On May 20, 2025, an online workshop “Existing SME Support Tools and Access to Finance” was held. This was already the fourth event within the program “Doing Business in the EU: A Month of Strengthening Business Support Organizations.”
Why Governments and EU Donors Support Business
Small and medium-sized enterprises (SMEs) are the backbone of the economy. SMEs are the largest employers in most economies. Small and medium-sized enterprises provide 67% of the workforce and 57% of added value in the EU. In Ukraine, SMEs account for more than 70% of generated added value and 82.2% of jobs (according to State Statistics Service data for 2023).
Traditionally, small and medium-sized enterprises are suppliers for large companies, help diversify the economy, and contribute to enhancing global competitiveness and the trade balance. The private sector is the true driver of transformation, a source of innovation and know-how, new products, and services.
According to international private sector development expert Dr. Ricardo Pinto, during the full-scale war, Ukrainian business has demonstrated extraordinary resilience and adaptability.
“Ukrainians are more than familiar with the importance of flexibility and resilience. Adaptability is a key issue for small businesses. It allows for quick responses to economic and institutional shocks,” the expert noted.
More than 40% of Ukrainian SMEs cite lack of capital as their main challenge. This is compounded by limited access to bank loans, lack of collateral, and high failure rates among startups. In response to the challenges of war, the need for recovery and reconstruction, the Ukrainian government and international partners, including the EU, are implementing business support programs in Ukraine. But these opportunities must be learned to use effectively.
“Financial literacy is one of the basic conditions for business development. However, owners of small and medium-sized enterprises in Ukraine, especially at the beginning of the process, have relatively limited financial skills. This constrains growth,” emphasized Ricardo Pinto.
Financing — Challenge No. 1 for Ukrainian Business
Access to finance is the main constraint for businesses, especially in wartime. SMEs in middle-income countries such as Ukraine often lack sufficient collateral, credit history, or knowledge to obtain bank financing. This situation needs to be addressed through guarantee instruments, training, and alternative financial solutions.
As noted by Civitta partner and Executive Director of NGO EasyBusiness Dmytro Livch, a strategic SME support ecosystem is now forming in Ukraine. Hundreds of different support programs from the Government and the EU are available to Ukrainian businesses. They operate in three key areas:
- Finance: lending (5–7–9%), grants, subsidies, international technical assistance programs, etc.
- Knowledge: courses, mentoring programs, consultations.
- Markets: export support (ECA, NAZOVNI), B2B search platforms, and others.
“An entrepreneur can receive not just a list of programs, but an individual consultation that directs them to the right resource depending on the stage of business development. Such consultations can be obtained, for example, at Diia.Business centers or ‘Made in Ukraine,’ as well as at consulting companies and organizations. Business support organizations can also play the role of consultants and business navigators across the map of opportunities. For this, it is important for such organizations to strengthen their own expertise,” emphasized Dmytro Livch.
According to the expert, current EU programs operating in Ukraine, such as Horizon Europe, LIFE, and Erasmus for Young Entrepreneurs, open opportunities for Ukrainian businesses to be included in global value chains of the EU Single Market. The key is the ability to choose the right program and submit the application on time.
Sources of Business Financing: Real Mechanisms and Rules of the Game
The challenges faced by entrepreneurs in seeking financing were shared by Civitta partner and co-founder of Challenger AI Accelerator, expert in innovation, startup development, investment attraction, and grant program implementation, Yuriy-Volodymyr Blavt.
“Grants are the cheapest capital. It is a resource that does not need to be returned. But it requires careful preparation and responsible reporting. The main thing is to find a match between the opportunity and the business profile. A successful application is primarily a quality business plan and a clear understanding of donor expectations,” explained the expert.
The expert also provided practical advice for businesses:
- Look for opportunities that suit you specifically
- Prepare carefully for application submission
- Appoint a dedicated person for fundraising
- Justify the project implementation
- Develop networking
- Prepare for reporting
- Learn English
Ukraine has strong potential for private sector development, but its realization requires clear navigation of financial instruments, strategic support from the state, and partnership with the EU. The role of business support organizations can become key in this process.
Workshop materials are located in the presentation “SME Support Tools to Promote Competitiveness: An Overview of Access to Finance.”
Video recording of the event:
At the video link, in the lower right corner, you must select the option “original language.”
Access code: $m4!#9Bq
The program “Doing Business in the EU: Month of Strengthening Business Support Organizations” is implemented within the framework of the EU4Business: SME Policies and Institutions Support (SMEPIS) project, carried out by Ecorys in consortium with GIZ Ukraine, BRDO – Office of Effective Regulation, and Civitta, with financial support from the European Union. The program’s information partners are the Ukrainian Chamber of Commerce and Industry and NGO EasyBusiness.