State support of small business was provided because of formation of the respective normative base, assistance to the development of small enterprises in manufacturing, innovation and social spheres, stimulation of the investment activity and limitation of monopolizm in business undertakings, formation of the developed market infrastructure on oblast and local levels, that enabled to create 2830 new vacancies.

During 1999 and 2000 the quantity of people, occupied in the sphere of small business, increased almost by 5,5 percent (over three thousand people) and makes 73 thousand citizens or about 8,6 % of oblast population occupied in social production.

Taking measures of the Program caused the increase of the quantity of the registered small enterprises (one thousand for 2 years). Now there are almost 9,8 thousand of them. 420 juridical persons were registered in 1999, about 600 small enterprises - in 2000.

Comparing with the level having being reached last year the weight of receipt to the local budget from activity of the subjects of small business has grown by 1,2 %.

In 1999 the weight of profitable enterprises of the small business made 66 %, in 1998 - 67,8 %, in 1997 - 75,8 %.

The fact of increasing the volume of realization of production (works, service), being rendered by the subjects of business undertaking is an evidence of the "quality" of small enterprises or economic efficiency of their functioning. The volume increased from 453 million hrivnyas in 1997 up to 988 million hrivnyas in 1999 and its weight in the combined total of the proceeds from the realization of firms and organizations of oblast made 17,2 %.

The quantity of the subjects of business undertaking - natural persons has increased by three thousand, or 11,4 % (for 2 years). At the end of 2000 over 26 thousand citizens were engaged in business undertaking.

At the end of 2000 4263 natural persons and about 1,5 thousand juridical persons worked according to the reductive system of taxation and were given the Certificate of payment the single tax. The quantity of the natural persons on the reductive system of taxation has increased as much as 2,5 times, and the amount of juridical persons - as much as 1,5 times for 2 years. About 3 thousand citizens are in the labor relations with the subjects of business undertaking - natural persons, the payers of the single tax. Only during the year 2000 499 juridical persons and 2529 natural persons were transferred to the reductive system of taxation. Comparing with the respective season of 1999 the sum of receipts has increased by 4,3 times, including receipts from the juridical persons - by 5,4 times, from the natural persons - by 3,6 times. Almost 6% of juridical persons are payers of the single tax under the rate of 6 %, the rest of them are payers of the single tax under 10 % rate.

On October 1, 2000 there were 862 farms (up to 50 employees) in the oblast. That is 63 farms more in comparison with the beginning of 1999.

The area of farms' lands makes 24,3 thousand hectares (including lease), including ploughed fields - 18,9 thousand hectares (including lease). Over 2000 people, including over 20% of women, are employed in this branch. Besides, above five hundred people are recruited for seasonal works.

During 1999-2000 small business was credited. To assist its development the central administrative board of economics together with the regional fund of support of business undertaking announced contest of projects of business - plans for members of the Union of businessmen of Vinnitsa oblast. The prizes were microcredits. Thus oblast state administration at the expense of overfulfillment of the oblast budget transferred to the regional fund of support of business undertaking 130 thousand hrivnyas for it to solve presented problems. And this money was given to eight small enterprises and three farms as credits.

The Ukrainian fund of support of business undertaking gave Vinnitsa regional fund of support of business undertaking 15,5 thousand hrivnyas to finance its activity. The regional department of Gosinnofond of the Ukraine and the local innovation fund at the Department of economics of oblast state administration financed 12,5 million hrivnyas in 20 innovation projects.

In 1999-2000 Vinnitsa department of the Ukrainian state fund of support of farms was given 56 thousand hrivnyas from the state budget to create farms and to give them pecuniary aid. This sum was spent on works and projects on allotment of lands to 117 farmers of the oblast.

Commercial banks of our oblast gave credits to firms of the non-state pattern of ownership rather actively. On 1.10.2000 the credit investments in such firms made 130 million hrivnyas, or 96 % of all credit investments. In comparison with 1999, in 2000 the sum of crediting increased as much as 1,7 times.

It is necessary to mention considerable, as much as 4,5 times comparing with the respective season of last year, increase of credit investments in agricultural companies of non-state pattern of ownership. They made 20 million hrivnyas.

Since December, 1999 the regional center of employment has given the interest-free loans in sum of 240 thousand hrivnyas to 105 unemployed to enable them make business.

The fund of non-living quarters, having been carried over, leased (long lease and short lease) to small enterprises, was formed in regional state administrations and executive committees of municipal councils. The inventory of quarters that can be used by the enterprises is made periodically. After taking measures the vacant quarters with the total area of 90 thousand square meters were found out.

Vacant quarters were leased to about one thousand subjects of business undertaking in our oblast in total.

To develop the manufacturing sphere of business undertaking the regional department of FGIU realized 72 non-living quarters, 43 objects of unaccomplished building (on the basis of contest), 13 non-living quarters of state and joint ownership were privatized during 2 years. Natural and juridical persons - subjects of business undertaking became their owners. The regional department of FGIU also completed 15 agreements on lease of state property (non-living quarters) with the subjects of small business.

To carry the projects on creation of favorable conditions for small business development in the regions since July 1 1999 till June 30 2000 fund "Yevraziya" transferred as a purposeful financing for development of small business the part of the grant in sum of 6 thousand dollars on account of Agency of International Development of the USA to a number of entities: "Vinnitsa consulting center" - 2 thousand dollars, consultation centers at the regional Unions of businessmen of Kazatin, Yampol, Tulchin, Trostyanets regions (the city of Ladyzhyn) - 1 thousand dollars each.

