The Government of Luxembourg Invested €2.7 Million in Small Business in the Kryvyi Rih Raion District

During the full-scale war, small business in the frontline regions of Ukraine has become one of the pillars of local communities. Despite losses, shelling, and instability, entrepreneurs of the Kryvyi Rih Raion continue to work, preserve jobs, and seek opportunities for development.

Specifically for such entrepreneurs the Programme “Support for Recovery of Kryvyi Rih raion. Grants for MSMEs” was implemented, funded by the Government of the Grand Duchy of Luxembourg through through LuxDev, the Luxembourg Development Cooperation Agency, and the Business Development Fund (now the National Development Institution).

Thanks to the programme, 200 businesses received financial resources totalling €2.7 million, which made it possible to create and preserve over 260 jobs in the Kryvyi Rih Raion.

“We saw an extraordinarily high demand from the business community — 540 applications for a frontline district is an indicator that entrepreneurs don’t simply want to survive, but plan to work and grow. It was essential for us to support various sectors: from trade, processing, and agribusiness to local media, the service sector, and craft production. This is the living economy of the community,” — stated Andrii Hapon, Chairman of the Board of the National Development Institution.

175 micro-entrepreneurs received grants for the purchase of equipment and raw materials, while another 25 small and medium-sized businesses made use of the grant instrument in combination with a bank loan, which covered up to 50% of the investment project.

“Supporting small businesses in frontline regions is not only about the economy. It is about people who stay in their communities, work, create jobs, and keep their daily lives going in spite of the war. It is important for Luxembourg to stand alongside such entrepreneurs and invest in their resilience and future,” — stated Manuel Tonnar, Director General of LuxDev.

The largest number of supported businesses operates in the Kryvyi Rih city community, while the programme also covered other communities where small business support is of critical importance.

Among the programme participants are war veterans, women developing their own businesses, manufacturing enterprises, farming households, local media, and craft enterprises. For some, the assistance became a path back to work after serving on the front line; for others — an opportunity to retain their team, upgrade equipment, or continue operating despite shelling and power outages.

“Before, I relied only on myself. Now I know — there are those who can help. You just have to not be afraid to try,” — says Serhii Kovtun, veteran and farmer, who used the grant to upgrade his machinery and return to working in the field.

“When we lost our equipment due to shelling, it seemed like the voice of the city might go silent. This grant gave us the opportunity to recover and work for people again,” — shares Oleksandr Kozak, director of the radio station “Kryvbas”.

Participant selection was carried out through an automated rating system that guaranteed transparency and excluded manual interference. The key criteria were the impact of the war on the business, the effectiveness of fund utilisation, and social responsibility.

“We see real results and great demand for continued support. That is why in April we plan to launch the second phase of the Programme, so that even more entrepreneurs can gain access to financial resources for recovery and development,” — the National Development Institution stated.

More details on the website: https://bdf.gov.ua/programs/prohrama-pidtrymka-mmsp-u-kryvorizkomu-rayoni-faza-2/

For reference:

The Programme “Support for Recovery of Kryvyi Rih Raion. Grants for MSMEs” is implemented within the framework of the “Support for the Recovery of Kryvyi Rih Raion” financed by the Government of the Grand Duchy of Luxembourg, managed by LuxDev, the Luxembourg Development Cooperation Agency, and implemented jointly with PROMAN and the Business Development Fund (now the National Development Institution). 

Authorized banks: Oschadbank and PrivatBank.