BUSINESS INCUBATORS IN UKRAINE

To help those who open their own business, create favorable conditions for business development, provide benefits for all undertakings – the key tasks that business incubators successfully accomplish (organizations that support newly established enterprises). In world practice, it is these structures that are considered the best stimulators for the development of small and medium-sized businesses and have recently become increasingly popular. In Ukraine, the first incubators appeared in the early 1990s and now there are 60–70 registered. However, there are very few successful examples of assistance in establishing a business, while in neighboring countries such institutions work more than effectively. “Status” asked officials, experts and entrepreneurs:
“WHAT IS THE CAUSE OF WEAK DEVELOPMENT OF UKRAINIAN BUSINESS INCUBATORS?”
Opinions of officials
Mikhail Chechetov, Head of the Subcommittee on Entrepreneurship of the Committee of the Verkhovna Rada of Ukraine on Industrial and Regular Politics and Entrepreneurship:
“The answer is simple: the last 5–6 years, when in all countries, incubators actively raised new business directions, our“ colorful ”authorities did, in fact, annually, re-election. When is it involved in the creation of business incubators (BI), if the fighters for justice, then they run with flags, then with pipes, then with drums ?! However, the new government has already begun to catch up. And the first step is the intention to adopt a fundamental law on business incubators, which will spell out all the details of their functioning. This regulation will come into force, possibly by the New Year and will lay a good foundation for the development of existing BI, as well as the creation of new ones. After all, such structures all over the world are viewed as a foundation for SMEs, the generation of new business ideas, know-how. ”
Igor Mantsurov, Director of the Economic Research Institute of the Ministry of Economy of Ukraine:
“Modern business incubators are fairly large buildings, where a newly-minted businessman on favorable terms is provided with an office, communication tools (office equipment), the opportunity to advertise themselves and their products in print and online publications, and train staff. Naturally, this requires considerable expenses, which, in my opinion, should be covered by the state, as is done in all developed countries. But this requires political will, a separate budget and the corresponding system of support for SMEs. In recent years, there has been no hint of all this. This is the reason for the underdevelopment of BI. However, the practice of foreign countries shows that the cost of incubators pays off after 4–5 years, which is quite good if you compare, for example, with a production or social infrastructure (the period of return of investments for which at least 7 years – Ed.). Therefore, the new authorities will sooner or later take up the issue of the creation and full-fledged work of such organizations. ”
Expert opinion
Yevhen Pilyankevich, Partner of the Association “Private Investors of Ukraine”, Head of Innovation Projects:
“The reason for the weak development of such structures lies not only in the indifference of the authorities. In Ukraine, there is simply no real need for their services. In fact, technoparks, business incubators, innovation centers and similar organizations are only concerned with the maintenance of infrastructure and the “organization” of various benefits. However, they do not provide the main service for which they are created all over the world – the cultivation of competitive companies, market leaders. The format in which BI exist in our country is a complete contradiction of successful international practice, where the main focus is on providing consulting, administrative and other management services for the development of a start-up company. ”
Natalia Kozhevina, President of the Ukrainian Association of Business Incubators and Innovation Centers:
“Unfortunately, bureaucratic-bureaucratic power predominates in Ukraine, which does everything only in order to live around the budget money. And while this state of affairs does not change, entrepreneurship in our country will not develop at all. What then to say about incubators? Even those born with the support of international donors are now on the verge of extinction. Moreover, every day the existing ones are trying to block the oxygen and deprive the latter of the opportunity to develop. But BI is one of the most powerful tools for stimulating SMEs and the introduction of innovative technologies, new qualified personnel and jobs. Is this not a guarantee of the welfare of the state? ”
Opinions of entrepreneurs
Andrei Kolesnichenko, private entrepreneur, head of the Kiev Business Incubator Foundation:
“One of the main obstacles to the development of BI is inspectors of all sorts and colors, for which such organizations are still“ unknown to the animal ”, promising tempting prospects for all sorts of speculations. Also, the “finishes” of the BI the lack of an appropriate legislative framework and reliable material basis that would allow to move forward. For normal operation, “cheap” resources are needed (furniture, appliances, communications), and most importantly, premises.