Why Ukrainian Entrepreneurs Keep Starting Businesses
By Viktor Andrukhiv, (pictured) Co-founder of Fibermix and Savex Minerals
In the Ukrainian context, the word entrepreneurship has long meant more than just starting a company. It’s about courage, intuition, resilience, and the determination to build amidst never-ending crises.
Despite entering the fourth year of war, 40% of business leaders assess their company’s situation positively, 46% rate it as satisfactory, and 32% are optimistic about improvements in 2025, according to a survey by the European Business Association.
At the same time, many see this period of full-scale war and chronic instability as the worst possible moment to start a new venture. But within this uncertainty lies a unique window of opportunity. Why?
1. Low Competition and Distorted Demand
Today, Ukraine’s business environment is marked by low competition across most sectors. The reasons are clear — investment paralysis, territorial loss, internal and external migration, and extreme unpredictability. This has created a temporary market vacuum. It’s possible to enter with minimal investment, test a product, and quickly establish a foothold.
2. A Crisis-born Business = A Stronger Foundation
A business born in crisis learns from day one how to adapt, operate with limited resources, and rely not on external conditions but on product quality and team cohesion. Such ventures are often more resilient in the long run. Additionally, the drop in consumption forces entrepreneurs to focus on service, efficiency, and flexibility — making this a time when companies can strengthen the quality of their offering.
3. Speed and Regulatory Flexibility as Competitive Advantages
Today, Ukraine ranks among the most deregulatory-friendly jurisdictions in Europe for small businesses. Setting up as an individual entrepreneur, launching production, and securing permits happen many times faster than in EU countries.
This creates a unique dynamic: Ukrainian entrepreneurs can effectively build businesses by leveraging the flexibility of a state system that, despite the crisis, has pivoted toward simplification. The government is offering the most favorable conditions for startups seen in the past 20 years, including:
- Grant programs
- Preferential loans (5-7-9% programs)
- Simplified business registration through digital services
- Local initiatives for internally displaced persons (IDPs)
4. Mental Advantage — The Cultural Code
The reason to stay and build a business in Ukraine is the deep integration into the social, emotional, and consumer landscape, coupled with a profound understanding of the local customer. We instinctively sense what Ukrainians want and respond to change faster than imported brands. And ultimately, we possess what no foreign business can replicate: Ukrainian DNA, embedded in every logo, every product, every message. This emotional connection builds enduring trust.
Acknowledging the High Risks
But the risks are undeniably high.
- 75% of entrepreneurs cite the lack of qualified personnel as the most negative factor impacting business.
- 63% point to territorial occupation.
- 54% highlight economic instability.
One must also account for logistical disruptions and energy challenges. Yet, it’s precisely the elevated risk that can unlock higher returns.
For Ukrainian entrepreneurs, starting a business during wartime is a bold strategic move. It’s an investment in the economy — and, therefore, in the country’s independence. The risks are high, but if you succeed, you stand to become a market leader once peace returns.
Business in crisis is not just about survival. It’s about real leadership. And real leadership doesn’t emerge when it’s easy — it shows up when it’s dark.
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