On 16th September 2024, the event “Economic Policy of Ukraine: Recovery During War” took place, where the Ministry of Economy of Ukraine presented the strategy for the recovery of small and medium enterprises, with the involvement of the Kyiv School of Economics under the UK’s Good Governance Fund Ukraine project. Representatives of the ministry also outlined the main principles of the state’s economic policy, key projects, and ways to overcome the challenges posed by the full-scale invasion of the Russian Federation.

First Deputy Minister of Economy, Oleksii Sobolev, presented the Strategy for the Recovery of Small and Medium Enterprises (SMEs) until 2027. Special attention is given to the green transition, digital transformation, innovative development, and business inclusivity, engaging women, people with disabilities, internally displaced persons (IDPs), and veterans. The document takes into account OECD recommendations, aligns with the content of the Association Agreement between Ukraine and the EU, and is consistent with the Plan for the Ukraine Facility.

The strategy outlines four main goals:

1. Recovery and facilitation of doing business.

Government programs such as “Affordable Loans 5-7-9”, grants for veterans, grants for processing enterprises, and others, provide access to finance and deregulation. New tools are also being introduced, including the e-Permit system and the “Pulse” system for collecting feedback from businesses.

2. Innovative development, digital transformation, and green transition.

Support for business accelerators, incubators, science parks, and the development of SMART-Specialisation will promote growth and competitiveness of Ukrainian businesses in global markets.

3. Development of human capital and entrepreneurial culture.

Training programs, the development of dual education, and support for Ukrainians willing to return home from abroad will help to overcome the shortage of personnel.

4. Enhancing competitiveness and increasing exports.

Support for Ukrainian exporters through the Export Credit Agency’s tools, trade agreements, and cooperation with international platforms will enable SMEs to enter new markets.

“Supporting SMEs is one of the key priorities of the Ministry of Economy and the state as a whole. The main task of the Strategy is to create conditions for the development of SMEs and to give partners an understanding of where to invest both now and after the war ends. The new strategy is inclusive and will promote business activity among women, people with disabilities, and veterans. It has been agreed upon with businesses, the public sector, and experts. Our international partners have already supported it. We already have a result — together with Germany, we launched the SME Resilience Alliance,” said Oleksii Sobolev.

The strategy was developed with expert support within the framework of the Good Governance Fund project “Business Revitalisation for Sustainable Growth” funded by UK International Development. The project delivery partners are Abt Global and Kyiv School of Economics.

“SMEs have shown remarkable resilience in difficult times. Ukrainian businesses continue to work, enter new markets and look for investment opportunities. We are delighted to contribute to the development of the Strategy as it provides a comprehensive and practical approach to business recovery. The UK is committed to supporting the Government of Ukraine in reshaping SME policies to be more responsive to business needs and encourage inclusivity and innovation. Practical support for inclusive policies is also important, so as part of the Good Governance Fund project, we are launching the Grow 2.0 educational programme for women who want to start or scale their business and learn new skills,” said Stefan Kossoff, Development Director at the British Embassy in Kyiv.

“The key task is to accelerate the movement of businesses within the entrepreneur’s life cycle. When ‘stuck’ small businesses start to grow, and dynamic ones turn into medium and large businesses. This funnel does not always work in Ukraine, so it is necessary to focus as much as possible on providing promising companies with internal and external resources for this,” comments Maksym Nefyodov, Director of Innovative Solutions at the KSE Institute.

Since the early days of the full-scale invasion, the Kyiv School of Economics has been working towards the victory of Ukraine and aims to restore the economy, and build a resilient and independent state. We will continue active cooperation with the Government, international partners, businesses, and the public to ensure this.