Service-oriented small businesses are perceived as a key indicator and barometer of the presence of a healthy and vibrant economy in the country. A new business start-up support tool www.sbc.regulation.gov.ua branded as “Start Business Challenge” since its launch in October 2017, now features more than 100 online regulatory guides on how to open and operate the micro businesses in the service and products sectors in Ukraine and provides a unique answer to the regulatory challenge the country has been facing. “Start Business Challenge” tool providing step-by-step advice on regulatory requirements, guides opening of microbusinesses in full accordance to the legal requirements and industry regulations in the country. Developed within the framework of EU4Business|FORBIZ project on behalf of the Ministry of Economic Development and Trade of Ukraine, the “Start Business Challenge” tool has been developed, maintained and is continuously improved by the Better Regulation Delivery Office (BRDO) – a regulatory policy advising and delivery institution in Ukraine. The online support tool for entrepreneurs feature regulatory requirements at national level and include regulatory guide on opening and running such popular micro businesses as, language courses, photo studio, web company, kindergarten, restaurant, taxi, mini bakery, family doctor’s office, mini market, car wash, internet provider, beauty salon, mini hotel, solar charging station, electric car charging stations and others. The societal impact potential of “Start Business Challenge” regulatory tool has been already widely acknowledged by receiving the acclaimed “Open Data Social Impact Award 2017” in Ukraine. Becoming increasingly popular, the “Start Business Challenge” online tools is a practical example of Project’s impact on entrepreneurship development in Ukraine.
SME Development Strategy of Ukraine Until 2020
Following sustained efforts by Ukrainian business community and supported by expertise of the EU4Business|FORBIZ project, the SME Development Ukraine 2020 Strategy has been developed and adopted by the Cabinet of Ministers of Ukraine in May 2017. This Strategic Government Document is the first comprehensive SME Strategy document placing SME Policy in line with the international standards and setting programs supporting framework for SME-focused policy in the country. The FORBIZ project supports the Ministry of Economic Development and Trade of Ukraine in designing the feasible and effective SME Action Plan that would assist in implementing the SME Strategy.
A regulatory portal “PRO - Platform for Effective Regulation” regulation.gov.ua/dialogue launched and run by the Better Regulation Delivery Office (BRDO) within the framework of EU4Business|FORBIZ project and under the auspices of the Ministry of Economic Development and Trade of Ukraine, is one of the most advanced and analytical platforms for businesses in the regulatory realm in Ukraine.
The essential services of “PRO Portal” include – (1) a roadmap for starting and operating a business in Ukraine that helps to navigate the maze of regulatory procedures for entrepreneurs, (2) a consultation tool on regulatory changes within priority markets for business community, (3) a complete legislative data base of regulations in Ukraine providing the public authorities with the online tools to analyze the impact of the existing regulations, designing new solutions, calculate their efficiency and costs. Visited by over 20 000 unique users monthly, the “PRO Platform” is the most comprehensive and complete regulatory online tool in the country.
The stakeholders consultations branded as “PRO Dialogue” on https://regulation.gov.ua/dialogue, facilitated by the Better Regulation Delivery Office (BRDO) within the framework of EU4Business|FORBIZ project, is the first systemic effort engaging the business community into the regulatory policy- and decision-making process in the country.
Participation of almost 2000 stakeholders throughout the country shows that the Ukrainian business community is ready to take an active role in shaping a business-friendly environment. The high relevance of the reform issues proposed within the “PRO Dialogue” consultation outreach in six priority sectors is confirmed by more than 80% of stakeholders.
The results of the “PRO Dialogue” confirm the business community’s capacity and eagerness to be a vital driving force of the regulatory reform process. Jointly with the regulators and policy-makers, the business community can play a vital role in addressing regulatory problems, as well as, stimulating economic development in the country.
Regulatory Clean-up
By employing a sophisticated Rolling Review methodology, recognized by the OECD, the compliance of over 2250 regulatory acts with the Association Agreement, has been reviewed. The review accounts for over 33% of all the acts governing the business conduct in Ukraine in priority segments of Agriculture, Construction, Energy, Transport, IT & Telecommunications and Market Surveillance. More than 700 obsolete regulatory acts have been abolished by the Ukrainian Government from 2016 till 2018 during with support of the BRDO and within the framework of the FORBIZ Project, marking another big step towards reduction of administrative and regulatory burdens for entrepreneurs and enhancing transparent business environment in Ukraine.
New Regulatory Instruments
To stimulate equal access to market and transparent business environment in compliance with the Association Agreement (AA), the BRDO has played a crucial role in assisting the ministries and other regulatory agencies in developing over 127 draft laws and regulatory acts in priority segments, in compliance with the AA and in close consultation with the Ukrainian business community. These include some of the most critical issues affecting businesses in Ukraine, such as the launching the market for mobile payments, public access to urban planning documentation, protection from real estate frauds and many others. Around 20 legal acts already have been adopted by the Ukrainian Government, assisted by BRDO, in migration and employment regulation, cutting bureaucracy on food pricing, improved regulation for the provision of mobile financial services, to public access for city planning documentation.
