According to a study by the European Bank for Reconstruction and Development, in 2024, nearly half of small and medium enterprises (47%) in Ukraine reported a decline in profits. At the same time, only 17% of SMEs were able to increase their financial indicators.
This is reported by Business • Media
Investments Despite Profit Reductions
Despite the challenging economic situation, most representatives of small and medium businesses continue to invest in development. Specifically, 66% of service companies and 52% of industrial enterprises invested in their businesses. The main areas of investment included production equipment (66%), energy supply equipment (45%), and staff training (35%).
Labor Market Dynamics and Business Expectations
Among the surveyed enterprises, 41% reduced their workforce by an average of 25%. Meanwhile, in 25% of companies, the number of employees increased by 42%. Only 33% of SMEs did not experience changes in their staffing levels, whereas in 2023, this figure was 52%.
If the full-scale war does not end by 2025, only 1% of businesses are preparing for complete closure, while 29% anticipate further deterioration in financial results. At the same time, 13% of SMEs expect growth, and half of the enterprises do not foresee significant changes in their operations.
“53% of service sector enterprises and 40% of industrial companies reported a decrease in profits last year. Profits increased for 8% and 27% of businesses, respectively.”