Digital Modernization of State Regulation of Small Business Development in the Brewing Industry in modern Ukraine

Abstract

The article substantiates the need for state support for the sustainable development of small enterprises in the craft brewing industry. Based on spatial analysis, countries with the most developed craft brewing sectors—such as the United States, the United Kingdom, Germany, Belgium, and others—are identified. For these countries, the dynamics of the number of craft breweries and their market shares over the past 20 years are analyzed. The study examines instruments of public influence on the development of craft brewing in the United States, the United Kingdom, Germany, Belgium, and the Czech Republic. It is established that a targeted combination of tax incentives (reduced excise duties or progressive tax rates for small producers), licensing control, and support through associations and sectoral programs constitutes an effective factor in the development of small brewing businesses.
The analysis of digitalization practices in public administration and support for small enterprises in the countries under study shows that they include government service portals, online business registration systems, electronic tax services, electronic submission of licensing documents, online advisory services, and access to financial support instruments (grants, subsidies, and loans). However, no specialized digital platforms or services exist specifically for the craft brewing sector, and small breweries rely on general digital services for entrepreneurs. In Ukraine, state digital services (Diia.Business, e-Entrepreneur) do not take into account sectoral specifics or the particular needs of entrepreneurs engaged in craft brewing. The analysis of the current state of the craft segment of Ukraine’s brewing industry demonstrates that this sector is almost undeveloped, despite having certain growth potential. It is determined that the regulatory framework governing craft brewing in Ukraine is characterized by the absence of a differentiated approach to small businesses: excise taxation is applied at a uniform rate, licensing procedures are identical for small and large producers, and financial support programs for small businesses are formally available, yet most partner banks refuse to provide financing to small craft beer producers.
Based on an empirical study (semi-structured in-depth interviews with entrepreneurs who own small breweries), the following constraining factors were identified: disproportionate excise tax burden, complexity and high costs of licensing procedures, limited access to financing, a high share of imported raw materials, a shortage of qualified brewers, and restricted distribution channels. The analysis of state regulatory measures and digital tools and services shows that they do not address the identified intra-sectoral problems of craft brewing. An expert survey of specialists in the craft brewing industry confirms the existence of significant problems related to taxation, obtaining permits and licenses, and awareness of state digital instruments. The paper proposes a differentiated taxation model for small breweries based on a progressive scale, formulates the conditions for obtaining tax reductions under this model, and identifies instruments for digital modernization, including an electronic module “Differentiated Excise Duty for Small Producers” integrated into the taxpayer’s electronic cabinet and the Diia platform; a sector-specific digital service “e-License for Craft Producers”; a sectoral financial window within Diia.Business; and a digital sectoral educational and certification platform for craft brewing. The potential of smart contracts for the development of the craft brewing industry is also assessed.