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Executive Director of the European Business Association (EBA)

Anna Derevyanko

Few Ukrainian businesses apply for governmental support programmes

In early August, the European Business Association measured investment attractiveness of Ukraine, which considered, inter alia, factors that affected business performance and the overall investment climate of the country.

It is clear that the first place in the ranking was attributed to the war, the second – to corruption and the third – to the weak judicial system, followed by purchasing capacity of the population and logistical issues.

Involvement during Russia’s war against Ukraine

Since the beginning of the war, EBA has been engaged in cooperation with private companies and state institutions to support the economy, as well as the Armed Forces of Ukraine. The ‘Second Chance Bank’ project was launched as a platform for sharing information on military needs with companies willing to provide support.

What government initiatives can help re-launch the business sector, which has been affected the hardest by the country’s economic decline?

We see that grant programmes are now being launched, and this is an important signal of businesses’ support. However, businesses should have the confidence to apply for such programmes and have faith that they will get the needed funds. Now, according to a survey of microentrepreneurs, who are members of the Unlimit Ukraine Association project, we see that 63% of the surveyed entrepreneurs have not used governmental or international programmes to support their businesses. Whereas 16% referred to the option to pay 2% single tax, 6% used other tax benefits, 5% used the 5-7-9 credit programme, 3% said they applied for the єRobota programme, and 1% used reimbursement for the IDP employment. Therefore, confidence building is probably still worth working on.

What are the main types of problems Ukrainian businesses face during the war?

In early August, the European Business Association measured investment attractiveness of Ukraine, which considered, inter alia, factors that affected business performance and the overall investment climate of the country. It is clear that the first place in the ranking was attributed to the war, the second – to corruption and the third – to the weak judicial system, followed by purchasing capacity of the population and logistical issues.

There are certain issues in the dialogue with the public authorities. However, we can see that if we speak honestly and openly about these difficulties, using arguments and facts, then, for the most part, these issues can be resolved and a compromise can be found. For example, until recently, there were indeed some difficulties in communication with representatives of the Tax Service.