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76% of entrepreneurs are going to expand their business despite the war

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This was reported by X24 Global news with reference to the Ministry of Digital Transformation of Ukraine.

The study of the Small Business Sentiment Index involves a survey of entrepreneurs and analysis of growth points that stimulate its development.

Despite the difficulties caused by the war, 76% of entrepreneurs are going to expand business in 2023. Of these, 28% are going to expand the geographical presence, 26% – are planning to open new directions, 25% – are planning to enter foreign markets, 21% – are going to change the number of employees. 

Entrepreneurs rely mainly on their own finances (30%) and to a lesser extent on grants (21%) and loans (10%).. In comparison with 2021, the share of credit funds decreased by three times. 

  58% of entrepreneurs are still dissatisfied with the state of their business, this indicator has slightly increased compared to 2021, then it was 52%.

  24% of entrepreneurs are satisfied with the state of affairs. Last year the indicator was 32%.

The survey also showed that representatives of small and medium-sized businesses consider the unfavorable economic situation in the country.

  42% consider it unfavourable

  29% – catastrophic

Now the share of those who suppose that the business situation will continue to deteriorate  is 38%, the number of those who expect improvements in the next six months  – 33%.

Lending is traditionally a topical topic for small businesses. In 2022, entrepreneurs report difficulties in obtaining loans. 59% of surveyed consider bank lending inaccessible or difficult to access, compared to 40% in 2021.

Entrepreneurs were also asked how the attacks on the energy infrastructure affected their work. Only 8% stop work completely, another 20% – temporarily suspend. Most entrepreneurs are adapting, for example, 45 per cent of entrepreneurs are rescheduling and/or changing production or service delivery.

In order to prepare for such an environment, the entrepreneurs allocated additional funds for the purchase of generators and other UPS (55%) and communication and Internet (41%). At the same time, those who lack the financial capacity are forced to adjust to the schedule of blackouts, including working night shifts.

The study was conducted by the European Business Association within the framework of the project Unlimit Ukraine with the information support of the Ministry of Digital Transformation of Ukraine, the Office for Business and Export Development and the national project Diya.Business.

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