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Stable economy in Chernivtsi is a necessary condition for the community economic development, functioning of its health care system, science and education, social sphere, intellectual potential, employees’ qualifications development.
Under conditions of the structural crisis this is one of the most vulnerable factors of the community functioning, that is why in content of the city development strategy, changing of the industrial structure and development of the innovation programmes Chernivtsi City Council pays much attention to social policy.
Traditionally Bukovyna is famous for its recreational potential. Its improvement would bring to stabilization of economy, infrastructure and communication development, improvement of community well-being. Revival of the tourist industry would be a very important source of budget filling.
Chernivtsi City Council designs a new model of the community social and economic development where market and regulatory factors work, different forms of ownership and business coexist and cooperate. The inclusion of different enterprises of Chernivtsi into the social and economic system of the community, arrangement of necessary conditions for its functioning, reproduction of the labor force, the use of intellectual potential is the objective of such economic model.
102,200 people are involved in all branches of economy.
There are 5,899 economic entities and 24,300 people are included in the State Register as private entrepreneurs.
More than 66.7% businesses of the region (oblast) are located in Chernivtsi, while the share of small business in the production sphere makes 22.3%.
Production sphere
Ten branches of the industrial sector numbers 75 enterprises located in the city. The structural subdivision of the enterprises and their share in production (2003) is given in the following table:
| ¹ | Branch of Industry | Number of Enterprises | Branch Proportion (%) |
| 1 | Woodprocessing | 8 | 4.0 |
| 2 | Paper Production and Printing | 3 | 0.7 |
| 3 | Chemical | 2 | 1.9 |
| 4 | Production of Non-metal Mineral Materials | 8 | 4.3 |
| 5 | Metallurgy and Metal-working | 7 | 2.4 |
| 6 | Electric energy Production and Distribution | 1 | 8.1 |
| 7 | Foodstuff Industry | 20 | 39.9 |
| 8 | Machine-building | 4 | 9.6 |
| 9 | Electronic Devices Production | 9 | 1.4 |
| 10 | Light Industry | 13 | 27.7 |
| | | 75 | 100 |
The leading branches of industry in Chernivtsi are foodstuff, light, wood-processing and machine-building industries. Food-processing enterprises produce sugar, bakery, beverages, vegetable oil etc.
Light industry factories produce garments, knitted wear, socks and stockings, shoes and textile.
Machine-building plants produce equipment for gas and oil refineries and agricultural machinery. Iron castings and kitchen utensils production dominates in the sphere of metallurgy and metal-working.
Furniture and saw-timber production predominates in wood- processing industry.
Small business
Chernivtsi small business numbers about 26,000 entities including 24,300 entrepreneurs. There are 2,214 small business enterprises in Chernivtsi. The number of production and services enterprises has increased. Chernivtsi small business produces more than 66.7% goods and its share in the regional economy makes 22.3%. 17,100 people are employed in small business. The share of the small business is 92 enterprises per 10,000 people.
The major activities in small businesses are trade and commerce, production of consumer goods, transportation, consumer and legal services, scientific and others. The share of small businesses in the above-mentioned branches is 64.7% (35.2% - commerce, 18.8% - production sphere, 15% - services, 9.2% - transport, 7.8% - construction).
CHERNIVTSI SMALL BUSINESS ENTERPRISES PRODUCTION by
INDUSTRIES
The majority of entrepreneurship entities carry out their business activities in commerce and services at 3,267 network objects including 1,819 shops, 556 cafes and restaurants, 892 service enterprises. Besides there are 22 market places with 14,300 working places in the city.
"KALYNIVSKY RYNOK" (a market place on Kalynivska street) has the largest trade turnover and more than 8,000 working places for the wholesale and retail sale of different goods.
Investment proposals
Proposals on cooperation
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