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Small businesses in Ukraine
Most micro, small and medium-sized enterprises (MSMEs) in Ukraine are directly and indirectly affected by the war. Small businesses account for about 99.8% of all enterprises in Ukraine - most of which are micro-enterprises.
The war in Ukraine has severely afflicted the development of small businesses in the country, exposing them to another severe external shock immediately after the Covid 19 pandemic. Therefore, funding is needed to replenish working capital, restore destroyed equipment, modernize production and maintain operations.
Demand-driven loans and training
Given their importance to the economy, the National Council for the Recovery of Ukraine from the War has identified the revival of small businesses as a high priority for key reforms in the July 2022 reconstruction plan.
In cooperation with the Ukrainian Business Development Fund, German Sparkassenstiftung will develop a program at Oschadbank and Bank Lviv, where small businesses can take out a loan for investment capital or working capital and receive a non-repayable grant of up to 30 %. Particular support will be given to small businesses directly affected by the consequences of the war. At the same time, the entrepreneurs will receive targeted training and mentoring in entrepreneurial skills from DSIK's expert staff.
A delegation from Germany, consisting of the head of project Dr. Michael Beck, project staff member Kateryna Schneider, the country director for Ukraine Matthias Pfaff and GIZ contact persons, traveled to Ukraine in mid-December to sign the contract.
Learn more about the project here.
The project takes place within the support of the international funding program "EU4Business: SME Competitiveness and Internationalization", which is co-financed by the European Union and the German government and implemented by the "Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH". The program aims to create better conditions for the development of Ukrainian small and medium-sized enterprises, support innovation and export promotion, and thus achieve sustainable and equitable economic growth. EU4Business is an overarching initiative that encompasses all EU support for small and medium-sized enterprises (SMEs) in the Eastern Partnership countries. The content of this article is the sole responsibility of German Sparkassenstiftung and does not necessarily reflect the views of the European Union, the German government or GIZ.