National project of regional development

Concept: A number of events to identify regional investment projects (including infrastructural) in order to define problems of their realization; to attract investments of world funds and domestic investors. Events in almost all western and central regions of Ukraine were planned and held in November 2013 - May 2014.
Audience: representatives of small and medium businesses (according to the results of the survey, revenues from sales from 500.0 thousand to 100.0 million UAH).

The following problems were identified during the survey and communications with small and medium businesses:

1. PROBLEMS IN RELATIONS WITH BANKS:

  • High cost of resources. With low profitability of products and long-term turnover, businesses are unable to service loans
  • Lengthy project consideration by banks makes businesses attract cash loans for specific transactions (cost of resources: 3-4% per month, examination within 1 day)
  • Business structuring with regard to Ukrainian realities (tax pressure, reconciliation of documents, customs clearance, etc.) causes deterioration of financial statements and estimated performance indicators of the company, which makes it impossible to raise loans
  • Low level of understanding of financial instruments that the bank can offer, inadequate financial management in the company, unwillingness to spend money on consulting services and personnel training
  • Low qualification of bank employees (who do not sell anything except loans, force one to open accounts, payroll projects, etc. before obtaining a loan). Bank experts are unable to advise borrowers on optimal solutions of their problems
  • High requirements for collateral
  • Numerous additional costs associated with lending: valuation, insurance, notarization, other costs, etc

2. PROBLEMS IN RELATIONS WITH GOVERNMENT:

  • Tax pressure
  • Red tape
  • Corrupt practices
  • Other

3. BUSINESS PROBLEMS:

  • Low financial literacy of companies' top management
  • Lack of innovations
  • Limited market
  • Inability to sell
  • High degree of impact of macro- and microeconomic factors on business