Small Business Sentiment Index: Half of Entrepreneurs are Struggling.

The Small Business Sentiment Index in Ukraine Has Deteriorated

The European Business Association, OLX Ukraine, and Raiffeisen Bank have presented the results of the Small Business Sentiment Index study for 2024. According to the research, the index has dropped to 2.3 points out of a possible 5, indicating a negative trend in entrepreneurs' sentiments. However, small businesses consider the situation better than during the pandemic in 2020.

All components of the Index have shown a decline, with the lowest indicator being the assessment of the economic situation. Now, 21% of entrepreneurs believe their business is doing well, 27.5% consider the situation neutral, and 51.5% think their business is in poor shape.

Forecasts for the next six months have also become more cautious, with only 22% of entrepreneurs expecting improvement, while 47% believe that the situation will worsen. Businesses are actively using digital channels for sales, including social media and their own websites. However, the biggest challenges remain the conflict, low purchasing power of the population, and rising prices.