New markets for Ukrainian goods

Since 2014, the Association Agreement with the EU has opened the possibility for Ukrainian companies to export their products to the European Union duty-free. It would seem that hundreds of Ukrainian companies should take advantage of such a unique opportunity. But in reality, it has been a challenge for many. First, in order to meet the EU requirements, product quality must be high and confirmed by appropriate certificates. Finding partners and making connections in the EU was even more challenging for Ukrainian companies.

“It is easy for large companies with large finances to hire consultants to solve various tasks, but this can be an expensive and quite difficult task for small and medium-sized businesses”, - Aida Marushchak, EBRD Finance and Development Group Project Coordinator said. That is why the European Union has initiated many projects in Ukraine, which provide, in addition to financial, also advisory assistance. Among such projects is the EU4Business initiative.

It was EU4Business that helped Zaporizhzhya company “Corundkeramika Plus” to reorient the market for its products from Russian to European.
“We tried to enter the European market before the war. The outbreak of the war affected the work with suppliers: we replaced Russian raw materials with European ones”, - Oleksiy Nadtochiy, the company's deputy director said. This has significantly improved the quality of their products and now the company sells 90% of its products abroad. The main partners are Lithuania, Poland, Moldova and Belarus.

What helped the company to enter new markets? According to Oleksiy, this includes visiting specialized exhibitions, using international online resources to sell their products, as well as consultations with the Business Support Center - one of the EU4Business programs. Since its establishment, the Business Support Centers have conducted 229 business events and business trainings, which were attended by more than 12,000 entrepreneurs.

Now in Ukraine there is a whole network of such centers - 15 of them across the country. Small and medium-sized businesses get assistance here to receive independent funding, new knowledge and bring the business to a new level. The centers have been set up in Ukraine’s regions to be closer to local entrepreneurs, to hear the needs of Ukrainian business and to respond to them as quick as possible. Business Support Centers also conduct a large number of sectoral business events and business seminars of various formats, providing access to professional speakers, experts, consultations and professional networking to improve interaction and create new opportunities for businesses.

Kharkiv-based children's clothing manufacturer “Gabby” also benefited from the Business Support Center. “Gabby” has its own production manufacture in Kharkiv. From a small family business, the brand has grown into a medium-sized enterprise with more than 70 employees. The company has its own design workshop, sewing, knitting production, warehouses for storage of products and an online store. Participation in the EU4Business assistance program for small and medium-sized enterprises allowed “Gabby” to examine the European market. With the support of the EBRD, the company commissioned a marketing study, which gave an understanding of the need to work on the design and colour scheme of products, as well as bring production processes up to European standards.

What are the areas of EU4Business activities?

The EU4Business initiative works in Ukraine and in five other Eastern Partnership countries (Azerbaijan, Belarus, Armenia, Georgia and Moldova) in three main areas:

Access to finance: helps small and medium-sized businesses to get loans in local currency, funds for investments or to adapt to the EU standards.

Access to markets: the initiative provides business advice and trainings on exports, networking opportunities and trade missions to EU markets.

Access to knowledge: initiative projects provide advisory services, technical support, and tailored training to help small and medium-sized enterprises to improve their business.

EU4Business programs also provide small and medium-sized businesses with technical support to bring their products in line with the EU standards, which will allow them to increase exports and benefit from the EU-Ukraine Free Trade Agreement. More about the European Union's EU4Business Initiative and how to participate in its programs: https://eu4business.eu/uk/about.

According to News.Zp, the project of Success Stories of the Reforms and EU4Business.