Harmonization of SME definition in Ukraine with EU

Small and medium-sized enterprises (SMEs) are a key part of the economy, yet their development is often constrained by limited access to finance, innovation, new technologies and skilled labour. This is why Ukraine and the EU have introduced support programmes and regulatory simplifications for SMEs. At the same time, the effectiveness of such support depends to a large extent on clearly defining which businesses qualify as SMEs.

Ukraine is gradually aligning its SME definition with the EU approach as part of its European integration process. However, differences in purchasing power, productivity and business conditions raise the question of whether an adapted approach would be appropriate during the pre-accession period. The document analyses SME definitions in Ukraine and the EU, examines the experience of recent EU Member States, assesses the potential implications of changing the criteria for classifying SMEs, and provides recommendations for further harmonisation.

More details are available in the document below.