Impact of Economic Instability on Ukrainian Business: New Challenges and Trends
The business sector in Ukraine is experiencing heightened concerns related to rising prices and logistical difficulties.
According to data released by the Institute of Economic Research in a recent August survey, entrepreneurs are increasingly complaining about climbing expenses, which undermines their competitiveness.
The three main obstacles to business development—labor shortages, security issues, and rising costs—remain unchanged, but their intensities are shifting.
Notably, the shortage of qualified personnel worsened in July, with over 60% of respondents citing difficulties in hiring skilled workers—this marks a record high.
Security concerns, once the second major barrier, saw a slight decrease, from 57% to 52%.
An alarming rise in prices was observed as well, jumping from 40% previously to 52% in August, indicating serious economic pressure.
There is also a seasonal decline in demand, affecting around a third of businesses, likely influenced by market fluctuations and external factors.
Logistic problems persist, affecting nearly a quarter of companies that face transportation issues within Ukraine, with 15% experiencing broken supply chains.
Furthermore, due to power outages, up to 10% of businesses had to temporarily cease operations in July—a 3% increase compared to June.
These ongoing challenges compel Ukrainian entrepreneurs to continuously adapt their strategies, enhance operational flexibility, and seek innovative solutions to survive and grow in a volatile environment.
More details on these trends are available via the provided link.