Icon
Come back

2 min

21 Mai. 2024

2004

Obstacles to business during the war: what do entrepreneurs fear most?

Krieg
Popular
Arbeit
BusinessUA
Ukraine
Obstacles to business during the war: what do entrepreneurs fear most?

For the first time since the beginning of the full-scale invasion, the majority of businesses named insecurity as the main obstacle to doing business. Find out what else entrepreneurs consider to be serious obstacles and how their attitudes have changed recently

Legal assistance in starting and doing business in Ukraine
Legal assistance in starting and doing business in Ukraine
GET


April 2024 was the first month in the last two years when the majority of businesses recognized that insecurity was the main obstacle to their operations. These changes are evidenced by the monthly New Monthly Enterprises Survey (#NRES), which was conducted by the Institute for Economic Research and Policy Consulting in April this year.


Read this article to find out how many companies foreigners have opened in Ukraine since the beginning of the war.


What are the most serious obstacles to doing business during the war?


According to the survey, the biggest obstacle to doing business is insecurity. This was stated by 55% of Ukrainian businesses. The authors of the study note that the increase in the share of enterprises that believe that it is dangerous to work is significant and is the highest figure for the entire period of research since May 2022.


It should be noted that in March of this year, the share of enterprises that considered danger to be the main obstacle was 46%. And for the same period last year, namely April 2023, it was only 25%.


At the same time, as noted by the Executive Director of the IER Oksana Kuzyakiv, the trend of the shortage of skilled workers, which has been observed since September last year, has also significantly increased this spring. 


Thus, the share of companies that found it more difficult to find qualified employees increased from 38.9% in March to 43% in April. 


However, according to experts, the rating of obstacles to business has not changed significantly, only the ranking of the previously mentioned items has changed.


"The three main obstacles to doing business remained the same as last month, but in April the "leader" was the danger of working (55% of respondents), the second place was occupied by the growth of prices for raw materials, supplies, and goods (51%), and the third place was occupied by the lack of labor (43%). The importance of the danger to work has increased significantly for large and medium-sized businesses," summarized IER expert Yevhen Angel.




Visit Ukraine on social media: Telegram | YouTube | Instagram | Facebook | Twitter | TikTok




Are there any positive changes for business?


As Oksana Kuzyakiv emphasized, we have faced unprecedented optimism regarding the vision of the financial and economic situation at the enterprise and in the country as a whole in the six-month perspective. 


Thus, business expectations regarding the 6-month perspective: both the financial and economic situation at the enterprise and the general economic environment in Ukraine are positive. And this assessment of experts has been maintained for the second month in a row. 


The uncertainty of the six-month prospects of enterprises' activities was declared by 20% of the surveyed companies, and as the IER Director noted, this can be considered a basic level. 


We remind you! In the first quarter of 2024, a record number of new businesses were registered in Ukraine. The number of newly opened sole proprietorships over the past three months exceeds the figures for pre-war 2021. Read what kind of business and in which regions Ukrainians are most actively opening in our previous article.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.






Ihor Usyk is the Head of Legal Department at Visit Ukraine


If you want to start your own business in Ukraine, you can get advice from my colleagues.
Professionals in the field of business law will help with all the nuances and problems.




We recommend purchasing it for a safe and comfortable trip to Ukraine: 


Visit Ukraine Insurance - safe travel in Ukraine (insurance covering military risks);

Visit Ukraine Tickets - book bus and train tickets to/from Ukraine;

Visit Ukraine Tours - the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels - book hotels for a comfortable stay in Ukraine;

Visit Ukraine Merch - choose patriotic clothing and accessories with worldwide delivery.

Cooperation - cooperation and advertising integrations with Visit Ukraine and Visit World projects.




© 2018-2024, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.

Recommended articles

2 min

Finance How to pay on loans if the account is blocked by the TCC: explanations from banks

How to pay on loans if the account is blocked by the TCC: explanations from banks

In case the account is blocked by the decision of the TCC due to non-payment of fines, banks provide alternative ways to repay loans for people liable for military service. Learn more about how it works

15 Mai. 2024

More details

1 min

Popular Mobilization law to clarify business obligations: will there be calls at work?

Mobilization law to clarify business obligations: will there be calls at work?

The new law on mobilization, which comes into force on May 18, clarifies the obligations of businesses to notify employees liable for military service. Find out what this means and whether you will be served with calls at work

15 Mai. 2024

More details

2 min

Arbeit How to properly close a sole proprietorship? Instructions for entrepreneurs

How to properly close a sole proprietorship? Instructions for entrepreneurs

To properly and consistently close a sole proprietorship, a person needs to take several steps. And submitting an application for closure is only the first part of the journey. Find out how to completely close a sole proprietorship, deregister from the tax authorities, and cancel all accounts

16 Mai. 2024

More details

2 min

BusinessUA Since the beginning of the war, foreigners have established more than 2.6 thousand companies in Ukraine: who most often starts a business

Since the beginning of the war, foreigners have established more than 2.6 thousand companies in Ukraine: who most often starts a business

The full-scale invasion did not prevent foreign investors from developing their business in Ukraine. This demonstrates not only the interest of foreign businessmen in the development of the Ukrainian market, but also their confidence in the potential of the country's economy even during the period of military operations. Learn more about the most active foreigners in the business market

17 Mai. 2024

More details