Co-cReating vAlue For enTrepreneurial engagement in Ukraine (CRAFT)
The project CRAFT (Co-cReating vAlue For enTrepreneurial engagement in Ukraine) aims to strengthen the resilient agri-businesses in Ukraine, focusing on means of flexible and innovative problem-solving approaches.
The design thinking methodology will serve as a model to overcome identified barriers, and FabLab (Fabrication Laboratory) Halmstad will serve as an innovation arena to explore, test and analyse resilient solutions, but also as a hub for exchanging experience and knowledge between entrepreneurs and partners -share globally and act locally.
The project mainly relates to private sector development as the challenges for agri-business are tackled with an innovative and resilient approach, but also indirectly to strengthening conditions for trade, especially targeting independent small agri-businesses in Ukraine.
Background
In the years leading up to Russia's full-scale invasion of Ukraine in February 2022, Ukraine had become a significant producer and exporter of various agricultural goods. Before the invasion, Ukraine ranked highly in global exports of wheat, honey, walnuts, maize, barley, rapeseed, sunflower oil, sunflower meal, and millet. However, due to attacks on Ukraine's agriculture sector by Russia and collateral damage from the conflict, Ukraine's agricultural production and exports have decreased. Estimates from June 2023 suggest that the sector has incurred $8.7 billion in direct damages to machinery, equipment, storage facilities, and agricultural inputs and outputs. The sector's losses amount to $40 billion, reflecting reduced incomes for farmers due to decreased production, lower selling prices, and increased operational costs throughout the agri-food value chain.
The invasion has caused a shift towards a more agile approach to business; continuity in such a volatile situation demanded constant adaptation and problem-solving for business in the agricultural sector, often on an hourly basis.
Regional and local considerations are vital for the success of Ukraine's recovery efforts. With this in mind, our project will pay special attention to the Lviv metropolitan area, which encompasses 18 communities, including 13 rural ones.
According to the 2027 State Regional Development Strategy, Ukraine has identified seven potential metropolitan areas, or agglomerations, intended to serve as regional economic drivers. Among these, the Lviv metropolitan area stands out as it is situated in the rear part of Ukraine, with relatively lower security risks compared to other agglomerations like Kyiv, Dnipro, Odesa, Kharkiv, Zaporizhia, and Kryvyi Rih.
Given its favorable security situation, the Lviv metropolitan area presents an opportunity to pilot solutions for post-war recovery that can later be replicated in other Ukrainian metropolitan areas. Additionally, in 2024, local self-governments established the 'Lviv Agglomeration' Association as a platform for inter-municipal cooperation and the implementation of the Lviv Agglomeration Strategy, which was developed in 2023 with consultancy support from the Council of Europe.
These factors underscore the strategic importance of focusing our efforts on the Lviv metropolitan area and leveraging its unique position to drive sustainable recovery initiatives.
Partnership
Halmstad University, Lviv Institute of Management and Business incubator Ukrainian Future (Ukraine) are committed to collaborate, addressing the challenges faced by Ukrainian small agri-businesses. Halmstad University will bring an innovative approach to problem-solving through its FabLab practices and will prepare for security scenarios in Northern Europe based on the Ukrainian experience. Meanwhile, the Ukrainian partners aims to contribute to the local businesses resilience and development of the inter-municipal cooperation in the Lviv metropolitan area. Also, the Lviv Institute of Management is eager to update its curriculum to meet the challenges of the war and offer more result-oriented classes for its students, including those in the MBA program. The FabLab approach and the concept of distributed manufacturing technologies will be instrumental in this effort, with the support by business incubator Ukrainian Future. These mutual benefits will form a solid foundation for a formal partnership.
Halmstad University will coordinate the project and be responsible for the execution of the use cases that will be developed at FabLab Halmstad, based on the need analysis carried out by Lviv Institute of Management and hackathon conducted by the business incubator Ukrainian Future. Halmstad University will coordinate the workshops with potential stakeholders and develop a research application focusing on the resilient approach of business and entrepreneurship that could benefit the agricultural sector in Ukraine and also in Sweden as a collaboration project.
Lviv Institute of Management will be responsible for communication with the Ukrainian stakeholders and target groups. It will undertake the needs analysis of farmers and producers (SMEs) in the agricultural sector by means of interviews with entrepreneurs, local authorities, and other stakeholders. Special attention will be paid to Lviv metropolitan area rural communities, which might become a model for other Ukrainian agglomerations during the post-war recovery. LIM students, staff, and alumni will be engaged in the project Hackathon and relevant activities.
The business incubator Ukrainian Future will be responsible for the development and implementation of training and mentoring programs for businesses and startups, thereby stimulating the development of a resilient entrepreneurial mindset. In addition to short-term programs, the incubator will provide post-training support for the most viable projects (use cases selected) in the format of a long-term incubation program (1 year+), thereby contributing to the practical implementation of innovative and resilient solutions. This is facilitated by the available equipped laboratory of 200 (sq. m) and the provision of technical consulting (staff engineer and engaged experts in prototyping and materials science).
About the project
Project period
- 2024-11-01–2025-10-31
Project Leader
Other participating research
- Per Servais, Guest Professor
External link. - Martin Bergman, Lecturer External link.
- Joakim Wahlberg, Research Engineer External link.
- Joakim Tell, Deputy Professor External link.
Collaboration partners
- Lviv Institute of Management
- Business Incubator Ukrainian Future
Financier
The project is financed by the Swedish Institute, within the Ukraine Cooperation Programme, aimed at supporting Ukraine’s recovery and long-term development.
