The majority of Ukrainian entrepreneurs (61%), despite the war, relocation, difficulties with logistics and declining sales, continue to work, and 91% of those who have suspended their activities are ready to restore business in the future. This is evidenced by the results of the study MasterCard MME Index, which studied the status and key needs of small and medium-sized businesses (SMEs) in Ukraine, as well as the prospects for returning to the pre-war level.
The war had a significant impact on small and medium businesses. Thus, 79% of respondents reported a decrease in business volumes, while for half of entrepreneurs such a decrease ranges from 50% to 99%. At the same time, every fifth entrepreneur managed to save (19%) or even increase (2%) the volume of business compared to the pre-war period.
Adapting to the new reality, every second entrepreneur (50%) was forced to transform their business activities. Most often, these changes related to the reorientation of business to the country’s defense needs (17%), the transition to another business (16%) or the relocation of production facilities to other regions of Ukraine or abroad (13%).
Depending on the long-term situation in Ukraine, 41% of respondents predict a return to pre-war levels within a year, 30% believe that it will take one to two years, and 23% expect that they will be able to recover no earlier than two to three years . Among the main needs of an active business are new orders and markets (56%), development funds (33%) and logistics assistance (23%).
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Nevertheless, despite the decline in income levels and the difficulties that small and medium-sized enterprises face today, Ukrainian entrepreneurs actively donate money to charity and support volunteer initiatives – this was stated by 74% of respondents.
Active digitalization is typical for most small and medium enterprises in Ukraine. Thus, 70% of entrepreneurs say they use digital sales channels, the most popular being social networks (40%) and their own website (33%). According to 39% of surveyed workers, it is digital channels that bring more than half of all orders to their businesses.
“In recent years, we have seen how digital transformation has helped Ukrainian entrepreneurs to develop, and today digitalization has become especially important. Ukrainian SMEs see this as an important condition for recovery and growth. Two-thirds of Ukrainian SMEs have used digital channels, so the potential and need for further digitalization is clear. He plays an important role in helping Ukrainian entrepreneurs and we will continue to use our technology, innovation and expertise to help Ukrainian businesses,” said Inga Andreva, CEO of MasterCard Ukraine and Moldova.
The number of businesses that pay for goods or services is increasing. Thus, with the beginning of the war, 8% of entrepreneurs began to accept non-cash payments for the first time. In total, according to the results of the study, at the moment 87% of the current business accepts payment in a non-cash form: through a POS terminal, to a bank account or through digital services. At the same time, a third of entrepreneurs claim that the vast majority of their payments (90-100%) are made by bank transfer.
Ukrainian entrepreneurs are also interested in the latest payment technologies. According to the study, every tenth entrepreneur accepts payments for goods and services in cryptocurrency, and 24% of businesses are considering this possibility in the future.
Recall that Mastercard announced the launch of a new initiative under the Start Path program, designed specifically for Ukrainian financial companies and entrepreneurs, which will give start-ups the opportunity to accelerate their development and contribute to the recovery of the country’s economy. For additional support for Ukrainians, including the development of small business programs, the company allocated $3 million through the MasterCard Impact fund.
