ment of Enterprise is very limited (usually
within city limits).
o "Business Clinics" can provide regional
o Better to integrate under-served market
groups in normal activities than to create spe-
cific and bespoke business support services.
In the field of efficiency:
o Best returns are achieved by linking pay-
ments to activities/outputs.
o Activity-Based Funding (ABF) and/or FPC
links payment to performance for institution
o Subcontracting links payment to performance
when sourcing outside BDS services.
o It is very difficult to link payments to actual
impact, especially with the limited time dura-
tion of the project.
In the field of barriers and risks:
o Cost of Doing Business Surveys are a good
tool to identify SME business development
o There is very little a project can do on a local
level to improve the SME environment, ex-
cept in the field of the "application" of the re-
gulatory rules and procedures.
o Workgroup-based approaches are the most ef-
ficient to cause a "change in culture"
In the field of synergy:
o When feasible subcontracting should be used
to link project activities to other EU funded
projects and initiatives.
o There seems to be a lack of donor "corporate
o As projects kick off at various moments in
time, synergies are often obvious but actually
difficult to achieve due to time implementa-
MODEL OF BEST PRACTICE:
"ESTABLISHMENT OF PERMIT CENTER IN IVANO-FRANKIVSK"
"... Improvement of the permit-ting system in the sphere of business, simplification of the state registration procedure of the business entities..."
From the National Programme to Support Small Entrepreneur-ship Development in Ukraine
Issuing permits in the sphere of business activity is considered as one of the most complicated problems and demands systematic improvement.
Analysis of current Ukrainian legislation shows that several substantial problems in the sphere of issuing permits exist on the national level:
o An unjustifiably long list of permits;
o Duplication by authorised institutions of the
terms of reference for issuance some permits;
o Indefinite order of interaction in the permit is-
suing process between local self government
institutions, local state administrations and
regional branches of central bodies of execu-
o Unclear and non-transparent stages of the
o An indefinite number of organizations invol-
ved in permit issuing process, time and mo-
ney expenditures, documents needed and re-
quirements for their issuance.
By means of analysis of the results of a Questionnaire among heads of permit institutions in raions and towns in the Ivano-Frankivsk oblast, the abo-
ve given list of problems was extended with the regional level problems, as follows:
o Low competence of permit institutions' em-
ployees in raions and small towns in terms of
familiarity with the legal basis to exercise
o Difference of permit procedures exercised by
the same permit institution but at diverse ter-
o Unsatisfactory registration of issued permits
(lack of statistical data);
o Lack of data about appeals against negative
decisions of permit institutions.
The main task is to improve, simplify and opti-mize the current practice of permitting businesses in Ivano-Frankivsk town in the framework of current legislation and in terms of reduction of time costs, document requirements and money costs. This has the aim of developing and implementing an improved scheme for realization of permit procedures, which will enable the simplification of the system of issuance permits for businesses in Ivano-Frankivsk town. This will require:
o Creation of sustainable political preconditi-
ons for the development of entrepreneurship
and new job creation;
o Initiation of proposals to be entered into the
draft Law of Ukraine "On permit system in
the sphere of business activity"
Local governments should be satisfied that regulations concerning permits are necessary, fair, effective, balanced, and enjoy a broad degree of public confidence. In order to achieve all these things, good regulations and their enforcement should be measured against five principles:
Introducing new regulations concerning permits, or redesign of implementation procedures should not be done without careful assessment of the options, and planning of the regulations.
The target group for these activities includes businesses of the town of Ivano-Frankivsk
CHOICE OF SOLUTION
Initiatives to improve the issuing of permits could include:
o Design of legislation itself,
o Interpretation of the legislation and regulations,
o Enforcement of the regulations;
o Better provision to entrepreneurs of informa-
tion concerning compliance with regulations.
This final point - information provision - is often one of the most important and overlooked factors in improving the business environment for SMEs.
There are also a few problem-solving variants that could be used:
1. Improvement in some specific directions, that
o revision of the number of existing permits;
o revision of competence of authorized for per
mits issuance institutions;
revision of some permits procedures.
2. Integrated improvement, that foresees:
o establishment on legislative level the unified
requirements to legal act which regulate the
o mandatory statute by laws not only responsi-
ble for permits issuing authorities, but also
cases for permitting and types of permits;
o ascribing to exclusive jurisdiction of the Par-
liament authorities to determine an order of
o issuing permits that will dis-enable duplica-tion of functions and will clearly identify an interaction of permits issuing institutions.
3. Introduction of mechanisms of One-stop Shops for permits issuance.
These proposed approaches to improvement of the permit system are not mutually exclusive ones. However, the realization of the first two approaches seems to be possible solely at the federal level.
The process also foresees information distribution among the stakeholders about best tried and tested mechanisms of improvement of the permitregime at a local level and within the framework of present legislation. When it is impossible to solve problems by local government bodies, relevant changes to the legal acts will be initiated and