, and others are actively disseminating information about available support programs throughout Ukraine, even in small towns. This allows entrepreneurs to receive funding, advice, training, and develop their projects with the help of external grants. Thanks to such efforts, future entrepreneurs can find support with the help of Internet access and certain information search skills.

One example of business assistance in attracting foreign financing is the Brovary community in Kyiv Oblast, which has a number of programs to support and develop local entrepreneurs.

For example, there is the EU4Business: Recovery, Competitiveness and Internationalization of Small and Medium-Sized Enterprises program. Ihor Sapozhko, mayor of Brovary, said that the program was launched jointly with European partners to develop tourism, craft production, and creative industries. However, the full-scale war unleashed by Russia has made its own adjustments and the program has been adapted to current realities. Currently, the program focuses on supporting small and medium-sized entrepreneurs in general. It is funded by the EU and the German government and includes training seminars, consultations on doing business and accessing new markets. An important aspect is also to help restore businesses that were affected by the war.

In addition, a Business Support Center was opened in Brovary last year. Its specialists provide consulting assistance to entrepreneurs. They help business representatives find available grants, fulfill the conditions for receiving them, and organize educational events, such as trainings and intensives to develop business skills.

Another interesting and important initiative is the UWE HUB project. It supports women entrepreneurs as part of a partnership between the Executive Committee of the Brovary City Council, the Center for CSR Development, and GlobalGiving (USA). The goal of the project is to develop women's entrepreneurship, including training programs and consultations for starting or expanding their own business.

“We understand that entrepreneurs are the engine of our economy. Under martial law, their role becomes even more important, because they not only provide jobs but also stimulate the economic development of the community,” - said Igor Sapozhko.

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Business Ombudsman Roman Vashchuk also shared the problems faced by small and medium-sized businesses in Ukraine. According to him, they are primarily related to gaps in  interaction with fiscal authorities, such as tax and customs. He characterized the situation of entrepreneurs as “two parallel realities,” where, on the one hand, local authorities help businesses, but on the other hand, fiscal authorities block business initiatives through excessive bureaucracy and pressure.

In particular, the business ombudsman emphasized that entrepreneurs often complain about blocking tax invoices that the tax service defines as “risky.” This is especially true for representatives of the agricultural sector and small and medium-sized businesses in small towns, where such actions lead to serious financial difficulties. 

Another obstacle, according to him,  is the lack of proper coordination in granting permits for land plots for construction. Often, such decisions depend on local councils, where there may be resistance or unwillingness to make the necessary decisions.

By the way, the Brovary community has found a balance in the issue of land allocation for entrepreneurs. Land plots that are in communal ownership are put up for electronic auction on the state platform. The Brovary City Council approves the allocation of land. According to the mayor, this approach allows entrepreneurs to obtain land for their projects on favorable terms.

In addition, local businesses receive preferential lease terms for municipal property. In particular, the city authorities lease premises on a competitive basis, with the abolition of penalties for overdue rent during the period of martial law.

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According to Mayor Ihor Sapozhko, during the martial law period, Brovary managed to attract more than UAH 466 million in investments and create almost 600 new jobs as part of 76 investment projects . He added that during the period of martial law, the number of various companies and individual entrepreneurs in the Brovary community has increased - currently there are more than 18 thousand of them. 

In addition to foreign funding, Brovary will also receive other assistance from the twin cities. For example, German partners have provided the local community with generators, medical equipment, special vehicles, and much more. In October, a representative of the municipality of the German twin city of Jena, City Councilor Matthias Mitt, arrived in Brovary to identify specific areas for further cooperation with his Ukrainian colleagues.

In total, as part of cooperation with the German cities of Jena and Erlangen, as well as the Lan Dill district, Brovary received three ambulances, four fire trucks, three units of public transport, one school bus, generators, and various equipment for community schools and the modular town where the IDPs live.