The structures of Vinnitsa business-incubator functionate with success within the program of development of infrastructure of small business in Vinnitsa. The last was to be carried in the subprogram of the infrastructure supply of the Program.

Business-incubator works up business-plans for unemployed, gives trainings as parts of work on giving credits on preferential terms by the centers of employment.

The training-informational center was given a license for salesmen training. Materials to get the license for managers training were prepared. 120 persons were trained at the courses of users of personal computers. 115 business-plans were worked out for people having made a decision to make business.

The Association of small business was admitted into the network of business-associations of the Ukraine. Consultation service for businessmen that was asked for help by over a thousand of private entrepreneurs and small enterprises had been organized. Treaties with 5 personnel agencies of Kiyev were concluded. Information service was rendered to 580 subjects of small business. They started to carry the program on the international exchange of youth out.

The credit union "Pryedprinimatyel" gave 21 microcredits in sum of over 40 thousand hrivnyas.

In 1999-2000 youth business-clubs were organized and they work at Agricultural, Technical universities, at College of management with success. Their aim is to train future businessmen and to make new vacancies for the graduates of the high educational establishments of Vinnitsa: Technical, Pedagogical, Agricultural universities. 40 sessions were held in the network of youth business-clubs.

The experience of Vinnitsa business -incubator was appreciated at its true value by the International fund of social adaptation. Methodic training-seminar with the directors of the centers of support of business undertaking of the International fund of the social adaptation of Eastern and Central Ukraine was held in Vinnitsa. Vinnitsa State Center of standardization, metrology and certification renders methodic assistance in questions of standardization, metrology and certification. 47 packages of technical conditions, 23 of them for manufactured goods and 14 for foodstuffs were worked out.

To raise the competitiveness of home goods in the foreign market the consultative center on problems of implementing and perfecting the systems of quality control according to the requirements of the international standards 150 series 2000 was found at the Center.

The plenipotentiary on the problems of support of business undertaking of Gospryedpryenimatyelstvo of the Ukraine in Vinnitsa oblast, whose social status is aimed on strengthening of the state guarantees and further formation of system of the defense of rights and legal interests of the businessmen, takes measures in our oblast.

According to the Order of Gospryedprinimatyelstvo of the Ukraine from 27.07.2000 #30 the regional public board on problems of development of business undertaking is active in our oblast.

The number of educational establishments where teaching ABC of theory and practice of business undertaking was arranged increased by 32 units during 2 years. There are 116 of them in oblast.

To assist the development of business undertaking and small business, competence of businessmen in questions of introduction of new legislative documents the seminars, science-informational meetings were held, courses were organized. The amount of examinations of the results of financial and other kinds of activities of the subjects of small business has considerably decreased. The supervisory bodies of our oblast made them less by 38,5% then in 1988. The number of examinations per one enterprise is 1,8 (in 1998-2,6).

On the initiative of GNA the new forms of communication with taxpayers, supplying the biggest sums of payment to the budget, were introduced. Celebration in honor of the conscientious taxpayers with presentation of gratitude of the respective form according to the results of work of their enterprises in 1999 was held solemnly in all regions.

On May 21 1999 the measures where the participants of informational-cultural run of the train "Businessman of XXI century" with the chairman of Gospryedpinimatyelstvo Kuzhel O.V. at the head, businessmen of Vinnitchina and administration of our oblast participated were taken within All-Ukrainian measure "Businessmen of XXI century" in Vinnitsa.

Meetings with Vinnitsa oblast businessmen, active members of funds and trade unions, representatives of institutions of local governing were held.

To create the efficacious system of social shock-absorbers in the process of structural reconstruction of the national economic complex of our oblast, forming of efficacious machinery of adaptation of the population to the market forms of the manufacturing relations, gradual legalization of the dark side of economics, reducing of concealed unemployment, the chairman of the oblast state administration gave a direction " About the strategic priorities of the oblast state administration on support and development of small business in 2000", where one of the main strategic priorities for the institutions of local executive authorities defines the maximum assistance to the development of the private initiative and enterprise at the territory of Vinnitsa oblast.

According to the Decrees of oblast state administration from 12.08.1999 #300 "About the council on the development of business undertaking and small business at the chairman of oblast state administration" and from 7.02.2000 #50 "About the commission on the questions of regulation of business undertaking at the oblast state administration" and from 06.10.2000 #405 "About the coordination of the activity of executive bodies on the questions of development of business undertaking and carrying regulator policy out" the respective commissions worked under the supervision of vice-president of oblast state administration and later on the coordinating council on the problems of development of business undertaking and carrying the regulator policy out will be active at oblast state administration.

During 1999-2000 over 70 questions, concerning activity of the subjects of business undertaking, work of the supervisory bodies, problems of the regulator policy, were examined at the meetings of the committee (coordinating council).

To use possibilities of business undertaking more efficacious to develop economics of our oblast, for acceleration of economic reforms, solution of social problems and ensuring the realization of the rights of citizens of business undertaking the chairman of oblast state administration issued orders approving working plans on organization of fulfilment of the Decree of the President of the Ukraine from 15.07.2000 #906/2000 "About measures on supply of support and further development of business undertaking " and order of KMU from 02.08.2000 #306-r "About the approval of measures on carrying the policy of the efficacious support of private, family enterprise, small and average business, perfection of the system of rendering assistance to the unemployed and their professional-psychological rehabilitation, the increase of volume of social works out".