BUSINESS RELOCATION AS AN ADAPTATION TOOL FOR ENTREPRENEURIAL ENTITIES UNDER CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article examines business relocation as an adaptive instrument of entrepreneurial activity under conditions of economic instability, focusing on contemporary Ukrainian realities. The relevance of the study is determined by prolonged external shocks, including military risks, infrastructure destruction, energy supply disruptions, logistical constraints, and increased market uncertainty, which significantly affect enterprise sustainability, especially small and medium-sized businesses. The purpose of the article is to systematize theoretical approaches to business relocation, identify key factors influencing entrepreneurial decision-making, and substantiate its role in ensuring business adaptation and continuity. Relocation is conceptualized not as a one-time anti-crisis measure, but as a strategic entrepreneurial response to external challenges in a highly uncertain environment. The research is based on qualitative analysis of academic literature, analytical reports, and statistical data on enterprise relocation in Ukraine during 2022–2025. The article compares relocation with other adaptation mechanisms such as restructuring, diversification, and digitalization, outlining their objectives, advantages, and limitations. The results show that, unlike internal organizational transformations, relocation directly addresses external risks related to security, infrastructure stability, energy supply, and logistics. The findings indicate that business relocation supports preservation of operational activity and employment, reduces financial and logistical risks, and creates new development opportunities through access to safer infrastructure and alternative markets. Recent trends demonstrate consolidation of new operational locations, integration of autonomous energy solutions, and redesign of supply chains, transforming relocation into an element of long-term strategic planning. The article concludes that business relocation plays a key role in strengthening entrepreneurial resilience and forming flexible and sustainable business models under economic and institutional uncertainty.