Ukrainian businesses facing more difficulties in 2020 – poll

About 82% of Ukrainian small-, medium- and large-sized enterprises reported more difficulties in doing business in 2020 against 2019, while a mere 10% noted the ease of doing business.

That is according to a survey of 790 enterprises conducted by the SheExports platform from October 13 to November 1, 2020.

Some 57% of those surveyed said they were unsatisfied with the current state of affairs in their business, whereas 35% were satisfied with their development.

In addition, 53% of respondents said they faced more difficulties in conducting foreign economic activity in 2020, against 21% of those said the opposite.

Read alsoCabinet decides on lockdown dates in Ukraine – mediaAnother 42% of surveyed businessmen noted a drop in orders and demand on the domestic market as the key challenge faced by domestic businesses during the epidemic.

Biggest export challenges

• Limited opportunities for foreign travel (10%);
• Postponement of preliminary agreements on supplies of goods/services (10%);
• Falling demand on foreign markets (10%);
• Restrictions for foreigners at Ukraine's border (9%).

In addition, about 32% of businesses noted quarantine-related curbs on businesses as one of the major issues, while 31% noted money shortage. Another 31% of respondents mentioned restrictions on public transportation.

About 28% of those surveyed named employees' salaries and payment of single social security contributions as one of the main problematic expenditure items, while 22% noted rent payments and 16% pointed out support of operating activities and the closure of older contracts.

Read alsoUkraine plans to get US$300 mln loan from World Bank to tackle pandemic falloutThe study was conducted by the SheExports platform in partnership with Gradus Research and AdvanterGroup, commissioned by the Export Promotion Office.

The overwhelming majority of respondents (68%) are representatives of the country's small- and micro-businesses, while a third of the respondents are exporters.

Background

In November, Ukrainian President Volodymyr Zelensky noted that the government had to do its utmost to prevent weekend quarantine from becoming critical for small- and medium-sized businesses.

On November 26, Zelensky submitted a bill to the Verkhovna Rada, Ukraine's parliament, on social support for insured persons and business entities during the period of restrictive anti-epidemic measures introduced to prevent the COVID-19 spread across country.

The document provides for the payment of one-time financial assistance to businesses and employees, whose activities are subject to a ban amid the quarantine.

Deputy Head of the President's Office Yulia Kuznetsova said the package of assistance to entrepreneurs in case of the introduction of a lockdown in Ukraine would be financed from the Fund for Combating COVID-19.

From UAH 12 billion (US$421 million) to UAH 15 billion (US$527 million) in assistance is expected to be provided to individual entrepreneurs and their employees, as well as directly to the enterprises by the end of the year.

Kuznetsova says the draft laws initiated by president clearly indicate the amount of assistance, including UAH 8,000 (US$280) for private entrepreneurs and employees. Enterprises whose activities shall be prohibited during quarantine will get compensation for single social security payments.