SMES’ RESILIENCE IN UKRAINE: CONCEPTUAL FRAMEWORK AND CURRENT STATE
Abstract
Based on the analytical study of the state of small and medium-sized enterprises (SMEs) in Ukraine during the long-lasting crisis, as well as a literature review of the concepts and theories that explain organizational resilience and its measurement, we identified the dynamic capabilities approach and social capital theory as the most relevant. Drawing on the dynamic capabilities perspective, it is reasonable to assess the organizational resilience of SMEs through strategic agility and proactiveness. Entrepreneurs with a high level of resilience, despite the fear of failure, demonstrate clear intentions to implement entrepreneurial strategies, grounded in the belief in their own ability to improve financial performance and outcomes. Thus, the intention of business owners to implement proactive strategies for their companies in times of crisis is undoubtedly related to organizational resilience. Dynamic capabilities, in turn, serve as a mechanism through which SMEs mobilize critical resources and often mediate the influence of various factors on organizational resilience. This paper argues that the application of the dynamic capabilities approach and social capital theory to the context of Ukrainian entrepreneurship will enable examination of the impact of external and internal social capital, state support, and digital transformation on the organizational resilience of SMEs during a long-lasting crisis. To identify potential factors influencing the organizational resilience of Ukrainian SMEs, we analyzed the current situation and expectations of SME owners and managers regarding development prospects, based on surveys conducted in 2025 (504 respondents) and 2024 (544 respondents). The findings highlight the need for state support and SME development programs. In the 2024 study, 77% of entrepreneurs reported the need to increase the number of support programs, while only 20% considered the existing programs sufficient. At the same time, SMEs in Ukraine actively rely on internal social capital and the benefits of external social capital – through participation in business associations, integration into value chains at different levels, strengthening relationships with customers, etc. Digital transformation has also proven to be an important determinant of resilience among Ukrainian SMEs. However, as of 2024, 29% of business owners and managers had no plans to implement digitalization and business management technologies.
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