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22 June 2020, 07:11
New opportunities for small and medium-sized businesses in Eastern Ukraine
Today #AASuccessStories is about the EU support programs for the
Eastern regions of Ukraine.
There are many EU programs, under which entrepreneurs from any region of our country can get assistance, but EU4Youth and FinancEast are aimed at supporting small and medium-sized businesses only in the East.
EU4Youth — is the European Union project, which is being implemented in two regions of Georgia and in the Donetsk region of Ukraine. The aim of the project is to help young people affected by the war. In Ukraine the project provides vocational training for at least one hundred young people, provides displaced young people with 150 grants for micro-enterprises and startups, and provides technical assistance to employment centers and technical education centers.
The EU4Youth grant helped entrepreneur Yuriy, living at the frontline, to expand a quail farm. Before Russian invasion, Yuri lived in Maryinka and worked in Donetsk. When the war began, he quitted his job and started looking for ways to earn and provide for his family. Yuriy's brother raised quails. Yuri was inspired by this idea and decided to give it a try. He converted the small house into a poultry yard, bought the first incubator and the first batch of quails. At first it was difficult, but then Yuri got the sales going and the first batch was followed by the next one. To bring his small business to a new level, he had to buy new incubators — homemade ones were not suitable, because the birds required certain temperature and humidity. Then Yuriy decided to take part in the EU4Youth project. Grant money helped him to purchase a new incubator for 1,000 eggs. The entrepreneur has expanded the business and the profits increased. In the near future, Yuriy plans to further develop his business — to build a new building and buy new incubators. Having experience of participation in the EU assistance project, the businessman understands effectiveness and importance of such assistance for small start-ups. More about the EU4Youth program that helped Yuriy — (https://www.euneighbours.eu/ru/east/stay-informed/projects/razvitie-obrazovaniya-trudoustroystva-i-uchastiya-molodezhi-gruzii-i).
FinancEast is another EU assistance program for entrepreneurs from Eastern Ukraine. It was launched in 2019. It is a joint project of the Government of Ukraine and the European Commission. The EU has allocated 9.5 million Euro for its implementation. The program is targeted at supporting small and medium-sized businesses at the Ukrainian government-controlled territories of Donbass. The main goals of this program are to restore financing of micro-, small and medium-sized enterprises in the Ukrainian government controlled territories of Donetsk and Luhansk oblasts, to promote the economic recovery of Donbass and to increase the investment attractiveness of the region. Under its terms, entrepreneurs can receive grants that compensate up to 50% of their investment projects. Most often, funds are spent on the purchase of equipment, vehicles, as well as construction works or repair of premises.
“Severodonetsk A-Plast” is a company from Luhansk region that has already got FinancEast funding. The company manufactures plastic products for the food and chemical industries. Participation in the FinancEast program enabled the company to purchase a vertical milling center. Now this equipment helps not only to qualitatively repair moulds, but also to make them. It also allowed the company to expand its capabilities in the manufacture of plastic and metal products.
«Rubizhne Hosiery Manufactory» is among the first to use the FinancEast support program. The company operates in the city of Rubizhne, Luhansk region. It manufactures hosiery of bright design and high quality. Upon learning about the FinancEast program, the company applied for a project to purchase Italian-made knitting machines.
Thanks to compensation from the EU in the amount of up to 50% of the loan, the factory was able not only to save on equipment costs, but also bring its production to a new level. Now the company plans to increase production by 10% and enter the European market.
Who can participate in the FinancEast program?
Micro-, small and medium-sized enterprises (private entrepreneurs and legal entities), with the number of employees not exceeding 250 people and with annual income of up to 10 million Euro. More than 75% of the authorized capital of such business must be privately owned. The state share may not exceed 25%. More about the terms and conditions of the program and how to take part in it — https://bdf.gov.ua/uk/programa-z-vidnovlennya-finansuvannya-investiciynih-proektiv-malih-i-serednih-pidpriyemstv-na-shodi-ukrajini Entrepreneurship Development Fund.
