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Germany and IOM Support Micro and Small Enterprises in Ukraine with Grants for Business Development

More than 2,000 new jobs have been created and over 5,000 existing ones preserved thanks to the International Organization for Migration’s (IOM) project supporting micro and small businesses in Ukraine. Since December 2021, with support from the German Ministry of Economic Cooperation and Development (BMZ) and the German Development Bank (KfW), IOM has provided grants to 753 businesses and start-ups, including those relocated and affected by war.

Thea Smart, a brand of educational games for children, supported by IOM business grant. Photo: IOM
Thea Smart, a brand of educational games for children, supported by IOM business grant. Photo: IOM/ Andrii Krepkykh

 

Jackee, a brand of holistic dog food. Photo: IOM
Jackee, a brand of holistic dog food. Photo: IOM/ Andrii Krepkykh

For the project wrap-up, IOM brought together government representatives, project beneficiaries and other entrepreneurs in Kyiv to share their experiences in overcoming the challenges faced by micro and small businesses.  The best practices and recommendations will be incorporated into a new German-funded project of IOM, which will support micro and small enterprises and start-ups in Kyiv, Chernihiv and Sumy regions with grants and consultations until December 2026.   

 

Deputy Prime Minister of Ukraine Iryna Vereshchuk at the event. Photo: IOM
Deputy Prime Minister of Ukraine Iryna Vereshchuk at the event. Photo: IOM/ Andrii Krepkykh

Our small and medium-sized businesses are currently the most economically active and provide the most jobs. But they also need support," said Deputy Prime Minister of Ukraine Iryna Vereshchuk, speaking at the event. "I am grateful to our international partners for this joint project. Thanks to the Government of Germany and the IOM Ukraine team, we have supported hundreds of Ukrainian enterprises. I have high hopes that the new project, which is already being prepared, will help hundreds of thousands of our internally displaced persons to integrate economically," she added.  

“The Ministry of Economy is grateful to IOM for its contribution to the process of restoring Ukraine's economic potential and for its concern for the problems of small and micro businesses, especially those affected by the war and occupation,” said Deputy Minister of Economy Tetiana Berezhna. “People are our most valuable resource. The fact that 76 per cent of the jobs created through the project provide full-time employment is a sign of the sustainability of achievements in the long term,” she said. 

Deputy Minister of Economy Tetiana Berezhna speaking at the event. Photo: IOM
Deputy Minister of Economy Tetiana Berezhna speaking at the event. Photo: IOM/ Andrii Krepkykh

 

Almost half of the micro-businesses supported through the project are woman-owned.  "Our grantees produce important goods and provide important services, from food to construction materials, which are so necessary for communities and the Ukrainian economy. The achievements of this project are a testament to the resilience and determination of Ukrainian business owners," summarized IOM Ukraine's Chief of Mission Alessia Schiavon. 

IOM Ukraine's Chief of Mission Alessia Schiavon at the event. Photo: IOM
IOM Ukraine's Chief of Mission Alessia Schiavon at the event. Photo: IOM/ Andrii Krepkykh

In addition to financial grants, IOM supported businesses with advisory services and training activities that helped them to recover, adapt, and grow their operations. Thus, more than 800 businesses received consultations on exporting, business planning, marketing, taxation, etc. More than 20 thematic conferences, fairs, and other business events were held as part of the project.   

 First Deputy Minister for Foreign Affairs of Ukraine Andrii Sybiha at the event. Photo: IOM/Andrii Krepkykh
 First Deputy Minister for Foreign Affairs of Ukraine Andrii Sybiha at the event. Photo: IOM/Andrii Krepkykh

Speaking at the event, First Deputy Minister for Foreign Affairs of Ukraine Andrii Sybiha noted that the MFA and IOM will focus their joint work on supporting businesses to enter foreign markets through active diaspora engagement. "To this end, a Memorandum of Cooperation has been signed between IOM and the NAZOVNI platform, which is a digital service that helps Ukrainian businesses enter new markets with the support of Ukraine's diplomatic missions in more than 120 countries," he said. 

The project also actively engaged with Ukrainian diaspora, which facilitated access to new international markets. In particular, IOM organized two educational and trade visits to Norway and supported business participation in the Ambiente trade fair in Germany, where Ukrainian manufacturers were able to showcase their home decor products to buyers. 

For more information about the project, please contact Varvara Zhluktenko, IOM Ukraine Communications Officer: +38 050 962 57 07, vzhluktenko@iom.int

SME boost final event in Kyiv. Photo: IOM
SME boost final event in Kyiv. Photo: IOM/ Andrii Krepkykh

 

 

 

 

 

 

 

 

 

 

SDG 8 - Decent Work and Economic Growth
SDG 5 - Gender Equality
SDG 9 - Industries, Innovation and Infrastructure
SDG 12 - Responsible Consumption and Production
SDG 17 - Partnerships for the Goals