Ukraine Wants to Introduce a New Business Classification.

Ukraine Proposes a New Entrepreneurship Classification System

The Economic Development Committee of the Verkhovna Rada of Ukraine has released information on the proposed new entrepreneurship classification system in Ukraine. Instead of the current sectoral approach, it is proposed to introduce a segmental approach, which involves dividing business into five main categories with further subdivision into subcategories.

The proposed categories of economic business entities include:

• Self-employed (individual labor activity and independent professional activity)
• Platform-employed (interacting with digital platforms)
• Family entrepreneurship
• Micro-entrepreneurship (micro business)
• Small entrepreneurship (small business)

All these categories belong to the sector of micro, small, and medium-sized businesses (MSMEs).

The main goal of the proposed changes is to provide additional preferences to certain categories of entrepreneurs, in particular, the self-employed, platform-employed individuals, and family businesses. This will create favorable conditions for realizing the economic and entrepreneurial potential of active citizens willing to take on entrepreneurial risks.

The initiators of the changes believe that the new classification system will promote the de-shadowing of the economy and create conditions for the gradual development of entrepreneurs - from basic forms of economic organization to medium and large businesses.

It should be recalled that earlier the top managers of Ukrainian companies assessed the state of business in Ukraine.