Business development in Kyiv Oblast: advice from Kseniia Pecherska

Amid the full-scale war, when Ukraine's economy is facing unprecedented challenges, supporting and developing entrepreneurship is very important for ensuring stability and future recovery. The Kyiv Regional Development Agency (ARRKO) spoke with Kseniia Pecherska, head of the consulting agency “PARITY U”, a social entrepreneurship consultant and business development trainer, about the challenges and opportunities for entrepreneurs in Kyiv Oblast.

From your experience, what are the most common mistakes entrepreneurs in Kyiv Oblast make when writing grant applications? What advice can you give to avoid these mistakes?

It would probably be difficult to single out entrepreneurs specifically from Kyiv Oblast on this particular issue, but the most common top 3 mistakes are usually as follows:

• Many entrepreneurs do not explain specifically enough what value their product or service provides to customers. They may use overly general phrases or fail to explain why exactly their product/service is unique and how it solves a specific customer problem.
• Businesses often provide an overly general description of the market or do not provide enough information about their market-entry strategies, which creates the impression that entrepreneurs do not have a clear plan for how to reach their customers or compete in the market.
• Many applications do not take into account the possible risks the business may face..

Based on these mistakes, I advise:

• Describe your value proposition clearly and specifically, explaining exactly what problem your product solves, how it affects customers, and why your approach is unique in the market.
• Use verified data or customer testimonials to support your claims.
• Clearly describe how you plan to enter the market and which sales channels or marketing strategies you will use.
• Provide specific figures, such as market size, your target audience, segmentation and competitors.
• Describe your business-scaling plan. Donors and investors value entrepreneurs who have a clear action plan for unforeseen situations.

Kyiv Oblast has its own particular features – developed infrastructure, proximity to the capital, but at the same time high competition. How do these factors influence the choice of business development strategy and the search for grant opportunities?

These factors require businesses to plan carefully and take a strategic approach to development. Entrepreneurs should focus on innovation, seek out unique niches, and actively make use of grant opportunities for training, technological development and business scaling. In the region, there is an opportunity to obtain grants focused on implementing environmentally sustainable solutions or social entrepreneurship (SE), which are a priority for many international donors.

Which grant programmes are currently the most relevant and accessible for entrepreneurs in Kyiv Oblast? Are there any specific programmes aimed precisely at business development in this region?

At the moment, I can recommend several current grant programmes that can support business development:

The 'yeRobota' State Programme. The programme provides micro-grants for starting a business, supporting processing enterprises, developing greenhouse farming and startups. Grants are available to new and existing entrepreneurs, and applications are submitted through the Diia portal.

The USAID AGRO Programme. It funds projects in the agricultural sector, in particular those that promote the integration of veterans. Grant amounts can reach up to UAH 9 million, which is especially relevant for agricultural enterprises.

Grants from Mercy Corps. The programme is aimed at supporting small and medium-sized businesses affected by the war, including businesses in Kyiv Oblast. Up to $20,000 can be received to resume operations.

USAID's 'HOVERLA' Project. It supports enterprises working in waste management that demonstrate innovative approaches in this field. This grant is also available to entrepreneurs from Kyiv Oblast with innovative solutions in this sector.

These programmes help entrepreneurs from various sectors obtain the funding they need to develop and rebuild their business, especially given today's challenges.

Kyiv Oblast has several programmes aimed at supporting and developing small and medium-sized businesses. One of the key ones is the comprehensive 'Competitive Kyiv Oblast' programme for 2022–2024. It includes financial assistance, such as compensation for part of the interest on loans under the state programme 'Affordable Loans 5-7-9%', as well as support in the form of consulting and business-strategy development for entrepreneurs.

Besides financial support, what other benefits can an entrepreneur gain by participating in grant programmes? How can participation in such programmes affect business development in the long term?

Participation in grant programmes provides entrepreneurs not only with financial support, but also with numerous additional benefits that can significantly affect the long-term development of a business:

• Many grant programmes offer mentoring support and advice on business planning, marketing, financial management and legal aspects. This helps entrepreneurs improve their skills and develop their business strategically. For example, USAID programmes and other international grant initiatives often include training and coaching.
• Participation in grant programmes can give entrepreneurs the opportunity to enter new markets and make contacts with potential investors and partners. This is especially important for startups and companies planning to expand their activities nationally or internationally.
• Receiving a grant can serve as a positive signal to customers, investors and partners that the company has a viable business plan and the support of reputable organisations. This increases trust in the brand and helps strengthen its position in the market.
• Grant programmes are often focused on innovation and the introduction of new technologies. Participation in such programmes can help entrepreneurs implement new solutions and improve their products or services, which increases the business's competitiveness.
• A grant allows you to reduce your own project-development costs, which lowers the financial risks for the entrepreneur. This is especially important in conditions of economic instability or for new businesses that do not yet have a stable income stream.

Entrepreneurship is a driving force of economic development, especially in such difficult times as these. Active participation in grant programmes not only opens up access to funding, but also gives entrepreneurs in Kyiv Oblast opportunities for training, development and expanding their network of contacts. Remember that innovation, a clear strategy and taking the region's specific features into account are essential components of success for business in Kyiv Oblast.