In particular, 45% of surveyed top managers assess the state of affairs in their business as satisfactory, and 27% as positive. At the same time, the remaining 27% assess the current business situation rather negatively. These are the results of a new wave of the survey “Business in War Conditions”, conducted by the European Business Association together with UKRSIBBANK BNP Paribas Group.
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The number of member companies of the Association operating at full capacity has decreased compared to the beginning of the year – from 78% to the current 64%. Accordingly, the number of restrictions applied by companies has increased.
Currently, 36% of surveyed businesses operate with restrictions, among the most common:
- shortage of qualified workers/mobilization (75%), limitation of the geography of activities (60%), suspension of work during air raids (46%).
Forecasts
At the same time, forecasts for business dynamics for the next six months are more pessimistic. Thus, 56% of respondents predict that the situation in their business will worsen, 27% do not expect changes and 16% believe that the situation will improve.
Despite this, 47% of top managers are planning to expand their business, in particular, growth of the customer base and production, entry into international markets, etc.
Revenue
Since the beginning of the full-scale invasion, 48% of businesses have seen their income decrease, while 47% have seen their income increase. For 6% of respondents, business volumes have not changed.
Among those surveyed, 48% export goods or services abroad.
The factors that most negatively impact business, according to entrepreneurs, are mobilization (71%), attacks on the Ukrainian energy system (61%), war, occupation of territories (58%), and a shortage of skilled workers (58%).
Financial reserves
The business remains financially stable, however, the assessment of financial reserves has slightly worsened compared to the beginning of 2024. More than half, namely 53% of companies have reserves for a year or more (in the previous wave – 65%), 32% – for six months, 15% – for several months and 1% do not have any reserves.
Losses from the war
Business losses from the war continue to grow. As of mid-2024, for 26% of surveyed companies they amount to up to $1 million. At the same time, 31% report losses in the range of $1–10 million, and 17% report losses of more than $10 million. Only 14% did not suffer any losses. surveyed companies of the Association.
Support of the Armed Forces of Ukraine
Business maintains consistently high support for the armed forces: 63% support their employees in the ranks of the Armed Forces of Ukraine, 49% help financially, 45% with products. 27% of surveyed businesses are involved in the restoration of a community or region.
To date, 86% of the surveyed member companies of the Association have employees in the ranks of the Armed Forces of Ukraine. For half of the companies, namely 52%, the number of mobilized personnel reaches up to 10% of the total number of military personnel. For 28%, the number of mobilized reaches 10-20%, for 6% – 20-40%.
These data correspond to the situation with mobilization among the companies of the Association six months ago. About half, namely 46% of companies report that among those mobilized or volunteered are specialists critical to the operation of the enterprise, in particular managers, engineers, IT specialists, drivers, electricians, mechanics, and production line operators.
Among the companies surveyed, only 9% relocated an office or production facility in connection with Russian aggression, including 7% within Ukraine and 2% abroad. Over the past 2.5 years, only 11% of companies have used government or international support programs.
Most companies, namely 73%, plan to attract financing for business development. More companies will use their own funds (60%), in addition, 19% plan to attract bank lending, 15% – investments and 5% – grants.
Loans
Credit from banks for 25% of surveyed enterprises are ready for market conditions. Among the difficulties in obtaining loans, companies mention high rates, non-resident beneficiaries, inappropriate terms, slow decision-making.
Business now needs more help in improving the conditions for booking employees and covering military risks. Other needs include a moratorium on checks and easing of currency restrictions, assistance in communication with authorities.
