STRATEGIES FOR THE DEVELOPMENT OF SMALL ENTREPRENEURSHIP

Анотація

The article is dedicated to the theoretical substantiation and development of adaptive strategies for small entrepreneurship in Ukraine amid wartime instability and the initial stages of post-war recovery (2022–2025). Based on empirical data from EBRD surveys (2025), UNDP reports (2024 with 2025 updates), statistics from the Ministry of Economy of Ukraine, and YouControl. Market, as well as analytical interpretation of correlation dependencies (Pearson formula) and conditional typology (k-means clustering), the study examines key sector challenges: infrastructure destruction, skilled labor shortage, energy and logistical risks, and mass business relocation. Despite a 38% profit decline in 2024 and temporary suspension of 64% of enterprises, as of Q3 2025 about 91% had resumed operations, while new individual entrepreneur (FOP) registrations in Q3 2025 grew by 38% (about 58,200 new). Most SMEs (61%) remain in “conservation mode,” focusing on survival. A hybrid strategic model is proposed that combines short-term anti-crisis measures (cost reduction, relocation, staff retention) with medium- and long-term growth elements: 1) digital transformation (e-commerce share reached 10% of retail sales in 2024 with further potential); 2) green transition in line with EU Green Deal principles; 3) export orientation and integration into defense sector supply chains; 4) inclusiveness (support for women entrepreneurs, veterans, and youth via the “5-7-9%” affordable loans program, under which UAH 52,8 billion was disbursed from the beginning of 2025 to mid-year). Scientific novelty has a clarifying character and lies in adapting hybrid strategies to regional (western vs frontline) and sectoral (trade, services, manufacturing, IT) specificities of the Ukrainian transitional period 2022–2025, accounting for data biases (survivorship bias) and comparisons with similar crises in Israel and Georgia. Empirical evidence suggests potential resilience increase with hybrid approaches (strong correlation of performance with business confidence r=0.71). Results align with the national SME Strategy until 2027 (CMU Resolution No. 821-r dated 30.08.2024) and SME Resilience Alliance initiatives (2024). Practical significance includes recommendations for business owners (roadmaps for digitalization and relocation), government authorities (enhancing support programs and deregulation), and international partners (harmonization of export standards). Implementation of the proposed strategies may facilitate the transition from survival mode to sustainable growth and strengthen the role of small entrepreneurship as a key driver of Ukraine’s economic recovery.

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