A project on digitalisation of communities for business development and investment attraction is launched

Small and medium-sized enterprises (SMEs) are the engine of economic growth in communities, but their development in Ukraine is hampered by a number of factors. These include a lack of resources and knowledge for business digitalisation, weak links between different industries, and limited access to finance. The lack of transparent mechanisms for business interaction with local authorities also hinders the realisation of entrepreneurial potential at the regional level.

The situation is further complicated by the insufficient level of strategic planning and regional branding, which reduces the attractiveness of the territories for investors. That is why communities need to introduce new approaches that will allow them to use available resources more efficiently and create sustainable economic ties.

The Center for Innovation Development together with the NGO “League of Interns” launches a large-scale project “Innovative Solutions for MSME Development and Increasing Community Investment Potential through Digital Tools” as part of the “Transformative Recovery for Human Security in Ukraine” project, funded by the Government of Japan and implemented by the United Nations Development Programme (UNDP) in Ukraine. The project, which aims to stimulate local entrepreneurship, will open up new opportunities for cooperation between businesses, local authorities and other stakeholders through modern technological solutions.

Project objective:

To create favourable conditions for the development of entrepreneurship in communities through the introduction of digital profiles with economic indicators, interactive maps of the business environment, and databases of local producers. These tools will allow communities to better understand their economic opportunities, make informed decisions and form strategic partnerships.

Digital solutions will be implemented in six communities in Kharkiv, Kyiv and Odesa oblasts to monitor the local economy and build effective business relationships. Each community will receive:

A digital profile with economic indicators (structure of enterprises, employment, sales volumes, etc.)
An interactive map of the business environment to identify potential partnerships and cluster initiatives.
A database of local producers – more than 100 enterprises in each community will receive detailed business profiles.
Training for community representatives on the use of digital tools for analysis and decision-making.

What will this bring to communities and businesses?

Transparency and access to up-to-date data: entrepreneurs will be able to easily find partners and assess markets.
Increased investment attractiveness: Interactive maps and business profiles will help investors better understand the economic potential of communities.
New opportunities for cooperation: At least 2-3 partnerships are expected to be established in each community.
Development of digital skills of local authorities: communities will be able to maintain digital profiles on their own after the project is completed.

Successful implementation of the project will create the basis for spreading a culture of data-driven decision-making in communities. This means that communities will be better able to set their priorities, attract investment, and develop effective business support programmes.

The integration of digital profiles into the work of local councils will ensure the sustainability of the results, as communities will maintain and update the information themselves. The project is expected to increase the number of applications from potential investors by at least 10% within six months of its completion.

The project is being implemented by the United Nations Development Programme in Ukraine as part of the “Transformative Recovery for Human Security in Ukraine” project, funded by the Government of Japan and implemented by the United Nations Development Programme (UNDP) in Ukraine.