In early September, the Cabinet of Ministers presented a strategy for the recovery, sustainable development, and digital transformation of small and medium-sized businesses (SMEs). What does this mean for entrepreneurs? Forbes, together with experts, analyzed the document.
Until 2020, Ukraine aimed to enter the top 20 countries in the Doing Business ranking according to the previous SME development strategy for 2017–2020. However, during this period, the country only managed to rise from 80th to 64th place.
In the new strategy for 2027, the Ministry of Economy sets new goals: to carry out large-scale deregulation, bring back Ukrainian workers from abroad, and develop alternative sources of financing for SMEs.
What changes should small and medium-sized companies expect?
SME development goals from the Ministry of Economy
The Ministry of Digital Transformation and the Office for Export and Entrepreneurship Development also participated in drafting the strategy and operational plan. The document is based on four main goals:
• Recovery and simplification of the business environment;
• Support for innovation, digital transformation, and the "green transition."
Relief from cash gaps
The preferential loan program "5-7-9" remains the basis for SME lending for the next three years. The 2023 budget included UAH 16 billion for this program, and the 2024 budget preliminarily allocates UAH 18 billion, according to OpenBudget open data. At the beginning of this year, the government owed UAH 7 billion to banks, so in May, it limited working capital financing from UAH 60 million to UAH 5 million and reoriented the program toward investment goals.
Besides traditional financing through loans and grants, the Ministry of Economy proposes to develop alternatives – factoring and leasing.
In the first quarter of 2026, a factoring platform based on "Prozorro.Sale" is expected to launch. “The entrepreneur lists their accounts receivable on the platform, and several financial institutions offer to buy them. The one offering the best terms – interest rate and duration – wins,” explains Oleksandr Lykhostop, head of the project office of “Prozorro.Sale.”
The company does not disclose the cost of developing the platform. The technical implementation is already being carried out by their own team of five engineers using the Prozorro.Sale auction system, says the company’s GR manager Anna Zarudna. “For us, as a joint-stock company, this is a strategic project for 2024,” she notes.
The development of factoring is expected to stimulate trade and reduce the cost of traditional credit instruments, believes Yevhen Zaigrayev, a member of the management board of PrivatBank responsible for corporate business and SMEs.
The possibility of bond issuance for SMEs
The document proposes to simplify the process of issuing securities and trading them on stock exchanges for SMEs. Relevant legislation is planned for the fourth quarter of 2026. By the end of 2027, the NBU and the National Securities and Stock Market Commission plan to submit a draft law on crowdfunding platforms and collective investment. How will it work?
On crowdfunding platforms, project initiators will publish their proposals, and the public and potential investors will determine which ones receive funding, explains the Ministry of Economy's press service.
Currently, SMEs are not ready for public disclosure of their financial information, says INDAX investment accelerator CEO Tasha Kalinkina. “It will take years to develop a culture of transparency and openness,” she says. Other risks include entrepreneurs’ lack of investment knowledge and their heavy involvement in daily operations, which leaves little time for proper IPO preparation, Kalinkina adds.
Digital security
Starting in 2025, small and medium-sized entrepreneurs will be able to receive vouchers of up to €1000 for access to digital solutions. These include enterprise management tools, cybersecurity measures, artificial intelligence technologies, IoT, and big data analytics. The estimated program budget is €175 million, funded through international technical assistance, according to the Ministry of Economy.
Some steps in this direction have already been taken. In July, the Ministry of Digital Transformation’s “Diia.Business” platform launched a free cybersecurity diagnostic service for SMEs with support from USAID. Within this program, 500 companies can test their IT infrastructure for vulnerabilities. It is too early to report on the results of the service, according to the Diia.Business press service.
A digitalization direction for Q4 2026 includes the creation of an e-Invoicing tool. The goal is to help SMEs avoid fines, receive tax discounts, and become more competitive in the European market, according to the strategy. “This is a unified standard for issuing and processing invoices in all accounting software,” explains Oleksandr Karpov, director of the EMA Association of Payment Systems Members.
Support for SMEs abroad
The Ministry of Economy aims to increase the number of SME exporters to 35,000 companies compared to 27,300 in 2021. The main tools include international trade fairs, increased funding for the Export Credit Agency, and educational programs about exports for entrepreneurs.
Ukrainian diplomatic missions abroad are expected to assist in export promotion. “Embassies already help negotiate with exhibition organizers for free space or participation for Ukrainian companies,” says Olha Hvozdiova, head of analytics and strategy at the Office for Export and Entrepreneurship Development.
Another opportunity for SMEs is greater involvement in European business networks such as Erasmus for Young Entrepreneurs and the Enterprise Europe Network. These are B2B platforms where companies can find foreign partners, Hvozdiova explains.
1. How will this affect small and medium businesses in Ukraine?
• Simplified business operations, access to new financial tools, and digitalization will improve development conditions for SMEs.
2. How will this affect the investment climate for small and medium businesses in Ukraine?
• Expanding financing opportunities and simplifying procedures will attract more investors to SMEs.
3. How will this affect the income of investors investing in various SME sectors in Ukraine?
• Increased transparency and access to new financial instruments may boost investment returns.
4. Could there be any potential negative effects on Ukraine's key economic sectors or other SME areas?
• Risks may arise due to SMEs’ lack of readiness for public disclosure and financial transparency.
5. What should be done to maximize benefits for investors and businesses?
• Improve transparency, educate on investment literacy, and actively implement digital technologies.
6. How will this affect Ukraine’s financial indices?
• SME development and export growth may positively impact the country’s financial indices.