At the end of 2022, the Volodymyr-Volynskyi community in Volyn Oblast, like thousands of other settlements across Ukraine, suffered from power outages due to enemy shelling of critical infrastructure. Despite these challenges, the community successfully supported local businesses, ensuring conditions for uninterrupted operation.
Purchasing generators and other backup power sources became an unexpected expense for local entrepreneurs. For most of them, such a purchase was beyond financial reach due to the crisis caused by the war. Myroslava Shyshko, who owns two children's clothing stores, was one of those entrepreneurs feeling the crunch.
“Of course, the power outages negatively affected my business and decreased sales. We even wanted to close down. In my stores, all the heating is electric, so for us, power outages mean not just darkness and the inability to see the products but also cold, preventing the customers from trying anything on. It was very difficult financially because the whole business sector saw a sharp decrease in cash flow, and the prices for backup power skyrocketed. However, we were still able to purchase a gasoline generator," Myroslava explains.
Acknowledging the difficult situation, the local government made every effort to ensure that small and medium-sized businesses could stand firm and continue to operate. In March 2023, the Volodymyr-Volynskyi community announced a partial reimbursement of the cost of purchased backup power during martial law.
As part of this initiative, entrepreneurs registered and operating in the community, who pay local taxes, could reimburse up to 50 percent of the cost of equipment (but not more than 20,000 UAH). The local government allocated UAH 3 million to implement this measure. Entrepreneurs enthusiastically took advantage of the opportunity to recover their expenses. Myroslava Shyshko shares her experience, recalling her initial reaction to the news:
"Honestly, we couldn't believe it. I got a call from the Volodymyr Business Center, they assured me it wasn't a fake news—the compensation would indeed happen. I was impressed how quickly the Business Center helped prepare all the documents. I spent no more than an hour of my time. It was a very pleasant surprise! A few weeks later, I received the compensation funds in my business account. For the first time, I felt that we were moving forward as a community! It was important not only as support for our business, but also as a signal that the authorities understand and value the importance of entrepreneurial initiative."
In just nine months, 49 businesses received partial compensation totaling 891,000 UAH. Knowing about such a program, some entrepreneurs bought generators or inverter-battery systems and immediately applied for compensation, and the reimbursed funds were directed towards developing their business.
The initiative of the local self-government bodies of the Volodymyr-Volynskyi community has become a significant financial support and motivation for further development of local business during wartime.
The USAID HOVERLA Activity recognized this initiative as a Best Practice in Promoting Local Economic Development, and the Volodymyr-Volynskyi community received an award for it.
