Business after demobilization: how the veteran grant system works and where it fails

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Time for Action has analyzed how the system of veteran entrepreneurship support is being built in Ukraine after demobilization, what resources the state allocates for this purpose, and what real barriers veterans face when they decide to start their own business. For many of them, business is not just a source of income, but a way to regain control over life, which after the war often loses its usual support. That is why the effectiveness of these programs matters not only in an economic sense, but also in a social one.

The key state instrument of support is the Ukrainian Veteran Fund, established back in 2021. Its mission is defined as financial support for veterans and their family members to launch or develop their own business. The fund operates through competitive programs and microfinancing, and it is through this institution that the majority of budget funds directed to veteran business are distributed. For the period from 2022 to November 19, 2025, state support was received by 1,575 veteran businesses. Of these, 542 businesses were financed under the “Varto” programs, while 1,033 businesses received microfinancing of up to UAH 20,000. The total amount of support during this period reached UAH 719.9 million, including UAH 699.7 million under the “Varto” program and UAH 20.2 million in microfinancing. These figures demonstrate the scale of the funds involved, but at the same time reveal different underlying approaches. Microfinancing provides a quick start, but does not include long-term support. The “Varto” programs offer larger amounts, but are accompanied by stricter reporting and control mechanisms. The fund monitors project implementation until all obligations are fulfilled and retains the right to track results for three years after completion.

The most sensitive indicator in this system is the sustainability of businesses after receiving grants. According to the fund’s data, 542 businesses that received “Varto” grants continue to operate. At the same time, the fund’s own calculation states that out of every 100 businesses, 34 projects remain active, that is, approximately one third of all supported businesses. This means that financing alone does not guarantee long-term survival, and the quality of post-launch support becomes critical.

At the same time, the state is increasing overall spending on veteran policy. In 2024, UAH 10.7 billion was allocated to support veterans; in 2025, this amount increased to UAH 13.5 billion; and in 2026, UAH 18.9 billion is planned in the budget. These funds cover not only business support, but also housing, medical treatment, rehabilitation, memorial infrastructure, and other programs. At the same time, funding for the Ukrainian Veteran Fund itself is also growing: UAH 247.7 million in 2024, UAH 300 million in 2025, and UAH 1.4 billion in 2026, including the “Veteran Sports” program and educational certificates for children.

Practice shows that veterans most often start businesses in the fields of the agro-industrial sector, manufacturing services, the food industry, and the restaurant sector. At the same time, projects in construction, medicine, logistics, trade, tourism, education, woodworking, and printing also receive support. This indicates diversity and the absence of a single model of veteran entrepreneurship.

In addition to the Ukrainian Veteran Fund’s programs, veterans also use other opportunities. The state program “Own Business” allows participants to receive UAH 250,000, and starting in 2026, UAH 350,000. Since 2022, 31,000 Ukrainians have benefited from this program, creating or planning to create 55,000 jobs. Separately, since 2023, more than 2,500 veterans and their family members have received support within the veteran track.

There are also local and partner initiatives, including the “Courage to Business” program, under which 75 participantscreated 42 jobs, and 33 new sole proprietors appeared in the Lviv community. Additional support is provided through initiatives backed by Diia.Business and private grant programs.

The real picture of how these mechanisms work is best seen through the experiences of the veterans themselves. Ivan Tsyhryk from Poltava region, who after service opened a production of jerky, lard, and sauces, says: “My sister supported me. She found this project in Diia.Business, which offered training, and after successful completion there was a competition and selection of the best participants who receive start-up funding. The training lasted about three months. A great community formed, wonderful teachers, so learning was easy. My efforts were appreciated I won the competition and made it into the top seven.” He received UAH 154,000 in start-up funding and was able to launch his business. For him, this was the continuation of a long-held dream: “When I was 11, I was given my first cookbook with recipes. Since then, I have always aspired to create dishes and food that can give emotions. And this was always my unfulfilled desire, until now.”

At the same time, he points to bureaucracy and limited access to information in small communities. According to him, large cities have hubs and advisory centers, while in smaller settlements veterans often face documents and requirements on their own.

A different experience is described by Volodymyr Rizun, who runs an agribusiness in Poltava region. He talks about systematic work with grants and a high number of rejections. “I dictated something to her on a voice recorder. That’s how it was,” he recalls about submitting applications during service. According to him, out of about fifty applications submitted, 25% were successful, while 75% ended in rejection. He highlights the lack of feedback as a major issue, when applicants do not receive explanations for refusals. Most often, grants are needed specifically for equipment: “We practically ask only for equipment. We can provide everything else ourselves. Only the Ukrainian Veteran Fund more or less gives such an amount.” At the same time, he acknowledges that larger grants come with more complex reporting, which becomes an additional burden for small businesses. Despite this, he is determined to develop his business in his native village: “Life in the countryside is difficult, especially in a small village that is dying. I fundamentally do not want to leave this place.”

Similar challenges are described by Lviv veteran Ivan Antoniv, who opened a food truck. He received a grant on his third attempt and explains the reasons for previous refusals: “The third time we managed to get a positive response. The first time we were refused because my certificate was not yet in the register. The second time we were refused due to our inattention, because we indicated something incorrectly in the application itself.” According to him, the application process itself is understandable, but after launching the business, entrepreneurs face other challenges a difficult economic situation, high costs, and unstable demand.

In summary, the system of veteran entrepreneurship support in Ukraine has already taken shape as a distinct area of state policy. The growth in funding and the number of programs indicates serious intentions on the part of the state. At the same time, factual data and the experiences of veterans themselves show that the main challenge lies not only in allocating funds, but in the quality of support, simplicity of procedures, accessibility of information, and post-grant assistance. Without this, even significant budgets risk producing only short-term effects. The extended conclusion is that veteran business can become an important tool for reintegration and economic recovery of communities only if the state focuses not on the number of grants issued, but on creating a clear, consistent, and humane system in which a veteran does not get lost among forms, reports, and silence in response. Without this, entrepreneurship after the front line will remain more of a trial than a real path to a new life.