LAW OF UKRAINE

of December 21, 2000 No. 2157-III

About the National program of assistance to development of small business in Ukraine

The Verkhovna Rada of Ukraine decides:

1. Approve the National program of assistance to development of small business in Ukraine it (is applied).

2. This Law becomes effective from the date of its publication.

3. To the Cabinet of Ministers of Ukraine annually to develop actions for implementation of the National program of assistance to development of small business in Ukraine and to provide allocation of appropriate means on their realization in case of project development of the law on the Government budget of Ukraine.

Approved by the Law of Ukraine of December 21, 2000 No. 2157-III

National program of assistance to development of small business in Ukraine

I. Condition of development of small business in Ukraine

For today in Ukraine there are nearly 200 thousand small enterprises, about 1 million entrepreneurs without creation of the legal entity, nearly 40 thousand farms work.

In total 9 percent of able-bodied population of Ukraine are engaged in small business over 2,7 of one million people, or. At the same time the small business makes 11 percent of total production of products (works, services) in general across Ukraine that demonstrates more effective functioning of small business in comparison with large.

It is not necessary to deny also the international aspect of development of small and medium entrepreneurship for Ukraine. The level of development of small business shall promote creation of positive image of Ukraine, providing effective market economy for the purpose of its integration into the European and world economic systems. Creation of favorable entrepreneurial climate in Ukraine shall become guarantee of consolidation of efforts on enhancement of level of the relations and cooperation with the donor organizations and participation in the international projects. State policy in this sphere is directed to accession of Ukraine to the international programs, signing of bilateral and multilateral interstate and interservice agreements on support of small business.

The major factors interfering development of small business are:

lack of the state policy which is accurately formulated through system of legal acts in the field of support of small business;

increase in administrative barriers (registration, licensing, certification, control system and allowing practice, regulation of the rent relations, etc.);

lack of real and efficient mechanisms of financial and credit support; excessive tax pressure and burdensome reporting system; uncertainty of entrepreneurs in stability of conditions of business;

excessive intervention of public authorities in activities of subjects of managing.

However growth rates of small business in Ukraine testify to its sufficient internal potential, and development analysis results in the conditions of market reforms - to need of forming and carrying out state policy concerning the support of small business answering to strategic vectors of development of economy.

All this caused need of adoption of the National program of assistance to development of small business in Ukraine (daleeprogramm).

II. Purpose and main objectives of the Program

The program is developed based on provisions of the Law of Ukraine "About the state support of small business" and proceeding from importance of development of small business for economy of Ukraine.

The purpose of the Program is creation of proper conditions for realization of constitutional right on business activity, and also growths in prosperity of citizens of Ukraine by attraction of general population to such activities.

The main objectives of the Program are:

creation of the state system of ensuring development and support of small business;

creation of proper conditions of development of small business in regions;

assistance to creation of new workplaces by small business entities;

support of business and investment activity, development of the competition on commodity market and services;

attraction to business activity of women, youth, pensioners and other segments of the population;

activation of financial and credit and investment mechanisms, search of new forms of financial and credit support of small business;

forming of regional infrastructure of development and support of small business;

creation of conditions for development of small business in the production sphere, including based on the restructured companies.

III. Main directions of the Program

The program is directed to realization of state policy according to the problem resolution of development of small business. The main directions of the Program are:

enhancement of regulatory framework in the field of business activity;

forming of single state regulatory policy in the field of business activity;

activation of financial and credit and investment support of small business;

assistance to creation of infrastructure of development of small business; implementation of regional policy of assistance to development of small business.

1. Enhancement of regulatory framework in the field of business activity

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