A third of the surveyed SMEs plan to enter the international market

31/ 10/ 2022

This was reported by SME representatives – participants of the Unlimit Ukraine project – in the fifth wave of the EBA survey. Thus, 30% of our surveyed entrepreneurs plan to export goods or services abroad, and 29% are already working in the markets of other countries. Another 39% are not interested in foreign markets. Geographical expansion may be especially relevant for entrepreneurs against the background of exhaustion of financial reserves and significant business losses. A quarter of our surveyed entrepreneurs report having no financial reserves. Also, 11% have enough financial reserves for a month, 28% – for several months, 17% – for six months. Another 14% have reserves for a year or more, while in July there were only 6% of them. The entrepreneurs assessment of their business losses has slightly improved compared to July, but the level of losses is still significant. Thus, 33% of SMEs estimate their losses in the amount of up to 10 thousand dollars, 23% – in the range of 10-50 thousand, another 15% – in the range of 50-100 thousand, and 14% – more than 100 thousand dollars. The absence of losses is reported by 10% of entrepreneurs, which is twice as much as in July. Currently, 39% of companies are fully operational, while in July there were 28% of such companies. The number of non-working companies has decreased – from 16% in July to the current 11%. Another 50% of companies work partially, with some restrictions. Particularly, 30% were forced to limit the geography of activities, 19% worked only online, and 16% closed some outlets/branches. The fact that they suspended, but have already resumed work is reported by 26% of SMEs. Despite the difficult conditions, most companies, particularly 83%, use only working capital to finance their business. Another 7% use bank loans, including 4% – the credit program 5-7-9. Another 4% use commercial lending. Among the state benefits, the most popular among SMEs is the option of paying a single tax of 2%, it has already been used by 14% of entrepreneurs, another 6% use other tax benefits, and 2% – compensation for the employment of IDPs. The number of SMEs paying salaries to employees in full has increased from 34% in July to 43% in October, and 4% do it in advance or with bonuses. At the same time, 18% of companies were forced to reduce wages, and 9% – to send staff or part of it on unpaid leave. The number of companies that dismiss employees slightly decreased - from 18% to 13%. Despite the difficulties, entrepreneurs continue to support the army and the population. So far, more than half of the companies, namely 61% help financially, 24% – with products, 19% – with services, 13% – with means of protection/defense, 6% – with medicines. Another 19% support employees who defend the country. One tenth of SMEs report having assets or branches in the occupied territories, with 27% suffering losses directly as a result of hostilities. The latest massive missile attack in one way or another affected the work of half of our surveyed entrepreneurs. On the eve of winter, companies are mostly preparing for interruptions in the supply of water, gas, electricity, strikes on critical infrastructure, transport networks, and enterprises, as well as interruptions in communication and the Internet. Particularly, entrepreneurs purchase equipment for autonomous heating and electricity supply, set up backup communication channels, insulate or preserve parts of the premises, stock up on materials and products, introduce remote work, and prepare scenarios for relocation or evacuation of personnel. For reference: The survey was conducted from October 13 to 23 among individual entrepreneurs who are participants to Unlimit Ukraine, a project of the European Business Association to support small and medium-sized businesses. Thus, 105 entrepreneurs took part in the survey.

This was reported by SME representatives – participants of the Unlimit Ukraine project – in the fifth wave of the EBA survey. Thus, 30% of our surveyed entrepreneurs plan to export goods or services abroad, and 29% are already working in the markets of other countries. Another 39% are not interested in foreign markets.

Geographical expansion may be especially relevant for entrepreneurs against the background of exhaustion of financial reserves and significant business losses. A quarter of our surveyed entrepreneurs report having no financial reserves. Also, 11% have enough financial reserves for a month, 28% – for several months, 17% – for six months. Another 14% have reserves for a year or more, while in July there were only 6% of them.

The entrepreneurs’ assessment of their business losses has slightly improved compared to July, but the level of losses is still significant. Thus, 33% of SMEs estimate their losses in the amount of up to 10 thousand dollars, 23% – in the range of 10-50 thousand, another 15% – in the range of 50-100 thousand, and 14% – more than 100 thousand dollars. The absence of losses is reported by 10% of entrepreneurs, which is twice as much as in July.

Currently, 39% of companies are fully operational, while in July there were 28% of such companies. The number of non-working companies has decreased – from 16% in July to the current 11%. Another 50% of companies work partially, with some restrictions. Particularly, 30% were forced to limit the geography of activities, 19% worked only online, and 16% closed some outlets/branches. The fact that they suspended, but have already resumed work is reported by 26% of SMEs.

Despite the difficult conditions, most companies, particularly 83%, use only working capital to finance their business. Another 7% use bank loans, including 4% – the credit program “5-7-9”. Another 4% use commercial lending. Among the state benefits, the most popular among SMEs is the option of paying a single tax of 2%, it has already been used by 14% of entrepreneurs, another 6% use other tax benefits, and 2% – compensation for the employment of IDPs.

The number of SMEs paying salaries to employees in full has increased from 34% in July to 43% in October, and 4% do it in advance or with bonuses. At the same time, 18% of companies were forced to reduce wages, and 9% – to send staff or part of it on unpaid leave. The number of companies that dismiss employees slightly decreased – from 18% to 13%.

Despite the difficulties, entrepreneurs continue to support the army and the population. So far, more than half of the companies, namely 61% help financially, 24% – with products, 19% – with services, 13% – with means of protection/defense, 6% – with medicines. Another 19% support employees who defend the country.

One tenth of SMEs report having assets or branches in the occupied territories, with 27% suffering losses directly as a result of hostilities. The latest massive missile attack in one way or another affected the work of half of our surveyed entrepreneurs.

On the eve of winter, companies are mostly preparing for interruptions in the supply of water, gas, electricity, strikes on critical infrastructure, transport networks, and enterprises, as well as interruptions in communication and the Internet. Particularly, entrepreneurs purchase equipment for autonomous heating and electricity supply, set up backup communication channels, insulate or preserve parts of the premises, stock up on materials and products, introduce remote work, and prepare scenarios for relocation or evacuation of personnel.

For reference:

The survey was conducted from October 13 to 23 among individual entrepreneurs who are participants to Unlimit Ukraine, a project of the European Business Association to support small and medium-sized businesses. Thus, 105 entrepreneurs took part in the survey.