Business in Ukraine during the war: over half a million closed businesses in three years

Since the beginning of Russia's full-scale invasion of Ukraine in 2022, the Ukrainian business sector has undergone significant changes. Over the three years of the war, over 873 thousand new individual entrepreneurs and companies were registered in the country, but at the same time more than half a million businesses ceased their activities.

According to data from analysts at YouControl, 104 thousand legal entities and 769 thousand individual entrepreneurs were registered in the period from February 24, 2022. This indicates significant business activism, even in wartime conditions.

The largest number of new businesses was registered in Kyiv — 143 thousand, which indicates a stable business climate in the capital. In addition, a significant number of registrations are observed in the Dnipropetrovsk region — 77 thousand and Lviv region — 69 thousand. This also confirms that the western and central regions of the country have become important centers for doing business in wartime.

Despite the high level of registrations, about 599 thousand enterprises have ceased their activities during the three years of the war. This indicates that the economic situation in Ukraine, including the consequences of the war, have significantly affected the business climate.

In particular, more than 180 thousand new businesses that were registered during these three years have already ceased their activities. This highlights the complexity of doing business in wartime, in particular due to high risks, economic instability and disruption of logistics chains.

It is also important to note that these data include not only newly established companies, but also business re-registrations. This covers all forms of ownership - from sole proprietorships to state-owned enterprises. In particular, company re-registrations may indicate attempts to adapt to new conditions or move businesses to other regions where there are greater opportunities for doing business.

Overall, the war has significantly changed the landscape of Ukrainian business. Many companies were forced to close due to the unpredictability of the situation, losses and disruption of relations with suppliers and customers. However, despite these difficulties, the registration of new businesses shows the presence of an entrepreneurial spirit and a desire to adapt to new conditions.

After the war, Ukraine will be able to rebuild its economy, and we will probably see a new surge in entrepreneurial activity. It is possible that many of those who were forced to close their businesses will return to economic activity after the situation in the country stabilizes.