A Great Future for Small Businesses. Vision BDF 2.0

On 11 June 2025, Kyiv hosted the event “A Great Future for Small Businesses. Vision BDF 2.0”.

The event showcased the outcomes of national and international financial support for small and medium-sized enterprises (SMEs) since the onset of Russia’s full-scale invasion of Ukraine. It also outlined future directions for financing SMEs to foster recovery and development of Ukraine’s economy, aligned with the updated mandate of the Business Development Fund (BDF).

Key topics included the impact of state financial support programs on the economic resilience of MSMEs, expansion of business lending opportunities, the results of international financial support and its strengthening by transforming the BDF into a development institution aligned with the EU-approved rules and procedures necessary to build cooperation with international financial institutions and expand opportunities to attract financing for the recovery of Ukrainian economy.

The goal of the BDF transformation is to become a sustainable development institution aligned with best international practices and ensure effective implementation of both national and international SMEs support programs.

“International support for the 5-7-9 Program is a demonstration of trust and recognition of its successful implementation by the Business Development Fund. Over the years, the Fund has demonstrated high efficiency in supporting small and medium-sized businesses, as well as readiness for expansion. The German government and the KfW have responded to Ukraine’s proposal to transform the BDF and update its mandate. We are grateful to our international partners for their efforts in supporting Ukrainian business. Today we are forming a vision for the future: the reboot of the BDF should create new opportunities for the development of entrepreneurs in partnership with banks, and in the future will allow the Fund to receive direct support from the EU,” said Sergii Marchenko. 

Institutional transformation of the Fund was initiated by the German Government through the German Development Bank KfW.

“Besides its heroic military defense, Ukraine is today also fighting to keep its economy running, as the foundation of its war effort. The BDF plays a crucial role in providing affordable loans to SMEs, which are the backbone of Ukraine’s economy. Germany launched the BDF in 1999 as the German-Ukrainian Fund and is honoured to help transform it today into a Ukrainian development institution, to play a major role in Ukraine’s recovery and reconstruction”, – Martin JAEGER, Ambassador of Germany to Ukraine.

This initiative, called “Vision BDF 2.0”, was officially presented and highly appraised by the German Chancellor in June 2024 at the Ukraine Recovery Conference in Berlin.

“The Ukrainian Government can count on KfW’s support with our experience in the ongoing institutional strengthening of the BDF in line with the BDF Vision 2.0. 

We are happy to contribute to BDF’s maturing into a competent and sustainable development finance institution supporting Ukraine’s economic recovery and development now and in the future. In parallel, to further expand SME support and especially the lending to SMEs which are in most need (e.g. in frontline regions and by vulnerable groups), BMZ through KfW is planning to finance the setting up by the BDF of a portfolio guarantee facility – this would promote growth of the SME loan portfolio by leveraging the existing liquidity on the market,” – Lorenz Hessner, Head of the KfW Representative Office in Ukraine

The revamped Fund will be able to access capital markets and raise funds from private investors to support programs contributing to Ukraine’s economic recovery.

On behalf of the Fund, Andrii Hapon, Chairperson of the BDF Board, expressed his gratitude to all partners for their continued cooperation. He highlighted the role of international stakeholders—including the German Government, the EU, KfW, GIZ, Norad, UNDP, the World Bank, JICA, and the Luxembourg Development Agency—whose efforts enabled the Fund to expand its financial support for small businesses during the war.

“We are committed to honoring the trust placed in us by our international partners and to building the Fund as a catalyst for innovation and a key driver force in SME financing across Ukraine,” he added.

The transformed Fund will be equipped to deliver effective and targeted financial support for Ukrainian small and medium-sized enterprises in line with international best practices and emerging trends in SMEs development.

The event was organized by the Business Development Fund with the financial support of the German Government represented by the Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank KfW, and with the assistance of the Ministry of Finance of Ukraine, the Ministry of Economy of Ukraine, and global company Deloitte.