The publication was prepared based on materials https://euukrainecoop.net/ and FB page FinancEast.
There are many EU programs, under which entrepreneurs from any region of our country can get assistance, but EU4Youth and FinancEast are aimed at supporting small and medium-sized businesses only in the East.
EU4Youth — is the European Union project, which is being implemented in two regions of Georgia and in the Donetsk region of Ukraine. The aim of the project is to help young people affected by the war. In Ukraine the project provides vocational training for at least one hundred young people, provides displaced young people with 150 grants for micro-enterprises and startups, and provides technical assistance to employment centers and technical education centers.
The EU4Youth grant helped entrepreneur Yuriy, living at the frontline, to expand a quail farm. Before Russian invasion, Yuri lived in Maryinka and worked in Donetsk. When the war began, he quitted his job and started looking for ways to earn and provide for his family. Yuriy's brother raised quails. Yuri was inspired by this idea and decided to give it a try. He converted the small house into a poultry yard, bought the first incubator and the first batch of quails. At first it was difficult, but then Yuri got the sales going and the first batch was followed by the next one. To bring his small business to a new level, he had to buy new incubators — homemade ones were not suitable, because the birds required certain temperature and humidity. Then Yuriy decided to take part in the EU4Youth project. Grant money helped him to purchase a new incubator for 1,000 eggs. The entrepreneur has expanded the business and the profits increased. In the near future, Yuriy plans to further develop his business — to build a new building and buy new incubators. Having experience of participation in the EU assistance project, the businessman understands effectiveness and importance of such assistance for small start-ups. More about the EU4Youth program that helped Yuriy — (https://www.euneighbours.eu/ru/east/stay-informed/projects/razvitie-obrazovaniya-trudoustroystva-i-uchastiya-molodezhi-gruzii-i).
FinancEast is another EU assistance program for entrepreneurs from Eastern Ukraine. It was launched in 2019. It is a joint project of the Government of Ukraine and the European Commission. The EU has allocated 9.5 million Euro for its implementation. The program is targeted at supporting small and medium-sized businesses at the Ukrainian government-controlled territories of Donbass. The main goals of this program are to restore financing of micro-, small and medium-sized enterprises in the Ukrainian government controlled territories of Donetsk and Luhansk oblasts, to promote the economic recovery of Donbass and to increase the investment attractiveness of the region. Under its terms, entrepreneurs can receive grants that compensate up to 50% of their investment projects. Most often, funds are spent on the purchase of equipment, vehicles, as well as construction works or repair of premises.
“Severodonetsk A-Plast” is a company from Luhansk region that has already got FinancEast funding. The company manufactures plastic products for the food and chemical industries. Participation in the FinancEast program enabled the company to purchase a vertical milling center. Now this equipment helps not only to qualitatively repair moulds, but also to make them. It also allowed the company to expand its capabilities in the manufacture of plastic and metal products.
«Rubizhne Hosiery Manufactory» is among the first to use the FinancEast support program. The company operates in the city of Rubizhne, Luhansk region. It manufactures hosiery of bright design and high quality. Upon learning about the FinancEast program, the company applied for a project to purchase Italian-made knitting machines.
Thanks to compensation from the EU in the amount of up to 50% of the loan, the factory was able not only to save on equipment costs, but also bring its production to a new level. Now the company plans to increase production by 10% and enter the European market.
Who can participate in the FinancEast program?
Micro-, small and medium-sized enterprises (private entrepreneurs and legal entities), with the number of employees not exceeding 250 people and with annual income of up to 10 million Euro. More than 75% of the authorized capital of such business must be privately owned. The state share may not exceed 25%. More about the terms and conditions of the program and how to take part in it — https://bdf.gov.ua/uk/programa-z-vidnovlennya-finansuvannya-investiciynih-proektiv-malih-i-serednih-pidpriyemstv-na-shodi-ukrajini Entrepreneurship Development Fund.
The publication was prepared based on materials https://euukrainecoop.net/ and FB page FinancEast.