ADAPTATION MODELS OF FUNCTIONING OF SMALL AND MEDIUM-SIZED BUSINESSES IN CONDITIONS OF WAR IN UKRAINE
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Keywords

relocation
digitalization
business activity
impact of war
entrepreneurship
business functioning
diversification of business processes

How to Cite

Lavrov, R., Pugachov, V., & Serhieieva, O. (2025). ADAPTATION MODELS OF FUNCTIONING OF SMALL AND MEDIUM-SIZED BUSINESSES IN CONDITIONS OF WAR IN UKRAINE. Social Development: Economic and Legal Issues, (7-8). https://doi.org/10.70651/3083-6018/2025.7-8.23

Abstract

The purpose of the study is to identify and systematize adaptation models of small and medium-sized businesses in Ukraine in the conditions of a full-scale war, as well as to review their effectiveness in a sectoral context based on empirical data, statistics, and case studies. The study uses a combined approach that combines quantitative and qualitative methods. A comparative analysis of sectoral business expectations was conducted (based on monthly surveys of the National Bank of Ukraine), statistical processing of official data from the State Statistics Service, UNDP, the Ministry of Economy, Opendatabot, and analysis of open cases of enterprise adaptation from the portals Diia.Business, Kyivstar HUB, Platforma-MSB, and others. The study was carried out in stages: (1) analysis of the general dynamics of SME operations during the war; (2) identification of sectoral trends; (3) generalization of the main challenges and adaptation practices; (4) formation of general recommendations for business and public policy. The study showed that despite an average 43% decrease in SME revenues and a 22% reduction in staff, most enterprises continue to function and gradually adapt to new conditions. Based on business expectations indices, differences in sectoral dynamics were identified: increased confidence in the services sector, instability in industry, and stagnation in trade. It was found that the key adaptation models are: digitalization of business processes, diversification of sales channels, building horizontal partnerships, strategic relocation, and participation in grant programs. The effectiveness of proactive anti-crisis management is demonstrated using successful case studies. A number of practical recommendations are summarized for both entrepreneurs and government agencies. The proposed adaptation models are of practical importance for entrepreneurs who are looking for survival and development strategies in conditions of high turbulence. Analytical conclusions can serve as the basis for designing programs for financing, relocation, personnel training, and digital transformation of domestic business.

https://doi.org/10.70651/3083-6018/2025.7-8.23
PDF (Українська)

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Copyright (c) 2025 Ruslan Lavrov, Volodymyr Pugachov, Olena Serhieieva