ANALYSIS OF THE IMPACT OF THE BUSINESS ACTIVITY OF ENTERPRISES ON THE LABOR MARKET OF UKRAINE

Keywords: entrepreneurial activity, regions of Ukraine, cluster analysis, labor market, employment, number of enterprises, financial results

Abstract

In modern conditions, when Ukraine has faced military challenges, the issue of supporting and developing entrepreneurial activity becomes extremely urgent. The war significantly affected economic processes in the country, which led to changes in the regional structure of business, resource distribution, and employment. The article highlights the regional peculiarities of entrepreneurial activity in Ukraine. For a deeper understanding of these changes, cluster analysis methods were applied, which made it possible to develop the main groups of regions that differ in the level of economic activity. The study is based on three key indicators: the number of operating enterprises, the number of vacancies posted on the Work.ua website, and the financial result before taxation. Data for analysis were standardized taking into account the elimination of the influence of different units of measurement, which allowed to compare indicators between regions. Based on the conducted cluster analysis, the regions of Ukraine were divided into three groups, which made it possible to better understand how the war affected different regions and their economic activity. The first cluster was formed by the Kyiv region, which demonstrates the highest results in all selected indicators. negative of martial law and missile threats, the capital region has retained a strong entrepreneurial potential, manifested in the largest number of active enterprises, high employment levels and significant financial results. It is about the adaptation of business to new realities and the ability of entrepreneurs to respond to the challenges of wartime. The second cluster includes Dnipropetrovsk, Lviv, and Odesa regions. These regions are also characterized by a high level of entrepreneurial activity, which is due to their advantageous geographical location and the availability of economic resources. Dnipropetrovsk region is a large industrial center with developed mining and metallurgical sectors. The Lviv region has a developed infrastructure, transport and tourism industries, and active economic ties with the European Union, which contributes to maintaining a stable business climate. The Odesa region, as a key port region, has lost a lot due to the port blockade and remains the logistics and agricultural center of Ukraine. The third cluster unites the rest of the regions that have lower indicators of entrepreneurial activity. Among them are regions that have suffered from direct military actions, in particular Donetsk, Luhansk, Zaporizhzhya, Sumy, Kharkiv, and Kherson regions. In these regions, a significant reduction in the number of vacancies, and enterprises and significant financial losses was recorded. Other regions, such as Zakarpattia, Ternopil, and Ivano-Frankivsk, are characterized by a lower level of industrialization and depend on the agricultural or tourism sectors, which are less resilient to economic shocks in wartime. The results of the analysis show that entrepreneurial activity in Ukraine has significant regional differences, which were exacerbated in the war. Relatively high level of population activity in regions with developed industry, favorable location and opportunities for foreign trade. At the same time, regions that are in a war zone or have a less developed economy face great difficulties, including business outflows, reduced employment and losses. The obtained data can be useful for state authorities when developing a program to support and stimulate entrepreneurial activity in different regions of the country, especially in those affected by the war. The cluster approach makes it possible to identify areas that need additional resources for recovery, as well as regions with high potential for further development, which can become drivers of the recovery of Ukraine's economy after the war.

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Published
2024-09-30
How to Cite
Shaida, O., & Kosovska, V. (2024). ANALYSIS OF THE IMPACT OF THE BUSINESS ACTIVITY OF ENTERPRISES ON THE LABOR MARKET OF UKRAINE. Economy and Society, (67). https://doi.org/10.32782/2524-0072/2024-67-105
Section
ENTREPRENEURSHIP, TRADE AND STOCK EXCHANGE ACTIVITY