Socioeconomic assessment of micro, small and medium enterprises in Chernihivska oblast (Ukraine): December 2023 - February 2024

Country: Ukraine Source: REACH Initiative Please refer to the attached file. KEY MESSAGES Despite macroeconomic indicators of recovery in 2023 (GDP growth, increased exports, and reduced inflation), surveyed entrepreneurs reported that their business activities continued to be heavily impacted by economic factors linked to the war. Key issues raised included decreased demand, rising production costs, logistical problems, excessive tax pressure, and concerns over inflation. Many of these issues were reportedly faced by businesses regardless of the gender of the business owner. Surveyed entrepreneurs in Chernihivska oblast reported that a lack of qualified workers due to the ongoing war was one of the most important challenges they faced. With large parts of the workforce displaced abroad or conscripted into the military, entrepreneurs have been forced to change their hiring strategies. This included lowering job requirements and recruiting profiles perceived as less qualified or suited for the role. As a result, surveyed entrepreneurs emphasised the need for additional employee training programmes. Shifting gender dynamics, driven in part by displacement and conscription, brought both opportunities and challenges for women s economic participation. Businesses reported seeking to hire women and members of other vulnerable groups to replace positions previously held by men. At the same time, women-owned businesses more frequently reported financial concerns, and businesswomen faced specific difficulties with childcare and other domestic responsibilities. There was a lack of interaction between businesses and local authorities. While a majority of surveyed entrepreneurs believed that state business support was important for the recovery of business following the full-scale invasion, many did not interact with local authorities at all, did not have detailed information about state plans for recovery and development in their area, did not believe that existing plans corresponded to their business interests, and did not use any form of state business support during the past year.

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