A recent survey conducted by the European Business Association (Ukraine) among its member companies revealed that 68% of the surveyed businesses work in full. It should be noted that 54% of companies were fully operational in January 2023, and 44% - in October 2022. Also, 31% of companies keep working with some restrictions now, and another 1% do not operate at all.
The number of businesses that pay full wages to employees remains consistently high – currently 90% of respondents, plus 21% make advance and bonus payments. However, 10% resort to wage cuts, 2% to layoffs, and 3% of companies send employees on unpaid leave.
As a result of hostilities, 38% of companies suffered direct losses, and 21% have assets (production facilities, land, machinery, transport, real estate, products) that remained in the occupied territories. There are still significant business losses due to the war. As of now, 33% report losses of up to $1 million, 37% report losses in the $1-10 million range, and 10% report losses of more than $10 million.
The businesses uniteted by the EBA continue to regularly help the army and the people impacted by the war. About 47% support the Armed Forces financially and support their employees defending the country, 42% provide their products, and 24% provide services for the needs of the armed forces and as humanitarian aid.
The “financial cushion” of the business is more or less stable: 25% have financial reserves for half a year, 23% for a year, and 37% for a year or more. Another 5% have reserves only for several months, and 5% have none at all. The current situation is not too different as of January 2023. To support their businesses in a difficult period, 7% of the surveyed companies took part in the state support programs.
"We see a certain performance stabilization of the companies. This can be explained by the fact that companies have adapted and found new directions for development in order to keep working and remain financially sustainable. Yes, this stability is quite fragile and can be greatly influenced, for example, by the battlefield situation, etc. However, we as a country have to do everything possible to support the economic front – business. Moreover, we call on the global community to continue supporting Ukraine – cooperating and doing business with Ukrainian companies, developing investment insurance mechanisms to have investments in the country, etc. Any form of support will help to make Ukrainian Victory, the Victory of the whole democratic world, closer", comments Anna Derevyanko, Executive Director of the European Business Association, Global Business for Ukraine cofounder.
For reference:
The survey was conducted from April 4 to 26, 2023, and 115 top managers of member companies of the European Business Association took part in it.
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