In 2024, 47% of Ukrainian small and medium-sized enterprises (SMEs) recorded a decrease in profits, according to a study by the European Bank for Reconstruction and Development. Meanwhile, only 17% of companies in this segment reported an increase in revenue.
This is reported by Finway
Investments Despite Profit Declines
Despite the challenging economic situation and declining profits, most SMEs continue to invest in development. Specifically, 66% of service sector enterprises made investments in their businesses, while this figure stands at 52% among industrial companies. Investments were most often directed towards upgrading production equipment (66%), purchasing energy equipment (45%), and enhancing employee qualifications (35%).
Business Expectations and Personnel Changes
If hostilities do not cease by 2025, only 1% of enterprises are considering closure, while 29% expect further deterioration in financial indicators. Conversely, 13% of SMEs forecast growth, and half of the companies do not anticipate any changes in their situation.
Changes have also affected employee numbers: 41% of companies reduced their workforce by an average of 25%, while 25% of enterprises saw an increase in staff by 42%. One-third of businesses experienced no changes in their personnel structure, although last year this figure was 52%.
“Last year, 53% of service sector enterprises and 40% of industrial companies reported a decrease in profits. Profit increased for 8% and 27% of businesses, respectively.”
Statistics indicate that even under challenging business conditions, Ukrainian companies continue to invest in development, striving to enhance competitiveness and adapt to modern challenges.