Almost 60% of companies have already reduced the scope of work
Small and medium-sized businesses in Ukraine continue to work in the conditions of war, economic instability and constant growth of costs. According to the results of the research of the analytical center Advanter Group, 58.7% of enterprises during the first five months of 2026 were forced to reduce the scope of their activities. An even more alarming signal was that 28.8% of companies declared a real threat of closure.
Despite the fact that Ukrainian business continues to adapt to new conditions, the overall efficiency of its work is gradually decreasing. The average efficiency indicator of SMEs is now 83.8% from the level of the same period last year, which indicates the gradual depletion of enterprise resources.
Rising costs were the main blow to profitability
One of the key reasons for the deterioration of the financial condition of companies was the sharp increase in the cost of operating activities. Almost 85% of interviewed entrepreneurs reported that their expenses for the year increased by an average of 19.1%.
The business felt the greatest load in several areas at once. Most often, companies reported the increase in the price of electricity and gas, an increase in transport and logistics costs, as well as a significant increase in labor costs.
At the same time, companies cannot always raise prices for their own goods or services. Due to weak domestic demand, many companies are forced to operate with almost no profit margins. As a result, 61% of businesses reported a decrease in profitability, and 13.5% of enterprises are already operating at a loss.
Entrepreneurs fear war not only
Despite the obvious impact of hostilities, entrepreneurs are increasingly calling the main risks not the war itself, but the general unpredictability of business conditions.
The research participants consider it to be the most serious problem unpredictable decisions of state bodies, which can change the rules of operation of enterprises at any time. This factor was called critical 56.5% of respondents.
Yet 53.9% of entrepreneurs talk about the general uncertainty of the economic situation, when companies cannot plan for development even several months in advance.
The third most important challenge remains acute shortage of qualified workers, which was noted 50.5% of companies.
Personnel hunger is increasing due to mobilization
Lack of personnel remains a separate problem for most enterprises. On average, more than 10% of full-time employees of Ukrainian companies are currently serving in the Armed Forces of Ukraine.
At the same time, the procedure for booking employees necessary for the operation of enterprises remains difficult. It was only possible to fully book all the necessary specialists 5.8% of companies.
Close 30% of enterprises were refused reservations, and more than half did not even submit documents due to complex bureaucratic procedures or non-compliance with established criteria.
It is the shortage of personnel that increasingly forces businesses to refuse to expand production, open new areas of activity, and scale.
The most frequent business claims to state bodies
In addition to personnel problems, entrepreneurs continue to report administrative difficulties.
Most often, businesses are faced with the blocking of tax invoices, which significantly complicates the conduct of business activities and work with counterparties.
Unscheduled checks and refusals to book critical employees are also among the most common problems of companies.
Entrepreneurs point out that even under wartime conditions, many procedures remain too complicated, which creates additional administrative pressure on business.
Business activity has not yet returned to growth
Despite certain positive signals, Ukrainian business is still in a contraction phase.
Index of business activity UBI in June 2026 increased to 34.8 points, while in March it was 32.9. However, even after the improvement, this figure remains well below par 50 points, which is considered the boundary between economic growth and recession.
This means that the majority of enterprises do not yet expect a quick recovery of economic activity.
Young companies adapt much faster
The study also showed an interesting pattern: enterprises that were created after the start of a full-scale war adapted best to the new economic conditions.
Young businesses demonstrate significantly higher flexibility, quickly rebuild business models and more actively introduce new approaches to work.
Such companies already work for almost 94% from last year's level, while businesses founded before 2014 kept only approx 82% previous volumes of activity.
Experts explain this by the fact that new companies immediately created their business processes taking into account the war economy and modern market conditions.
Business needs financing, but not expensive loans
Despite the acute need for working capital, most entrepreneurs are not ready to use bank loans at market rates.
Almost 29% of companies stated that now they do not plan to take loans at all, regardless of the proposed conditions.
Yet 58.4% of entrepreneurs are ready to attract financing only under the condition of a preferential interest rate - no more 10% per annum.
If the business still receives credit funds, then most often they are directed not to development, but to support current activities. Enterprises mainly finance the replenishment of working capital, the purchase of equipment and the creation of autonomous sources of energy supply.
Investments in the opening of new areas or business scaling remain much less common.
What do Ukrainian entrepreneurs hope for the most
The vast majority of business representatives associate the possibility of full recovery primarily with the end of the war.
At the same time, entrepreneurs emphasize that even after the stabilization of the security situation, the Ukrainian economy will need large-scale internal changes.
Business names among the most important reforms radical renewal of the tax system, simplification of interaction with state bodies, reduction of administrative burden and more active attraction of international investments.
According to the research participants, these factors can become the basis for the gradual recovery of small and medium-sized entrepreneurship, which today remains one of the main drivers of the Ukrainian economy.
EN
