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The system of Foundations for Entrepreneurship support in Ukraine

Supporting social entrepreneurship in Ukraine: the experience of the State Foundation for Entrepreneurship Support in Zaporozhie oblast. Mission : providing financial, informational, consulting support for SME’s Special focus on social effect of SME’s.

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The system of Foundations for Entrepreneurship support in Ukraine

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  1. Supporting social entrepreneurship in Ukraine: the experience of the State Foundation for Entrepreneurship Support in Zaporozhie oblast

  2. Mission: providing financial, informational, consulting support for SME’s Special focus on social effect of SME’s The system of Foundations for Entrepreneurship support in Ukraine Cabinet of Ministers President of Ukraine State Committee about Entrepreneurship development Decree “About Ukrainian foundation for entrepreneurship support”, №687, 27.08.1995 Decree “About state support of entrepreneurship”, 20.05.1999 №456/98 Ukrainian foundation for entrepreneurship support Regional Councils Regional State Administrations Regional state foundations for entrepreneurship support (21 funds)

  3. The Foundation Program: main activities Information support for SME’s Financial support for SME’s (in form of soft bank loan, up to 75000 EUR) TV program (4 times a month) Instruments Printed materials (books, brochures ) Advisory support for SME’s Seminars, trainings (4 times a month, free of charge) • Regional Business • Center • legal services • - accounting services • property and business • estimation • market research • - business planning Telephone hotline (3 times a weak) Web-site www.rbc.zp.ua

  4. Consulting support for SME’s Regional Business Center Hotline (3 times a weak) Individual consulting (free of charge)

  5. Informational services to SME’s Regional State Administration Regional Program for the Support and Development of the Entrepreneurship State foundation for the entrepreneurship support Seminars, trainings (4 times a month, free of charge) Printed materials (books, brochures ) TV program (4 times a month)

  6. The main financial sources (to provide this mechanism)- resources of regional and district budgets. Financial services for SME’s The State Foundation for Entrepreneurship Support in Zaporozhie oblast (SFES) non budget organization (SFES doesn’t receive any financial sources from the regional or state budget to cover it’s monthly expenditures) • running costs • received in form • of payments (financial help on a no term • condition) from SME’s, • who have taken a loans from SFES

  7. Achievements:1. 144 business-plans of enterprises were financed, as a result 1200 jobs were created, 900 jobs were saved (in the period of 9 years, the total sum is about 1 million euro).2. 5 business guidelines were published. 3. about 2000 entrepreneurs take part in seminars and trainings, organized by SFES annually. 4. analytic TV program was created (4 times a month). 5. nationally rewarded, recognized. Problems:- unstable political situation in Ukraine.- lack of financial resources.- absence of government regulations of the functioning the system of entrepreneurship support in Ukraine. Achievements and challenges

  8. Case study "Zlagoda“ Idea (came from the disabled person) Consulting support (SFES) Financial help (from Foundation for social protection of disabled people (200 000 euro) founded in 2006 (NGO) mission: integration of the disabled people into the labor market Production profile: production of work and sport wear, blankets

  9. Case study "Zlagoda“ Results: Total number of employees: 64 (including 39 disabled people) The enterprise’s premises consist of 560 000 square meters (production line) 12 square meters (office premises) Financial results:1. turnover 56 000 euro (annually)2. fixed assets 97 000 euro3. profitability is 15%4. salary 1200 UAH (1300 UAH average in the region) Strong links with: - The regional center for professional rehabilitation of disabled people - Regional employment centre

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