The question “where to get money?” today is asked by small businesses as often as “how to survive?”. Sometimes the answer is simpler than it seems: a loan or a grant is not always necessary; sometimes it’s enough to revise the strategy. But in most cases, businesses really do need external resources.
Own Capital: The Slowest but Most Controllable Path
Many entrepreneurs build their business “from turnover”: first they earn, then invest. The main advantage is full control. There is no investor to report to, no repayment schedule, no external pressure.
The downside is obvious:
- limited growth pace;
- dependence on cash flow;
- risk of remaining “stuck” in the small business zone for years.
Own capital is a good option if the company’s strategy does not require rapid scaling and the market is relatively stable.
Loans: A Tool, Not a Death Sentence
Ukrainian businesses have long viewed loans as a “last resort”. War has partially changed this: programmes with state support, interest compensation and special terms for relocated enterprises have appeared.
A loan makes sense when:
- there is a clear understanding of what the money is for (equipment, working capital, launch of a new product line);
- there is a clear cash flow forecast for repayment;
- there is a plan B if sales do not follow the optimistic scenario.
Taking a loan merely to “plug holes” without changing the model is a bad idea. It only postpones the problem.
Grants: Opportunity or Trap?
Grants have become one of the key sources of funding for Ukrainian businesses during the war. But a grant is not “free money”.
It is important to understand that:
- A grant is about the donor’s goals, not only the business’s.
If these goals align (jobs, innovation, community development, e-commerce, export), then it is a win-win. - The preparation process can be challenging.
You need a strategy, a financial model, an impact description, and documents. - A grant does not solve systemic business problems.
If a model is unprofitable, a grant will not “cure” it — it will only give a temporary reprieve.
The healthiest approach is to view grants as a catalyst for already well-thought-out plans: scaling production, entering a new sales channel, relocating to a community, launching a franchise, and so on.
Mixed Financing: A Realistic Model for 2025
In most cases in 2025, the solution will not be “either/or”, but a combination of sources:
- part from own capital;
- part from a loan;
- part from grants or investment.
The task of a business owner is not to find a “magic source of money”, but to draw up a concrete plan:
- how much money is needed;
- for what period;
- for what exactly;
- what the risks are and what will happen if things go wrong.
In this plan, money is just a tool. The main thing is the strategy it is invested in.
