EU-funded Project Round Table Recommends SME Policy Changes
Arman Gamzyan, Deputy Director of the Directorate for Entrepreneurship Development and International Co-operation, SCURPE said: “The Round Table discussion showed that Ukraine is rapidly trying to catch up with those countries, particularly neighbouring countries, which have not only managed to transform their economies but also gained accession to the European Union. Updating the statistical definition of SMEs in Ukraine with the rest of Europe and signing up to the European Charter for Small Enterprises represent the first steps in achieving international standards. The Round Table’s recommendations demonstrate the increasing commitment of a wide range of Government and other organisations to support small enterprises and entrepreneurship and, in this way, to generate more jobs and economic growth in Ukraine.”
The Round Table brought together 23 participants: government SME decision-makers, Project stakeholders and other interested SME organisations from the Parliamentary Committee of Ukraine on Industrial and Regulatory Policy and Entrepreneurship, Ministry of Economy of Ukraine, SCURPE, Union of Small and Medium Privatized Enterprises, “InvestUkraine”, Ukrainian Fund of Entrepreneurial Support, educational and research institutions, international donors organisations, including the Delegation of the European Commission to Ukraine, International Financial Corporation and the Project.
David Miller, the Project’s Institutional Capacity Building and Policy Advice Expert, was the key speaker at the Round Table. He stressed the importance of reaching an understanding of the new approach to the National SME Development Programme in Ukraine, based on: SME internationalization; SME competitiveness on the Ukrainian and foreign markets, and SME innovation and technologies. David Miller said: “The Round Table meeting provided a good opportunity for representatives of Parliament, Ministries and Government agencies and business organisations to assess the progress that has been made in developing and implementing policies to support SMEs and entrepreneurship in Ukraine. The consensus was that Ukraine still has a long way to go to catch up with other countries which have successfully negotiated the transition of their economies”
The Roundtable agreed a series of recommendations which will eventually be submitted to the President, Government of Ukraine, the Minister of Economy and the Chairman of SCURPE. These recommendations stress:
- adoption of standard definition of SMEs is a welcome step forward – need to explore scope for establishing an SME Observatory;
- the need to maintain continued co-operation in the implementation of the EU Charter for Small enterprises;
- a coherent and comprehensive strategy for the SME sector focusing on improving competitiveness and innovation is required;
- government support for the SME sector needs to be made more explicit through a five-year rolling programme aimed at transforming the environment for SMEs;
- a Government committee to coordinate policy and support for the SME sector needs to be established.
These recommendations will form the core of new proposals for the development of strategy for the SME sector.
The series of Policy Round Tables organised by the Project are aimed at strengthening SCURPE and other governmental agencies in their efforts to promote SME development, growth and competitiveness. The Round Table focused on discussion of the current state of the SME support system in Ukraine and steps needed for its improvement.
At first Round Table on "Policy on SME Strengthening and State Support of Entrepreneurship Development" in April this year, participants discussed: prospects of developing legislation to promote SMEs in Ukraine; institutional system of SME support in EU countries and lessons learned for Ukraine; SME development aspects at the national and regional levels; methodological issues for SME analysis.
