The Business Climate Index in Ukraine has improved in all four key regions, according to a survey by the European Business Association. The most favorable conditions for doing business have been recorded in the west of the country, while significant challenges for entrepreneurs still persist in the east.
This is reported by Business • Media
Positive Dynamics in Western Ukraine
In Lviv, the vast majority of entrepreneurs – 65% – consider the conditions for business satisfactory. 74% of companies in the region are operating at full capacity, and the integral assessment of the business climate has reached 2.64 points, the highest score among all regions, even exceeding last year’s result (2.62 points). Entrepreneurs cite relative safety, the possibility of relocating companies, and effective dialogue with local authorities as the main advantages. At the same time, the main challenges remain a shortage of personnel, issues with employee booking, and frequent changes in legislation.
East and South: Challenges and Gradual Recovery
In the east, particularly in Kharkiv, entrepreneurial activity remains the most challenging. 79% of businesses consider the working conditions difficult, and only 21% operate without restrictions. Despite the increase in the Business Climate Index from 1.45 to 1.92 points, Kharkiv still demonstrates the lowest indicators in Ukraine. The main problems for local businesses are a severe shortage of personnel, a decline in the purchasing power of the population, and limited access to financial resources.
In Odesa and Dnipro, the situation has noticeably improved: in Dnipro, 56% of companies are operating at full capacity, while in Odesa, 44%. The Business Climate Index in Dnipro has risen to 2.44 points (previously 2.2), and in Odesa to 2.39 points (previously 2.15). Among the positive factors, entrepreneurs highlight the functioning of ports and business flexibility, but at the same time emphasize the shortage of personnel, difficulties with logistics, and a high level of corruption.
“Despite all the challenges, Ukrainian businesses continue to demonstrate resilience and readiness for development”.
For all regions, issues such as insurance for war risks, restoration of critical infrastructure, reduction of the tax burden on labor costs, and the implementation of transparent employee booking procedures remain relevant.