About a third of small businesses have not yet managed to restore the pre-quarantine income level

28/ 09/ 2021

Thus, 28% of small businesses reported that they have not yet managed to reach the pre-quarantine income level according to the new survey conducted by the European Business Association among representatives of small and micro businesses - Unlimit Ukraine participants. Meanwhile, 48% of entrepreneurs partially but not fully restored their income level, and 7% even increased it. Another 17% reported that several waves of quarantine restrictions had no effect on their financial performance. When asked whether the business is ready for the full lockdown this autumn, only 34% answered affirmatively. The other 41% appeared to be not ready for the resumption of strict restrictions, and 25% could not decide on the answer. We also decided to assess the impact of quarantine on the share of cashless revenues of small businesses in Ukraine. Currently, less and less cash is used in payment operations: 66% of entrepreneurs receive more than half of their income cashless. Also, 30% of respondents claim that the share of cashless revenues in their business has increased due to the impact of quarantine. Almost half of the respondents, namely 48%, answered that if the quarantine is strengthened, they will not need support from the state. Instead, they consider non-interference to be the best the state can do for business. Another 18% say to consider that it would help if the tax burden on the payroll is reduced and 10% expect accelerated digitalization of public services but there must be supervision of its effectiveness. Most of the surveyed small business representatives did not participate in the state programs Affordable loans 5-7-9% and Aid to employees and FOPs - UAH 8,000. Thus, 52% did not participate in the program Aid to employees and FOPs and do not consider the amount of 8,000 hryvnias as aid. Also, 21% received the financial aid from the state under the program while another 15% applied for it but did not receive the money. Other respondents reported that their NACE did not fall under the terms of the program. As for the state program Affordable Loans 5-7-9%, 69% of Unlimit Ukraine participants did not apply for it, 15% were denied participation in the program, and only 6% successfully received a loan under this program. As previously reported, the small business voiced feedback on the need to improve the program and create easier and faster access to credit. Moreover, we consistently emphasize that it is very important that government support is not limited to simplifying access to finance. Instead, comprehensive solutions for the development and scaling of small businesses need to be provided. Olena Ayrault. Manager Unlimit Ukraine Project. We at the European Business Association consider it our duty to support small business within the Unlimit Ukraine Project and to keep an eye on the sentiments and needs of entrepreneurs. As you can see, the business has not yet fully recovered from the effects of previous lockdowns, so we call on the authorities to make informed decisions on any potential restrictions and hope that there will be the least losses this autumn. Instead, it would bring better financial results for entrepreneurs. For reference: The EBA survey was conducted from August 18 to September 20, 2021, among the participants of the Unlimit Ukraine Project. Altogether, 105 small businesses representatives took part in the survey. Unlimit Ukraine is a small business and microbusiness development platform created on the basis of the European Business Association. The project provides comprehensive support for small and microbusinesses through educational events and consultations, participation in special projects, diagnostics of business problems, and discussion of issues relevant to it. The participants of the project can be small and micro-businesses with the ownership of FOP without limitation of activities. Today, Unlimit Ukraine includes more than 3 311 participants. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

When asked whether the business is ready for the full lockdown this autumn, only 34% answered affirmatively. The other 41% appeared to be not ready for the resumption of strict restrictions, and 25% could not decide on the answer.

We also decided to assess the impact of quarantine on the share of cashless revenues of small businesses in Ukraine. Currently, less and less cash is used in payment operations: 66% of entrepreneurs receive more than half of their income cashless. Also, 30% of respondents claim that the share of cashless revenues in their business has increased due to the impact of quarantine.

Almost half of the respondents, namely 48%, answered that if the quarantine is strengthened, they will not need support from the state. Instead, they consider non-interference to be the best the state can do for business. Another 18% say to consider that it would help if the tax burden on the payroll is reduced and 10% expect accelerated digitalization of public services but there must be supervision of its effectiveness.

Most of the surveyed small business representatives did not participate in the state programs “Affordable loans 5-7-9%” and “Aid to employees and FOPs – UAH 8,000.” Thus, 52% did not participate in the program “Aid to employees and FOPs” and do not consider the amount of 8,000 hryvnias as aid. Also, 21% received the financial aid from the state under the program while another 15% applied for it but did not receive the money. Other respondents reported that their NACE did not fall under the terms of the program.

As for the state program “Affordable Loans 5-7-9%”, 69% of Unlimit Ukraine participants did not apply for it, 15% were denied participation in the program, and only 6% successfully received a loan under this program. As previously reported, the small business voiced feedback on the need to improve the program and create easier and faster access to credit. Moreover, we consistently emphasize that it is very important that government support is not limited to simplifying access to finance. Instead, comprehensive solutions for the development and scaling of small businesses need to be provided.

Olena Ayrault Manager Unlimit Ukraine Project

We at the European Business Association consider it our duty to support small business within the Unlimit Ukraine Project and to keep an eye on the sentiments and needs of entrepreneurs. As you can see, the business has not yet fully recovered from the effects of previous lockdowns, so we call on the authorities to make informed decisions on any potential restrictions and hope that there will be the least losses this autumn. Instead, it would bring better financial results for entrepreneurs.

For reference:

The EBA survey was conducted from August 18 to September 20, 2021, among the participants of the Unlimit Ukraine Project. Altogether, 105 small businesses representatives took part in the survey.

Unlimit Ukraine is a small business and microbusiness development platform created on the basis of the European Business Association. The project provides comprehensive support for small and microbusinesses through educational events and consultations, participation in special projects, diagnostics of business problems, and discussion of issues relevant to it. The participants of the project can be small and micro-businesses with the ownership of FOP without limitation of activities. Today, Unlimit Ukraine includes more than 3 311 participants.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.