Ukraine’s MSMEs at the heart of green industrial recovery

For many micro, small and medium-sized enterprises in Ukraine, recovery begins with practical decisions made every day: keeping production running, retaining staff, reaching customers, adapting to disrupted supply chains, improving a product, entering a new market or testing a new business model.

Taken together, these decisions tell a broader story of resilience. According to the Ministry of Economy, Environment and Agriculture of Ukraine, MSMEs account for more than 80 per cent of jobs and two-thirds of the country’s GDP. Their ability to adapt, invest and grow is therefore essential not only to individual livelihoods but also to Ukraine’s economic recovery and long-term competitiveness.

The sector's structural weight is set out in Ukraine’s own SME Development Strategy until 2027, approved by the Cabinet of Ministers in August 2024. The Strategy identifies MSMEs as accounting for 99.98 per cent of all business entities in the country and places their recovery, including the green transition, digital transformation and European market integration, at the heart of Ukraine’s economic future. 

On International MSME Day, marked on 27 June, UNIDO highlights the role of Ukrainian entrepreneurs and enterprises not only as beneficiaries of recovery, but also as active partners in green industrial transformation.

Globally, MSMEs are essential to inclusive growth, innovation, job creation and economic resilience. Yet many face persistent barriers, including limited access to finance, difficulties integrating into regional and global value chains, limited capacity to adopt innovation and technology and high vulnerability to external shocks. In Ukraine, these constraints have become even more acute as the war continues to affect production, logistics, energy supply, labour markets and access to investment.

UNIDO’s work in Ukraine brings together its global expertise in inclusive and sustainable industrial development with the country’s pressing recovery needs. The UNIDO green industrial recovery programme for Ukraine (2024-2028), co-developed with the Government of Ukraine, aims to support communities, strengthen businesses, attract investment and foster a green economy.

For MSMEs, this support takes different forms, depending on their stage of development and specific needs. Some need entrepreneurship training, mentoring or help developing a business plan. Others need to improve compliance with international standards, access investment or find pathways into export markets. A dedicated UNIDO programme, funded by Austria and Bulgaria, is currently helping 300 enterprises in the agri-food, textile and wood-processing sectors adopt practical digital tools from production planning and artificial intelligence applications to traceability and quality management. What they share is a need not for one-off assistance, but for connected support – skills, finance, standards, technology, networks and market access, embedded in stronger local ecosystems.

Innovation is one area where Ukrainian MSMEs and startups are already contributing to green industrial recovery. Through the GEF-funded GCIP Ukraine 2.0, implemented by Greencubator NGO as part of the Global Cleantech Innovation Programme, UNIDO supports growth-stage clean technology startups through advanced acceleration, mentorship and networking. The programme helps entrepreneurs refine, validate and scale solutions that respond to both business needs and environmental challenges.

These include market-oriented solutions in low-carbon construction, circular materials, sustainable packaging and cleaner logistics. Geodesic.Life, for example, produces prefabricated eco-domes from circular, bio-based materials, while PowerDrive provides electric scooters for delivery services, helping businesses reduce fuel consumption, lower operating costs and cut emissions from urban last-mile delivery. Such examples show that green recovery is not only about reducing environmental impact. It is also about creating products, services and business models that can compete in future markets.

For other MSMEs, competitiveness begins with quality, standards and market access. Through the Swiss-funded Global Quality and Standards Programme (GQSP) Ukraine, UNIDO supports Ukrainian berry and nut producers in strengthening compliance with international requirements, improving labelling practices, preparing for export and engaging with global buyers. Participation in major international trade fairs, including Anuga, Fruit Logistica, Gulfood and BIOFACH, has helped companies translate technical knowledge into tangible market exposure.

The experiences of Nuts’N’Garden and Food for Thoughts illustrate how targeted capacity development, individual consultations and trade fair engagement can help local producers strengthen product positioning, align with export market requirements and move towards higher-value production and global value chains. For MSMEs, such support can shorten the distance between local production and international markets.

UNIDO’s work with MSMEs in Ukraine also extends to regional and local recovery ecosystems, including through cooperation with regional development agencies. Through the Germany-funded project “Green industrial recovery through municipality-based development in Ukraine”, UNIDO supports collaboration among Ukrainian municipalities, MSMEs, regional development actors, German partners and other stakeholders. The project combines investment matchmaking, knowledge exchange and exposure to environmental technologies, helping link local recovery with MSME competitiveness, industrial innovation and integration into European value chains.

This local dimension is important because many MSMEs are deeply rooted in their communities. Their growth depends not only on individual business capacity, but also on infrastructure, local partnerships, investment opportunities and the ability of municipalities to create favourable conditions for sustainable economic development.

Technology transfer is another important part of this wider picture. Through the Japan-funded project “Green industrial recovery project for Ukraine through technology transfer from and co-creation of new businesses with Japan’s private industries”, UNIDO supports the testing and introduction of advanced technologies and new business models in Ukraine. The initiative covers multiple areas, including agribusiness, circular economy, ICT, energy, MSME productivity enhancement, assistive equipment and telemedicine.

The project is expected to help more than 30,000 people in Ukraine gain new skills and enable 47 advanced technologies to be tested, introduced or adopted across priority sectors. Of the 47 technologies selected by UNIDO from Japan, 46 were proposed by Japanese SMEs and startups, underlining how smaller enterprises can contribute to recovery not only as beneficiaries, but also as providers of innovation, practical business models and international partnerships.

Entrepreneurship also plays an important role in social reintegration, economic inclusion and community resilience. Through initiatives implemented with the support of the Governments of Austria and Bulgaria, UNIDO has supported women, youth, aspiring entrepreneurs, veterans and their family members with training, mentoring, business development support and access to expert consultations. These efforts help strengthen businesses, improve livelihoods and contribute to local economic recovery. This approach was also reflected at the recent event “Entrepreneurship Development for Green Industrial Recovery in Ukraine: Lviv,” where a dedicated veterans’ business fair showcased enterprises founded by veterans and their family members, demonstrating how entrepreneurship can support job creation and inclusive economic development.

The timing of this year’s International MSME Day is particularly relevant. Held in Gdańsk on 25-26 June 2026, just one day before the observance, the Ukraine Recovery Conference 2026 brought together governments, international and financial institutions, businesses, local authorities and civil society to mobilize support for Ukraine’s reconstruction and recovery. For MSMEs, this agenda is directly relevant: recovery depends on access to finance, investment-ready projects, stronger local economies, green reconstruction, innovation and alignment with European markets.

This is where UNIDO’s work with MSMEs connects to the wider recovery agenda. Green industrial recovery is not only about rebuilding infrastructure or replacing what was lost. It is also about helping enterprises modernize production, improve resource efficiency, adopt new technologies, meet higher standards and reach new markets.

Across cleantech innovation, quality infrastructure, export readiness, municipal partnerships, technology transfer and entrepreneurship support, one message is clear: MSMEs are where much of Ukraine’s green industrial recovery becomes practical.

They are the companies testing new ideas, improving products, adopting standards, creating jobs, connecting communities to markets and helping rebuild confidence in the future. Their needs are immediate, but their contribution is strategic.

On International MSME Day, UNIDO reaffirms its commitment to supporting Ukrainian entrepreneurs and enterprises as partners in recovery – from local business ideas to stronger value chains, from quality and standards to global markets, from technology transfer and investment partnerships to resilience today and a greener industrial future for Ukraine.