According to data from Opendatabot, 763,759 new individual entrepreneurs (FOPs) have launched since the invasion began, while 684,995 have closed. Below is an overview of the most notable trends, sectors, and regional dynamics.
1. Overall Dynamics of Opening and Closing FOPs
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Openings vs. Closures
- 763,759 new FOPs opened since the start of the war.
- 684,995 entrepreneurs closed their businesses over the past 3 years.
- Despite the war risks, more FOPs were opening than closing most months, until late 2024.
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Recent Shifts
- In January 2025, an anti-record was set: 61,455 FOPs closed, while only 21,358 new ones were registered, indicating a potential reversal of the earlier positive trend.
2. Popular Business Sectors
- Retail Trade – 28%
- Continues to dominate due to consistent consumer demand.
- IT – 9%
- Though still popular, the monthly rate of new IT-related FOP registrations nearly halved compared to pre-invasion levels.
- Wholesale Trade – 7%
- Key for supplying retail outlets and services across the country.
- Fastest Growth Sectors
- Postal and Courier Activities: Up 3× compared to pre-war levels.
- Education: Up 2.6× as demand for alternative learning and tutoring grows.
- Finance: Up 2.5×, likely driven by fintech and financial advisory services.
3. Rise in Female Entrepreneurship
- Female Share Grows to 61%
- Pre-war, women constituted about 40% of new FOPs. That number has now surged to 61%.
- Sector Preferences
- Women: More likely to open businesses in services, education, and clothing production.
- Men: Dominate in construction, transport, and logistics.
4. Regional Variations
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Top Regions for New FOPs
- Kyiv: 108,536
- Dnipropetrovsk region: 68,377
- Lviv region: 60,009
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Frontline & Occupied Areas
- New business registrations are significantly lower in Luhansk, Donetsk, and Kherson regions due to ongoing conflict.
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Regions with Notable Growth
- Rivne: +25%
- Ivano-Frankivsk: +10%
- Chernihiv: +10%
5. Tax Revenues and Economic Impact
- Total Tax Paid by FOPs
- Approximately UAH 126 billion over almost three years of full-scale war.
- Single Tax Dynamics
- 2022 was an exception when revenues dipped.
- In 2023, single tax revenues were 1.6× higher than in 2021 (UAH 55.1 billion vs. 34.8 billion).
6. Key Takeaways
- Resilience and Adaptation
- SMBs continue to adapt by shifting toward sectors like IT, logistics, and services—crucial areas during wartime.
- Increased Female Participation
- The surge to 61% female entrepreneurship signals a growing role for women in rebuilding the economy.
- Regional Polarization
- Safer regions are seeing higher business registration rates, while conflict zones struggle with lower new FOP formation.
- Future Uncertainty
- Late 2024 saw a sharp increase in closures, which may signal economic caution or wartime fatigue among entrepreneurs.
Despite challenges posed by the war, Ukraine’s individual entrepreneurs have shown remarkable tenacity, launching new ventures in sectors adapted to wartime needs. However, the recent spike in closures highlights ongoing economic volatility, and the future of SMBs will depend heavily on security developments and policy support for entrepreneurship.
