75% of Ukrainian SMEs keep on working during the war, 79% report a decrease in revenues, 31% need to move the business to preserve it — Research by Gradus and KSE
Gradus Research, in partnership with Kyiv School of Economics, conducted a study “Diagnosing the state of Ukrainian business during a full-scale war of Russia in Ukraine” in April 2022. The research is based on 303 interviews with entrepreneurs engaged in micro and small businesses, interviews were conducted online using a mobile application.
Among entrepreneurs, 75% are engaged in business now, and 23% have lost their business, but plan to resume operations. Of those who plan, the majority (62%) make plans for the post-war period, but 32% are waiting for the right opportunity and are ready to start business activities even before the end of the war.
Among entrepreneurs who conduct business now, only 14% work the same way as before the war. 31% declare partial activity, and 45% either barely work or have suspended their activities in anticipation of better times.
79% of businesses experienced a decrease in income, 7% — total loss of income. Businesses that ceased their activities, were forced to send workers on unpaid leave (42%) and reduce staff (18%).
Moving the business is relevant for 31% of entrepreneurs, mostly to preserve the business. Most of them plan to relocate their business within Ukraine.
