A year after the adoption of the Strategy for the Development of Small and Medium-sized Businesses 2027 — has the life of entrepreneurs improved?
Oleg Getman, an associate expert at CASE Ukraine and coordinator of the Economic Expert Platform, analyzed in an article for delo.ua the extent to which the document of the Ministry of Economy has been implemented.
Key theses:
Among the key points of the Strategy:
– Reform of the system of state supervision (control) in the field of economic activity and transparent rules for the Bureau of Economic Security of Ukraine (BEB), the State Customs Service of Ukraine (SCS), the State Tax Service of Ukraine (STS).
– Introduction of a system of war risk insurance for business is a very relevant initiative in times of war.
– Abolition of unnecessary regulatory instruments, digitalization and simplification of procedures, taking into account the opinions of entrepreneurs in consultations.
– Clear criteria for determining labor relations between an employee and an employer in order to overcome schemes with “pseudo-employees.” – Introduction of electronic invoices, optional certificates of work performed — this simplifies administration, promotes European integration.
– Annual independent study of business burden on SMEs: number of man-hours, cost of fulfilling legal and regulatory requirements. Based on this data — recommendations for the Ministry of Economy and think tanks Delo
What was actually done during the year
– The program “Affordable Loans 5-7-9” was expanded and extended until 2026.
– A grant program for the development of processing enterprises and a program to support non-raw material exports were launched.
– The government approved a war risk insurance program by analogy with the 5-7-9 program: business insures the facility with a private insurance company, the state (through the Export Credit Agency of Ukraine) compensates most of the contribution. Delo
– Laws on the restart of the State Medical Insurance and the State Insurance Company with commissions with the participation of international experts were adopted — the process is ongoing.
– Draft Law No. 13507 on “pseudo-employees” has been registered in the Verkhovna Rada. – Draft Law No. 14023 on electronic invoices and the optionality of acts of work performed has been adopted as a basis.
But challenges lie ahead
– Although the SME Strategy looks ambitious and balanced, its full implementation is a matter of more than one year. – At the same time, there is another strategic document – the National Revenue Strategy 2030 (NRS 2030), which, according to experts, contains a number of negative points for SMEs: narrowing the simplified taxation system, excessive powers of the State Tax Service without a court decision, access of the State Tax Service to taxpayers’ bank accounts without a court decision.
– Government initiatives are often created without sufficient public discussion or transparent procedures. In the case of the NRS 2030, the document was developed in “secret mode”.
– The culture of public administration, the rule of law, the level of corruption are systemic factors that significantly affect how successfully the business environment can take advantage of the new rules.
Why is this important for SMBs?
– Less bureaucracy + digital procedures = saving time and money for entrepreneurs – Clear labor rules – reducing the risk of sanctions for labor legislation – War risk insurance provides additional protection for businesses during war
– Support with loans, grants, development of processing and exports – opportunities for growth
– Further development of human capital and entrepreneurial culture – the basis for long-term success.
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