Strenghtening Small Business Membership Organisations
The business climate in Ukraine is severely hampered by an over-bearing and opaque regulatory framework and captured by powerful political and economic elites. Corruption is widespread and the economy dominated by large monopolies, often state owned. The current transition is an opportunity to break with past practices and to provide more competition and equitable participation in economic opportunities for the SME sector. The project therefore aims to support Business Membership Organizations (BMOs) in order to provide a collective voice to small businesses, to improve the regulatory environment through a public-private dialogue and to support their members in improving their operational performance.
Private sector and entrepreneurship
- United Nations Organisation
Ukraine is a country with a very challenging business environment, especially for SMEs. In Ukraine, around 10% of GDP is produced by SMEs, whereas in developed market economies this figure exceeds 50%. The development of a competitive and innovative SME sector is crucial for broad based economic growth and prosperity for wider strata of the population in Ukraine. Business Membership Organizations have an important support function for SMEs. Reinforcing BMOs will allow them to play their role to support SMEs, provide them with economic information and be credible counterparts to establish a dialogue with the government authorities.
Overall goal: BMOs act as effective intermediaries between SMEs and public authorities with a view to improve the business environment for SMEs. In addition, BMOs provide meaningful services to their members, which in turn improve their operational performance. By 2018, the SMEs part of BMOs supported by the program expect 5% sales growth. Further, it is expected that at least three laws and seven sub-laws consulted with BMOs will have been submitted to the respective authorities for adoption. Most importantly, a sustainable and trustful mechanism of dialogue will have been put in place between the private sector and public authorities. The project should hence contribute to break with the past, support more inclusive decision making and counterbalance state capture by special interest groups.
Governance and sustainability of targeted BMOs improved.
SMEs are increasingly making use of up-to-date techniques and knowledge provided by BMOs.
BMOs increasingly contribute to policy-making.
Growing engagement of authorities at national and local levels in the dialogue with private sector.
Selected BMOs strengthened its organizational capacity.
Selected BMOs strengthened its service provision capacity.
Advocacy and intermediary capacity of BMOs improved.
Capacity of key governmental actors to engage with private sector strengthened.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 931’211 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 1’053’723|
Phase 1 01.04.2015 - 30.06.2018 (Completed)