How the War Is Impacting Ukraine’s SMEs

The president of the European Bank for Reconstruction and Development (EBRD), Odile Renaud-Basso, estimates that the Ukrainian economy will shrink by 30% in 2022, due to the war. Earlier this year, the World Bank put that estimate to 45%. Regardless of what the final number ends up being, there is no doubt that Russia’s invasion of Ukraine has wreaked havoc on the country’s economy.

A recent report looked specifically at the impact on micro, small and medium-sized businesses (MSMEs). It clarified that the war has exacerbated existing challenges to small business, and created new ones. From large-scale migration to supply chain disruptions and infrastructure instability, small business in Ukraine finds itself operating under very challenging circumstances. What the report also highlights is that Ukrainians MSMEs are being extremely resilient through it all.

As occupied territories are freed, local businesses reopen. Businesses reorganise themselves in response to the changing circumstances and they are extremely active in seeking new trading partners. The report concludes that:

“To support recovery, the sector needs support for business renewal, rebuilding supply chains, creating new connections and business partnerships, optimizing costs and getting financial support.”

This is where you can make a difference. The Traids platform allows buyers around the world to connect directly with businesses in Ukraine. You can start your search for a Traids partner right here.