Key Highlights:
New Categorization Approach: The proposed changes will shift from the current sectoral division to a segmental approach, categorizing entrepreneurs into five new categories.
Proposed Categories:
- Self-Employed:
- ITD: Individual labor activity.
- NPD: Independent professional activity.
- Platform Employees: Individuals interacting with digital platforms.
- Family Business: Businesses operated by family members.
- Micro Entrepreneurship (Micro Business): Very small businesses with minimal employees and revenue.
- Small Enterprise (Small Business): Small businesses with a slightly larger scale than micro enterprises.
- Self-Employed:
Inclusion in SME Sector: All these categories fall under the generally recognized sector of small and medium-sized enterprises (SMEs).
Purpose of Changes: The aim is to provide additional regulatory preferences and support to specific categories such as self-employed individuals, platform employees, and family businesses.
Regulatory Improvements: The new categorization is expected to streamline regulatory processes and offer more tailored support to various types of entrepreneurs, enhancing their business environment and growth potential.
Ongoing Work: A working group on the modernization of legislation in the micro and small business sector will continue to refine and develop this categorization approach.
Conclusion
The proposed re-categorization of entrepreneurs by the Verkhovna Rada represents a significant shift towards a more nuanced and supportive regulatory framework. This approach aims to better address the unique needs of different types of businesses, fostering a more conducive environment for growth and innovation within Ukraine's SME sector.
