Background. Why do we strive to develop the business enabling environment for the small and medium enterprises?

Business environment is an integral part of the country’s investment climate and is defined as a set of legal, institutional and regulatory conditions that spur entrepreneurial activity. Small and medium enterprises (SMEs) serve as a social and economic foundation for building a successful and modern country. This sector largely determines the rate of economic growth,
as well as performs an important social function of addressing unemployment issues by creating new jobs. It is the entrepreneurs from SME sector who ultimately form the middle class in the country.

Along with other initiatives related to private sector development, the business environment also influences the productivity of private enterprises both in formal and informal sectors of economy. Reforming SMEs’ business environment is contributing to establishment of market relations, spurring competition and increasing efficiency of other interventions in the area of social and economic development. Favorable business environment is one of the prerequisites for economic development and poverty reduction.

Program Objective

The USAID Leadership in Economic Governance (LEV) Program aims to improve the business climate by implementing significant and sustainable reforms in SME sector both at the national and local levels.

The LEV Program offers the unique opportunity to join the efforts of highly-active reform-oriented representatives of private, civil and government sectors. The Program helps determine administrative and regulatory impediments to SME development in Ukraine, and overcome them by drafting and implementing the necessary legislative initiatives and regulatory procedures. USAID LEV Program  also supports the development of business associations as a driving force in facilitating progressive reforms. 

Program implementation period: 2014 – 2019 

Program Components

Component 1:

Component 2:

Component 3:

Identify administrative and regulatory measures to overcome barriers to SME development

Provide support in drafting and implementing effective laws and regulations

Facilitate a sustainable public-private sector dialogue to develop business enabling environment


▶ identifying and analyzing the barriers to doing business

▶ conducting annual social surveys to evaluate the business climate in Ukraine  

▶ developing roadmaps for reforms in priority areas


▶ drafting and promoting legislative initiatives to facilitate the development and operation of SME

▶ providing technical assistance to help implement effective laws

▶ training for local and central government officials on the improvement of regulatory procedures


▶ training for SME representatives on analysis of problems pertaining to SME

▶supporting advocacy campaigns to promote reforms

▶ conducting seminars and offering consultations to SME regarding  the opportunities to enter foreign markets

Target Regions:

USAID LEV Program is implemented by:
  International Charity Organization East Europe Foundation in consortium with:
NGO Institute for Economic Research and Policy Consulting
  NGO Kyiv Economic Institute