Running a business during wartime: Voice of Ukrainian displaced business

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Wars not only disrupt economic stability but also displace numerous enterprises, altering the socioeconomic landscape of affected regions. This study aims to analyze the case of relocated businesses in Ukraine, particularly their needs and adaptation in the host regions. An expert survey method was applied for 58 relocated micro-, small, and medium enterprises. The survey and review of secondary sources allowed distinguishing that security is the main driver of relocation (65% of respondents). Although for more than half of the respondents, relocation led to an increase in business activity in the host region, their ability to cover their own needs at the expense of their own funds fell, which led to the demand for external sources of financing. The biggest challenges are the cultural and doing business differences, loss of suppliers, and energy costs. In addition to financing, the TOP-3 needs include access to new markets (60%), the need for new equipment (57%), and special local permits (47%). Host regional authorities, as well as foreign donors, played a crucial role in adaptation to their region. In turn, businesses also note their contribution to the development of the host regions through tax contributions and providing jobs for the population and higher-quality products. Businesses demonstrate their openness to cooperation with foreign donors more than with local sponsors. These results are helpful for policymaking regarding regional development and the post-war rebuilding of Ukraine.

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    • Figure 1. Reasons behind choosing a region for relocation, %
    • Figure 2. Prospects for full resumption of business activities in the host region (%)
    • Figure 3. Factors with the greatest impact on business after relocation
    • Figure 4. Most relevant requests for reestablishing business, %
    • Figure 5. Business plans for seeking support by donors/business support funds, %
    • Figure 6. Future strategies of businesses after hostilities end in the home region, %
    • Figure 7. Displaced business impact on host regions, %
    • Table 1. Socio-demographic profile of respondents
    • Table 2. Resource relocation features (%)
    • Table 3. Post-relocation company performance indicators (%)
    • Table 4. Sources of business funding, %
    • Table 5. Satisfaction with the support received from the following institutions in the host region (%)
    • Table A1. Characterize the status of your business activities, %
    • Table A2. Have you used the “Affordable Loans 5-7-9” Program for SME support?, %
    • Table A3. What kind of help would be most relevant for you? (TOP-15 interview answers)
    • Conceptualization
      Yevheniia Polishchuk, Anna Kornyliuk, Vladyslav Lavreniuk
    • Funding acquisition
      Yevheniia Polishchuk, Mariia Tepliuk
    • Methodology
      Yevheniia Polishchuk, Vladyslav Horbov
    • Project administration
      Yevheniia Polishchuk, Vladyslav Lavreniuk
    • Supervision
      Yevheniia Polishchuk
    • Writing – review & editing
      Yevheniia Polishchuk, Anna Kornyliuk, Vladyslav Lavreniuk
    • Formal Analysis
      Anna Kornyliuk, Vladyslav Lavreniuk, Vladyslav Horbov
    • Visualization
      Anna Kornyliuk, Vladyslav Lavreniuk, Vladyslav Horbov
    • Writing – original draft
      Anna Kornyliuk, Vladyslav Lavreniuk, Vladyslav Horbov, Alla Ivashchenko, Mariia Tepliuk
    • Data curation
      Alla Ivashchenko, Mariia Tepliuk
    • Investigation
      Alla Ivashchenko, Mariia Tepliuk
    • Resources
      Alla Ivashchenko, Mariia Tepliuk
    • Validation
      Mariia Tepliuk