Companies assess the conditions for doing business in the regions of Ukraine as difficult, and only in the Western region do most entrepreneurs consider them satisfactory. This is evidenced by the results of a survey of businesses in the regions, conducted annually by the European Business Association.
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Compared to last year, assessments of the situation in Lviv (2.62 points) and Dnipro (2.20 points) have remained almost unchanged. In Odessa (2.15 points) and Kharkov (1.45 points) they worsened somewhat.
Common challenges for most regions remain issues of mobilization, problems with booking, staff shortages and power shortages. At the same time, most businesses plan to focus on the digitalization of business processes, entering new markets, and expanding their business. In addition, entrepreneurs in the Kharkiv region have plans to reduce costs and organize remote work.
Lviv. Entrepreneurs in the Western region have the highest ratings for the business climate. Compared to last year, the number of those who find it difficult to work in Lviv has increased from 28% to 41%. At the same time, 53% consider the conditions for doing business satisfactory (72% last year). Another 6% say that it is easy for them to do business. At the same time, 56% of companies in the region operate at full capacity and 44% with certain restrictions.
Only 13% of entrepreneurs believe that the war may end by the end of 2024, while 28% expect this to happen in 2025, and another 19% – within the next three years.
Dnipro. In second place in terms of doing business this year. 75% of entrepreneurs call the working conditions in the region difficult, the remaining 25% consider them satisfactory. Currently, only 20% of companies in the region operate at full capacity, the remaining 80% operate with certain restrictions.
35% of respondents in the region believe that the war will end in 2025, while 25% believe that this will happen within one to three years, and 15% believe that Ukraine will be in a state of war for a long time.
Odessa. The number of entrepreneurs in the region who consider the business conditions difficult has increased — from 53% last year to 75%. For 20%, the conditions are satisfactory and for 5%, they are easy. 40% of companies in the region operate fully, while 60% operate with certain restrictions.
20% of surveyed entrepreneurs believe that the war will end by the end of the year, while another 25% believe that the war will end either in 2025 or within the next three years.
Kharkiv. The worst assessments of the business climate by entrepreneurs are expected in the Kharkiv region. All surveyed companies rated the conditions as difficult, including 55% — very difficult. This year, not a single company rated the business environment as satisfactory, although last year there were 6%. So far, none of the companies surveyed are operating at full capacity (6% were operating at full capacity last year). While 91% of companies are operating with restrictions, and 9% are not operating at all.
More than half, or 55%, believe that the war could end within the next three years, 27% believe that the war will end in 2025, and 9% expect the war to last for a long time.
