Effects from the war on small and medium-sized businesses in Ukraine have largely been overcome.

Despite the war’s devastating impact, micro, small, and medium-sized enterprises have shown exceptional resilience, and after a brief shock from the Russian invasion, businesses have adapted to the new economic context, analysis shows.

Currently, having optimized staffing, enterprises have no plans to reduce personnel levels, seeing human resources as a prerequisite for the economy’s gradual recovery this year. In addition, most companies have significant unused capacity that they plan to gradually begin utilizing in 2024. Enterprises are ready to increase turnover by approximately 50%.

However, although companies need additional funding, they are cautious about attracting new investment due to the unpredictable financial and investment environment. Most companies reported losses of up to $100,000. The construction sector suffered the most, and agriculture and professional services the least.

It is expected that enterprises in the eastern and southern regions suffered 50% more losses than those in the west of the country. At the same time, businesses in the East have more optimistic and positive expectations about their recovery prospects in 2024.