Small business is gradually resuming its operation.
This is evidenced by the results of the second wave of the EBA survey among SME representatives – Unlimit Ukraine participants. Thus, the number of non-operating businesses has significantly reduced to 26%, while a month ago it was 42%. Of the small businesses we surveyed, 17% already have resumed operations after a temporary break and another 23% are preparing to resume.
The number of businesses that operate in full has also increased from 13% to 20%. Meanwhile, there are remaining restrictions such as the reduced geography of activities, the transition to online, and the closure of some branches/outlets. Companies cannot resume full-fledged work mainly due to lack of orders, reduced customer activity, and reduction of projects.
Small entrepreneurs’ assessment of their own financial stability has improved somewhat. Currently, 40% report that their financial reserves will be enough for several months, previously 32%. Another 15% have reserves for one month. At the same time, 12% say they will be able to last six months, and 6% – a year or more. The number of businesses that have already exhausted their financial reserves has not changed and now stands at 26% of the total number of respondents.
The situation with the payment of salaries to employees has hardly changed over the past month. Wages are currently paid in full by 25% of companies, with 5% continuing to make additional or advance payments. However, 27% were forced to cut pay, and 22% did not have the resources to pay salaries, so 15% sent employees on unpaid leave, and 9% were forced to partially or completely lay off staff.
Meanwhile, small businesses mostly continue to support defenders and provide humanitarian aid. The vast majority of respondents, namely 61% provide finances, 24% – products, 23% – services, 12% – means of protection/defense, and 7% – medicines. However, 18% of SME representatives have already exhausted their resources to help.
The vast majority of SME entrepreneurs, namely 71% did not transport their office or production anywhere, only 11% relocated to the west of Ukraine, and 4% – abroad. Some entrepreneurs also reported a relocation to the central regions of Ukraine.
Also, 40% of businesses estimate their war-induced losses at up to $ 10 thousand, 28% consider them to be within the range of $ 10-50 thousand, 15% – more than $ 100 thousand. About 6% of SMEs report no losses. Meanwhile, 20% of the surveyed businesses report losses of property or assets directly resulting from hostilities. The estimated total amount of damage caused to entrepreneurs participating in our survey is about $ 2 million.
The survey has been conducted from April 14 to 20, among individual entrepreneurs participating in the Unlimit Ukraine project to support small and medium-sized businesses. Altogether, 162 entrepreneurs took part in the survey.