REGIONAL ANALYSIS OF ENTREPRENEURIAL ACTIVITY IN UKRAINE WITH TAXONOMIC RANKING METHODS
Abstract
This research aims to provide a comprehensive analysis of the development of entrepreneurial activity across regions of Ukraine from 2021 to 2023, with a particular focus on the influence of the geopolitical and economic changes stemming from the war. The relevance of this study lies in the urgent need for policymakers, investors, and regional authorities to understand how the business landscape has shifted due to these extreme conditions, and how these shifts may affect future economic growth, regional development, and post-war recovery efforts. The research methodology employed is a taxonomic analysis of six key economic indicators, including the number of active enterprises, the number of employed workers, sales volume, value-added production, capital investment, and pre-tax profit. The taxonomic index was calculated for each region, which allowed for a systematic comparison and ranking of regional performance over the three-year period. The results of the analysis reveal a clear shift in the centers of entrepreneurial activity in Ukraine during the studied period. In 2021, Dnipropetrovsk was the undisputed leader in terms of entrepreneurial development. However, in 2022 and 2023, Kyiv took the lead, benefiting from a combination of favorable geographical positioning, economic infrastructure, and substantial capital investment. In addition, Lviv emerged as a notable performer, especially in 2023, due to its strategic importance and the influx of businesses relocating from the war-torn eastern regions. Meanwhile, regions such as Luhansk, Kherson, and Donetsk, which were directly impacted by war, experienced significant declines in entrepreneurial activity. A key finding of this study is that the center of gravity for entrepreneurial activity in Ukraine has shifted westward, as businesses and labor forces have migrated to safer areas. This movement of businesses from war zones to regions such as Kyiv, Lviv, and Dnipropetrovsk has had profound implications for regional economic development. The results can guide the development of post-war recovery policies aimed at revitalizing the regions most affected by the war. Moreover, the study underscores the importance of understanding regional disparities in entrepreneurial performance, which will be essential for devising strategies that foster sustainable economic recovery and balanced regional development in the years following the war.
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