UNDP Strenghtening SMEs Business Membership Organisations in Ukraine Phase II


The project aims to enhance growth and competitiveness of SMEs and strengthen their voice in Ukraine. The project Strengthening SMEs Business Membership Organization Phase II is the continuation of the previous phase implemented in Ukraine between 2015-2018. The project is implemented by UNDP.

Country/region Topic Period Budget
Ukraine
Private sector and entrepreneurship
01.11.2019 - 31.12.2023
CHF  2’398’750
Background

In Ukraine, SMEs play a key role in employment creation and poverty reduction. However, in an economy still largely dominated by large groups, SMEs face a difficult business environment and their voice in policy dialogue remains feeble. One of the most effective and scalable means for SMEs to strengthen their voice and competitiveness is through Business Membership Organizations (BMOs). However, BMOs in Ukraine still have to undergo changes to serve as an effective tool for SMEs development. Lack of valuable Business Development Services, poor advocacy strategy and weak organizational capacity are some of the challenges.

Objectives

To enhance growth and competitiveness and strengthen the voice of SMEs in Ukraine through more professional, demand-driven and client-oriented Business Membership Organizations. Phase II will build upon the experiences of the first phase and: i) reach scale through the engagement of a larger number of BMOs, including the Ukrainian Chamber of Commerce and Industry- ii) strengthen BMOs organizational and institutional capacity- iii) enhance the effectiveness of the public-private dialogue through a coordinated advocacy strategy among BMOs- iv) and improve the provision of Business Development Services to members in order to strengthen SMEs horizontal cooperation and competitiveness.

Medium-term outcomes

SME sector representativeness through professional BMOs has increased

SMEs increasingly benefit from business development services provided by BMOs to enhance their competitiveness

Representative and effective public private-dialogue contributes to improvement of business environment for SMEs

Results

Expected results:  

Partner BMOs strengthened governance and organizational capacity to better represent the interests of SMEs

SMEs have better access to Business Development Services through BMOs

Private sector and governmental side are engaged in an effective public-private dialogue


Results from previous phases:  

The first phase was effective in: i) converting the BMOs into real business associations and enabling the expansion of their operations at the regional and national levels- ii) attracting additional members to BMOs and introduce changes in membership policy aimed to make the associations more effective, credible and efficient. In addition, the external review confirmed the high relevance towards the needs and priorities of SMEs and to the gender issues, particularly to women entrepreneurship. The direct and indirect beneficiaries (BMOs and their SME members), showed clear ownership of the project throughout its duration. The project was also effective in putting in place the mechanisms for engagement with authorities in the dialogue with the private sector.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • United Nations Development Programme


Budget Current phase Swiss budget CHF    2’398’750 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    2’625’000
Project phases Phase 2 01.11.2019 - 31.12.2023   (Current phase) Phase 1 01.04.2015 - 30.06.2018   (Completed)