OECD Study: Ukraine lacks SME dedicated policies (19/02/2013)
The OECD together with the European Commission, the European Training Foundation and the European Bank for Reconstruction and Development (EBRD) released the SME Policy Index for Eastern Partnership Countries (EaP) in 2012 investigating how the respective partner countries progress in implementing the Small Business Act for Europe.
According to the study the contribution of Ukraine’s SMEs to the economy has decreased over the past four years; employment decreased particularly in medium-sized enterprises, approximately 10% each year between 2007 and 2010.
The SME sector currently accounts for 58,1% of total employment (small – 26,3%; medium – 31,8%). In terms of turnover, the share of the SME sector has dropped from 60,7% in 2007 to 51,2% in 2010, the study wrote suggesting government to develop more enabling policies to foster SME competitiveness.
Although Ukraine has made a number of commitments to support SME development, there is little follow through to effective implementation of reform. As an example the study pointed out that Ukraine had no functioning government entity in charge of SME policy development or implementation.