Small and medium-sized enterprises in Ukraine have been operating for the fourth consecutive year under conditions of strategic and tactical uncertainty caused by the war. Entrepreneurs are focusing on resource optimization, cost reduction, and revising business strategies to maintain their market positions.
This is reported by Business • Media
State of SMEs: New Challenges and Opportunities
The index of perceived business complexity among entrepreneurs has hardly changed: in 2025, it stands at 3.4 points (“neither difficult nor easy”), which is only slightly lower than the figure from the second year of the war — 3.5 points. In comparison, at the beginning of the full-scale invasion, this index was at 2.7 points (“difficult”). This indicates a certain adaptation of businesses to the new realities, although the situation remains tense.
“The perception of the complexity of running small and medium-sized businesses in Ukraine has remained almost unchanged – this indicator is 3.4 (“neither difficult nor easy”), compared to 3.5 in the second year of the war. In the first year of the full-scale invasion, this indicator was 2.7 (“difficult”).”
Increasing competition for consumers amid economic instability is driving the development of the shadow market and price dumping. At the same time, 25% of small and medium-sized enterprises have managed to expand their teams this year. Many companies are planning further diversification or expansion of operations, even if hostilities continue.
Main Problems and Survival Strategies
Despite some positive shifts, investment activity among SMEs remains low. Many enterprises are choosing a strategy of resource preservation and cost minimization, preparing for a possible prolongation of the war. More and more companies are seeking to reorient towards more predictable external markets, which opens up new opportunities for development but also creates new challenges.
One of the key problems for small and medium-sized businesses remains the acute labor crisis. Entrepreneurs describe the current state of their businesses as “survival in difficult circumstances,” with a primary focus on maintaining profitability and workload.