Year: 2025
Type: article
Abstract: The article discusses the key aspects of small business functioning in wartime. During the war, small business in Ukraine plays a key role in supporting the economy, creating jobs and providing the population with the necessary goods and services. This article examines the dynamics of changes in small and micro businesses. Since 2020, there has been a decrease in the number of small and micro enterprises. In 2020, the COVID-19 pandemic caused a significant reduction in business activity due to lockdowns, falling demand, and disruptions in supply chains. A large number of small businesses, especially in the service sector, were unable to survive the crisis. However, a significant reduction in the number of small businesses is expected to occur in 2022, the year of Russia's full-scale invasion of Ukraine. The destruction of infrastructure, occupation of territories, reduced effective demand, decreased investment attractiveness and other factors led to massive business closures. In 2023, the number of small businesses increased due to business adaptation to new conditions, government support programs, recovery of economic activity, and changes in business models. Small businesses in Ukraine have faced unprecedented challenges during the war, including financial instability, disruption of supply chains, staff shortages, and problems with access to resources. Nevertheless, entrepreneurs have demonstrated high adaptability, flexibility and the ability to transform in the face of the crisis. To ensure the sustainability of small businesses, it is necessary to implement both government support mechanisms (soft loans, tax breaks, export promotion) and internal measures at the level of the enterprises themselves (cost optimization, digitalization, reorientation to new markets). It is crucial not only to support existing businesses but also to promote the development of new initiatives, attract investment and introduce innovative business approaches. Successfully overcoming the current challenges and effectively using the opportunities will help small businesses not only survive the war, but also become the engine of the country's economic revival in the future.
Source: Market Infrastructure
Author: Natalia Kovalchuk
Language: English
Topic: Economic Issues in Ukraine
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4411572432