As of July, the business activity index among micro, small, and medium enterprises in Ukraine dropped to 36.1 points out of a possible 100, marking one of the lowest figures since the onset of the full-scale war. These results are based on a survey conducted among 512 business representatives.
This is reported by Finway
Staff Shortages and Financial Condition of Companies
A significant portion of businesses is facing a deterioration in financial conditions: 41.8% of respondents rated their companies’ situations as poor or satisfactory, while another 31.4% consider it mediocre. Only 16.8% of enterprises reported a good or excellent financial state. The issue of staffing is particularly acute – 44.9% of those surveyed reported a decrease in the number of employees, while only 16.4% indicated an increase in personnel. In 38.7%, the number of employees remained unchanged.
“73% of businesses reported a noticeable or critical shortage of workers, which limits their ability to ensure stable operations, scale production, and respond quickly to economic challenges.”
Main Barriers to Business Development
Entrepreneurs identify several key factors that hinder economic activity. Among them are: unpredictability of state policy (55.5%), lack of solvent demand (53.5%), general uncertainty regarding the further development of the situation in the country (52.7%), shortage of qualified labor (51.6%), and limited access to capital (39.8%).
These challenges significantly impact the ability of small and medium enterprises to adapt to new conditions and contribute to economic growth.