War has significantly affected the work of over 60% of Ukrainian businesses - research.
More than 60% of small and medium-sized business representatives in Ukraine have noted a significant deterioration in their economic and financial indicators. This was reported by Alla Ivashchenko, a scientist from the Vadym Hetman Kyiv National Economic University, during the presentation of the research "Resilience of Ukrainian business during the full-scale invasion".
According to Ivashchenko, the most difficult situation arises for small and medium-sized businesses, especially in those regions on the frontlines of hostilities. Enterprises constantly face infrastructure damage, supply chain destruction, as well as workforce migration and resource shortages.
During the survey, over 60% of small and medium-sized businesses reported a decrease in production, sales, and number of clients. Moreover, more than 33% of respondents in frontline areas and almost 30% in other regions of Ukraine reported significant losses. It should also be noted that nearly 20% of surveyed businesses are on the verge of closure. The worst situation is in the micro- and small business segment," emphasized Ivashchenko.
According to the research, almost 72% of enterprises faced an increase in the cost of products and services, which resulted in reduced profits in 73% of cases. Additionally, about 61% of enterprises are not investing in their development due to a lack of funds and reduced profitability.
The main factors affecting businesses after Russia's invasion include mobilization processes, a lack of qualified labor, issues with product realization, and high energy costs. Moreover, hostilities reduce the investment attractiveness of regions and create risks and uncertainty regarding the future of businesses.
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