Supporting social Supporting social entrepreneurship in Ukraine: the entrepreneurship in Ukraine: the

experience of the State experience of the State Foundation for Foundation for

Entrepreneurship Support in Entrepreneurship Support in Zaporozhie oblastZaporozhie oblast

Mission: providing financial, informational, consulting support for SME’s Special focus on social effect of SME’s

The system of Foundations for Entrepreneurship support in Ukraine

Cabinet of Ministers

Ukrainian foundation for entrepreneurship support

Decree “About Ukrainian foundation for entrepreneurship support”, №687,

27.08.1995

State Committee about Entrepreneurship development

President of Ukraine

Decree “About state support of entrepreneurship”, 20.05.1999

№456/98

Regional state foundations for entrepreneurship support

(21 funds)

Regional State Administrations

Regional Councils

The Foundation Program: main activities

Instruments

Information support for SME’s

Advisory support for SME’s

Financial support for SME’s

(in form of soft bank loan, up to 75000 EUR)

TV program(4 times a month)

Telephone hotline(3 times a weak)

Printed materials (books, brochures )

Seminars, trainings

(4 times a month, free of charge)

Web-sitewww.rbc.zp.ua

Regional Business Center- legal services - accounting services- property and business estimation - market research- business planning

Consulting support for SME’s

Individual consulting(free of charge)

Hotline(3 times a weak)

Regional Business Center

Informational services to SME’s

Regional Program for the Support and Development of the Entrepreneurship

Seminars, trainings

(4 times a month, free of charge)

Printed materials

(books, brochures )

Regional State Administration

State foundation for the entrepreneurship support

TV program(4 times a month)

The main financial sources (to provide this mechanism)- resources of regional and district budgets.

Financial services for SME’s

Financial support (soft loans) provided to SME's (Euro)

68700

440000

125000

80 000

105800

6703632000 72000 10000

0

100000

200000

300000

400000

500000

2001 2002 2003 2004 2005 2006 2007 2008 2009, 10 months

The State Foundation for Entrepreneurship Support in Zaporozhie oblast (SFES)

non budget organization(SFES doesn’t receive any

financial sources from the regional or state budget

to cover it’s monthly expenditures)

running costs- received in form of payments (financial help on a no term condition) from SME’s, who have taken a loans from SFES

Achievements:

1. 144 business-plans of enterprises were financed, as a result 1200 jobs were created, 900 jobs were saved (in the period of 9 years, the total sum is about 1 million euro).

2. 5 business guidelines were published. 3. about 2000 entrepreneurs take part in seminars and trainings, organized by SFES annually. 4. analytic TV program was created (4 times a month). 5. nationally rewarded, recognized.

Problems:

- unstable political situation in Ukraine.- lack of financial resources.- absence of government regulations of the functioning the system of entrepreneurship support in Ukraine.

Achievements and challenges

Case study"Zlagoda“

founded in 2006 (NGO)

mission: integration of the disabled people into the labor market

Production profile: production of work and sport wear, blankets

Idea (came from the disabled person)

Financial help (from Foundation for social protection of disabled people (200 000 euro)

Consulting support (SFES)

Case study"Zlagoda“

Total number of employees: 64 (including 39 disabled people)

The enterprise’s premises consist of 560 000 square meters (production line)12 square meters (office premises)

Results:

Financial results:1. turnover 56 000 euro (annually)2. fixed assets 97 000 euro3. profitability is 15%4. salary 1200 UAH (1300 UAH average in the region)

Strong links with:- The regional center for professional rehabilitation of disabled people - Regional employment centre