CURRENT PROFILE OF UKRAINE'S BUSINESS CLIMATE FOR THE INTRODUCTION OF SMALL BUSINESSES DURING THE WAR PERIOD

Abstract

The article examines the conditions of the business climate of small business in Ukraine during the war. The purpose of the study is to determine the profile of the business climate and characterise the peculiarities of small business functioning during martial law, as well as to identify the main challenges for its operation. Particular attention is paid to the analysis of business climate transformations in the frontline regions. Methodology. In the course of the study, a set of general scientific and special methods was applied. In particular, the methods of analysis, synthesis and systematisation of factors influencing the business climate of small businesses were used. Statistical analysis of data from the State Statistics Service of Ukraine, the Ministry of Finance of Ukraine, the National Bank of Ukraine and the results of expert surveys allowed us to identify the dynamics of key performance indicators of small businesses in the period from 2019 to March 2025. The methods of comparative analysis are used to assess regional differences in the conditions for the functioning of small businesses. To gain a deeper understanding of trends in small business during the wartime period, the author conducted a study based on a comparison of the World Bank statistics on the business climate of European countries. As a result of the study, a profile of the current business climate for small businesses in Ukraine during the war was formed, the areas of necessary changes were summarised and critically assessed, and the key difficulties faced by the subjects in the context of the systemic crisis were identified. These challenges include rising energy costs, tight lending conditions, a shortage of qualified personnel, and a decline in the population's ability to pay. Particular attention is paid to the functioning of small businesses in regions close to the war zones (in particular, Kharkiv, Sumy, and Zaporizhzhia oblasts), where security risks significantly affect business activity. At the same time, a positive lever has been identified that partially mitigates the impact of the crisis: the flexibility and adaptation of small businesses. Practical significance. The findings of the study can be taken into account by public administration and local governments when creating programmes to support small businesses. The analytical findings can also serve as a basis for business planning in an unstable environment. Value / Originality. The originality of the work is due to the combination of empirical data from Ukrainian official sources with international business climate indicators (in particular, World Bank statistics), which allowed not only to study national peculiarities but also to identify comparative advantages and barriers to the development of small business under martial law, which significantly transformed the economic environment in Ukraine.