Supporting social entrepreneurship in Ukraine: the experience of the State Foundation for Entrepreneurship Support in Zaporozhie oblast.

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Presentation transcript:

Supporting social entrepreneurship in Ukraine: the experience of the State Foundation for Entrepreneurship Support in Zaporozhie 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, State Committee about Entrepreneurship development President of Ukraine Decree “About state support of entrepreneurship”, №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 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-site 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 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: 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) 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 ( euro) Consulting support (SFES)

Case study "Zlagoda“ Total number of employees: 64 (including 39 disabled people) The enterprise’s premises consist of square meters (production line) 12 square meters (office premises) Results: Financial results: 1. turnover euro (annually) 2. fixed assets euro 3. 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