PROBLEMS OF SMALL BUSINESS DEVELOPMENT UNDER CONDITIONS OF UNCERTAINTY
Abstract
The article investigates the current state and main challenges of small business development in Ukraine amid wartime conditions and economic turbulence. Drawing on statistical data for 2022–2025 and the findings of leading international organizations, the study examines the dynamics of key barriers that influence entrepreneurial activity. It is emphasized that small businesses, as one of the most flexible and adaptive components of the national economy, have faced profound structural pressures caused by the war, including the destruction of production facilities, market fragmentation, disruptions in supply chains, and demographic outflows of the workforce. Based on the conducted analysis, five dominant problem areas have been identified: macroeconomic instability, insufficient consumer demand, shortage of qualified labor, restricted access to financial resources, and increasing regulatory and administrative burdens. The share of entrepreneurs reporting a negative impact of economic volatility has been steadily growing, accompanied by declining internal demand, constrained access to credit and investment capital, and mounting operational costs. The labor shortage, aggravated by mobilization, migration, and psychological stress among employees, has become a persistent factor limiting recovery and growth. Meanwhile, unpredictable tax and regulatory changes have intensified the administrative pressure on small enterprises, undermining their ability to plan and invest strategically. The findings confirm that the war has transformed not only the external conditions of business activity but also the internal logic of small enterprise behavior. Pre-existing structural weaknesses—such as limited innovation potential and dependence on unstable domestic markets – have deepened under crisis pressure. Consequently, sustainable development of the small business sector requires an integrated policy response aimed at restoring financial stability, stimulating domestic demand, fostering digitalization and innovation, and building institutional resilience. Such a comprehensive approach would strengthen the role of small enterprises as a foundation for Ukraine’s post-war economic reconstruction and social renewal.
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