Ukrainian business adapted to new business factors

Ukrainian business adapted to new business factors

Ukrainian business is #recovering. This is evidenced by registration of new businesses and social surveys since the beginning of the war. Ukrainian entrepreneurs have learned how to react quickly to external factors and adapt to new business conditions. Moreover, this adaptation is faster compared to the COVID-19 pandemic.

➖ The number of companies that resumed their activities and paid salaries, and payments to suppliers is increasing. The situation significantly improved in April from March, according to a study conducted by Gradus. Despite the fact that about 79% of SMEs had income reduction, more than 40% – continued wage payments. The same situation is with payments to suppliers – 40% of companies intend to make full payments to suppliers in the near future, while the percentage of non-payments has decreased almost twice. The most popular fields of business activities during the war are retail and wholesale, IT and provision of professional services.

➖ The business that plans relocation of its facilities from dangerous regions considers the following regions: Lviv (20% of respondents); Vinnytsia (12%); Ivano-Frankivsk(12%); Zakarpattya (10%); and Kyiv city (10%). The main reasons of business relocation are saving business and solving logistics issues, and 70% of them expect to do so within the country.

➖ According to the analysis conducted by The Centre for Innovations Development together with the Entrepreneurship and Export Promotion Office and Diia.Business, during the two months of the war the number of newly registered businesses have already approached 50% of the similar pre-war period of April 2021. Moreover, 29% more new businesses have already been registered compared to the corresponding period of April 2020, during the COVID-19 pandemic. The most for-profit companies were registered in Kyiv, Lviv, Dnipropetrovsk, Ivano-Frankivsk and Khmelnytskyi regions. In terms of types of activities, the leaders are the following: growing of cereals, trade, computer programming and construction.

📌 Thus, there is a gradual #recovery of #entrepreneurial #activity and adaptation of business to extremely difficult conditions. In order to support business, the state creates government programs of stimulating and developing entrepreneurship: simplification of taxation system, single tax rate reduction, exemption from land fees and environmental tax in hostilities areas and the implementation of affordable credit programs.

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