The needs and problems of Ukrainian entrepreneurs in the context of a full-scale war
The report was prepared within the framework of the Good Governance Fund project “Revitalising the Business Climate in Ukraine”, funded by UK International Development from the UK Government. The project is implemented by Abt Britain and Kyiv School of Economics.
The study was conducted in cooperation with the Ministry of Digital Transformation of Ukraine, the Ministry of Economy of Ukraine, and the Entrepreneurship and Export Promotion Office.
The purpose of this study is to describe the state of women's entrepreneurship (micro, small and medium-sized) in Ukraine, including an assessment of the needs of women entrepreneurs, including those from vulnerable groups, and the challenges they face in their business activities. The study focuses on several vulnerable groups: women who are internally displaced, women veterans, women with disabilities, and women doing business in rural areas.
The study uses the intersectionality principle, which allows for the consideration of multiple vulnerabilities and their impact on the business environment. According to this approach, different characteristics can intersect with gender and each other, creating multiple levels of discrimination and barriers.
Objectives of the study:
To outline the portrait of a Ukrainian entrepreneur
To find out the understanding of gender equality issues among women entrepreneurs and the prevalence of gender discrimination in the business environment
Identify the problems and needs at the stages of starting and running a business, taking into account the specifics of vulnerable groups of women and in the context of such aspects of entrepreneurial activity as accumulation of resources, interaction with the state, participation in business associations, acquisition of entrepreneurial competences and exports
To provide recommendations that will contribute to improving the conditions for women to start and run a business
The authors of the study identified a typical portrait of a Ukrainian entrepreneur: a woman aged 36, with about 6 years of business experience, low levels of trust in the state and credit, who started her own business for self-fulfilment.
Factors that contribute to the decision to start a business
emotional and/or financial support from family;
female role models in business or in leadership positions among acquaintances;
availability of own premises that could be used for business or rented premises from a landlord perceived as a reliable partner;
availability of specialists among friends and/or acquaintances who are ready to provide support within their own area of expertise (accounting, law, taxation, banking);
obtaining a business education or basic business education, or having your own premises that could provide knowledge and tools for doing business.
The study found that women entrepreneurs are equally represented in both “predominantly female” (30%) and “predominantly male” (31%) business sectors. Only 15% of women entrepreneurs are involved in gender-neutral areas. Among them, about 79% own microbusinesses, 14% own small businesses and 7% own medium-sized businesses.
The difficulties of vulnerable groups of women entrepreneurs include:
- for women in rural areas — lack of labour, limited access to resources, need to interact with local authorities;
- for internal displacement women entrepreneurs — difficulties in restoring or establishing supply chains/partnerships, limited access to external financing;
- for women entrepreneurs with disabilities — lack of adequate disability support, lack of trust in the state and other levels of assistance;
- for women veteran entrepreneurs — attempts to transform military experience into business management.
Financial literacy and accounting are the most popular requests for training that would help improve their business. These also include:
- financial management and allocation;
- accounting and financial reporting;
- development of a business plan and its adjustment.
Other important areas of development identified by entrepreneurs include digitalisation of business processes, search and systematisation of information, and recruitment and management of staff.