Most companies suffered war losses of up to $100,000. The construction and processing industries have the greatest impact.
In Ukraine, by the end of 2023, 82% of small and medium-sized enterprises that had suspended operations due to the large-scale invasion of Russia continued to work. This is confirmed by data from a study prepared by the UN Development Program team with the analytical platform Economic Recovery Center and the Ministry of Economy.
It was noted that last year, almost 91% of MSMEs that were forced to suspend operations in 2022 due to conflict continued to work. By the end of the year, just over 82% remained.
Companies are gradually returning to pre-war capacity load levels – on average they are already using them at 53.4%. By the end of this year, the surveyed enterprises plan to increase this figure to 56%, and also, if there is a need, to increase the turnover by 50%.
Most companies suffered war losses of up to $100,000. The biggest impact was experienced by the construction sector and the processing industry, the smallest – by the agro-industrial sector and telecommunications, as well as the service sector.
Businesses in the east and south of Ukraine suffered 1.5 times more damage than in the west. Every second entrepreneur says that his business cannot survive without government help – loans, grants, work programs, tax cuts.
Among the main challenges for 2024 affecting commercial activities, the surveyed entrepreneurs named an unpredictable situation, low demand and labor shortage. However, companies are not planning to further cut staff, indicating potential for economic recovery.
We remind you that the first meeting of the Entrepreneurship Support Council was held at the end of January. The Council of Entrepreneurs will monitor the state of the business climate in Ukraine and the state’s attitude to business, and consider draft laws on entrepreneurship.
It was previously reported that an All-Ukrainian Economic Platform will be created in Ukraine, which should significantly facilitate communications among businessmen.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.