The FORBIZ project supports Ukraine’s reform agenda and its economic recovery by proposing a systemic, smart change to a more business-friendly environment with particular focus on SMEs. The project seeks to steer a shift in policy towards greater recognition of SMEs and the vital role they play in economic recovery, while addressing the challenge of reducing regulatory burden and lessening risk for businesses. FORBIZ project fully supports Better Regulation Delivery Office (BRDO) – the leading independent regulatory policy and delivery institution in Ukraine.
As an independent regulatory policy advising and delivery institution, supported by the EU under the FORBIZ project and within the framework of EU4Business Initiative, during the past three years, the Better Regulation Delivery Office (BRDO) has become a key player in providing expertise on the key regulatory reform issues aimed to ensure a level playing field for businesses in Ukraine. The BRDO has proven to be a catalyst for improving the business environment and delivering concrete regulatory results that has helped to stimulate economic growth and boost the investment climate. The BRDO’s highly competent legal experts and sectoral analysts in the priority sectors of Agriculture, Construction, Energy, Transport and Infrastructure, Market Surveillance and IT & Telecom have been instrumental in addressing ambitious regulatory challenges and delivering tangible results, recognized by the Government and the business community.
A transparent inspection system is one of the key indicators of the business-friendly environment in a country. Due to inspections’ reoccurring and non-transparent nature, alleviation of the present chaotic regime is seen by businesses as particularly important. The BRDO, in close cooperation with the Cabinet of Ministers, the Ministry of Economic Development and Trade, State Regulatory Service and relevant line ministries has embarked on a comprehensive modernization of the currently erratic inspection system. This new, multifaced approach spearheaded by the BRDO, includes reliance on risk-based methodology and creation and utilization of a transparent inspection check-list. In this context the inspection portal as an open source of data for both businesses and inspection authorities www.inspections.gov.ua, developed under the auspices of the MEDT, fully maintained and promoted by BRDO within the framework of the Project, is not only a contemporary, highly welcomed platform, but fundamental and transparent element of newly developing inspection system in Ukraine.
Established in October 2018 with support of the EU and presently operating as an advisory body within the Ministry of Economic Development and Trade of Ukraine (MEDT), the SME Development Office (SMEDO) is to become in the future the main institution in charge of entrepreneurship promotion, acting as key engine for development of SME competitiveness in the country.
The key mandate of the SME Development Office is to develop targeted SME support programmes and to enhance the entrepreneurial capacities and skills, facilitate access to finance and to support development of the SME institutional infrastructure network. Additionally, the SMEDO will help coordinating the SME Policy implementation in the country, strengthen the cooperation with the donors, as well as provide access to information through a dedicated SME information portal.
SMEDO currently includes 9 experts having a diverse set of skills and experience to effectively implement the tasks, based in two main units – “SME Policy Coordination and Infrastructure Support” and “SME Promotion and Programming”.
The SME development in Ukrainian regions is one of the main drivers of competitiveness, innovation, economic growth and prosperity, whereby the Local Authorities should play a key facilitator’s role in this process. Therefore, the SME focus should be at heart of the long-term regional planning approach to economic development in the regions of Ukraine.
Recognising the need to facilitate and exemplify the long-term strategic approach to SME development in the regions, FORBIZ project has piloted an extensive capacity building initiative in Chernihiv region.
The initiative targets the Local Administration of Chernihiv region, Nizhyn and Chernihiv cities and focuses on the comprehensive Methodology utilised for effective long-term planning of SME development at regional and city levels. The aim of the Methodology, proposed by FORBIZ project, is to establish the SME support as an integral part of regional and local development strategies in the regions.
Awareness-raising on Regulatory Reform
The political and communication dimension of effective regulatory environment is one of the key elements fundamental to progress towards better functioning economy of Ukraine. The regulatory and SME policy will only thrive if it has political support and civil service ‘buy-in’ and if the stakeholders perceive it to be relevant. In this context, a clear communication is vital in helping to build the public opinion and support to regulatory reform effort and the heart of all Project activities. It should be noted that the total of FORBIZ communication efforts accounts for most prominent, effective and systematic communication outreach in regulatory and SME domain in Ukraine.
project focus
BETTER LEGAL REGULATION
Component 1 supporting Ukrainian authorities at all relevant levels aiming at better regulatory policies within prioritised sectors
SME POLICY & CAPACITY
Component 2 strengthening the capacity of Ukrainian national, regional and local authorities and other stakeholders to implement effective economic development policies with specific focus on SMEs
COMMUNICATION & DIALOGUE
Component 3 improving access to information for Ukrainian SMEs and consultations with business community on regulatory improvements
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