FORBIZ

Start/end date:

2016 - 2021

Implementing partner:

GFA

EU budget:

€6.82 million

The FORBIZ project supports Ukraine’s reform agenda and its economic recovery by proposing a systemic, smart change to a more business-friendly environment with a particular focus on SMEs. The project seeks to steer a shift in policy towards greater recognition of SMEs and the vital role they play in economic recovery, while addressing the challenge of reducing regulatory burden and lessening risk for businesses.

Objectives

The project has three main components:

Business-friendly Regulations supporting Ukrainian authorities at all relevant levels aiming to achieve better regulatory policies within priority sectors.
Policy Support to SMEs strengthening the capacity of Ukrainian national, regional and local authorities and other stakeholders to implement effective economic development policies with a specific focus on SMEs.
Dialogue with SME Community improving access to information for Ukrainian SMEs and consultations with the business community on regulatory improvements.

Beneficiaries

Ministry of Economic Development and Trade of Ukraine,
State Regulatory Service,
Better Regulation Delivery Office,
Regional and Local Authorities with regulatory mandate,
SME and business intermediary organisations (e.g. financial intermediaries and business associations),
Ukrainian SMEs and business community at large.

Activities

Less administrative burden on SMEs: by abolishing business-hostile and obsolete regulations in priority sectors supported by the government, the FORBIZ project aims significantly to reduce the administrative burden on SMEs.
Clear rules of the game for entrepreneurs: FORBIZ introduces smart, simple and business-friendly regulations in priority sectors and contributes to secure growth and the competitiveness of Ukrainian SMEs.
One-Stop info on business regulations: the FORBIZ project has committed to introducing a user-friendly SME regulation web portal aggregating legal norms and regulations that affect businesses in the sectors of Agriculture, Construction, Energy, Transport and Infrastructure, International Trade and Information Technologies.
Quality economic impact assessment: FORBIZ stands for business-focused and rational economic impact assessment process to prevent costly regulatory failures. It aims to making the quality impact assessment an integral part of a better regulatory policy.
Stimulate truly business-focused policies: FORBIZ facilitates the Ukrainian government and business support institutions to shape business-focused SME development strategies and action plans.
Strengthen the voice of the business community: Entrepreneurs are expected to have a say in shaping their future via dialogue. The project facilitates dialogue at national and regional level, opening the door to constructive dialogue with SMEs and participation of the business community in shaping a better business environment in Ukraine.
Help Ukrainian authorities to support SMEs: the FORBIZ project has committed to supporting the establishment of a dedicated SME Development Office /Agency in Ukraine and to provide regional authorities with hands-on expertise on how to support SMEs in the regions and contribute to economic growth in the country.

Results

Less administrative burden on SMEs: By employing a unique Rolling Review methodology, over 3,122 regulatory acts have been reviewed. This accounts for 50% of all the acts governing the conduct of business in Ukraine in the priority segments of Agriculture, Construction, Energy, Transport, IT & Telecommunications and Market Surveillance. More than 396 obsolete regulatory acts have been abolished by the Ukrainian government, leading to significant improvements in the business environment in these sectors.
Clear rules of the game for entrepreneurs: To stimulate equal access to market and transparent business environment, the Better Regulation Delivery Office (BRDO) within the framework of EU4Business|FORBIZ project has developed over 112 draft laws and regulatory acts in priority segments, in close consultation with the Ukrainian business community and in compliance with the EU-Ukraine Association Agreement: more than 20 acts have already been adopted by the Ukrainian Government.
One-Stop info on business regulations: The EU4Business|FORBIZ project has introduced a practical and user-friendly PRO - Platform for Effective Regulation www.regulation.gov.ua, under the auspices of the Ministry of Economic Development and Trade of Ukraine. Its business pillar www.regulation.gov.ua/startup aggregates the legal norms and regulations governing SMEs in Ukraine, and provides a roadmap on how to open and operate a business in a service sector with minimal regulatory headaches.
Quality economic impact assessment: To stimulate a comprehensive and quality economic impact assessment as part of improved regulatory policy, the regulators have been equipped with the online tools of Regulatory Impact Analysis, SME-Test tool, and Rolling Review toolkits at www.regulation.gov.ua/regulator. Together with the State Regulatory Service of Ukraine, the project works closely with sectoral line ministries and regulatory authorities to support the best regulatory practices.
Business-focused policy framework: Following sustained efforts by Ukrainian business community, supported by expertise from the EU4Business|FORBIZ project, the SME Development Ukraine 2020 Strategy has been developed and adopted by the Cabinet of Ministers of Ukraine in May 2017. This strategic government document is the first comprehensive SME strategy document driving SME policy in line with international standards, to set the programmes supporting the framework for SME-focused policy in the country. The FORBIZ project supports the Ministry of Economic Development and Trade of Ukraine in designing a realistic SME Action Plan to implement the SME Strategy.
Strengthen the voice of business community: Close to 1,000 key business community stakeholders across priority sectors at national and regional level have been involved in regulatory consultations with policy makers. The Ukrainian business community has proved to have a potential for being a driving force of the regulatory reform in country and jointly with the regulators and policy-makers for playing a critical role in addressing the regulatory problems and to stimulate the development of SMEs, a favourable investment climate, and economic growth.
Help Ukrainian authorities to support SMEs: Having received the support of the international community for the feasibility of the SME Office in Ukraine, FORBIZ together with the Ministry of Economic Development and Trade of Ukraine is exploring the scenario for the creation of a national SME Agency in Ukraine.