UGEARS: «Ukraine is another China»

WeLoveUA presents the final part of the interview with Ukrainian startup UGEARS. You can read the beginning here.

WeLoveUA: Are you proud of the fact that you are designing Ukrainian product?

Denys: Yes. I am proud of it and I want our country in Europe to be associated with some brand. What is Ukraine for foreigners? It is a manufacturer of sunflowers and metal. Maybe nowadays some Europeans will think of some brand when visiting Ukrainian, but there are few of those. I want UGEARS to make this number larger.

I asked this question for a reason. Let’s imagine the situation: you are offered a considerable investment, but for this you need to shift the production from your home country and start working abroad. In fact, UGEARS becomes a foreign project. Right?

Gennadii: In fact, we receive such offers. But the issue is to master the funds well. They should work properly. Finding them isn’t a great problem.

…I understand it, but there is another problem here…

Denys: In mind…

…Exactly…

If the entire production has to leave the country, I wouldn’t have done this. I would gladly work abroad. Personally, I see my progress there.

Gennadii: You should understand, if the laws work in Ukraine, going anywhere isn’t necessary. And what would we do if we have to face the problem now? I think it’s quite a provocative question.

…Maybe…

Denys: You know, I admit it is possible. If the business would necessarily benefit, we would go for it. However, in that case I would start some new industries in Ukraine using the profit from the main project. And the need to move plant to Europe resembles a fairy tale now. We are the second China with cheap labor. So no one would offer it. But the investment would be accepted.

Gennadii: We have a goal – to move towards Europe as quickly as it is possible. Once Poles came to visit our production as they were amazed by the UGEARS’s product. Europeans are surprised that we have such projects. We have to prove that it isn’t a single case.

You’ve mentioned the backwardness of Ukrainian laws. What does it lie in?

The size of the gap between our laws and Europe is difficult even to imagine. Roughly speaking, they do not have a stamp, but we do. This is stone age. I’m not talking about the other benefits of the civilized world, such as electronic documents usage.

And have you got any help in project development from authorities?

Of course not, what are you even talking about! We aren’t asking for any help, the most important thing here is to keep them from interfering. There are very stupid situation sometimes. For example, everyone knows about the law to sell 70% of foreign exchange earnings. We completely agree with this: the country needs money. But sometimes this law becomes ridiculous.

For example, there is a German company with two accounts. It transfers money to our country to an account not mentioned in the contract. In fact, this money also belongs to the country. However, it isn’t transferred that easy: they stuck on transit accounts. Thus, that’s where a negative attitude to the Ukrainian company by foreigners comes from. After all, the German have to wait the end of paper work, and they wait long.

What, in your opinion, such passivity is related to? They do not understand the importance of such nuances for Ukraine?

It’s just typical remains of Soviet procedures. A businessman wasn’t needed back then, as he was a free person. A person the state needed was a factory worker working his fingers to the bone from morning till night for pennies. Apparently, a free personality as an entrepreneur is not needed now either. Soviet system was replaced by oligarchic, but nothing has changed in fact.

This tendency is very sad. We offer a promising product. For instance, recently, a girl from France bought our model and was pleasantly surprised by its quality and the original idea.

…And our officials, as it turns out, don’t care…

Right, they don’t. Baltic countries, for example, have a system of grants. You get some favors if you produce an eco-product, work for export etc. All programs are implemented by EU money. In Ukraine, the situation is different. In Poland or Latvia, startups can get 70% of financing irrevocably. And in the USA, you get a curator if you work for export. This is an official who promotes your product.

As you know, UGEARS is not the production only, but also the patent. Were there suggestions to cooperate with the franchise?

Gennadii: We are not ready for this. Such activities need a clearly established scheme and full control over who will produce items on our patent. UGEARS aren’t that powerful project yet.

Denys: Sometimes we face strange suggestions, like, “Sell your drawing for a hundred bucks”. Of course, we sell nothing to anyone and remind that everything is patented.

We have serious patent, by the way – established in Geneva, it is recognized in Europe. It applies to Ukraine, Germany, USA, and China – these are regionally important countries, and their neighbors will recognize the patent, too.

Finally, the last question. What advice would give those, who are just planning to start a startup in our country?

Gennadii: Start without thinking. You’ll male it if you try. You don’t need to find an excuse to start acting. The idea is another nuance. You should really understand whether someone needs your product or not.

Denys: I would also advise to speak at real conferences not to store anything on your mind only. Come speak to people – and you’ll succeed.

Thank you for the interview, talking to you was a pleasure. We are proud to have such compatriots and wish you success UGEARS development..