Young businessmen will change Ukraine
What is blocking their emergence?
More than 40 per cent of Ukrainians under 28 would like to own a business. Technically they can own one right after attaining the age of majority. But once they start their business, young people instantly encounter a pile of problems too difficult for them to solve by themselves. Most of the problems stem from Ukraine’s imperfect laws, complicated procedures for starting a business, and fiscal paperwork. The procedure of obtaining a permit to start a business is in a class by itself.
What kind of assistance should be given to young businessmen? This was the topic of the 2nd international conference on “Youth Entrepreneurship: Development of Cooperation.” Representatives from Romania, Russia, and Moldova came to Ukraine to share their experiences. According to Diana Mkrtchian, the head of the All-Ukraine Union of Young Entrepreneurs and Businessmen (VSMPB), the conference will lead to the founding of a young people’s coalition, which will deal with this sector. ‘The union will include projects focused on exchanges, internships, and helping young people find employment,’ she said.
Earning a living abroad is already being discussed with the Romanians. They think Ukraine has a tremendous potential, which they are actively studying. At the press conference the Romanian representatives told the media that the project will deal with recruitment, training, and helping young people find employment in the social and services spheres.
Such a proposal is not completely new to Ukraine, where students mostly take part in these kinds of projects. They are satisfied with seasonal employment where they can earn monthly salaries of up to 1,200 dollars. The Romanians explained their participation by their willingness to help young Ukrainians obtain both experience and some initial capital.
But is this really a true picture? Maybe another explanation of their motives is that their own citizens are refusing to work in those unattractive fields. Of course, the Ukrainian side is concerned about this, but it is assumed that there are no risks for our young citizens as long as firm guarantees are provided. The most worrisome situation is sending a person somewhere and that individual vanishes into thin air. “We have to obtain legal agreements and protect our citizens’ rights and freedoms,’ says Mkrtchian.
At the same time certain changes in the sphere of youth entrepreneurship have taken place in Ukraine. ‘The law on first employment has been adopted. The Cabinet of Ministers is also planning a directive on including in the law a list of specialties that enterprises are obliged to fill with vocational school and university graduates,’ says the head of Ukraine’s young entrepreneurs’ union.
To get businesses interested in young employees the state is ready to compensate them financially through employment centers. Next year’s budget will channel UAH 50 million for this purpose. Whether those millions reach their destination depends greatly on the leaders of the new government.
The union is planning to initiate the creation of a state program to support youth entrepreneurship. In addition, union activists, together with the Ukrainian State Fiscal Administration, have promised to start a network of special information offices that will provide young businessmen with necessary information. “We are now cooperating with the Franchising Association, which is talking with some Ukrainian banks to negotiate new terms for granting franchises to young businesspeople just starting out,” says Mkrtchian. “The new mechanism entails signing a three-party agreement in each case. This way the association acts as a guarantor, and the bank supports the new business with a loan. If this scheme works out, young people will have a source of inexpensive loans.’
Mkrtchian has observed a certain trend among young people striving to set up their own businesses: first they acquire experience working for other people’s businesses, and later, once they realize their own potential and customers’ demands, they start their own businesses. The most popular ones are retail, publishing, and advertising.
