Digitalisation and export: key trends in the development of small businesses in Ukraine

27/ 02/ 2025

On 19 February, the European Business Association, within the framework of the Unlimit Ukraine project and with the support of OLX Ukraine and Raiffeisen Bank, presented the results of the 2024 Small Business Sentiment Index survey. Yuliia Melnyk, Deputy Director for Corporate Development at the EBA, presented the survey findings and highlighted that entrepreneurs continue to work and adapt to challenging conditions. Yuliia Melnyk. Deputy Director for Corporate Development at the EBA. The majority of small business representatives intend to expand their operations in 2025, relying primarily on their own resources. However, significant challenges remain, including tax pressure, a shortage of skilled personnel, and overall economic instability. For the development of SMEs in Ukraine, simplified business conditions and government support are essential — though this may be a difficult task given the realities of wartime. Olena Shpyrka, Head of Business Banking Client Segment Development at Raiffeisen Bank, emphasised that banks, particularly Raiffeisen Bank, actively support Ukrainian businesses by providing various tools for growth—ranging from credit and preferential programmes to financial consultations and grants. Olena Shpyrka. Head of Business Banking Client Segment Development at Raiffeisen Bank. Access to finance is improving. We have expanded the types of lending available, including unsecured loans of up to 9 million hryvnias for small businesses. These can be provided under state and international guarantees. Additionally, the bank offers programmes focused on women′s and veteran entrepreneurship, with their development actively supported through grant and educational initiatives. Alyona Gorkovenko, Marketing Team Manager for OLX Ukraine and Central Asia, highlighted the positive trend of increased digital channel usage among SMEs in Ukraine. She also outlined several trends shaping the future of e-commerce, including the use of artificial intelligence to personalise customer interactions, which is projected to account for up to 80% of all interactions by 2030. Alyona Gorkovenko. Marketing Team Manager for OLX Ukraine and Central Asia. Mobile purchases are growing rapidly, prompting businesses to adapt their websites and platforms for mobile devices to enhance the user experience. At the same time, many enterprises still rely on physical sales channels. Their transition to online requires consideration of factors such as financial constraints, a lack of digital skills, and the need for infrastructure development. One of the key ways to drive digitalisation is through education. Training programmes and mentoring initiatives, both from the government and international partners, play a crucial role in this process. The formation of business associations to support SMEs is also crucial, enabling entrepreneurs to assist each other and pool resources to address common challenges. Iryna Hubarets, Sector Manager in Charge of Competition and Economic Cooperation Issues at the EU Delegation to Ukraine, noted that businesses, particularly micro and small enterprises, are highly sensitive to economic and geopolitical changes due to their greater vulnerability. However, despite these difficulties, a significant number of surveyed entrepreneurs reported positive trends, including expansion plans, demonstrating business adaptability to current conditions. Iryna Hubarets also stressed the importance of increasing exports. According to the survey data, the majority of businesses are not engaged in export activities, highlighting the need for better incentives and training for entrepreneurs on international trade opportunities. Iryna Hubarets. Sector Manager in Charge of Competition and Economic Cooperation Issues at the EU Delegation to Ukraine. This year, one of the key themes of the Index was business inclusivity. Companies are willing to hire not only young people but also older individuals, veterans, and representatives of other vulnerable groups. I am confident that this trend will continue and receive further support through the development of relevant banking products and services for businesses. Iryna also noted the readiness of businesses to embrace digitalisation. The EU actively supports such initiatives through various programmes, including the Digital Europe programme, which operates European Digital Innovation Hubs to help businesses integrate digital technologies and products. She encouraged entrepreneurs to take advantage of available information resources, particularly the portal eu4business.org.ua, to find useful tools for their development. Yuliia Rozdolska, founder of the home textile brand DC Textile, shared her experience of growing her business. The company specialises in producing bed linen, towels, blankets, and loungewear, including customised products tailored to individual customer requests. Their journey began in 2019, with dynamic business growth taking off after the pandemic, when Yuliia started sewing products independently and leveraging online sales through websites and social media. Despite war-related challenges, the company managed to rent premises, establish full-scale production with a showroom and a team, and is now actively working with partners in the B2B sector and the hospitality industry. Yuliia also emphasised the importance of digital innovations for business development, particularly automation in production and marketing. She has ambitious plans to expand sales geography, particularly into the EU market, and is seeking support opportunities to achieve this. Yuliia Rozdolska. Founder of the home textile brand DC Textile. Issues with high advertising costs and high taxes, particularly for employees, remain significant barriers to further expansion. One of the main challenges holding back expansion into European markets is the lack of information about existing export support tools and the lack of clarity regarding participation in international programmes and exhibitions. Thank you to the speakers for sharing insights on the state of SMEs, their assessment of the economic situation in the country, and access to financing, as well as for discussing their plans for the future.

