In 2023, almost 91% of small and medium-sized enterprises, forced to suspend their activities in 2022 due to military operations, resumed their work. By the end of the year, a little more than 82% of them remained open.
In addition, companies are gradually returning to the pre-war level of capacity utilization – on average, they are currently using 53.4% of capacity. By the end of this year, it is planned to increase this indicator to 56% and also, if there is demand, to increase turnover by 50%.
Last year, most companies reported war losses of up to $100,000. The construction and processing industries were most affected, and the agro-industrial and telecommunications sectors and the service sectors were the least affected. Businesses in the east and south of Ukraine suffered 50% greater loss than in the west.
Among the main challenges affecting commercial activity in 2024, entrepreneurs name the unpredictable situation, low demand, and the labor shortage. However, companies are not planning further layoffs, indicating a potential for economic recovery.