Odesa plans to increase funding for business support

Odesa is planning to change the city's program to improve economic competitiveness for 2022-2028. In particular, it is proposed to exclude the mechanism of partial compensation of interest on loans for small and medium-sized businesses.

The decision was considered at a meeting of the Standing Committee on Municipal Property, Economic, Investment, State Regulatory Policy and Entrepreneurship.

The changes were initiated by Andriy Rozov, Director of the Economic Development Department of the City Council. According to him, in 2025, UAH 2 million was allocated for the program to provide reimbursable financial assistance to entrepreneurs. Overall, the program for financial assistance to small and medium-sized businesses was 100% funded.

UAH 15 million was allocated for the program, UAH 12.8 million was financed, and the remaining UAH 2.2 million was returned to the budget.

The program also included new measures: partial reimbursement of expenses for participation in exhibitions and fairs (budget UAH 500,000), payment for independent damage assessment (UAH 700,000), covering the own contribution to grants for combatants and people with disabilities (UAH 900,000), and additional assistance to microgrant recipients (UAH 5 million). However, there were almost no applications in these areas. For example, no one applied to participate in exhibitions and fairs, and legal entities were hesitant to apply for damage assessment because of the uncertainty of receiving compensation.

Yulia Totenko, director of the Diia.Business entrepreneurial support center, noted that entrepreneurs can get advice and assistance in the application process, including filling out complex forms, and the center's services are free of charge. Over the past four years, more than 2,000 entrepreneurs have benefited from the center's advice and support.

The department noted that low business activity is due to low funding, complexity of procedures, and insufficient promotion of the program.

"Every businessman plans for a year or two and calculates whether it is worth spending time and resources on assistance that will not significantly affect the development of his business," explained the city council representative.

Members of the commission noted that in order to revitalize the program, it is necessary to increase funding for areas in demand and to promote it more actively through modern communication channels: billboards, citylights, a website, QR codes, and social media. Partnerships with specialized agencies, including employment centers and veterans' organizations, are also important.

According to Mr. Rozov, the main goal of the program is to support the city budget's revenue through the development of SMEs and the creation of new jobs.

The program provides various forms of support: reimbursable financial assistance, reimbursement of expenses for participation in exhibitions, grants and microgrants. The city council hopes that with increased funding and more active communication, the program will be able to more effectively stimulate the development of small and medium-sized businesses in Odesa.

At the same time, agricultural enterprises in Odesa region have received UAH 3 billion in loans under the government program "Affordable Loans 5-7-9%" since the beginning of the year. At the same time, they harvested 3.089 million tons of early grains and pulses from an area of 1.070 million hectares.

Анна Бальчінос