Business expansion into European markets — what is urgently required from the state
For Ukrainian business, 2023 is no longer the beginning of a crisis, but a period of a stable protracted war. Ukrainians stopped buying canned goods, power banks and medicines for all eventualities. Now entrepreneurs have to work more systematically: an extreme situation has turned into a stable and quite exhausting reality. And since the economic resource and the resource of new opportunities in Ukraine are limited, their deficit can be evened out by access to European markets and the United States.
Europe understood: in the realities of war, Ukrainians are able to quickly find and test emergency solutions that provide security and optimize everyday life. For example, Ukrainians repurposed civilian items for military needs, or strengthened the vectors of online retail and delivery. Now is the time for maximum monetization of the brand of Ukraine: a state with creative business opportunities. Europeans are tired of pitying Ukrainians, and are ready to look at Ukraine as a nation of truly indomitable people. And the business itself is ready to teach Europe how to optimize business processes and rank risks.
For example, Helsi as a medical provider periodically receives requests from Switzerland, Moldova, Poland and Bulgaria. Ukrainians "brought" there their experience of using medicine, and participants in the medical industry of these countries are interested: how can our HealthTech model be implemented on their territory? For conservative Europe, Ukraine's experience may not be 100% relevant, but it is interesting as a phenomenon to study.
However, the state needs to simplify as much as possible the mechanisms that allow businesses to scale, namely the regulatory approaches and legislation.
For example, taking the field of work with data, in which Helsi works, Ukrainian standards for the implementation of services do not correspond to European ones. Ukrainians must comply with the GDPR, for example, investing a lot of resources to meet European standards in the future. Many processes need to be harmonized, a vivid example is an electronic prescription issued by a doctor in Ukraine. As things stand, it is meaningless in Europe, although in Poland in some places pharmacists show understanding and can issue drugs. The Ministry of Health currently has only tentative projects, according to which they plan to create a single "Ukraine-Europe" space in this direction.
A good example for the IT industry is the Diia.City site. The state provided a clear mechanism: simplified taxation and exit from "gray zones" (instead of employment through private entrepreneurs — transparent gig contracts recognized by international auditors). Such solutions are needed in all economic sectors: from production to retail. Ukraine needs the liberalization of approaches to the creation of new products and services, as well as the simplification of costs for maintaining existing volumes.
At the same time, big business does not need "alms" in the form of a tax reduction to 2%, tax holidays, permission not to pay VAT, etc. An active business pays even more and in advance, engaging in volunteerism and charity. Liberalization of taxation is necessary here: there is the experience of progressive countries where "charitable funds" have a lower tax burden. Currently, the situation in Ukraine looks like this: taxes are paid from the earned funds, and additional funds go to volunteering already after taxation.
On the other hand, "Stop to masked raids", which the head of the Ministry of Digital Affairs spoke about in February, have also long been in demand not only in the IT cluster. Regulators should regulate without resorting to high-profile demonstrative searches. Business is under stress due to war and loss of human resources. It constantly balances between ensuring the country's defense capability, maintaining employees and the desire to develop. At the same time, the state itself makes it stressed by some actions. Ukrainians need productive relations with the state. Domestic and foreign economic goals can be achieved only in the synergy of private and public partnership.