Two thirds of entrepreneurs in Western Ukraine consider business conditions satisfactory

07/ 11/ 2025

The business climate in the Western region traditionally leads the rankings among regional offices of the European Business Association. The integrated indicator of business conditions reached 2.64 points out of 5 in 2025, showing a slight improvement compared to the previous year (2.62 points). Currently, 65% of respondents describe the business environment as satisfactory, up from 53% last year. Meanwhile, the share of those who find it difficult to operate has decreased from 41% in 2024 to 31% this year. Only 4% of surveyed entrepreneurs said that doing business is easy. At present, 74% of entrepreneurs in Western Ukraine report working at full capacity, while 26% operate with certain limitations. For comparison, only 56% of companies in the region were working at full capacity last year. The main challenges for companies in the Western Ukrainian Office of the Association relate to human capital – a shortage of personnel caused by mobilisation and migration abroad, difficulties with staff reservation, and the rapid pace of legislative changes. Among the positive factors influencing business, respondents highlighted the relative safety of the region, its distance from active hostilities, the relocation of businesses and people from other regions, and the presence of constructive dialogue with local authorities. According to respondents, improving business conditions would primarily require an effective and transparent staff reservation process, reduced labour tax burden, and less pressure from supervisory authorities. Overall, 87% of surveyed companies in the region have employees currently serving in the Armed Forces of Ukraine. Specifically, 31% of companies have up to 10% of their eligible male employees mobilised, 48% have 10–20%, and 8% have 20–40%. In addition, 74% of companies employ veterans. Businesses continue to suffer losses due to the war. 65% of surveyed companies reported damages: 35% experienced losses of up to USD 1 million, 22% between USD 1–10 million, and 8% losses exceeding USD 10 million. At the same time, 35% of surveyed businesses have attracted external funding since the start of the full-scale invasion. Among those, 50% used funds through the “Affordable Loans 5-7-9%” programme, 50% received support from parent companies or investors, and 38% relied on bank loans. The funds were mainly used for purchasing raw materials or equipment, replenishing working capital, and increasing productivity. When assessing the performance of local authorities, entrepreneurs gave the highest ratings to the Regional Military Administration and the National Police. However, given the ongoing martial law, businesses stressed the need for better interaction with Territorial Recruitment and Social Support Centres and judicial institutions. Looking ahead to 2026, entrepreneurs in the Western region plan to focus on: 1) digitalising business processes and implementing AI tools; 2) expanding operations and launching new investments or projects; 3) increasing staff numbers. According to respondents, the post-war recovery of the region should include tackling corruption, attracting foreign investment, encouraging specialists to return to Ukraine, developing infrastructure, stimulating entrepreneurship, and reducing regulatory burdens. For reference: The survey was conducted among member companies of the Western Ukrainian Office of the European Business Association between 12 and 30 September 2025. The full article is available via the link.

Currently, 65% of respondents describe the business environment as satisfactory, up from 53% last year. Meanwhile, the share of those who find it difficult to operate has decreased from 41% in 2024 to 31% this year. Only 4% of surveyed entrepreneurs said that doing business is easy.

At present, 74% of entrepreneurs in Western Ukraine report working at full capacity, while 26% operate with certain limitations. For comparison, only 56% of companies in the region were working at full capacity last year.

The main challenges for companies in the Western Ukrainian Office of the Association relate to human capital – a shortage of personnel caused by mobilisation and migration abroad, difficulties with staff reservation, and the rapid pace of legislative changes.

Among the positive factors influencing business, respondents highlighted the relative safety of the region, its distance from active hostilities, the relocation of businesses and people from other regions, and the presence of constructive dialogue with local authorities.

According to respondents, improving business conditions would primarily require an effective and transparent staff reservation process, reduced labour tax burden, and less pressure from supervisory authorities.

Overall, 87% of surveyed companies in the region have employees currently serving in the Armed Forces of Ukraine. Specifically, 31% of companies have up to 10% of their eligible male employees mobilised, 48% have 10–20%, and 8% have 20–40%. In addition, 74% of companies employ veterans.

Businesses continue to suffer losses due to the war. 65% of surveyed companies reported damages: 35% experienced losses of up to USD 1 million, 22% between USD 1–10 million, and 8% losses exceeding USD 10 million.

At the same time, 35% of surveyed businesses have attracted external funding since the start of the full-scale invasion. Among those, 50% used funds through the “Affordable Loans 5-7-9%” programme, 50% received support from parent companies or investors, and 38% relied on bank loans. The funds were mainly used for purchasing raw materials or equipment, replenishing working capital, and increasing productivity.

When assessing the performance of local authorities, entrepreneurs gave the highest ratings to the Regional Military Administration and the National Police. However, given the ongoing martial law, businesses stressed the need for better interaction with Territorial Recruitment and Social Support Centres and judicial institutions.

Looking ahead to 2026, entrepreneurs in the Western region plan to focus on: 1) digitalising business processes and implementing AI tools; 2) expanding operations and launching new investments or projects; 3) increasing staff numbers.

According to respondents, the post-war recovery of the region should include tackling corruption, attracting foreign investment, encouraging specialists to return to Ukraine, developing infrastructure, stimulating entrepreneurship, and reducing regulatory burdens.

For reference:

The survey was conducted among member companies of the Western Ukrainian Office of the European Business Association between 12 and 30 September 2025. The full article is available via the link.