Small businesses in Ukraine have no plans to expand this year.

The Small Business Sentiment Index in Ukraine in 2025 remained at 2.3 out of 5, indicating restrained, mostly cautious expectations among entrepreneurs. According to the survey, approximately 30% of respondents consider the state of business to be “rather unsatisfactory”, while around 20% assess it as satisfactory or good. At the same time, 17-18% of entrepreneurs characterize the situation as very difficult, and only about 2% consider it very good.

Regarding the general economic situation in the country, only 3% of respondents consider the situation to be relatively favorable and 1% describe it as completely favorable. Among the factors that have the greatest negative impact on small businesses’ operations, entrepreneurs primarily name the consequences of the war and the economic changes associated with it:

Attacks on the Ukrainian energy system – 55%
Rising prices for goods, resources, and rent – 53%
Economic instability and recession – 52%
War and occupation of territories – 52%
Decrease in the purchasing power of the population – 51%
Separately, entrepreneurs identify several internal barriers to development. In particular, 41% of respondents point to high fiscal pressure and punishing tax burden, another 39% identify corruption.

When discussing their plans, most entrepreneurs are not considering the expansion of their businesses. Only 15% of those surveyed plan to scale up, while 85% do not see such a scenario. At the same time, 13% are considering a reduction in their activities, and another 11% will allow the business to close.

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