Three Years of Change: Enhancing SME Support in Ukraine under the EU4Business SMEPIS Project

The European Union commissioned the EU4Business: SME Policies and Institutions Support (SMEPIS) project to strengthen the environment for small and medium-sized businesses in Ukraine. Civitta Ukraine joined the implementing consortium as a partner alongside Ecorys, GIZ Ukraine, and the Better Regulation Delivery Office (BRDO), contributing in-depth analytics, practical tools, and hands-on support for the institutional growth of business associations across the country over three years.

Ukraine’s SME support landscape faced significant structural gaps: a fragmented set of over 100 state- and donor-funded programmes with limited reach, an excessive bureaucratic compliance burden on businesses, and underdeveloped business associations with limited capacity to represent and inform entrepreneurs. A systemic approach was needed to map what existed, identify what was missing, simplify the regulatory environment, and strengthen the organisations that serve SMEs on the ground.

1. Developing the SME Support Ecosystem

Civitta conducted a comprehensive audit of over 100 SME support programmes – both state- and donor-funded – identifying which tools were operational, which had limited reach, and which forms of support were still underrepresented in Ukraine. Based on this research, five programme concepts were developed to address key gaps:

• A unified system for evaluating the effectiveness of SME support programmes – to standardise the assessment of results, ensure transparency, and improve funding decision-making.
• A support programme for veteran entrepreneurs, focused on educational and mentoring opportunities to unlock their entrepreneurial potential.
• Digitalisation for SMEs – the continuation and scaling of existing business digitalisation initiatives.
• Support for mature SMEs in entering export markets.
• Green transition – financial and expert tools for environmentally sustainable SME development.

The project also focused on building the capacity of regional SME support actors, strengthening the communication role of local authorities in informing businesses about available opportunities, and developing innovative infrastructure.

2. Economic Deregulation

Civitta contributed to the analysis and drafting of regulatory proposals aimed at simplifying the regulatory environment for SMEs. In collaboration with the State Regulatory Service of Ukraine (SRS), the project assessed the time and financial costs businesses incur to comply with bureaucratic procedures. The results were handed over to the SRS for further implementation and a follow-up review in one year.

3. Supporting Business Associations

Civitta organised seven workshops for business associations and regional entrepreneurship support organisations, bringing together representatives from local chambers of commerce, business associations, clusters, and SME support organisations. Ten representatives from these organisations also participated in a study visit to Brussels, where they had the opportunity to learn about the work of European institutions, including DG GROW, DG REGIO, DG MOVE, DG ENER, and the European Innovation Council and SMEs Executive Agency.

• 100+ SME support programmes audited across state and donor funding
• 5 new programme concepts developed to address identified gaps
• 43% less time spent by micro-enterprises on bureaucratic compliance in 2025 compared to 2018 – as a result of reviews, digitalisation, repeals, and updates of outdated regulations
• 7 workshops organised for business associations and regional support organisations
• 400+ participants engaged, including chambers of commerce, clusters, and SME support organisations
• 10 representatives sent on a study visit to Brussels to engage with key European institutions