Yuliia Melnyk, Deputy Director for Corporate Development at the EBA, presented the survey findings and highlighted that entrepreneurs continue to work and adapt to challenging conditions.

Yuliia Melnyk Deputy Director for Corporate Development at the EBA

The majority of small business representatives intend to expand their operations in 2025, relying primarily on their own resources. However, significant challenges remain, including tax pressure, a shortage of skilled personnel, and overall economic instability. For the development of SMEs in Ukraine, simplified business conditions and government support are essential — though this may be a difficult task given the realities of wartime.

Olena Shpyrka, Head of Business Banking Client Segment Development at Raiffeisen Bank, emphasised that banks, particularly Raiffeisen Bank, actively support Ukrainian businesses by providing various tools for growth—ranging from credit and preferential programmes to financial consultations and grants.

Olena Shpyrka Head of Business Banking Client Segment Development at Raiffeisen Bank

Access to finance is improving. We have expanded the types of lending available, including unsecured loans of up to 9 million hryvnias for small businesses. These can be provided under state and international guarantees. Additionally, the bank offers programmes focused on women′s and veteran entrepreneurship, with their development actively supported through grant and educational initiatives.

Alyona Gorkovenko, Marketing Team Manager for OLX Ukraine and Central Asia, highlighted the positive trend of increased digital channel usage among SMEs in Ukraine. She also outlined several trends shaping the future of e-commerce, including the use of artificial intelligence to personalise customer interactions, which is projected to account for up to 80% of all interactions by 2030.

Alyona Gorkovenko Marketing Team Manager for OLX Ukraine and Central Asia

Mobile purchases are growing rapidly, prompting businesses to adapt their websites and platforms for mobile devices to enhance the user experience. At the same time, many enterprises still rely on physical sales channels. Their transition to online requires consideration of factors such as financial constraints, a lack of digital skills, and the need for infrastructure development. One of the key ways to drive digitalisation is through education. Training programmes and mentoring initiatives, both from the government and international partners, play a crucial role in this process.

The formation of business associations to support SMEs is also crucial, enabling entrepreneurs to assist each other and pool resources to address common challenges.

Iryna Hubarets, Sector Manager in Charge of Competition and Economic Cooperation Issues at the EU Delegation to Ukraine, noted that businesses, particularly micro and small enterprises, are highly sensitive to economic and geopolitical changes due to their greater vulnerability. However, despite these difficulties, a significant number of surveyed entrepreneurs reported positive trends, including expansion plans, demonstrating business adaptability to current conditions.

Iryna Hubarets also stressed the importance of increasing exports. According to the survey data, the majority of businesses are not engaged in export activities, highlighting the need for better incentives and training for entrepreneurs on international trade opportunities.

Iryna Hubarets Sector Manager in Charge of Competition and Economic Cooperation Issues at the EU Delegation to Ukraine

This year, one of the key themes of the Index was business inclusivity. Companies are willing to hire not only young people but also older individuals, veterans, and representatives of other vulnerable groups. I am confident that this trend will continue and receive further support through the development of relevant banking products and services for businesses.

Iryna also noted the readiness of businesses to embrace digitalisation. The EU actively supports such initiatives through various programmes, including the Digital Europe programme, which operates European Digital Innovation Hubs to help businesses integrate digital technologies and products. She encouraged entrepreneurs to take advantage of available information resources, particularly the portal eu4business.org.ua, to find useful tools for their development.

Yuliia Rozdolska, founder of the home textile brand DC Textile, shared her experience of growing her business. The company specialises in producing bed linen, towels, blankets, and loungewear, including customised products tailored to individual customer requests. Their journey began in 2019, with dynamic business growth taking off after the pandemic, when Yuliia started sewing products independently and leveraging online sales through websites and social media. Despite war-related challenges, the company managed to rent premises, establish full-scale production with a showroom and a team, and is now actively working with partners in the B2B sector and the hospitality industry.

Yuliia also emphasised the importance of digital innovations for business development, particularly automation in production and marketing. She has ambitious plans to expand sales geography, particularly into the EU market, and is seeking support opportunities to achieve this.

Yuliia Rozdolska Founder of the home textile brand DC Textile

Issues with high advertising costs and high taxes, particularly for employees, remain significant barriers to further expansion. One of the main challenges holding back expansion into European markets is the lack of information about existing export support tools and the lack of clarity regarding participation in international programmes and exhibitions.

Thank you to the speakers for sharing insights on the state of SMEs, their assessment of the economic situation in the country, and access to financing, as well as for discussing their plans for the future.