The EBRD has identified the state and problems of Ukrainian businesses.

The EBRD has identified the state and problems of Ukrainian businesses.

After two years of large-scale war, most Ukrainian small and medium-sized enterprises (SMEs) managed Companies have managed to stabilise their operations, demonstrating their high adaptability to war conditions, the EBRD notes in its study. By April 2024, 85% of companies were fully operational and 14% were partially operational (compared to 57% and 37% respectively in the first year of war).

In addition, the share of SMEs reporting a decline in profitability has fallen by almost 50%. One in five companies (19%) reported year-on-year growth in turnover. 34% of companies reported a reduction in staff, compared to 55% in the first year of the war.

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

Among the negative trends caused by the war, SMEs have experienced slow recovery in sales, staff shortages due to mobilization and migration, limited investment and increased business competition with donor-funded public organizations.