supporting social entrepreneurship in ukraine: the experience of the state foundation for...
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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
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