Legal regime of «Diia.City» as a driver of digital development for small and medium-sized businesses

The article focuses on the importance of digital transformation for Ukraine's economic development, with a particular focus on the Diia.City project, which is an important mechanism for supporting small and medium-sized businesses in the current difficulties. The article analyzes in detail the economic preconditions that facilitate the expansion of the digital economy in the country. These prerequisites are based on the formation of market mechanisms that stimulate interest in digital technologies, products and services. Such changes have a positive impact on increasing the productivity and competitiveness of various spheres of life, from the industrial sector to the daily activities of citizens, creating the basis for technological upgrades and improving the quality of life. The study reveals the diversity of Diia.City residents' activities, covering a wide range of innovative areas. These include software creation, mobile application development, and cloud solutions, as well as more specialized areas such as unmanned aerial vehicle design, cybersecurity, robotics development, and the organization of esports initiatives. These areas emphasize the significant contribution of residents to the promotion of technological progress in Ukraine, as well as to strengthening its position in the global digital environment. The special regime of Diia.City demonstrates the ability to bring together advanced companies working to solve both commercial and socially important tasks, including those related to maintaining the country's defense capability in times of war. The paper analyzes how digital transformation has become a pillar of Ukraine's economic resilience during Russia's full-scale invasion. Despite the challenges of wartime, projects such as Diia.City not only continue to operate, but also attract a significant number of residents – more than 400 companies in the first year of operation, including leading IT giants and companies developing technologies for military needs. This contributes to the formation of a single digital space that provides entrepreneurs with access to modern tools needed to adapt to crisis conditions, find new markets, and improve business processes. The article emphasizes that digital transformation is opening up new horizons for Ukrainian business, allowing small and medium-sized enterprises not only to survive in difficult circumstances but also to increase their presence in domestic and foreign markets. By integrating digital solutions into the daily activities of society and the economy, Diia.City plays a key role in supporting national development, contributing to the modernization of the business environment and strengthening the country's economic foundation.