The EBRD identified the state and problems of Ukrainian business.

Wednesday, July 3, 2024
The EBRD identified the state and problems of Ukrainian business.

After two years of full-scale war, most Ukrainian small and medium-sized enterprises (SMEs) managed to stabilize their activities, indicating their high adaptability to war conditions, the EBRD notes in its research. As of April 2024, 85% of enterprises were fully operational, and 14% were partially operational (versus 57% and 37%, respectively, in the first year of the war).

In addition, the share of SMEs that reported a decrease in profitability decreased by almost 50%. One in five companies (19%) reported year-over-year revenue growth. 34% of enterprises mentioned the reduction of personnel, against 55% in the first year of the war.

If the war continues for another year or longer, 64% of SMEs plan to maintain their current activity level. In comparison, the share of enterprises planning to diversify or expand their business has tripled (12%).

Among the negative trends caused by the war, SMEs have had a slow recovery in sales, a lack of personnel due to mobilization and migration, limited investment, and increased business competition with public organizations financed by donors.

 

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