Ukrainian Deputies Propose New Categorization for Entrepreneurs

by Roman Cheplyk
Tuesday, July 30, 2024
2 MIN
Ukrainian Deputies Propose New Categorization for Entrepreneurs

Deputies of the Verkhovna Rada propose a new segmental approach to categorize entrepreneurs into five distinct categories, aiming to provide targeted regulatory benefits and support

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.
  • 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.

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