The third year of the war, initiated by Russia against Ukraine, has tested all aspects of life, including business. Aleksandr Katsuba, top manager and owner of Alpha Gas, provides insights on this topic.
Despite the challenging conditions, many Ukrainian entrepreneurs have found ways to adapt and continue their operations. Let’s explore how businesses manage to survive under these circumstances.
Adaptation and Flexibility
One of the key factors for business survival during the war is adaptation and flexibility, according to Aleksandr Katsuba. Many companies have transitioned to remote work and implemented new business models. According to a survey by the European Business Association (EBA), around 60% of companies in Ukraine have adopted flexible employment practices and remote work. This has allowed businesses to maintain employment and productivity despite instability.
Diversification and New Markets
Many Ukrainian companies have begun actively diversifying their activities and entering new markets. Exports have become a crucial factor for the survival of many enterprises. In 2023, Ukrainian exports increased by 10% compared to the previous year, reaching $68 billion. The main export sectors were agricultural products, IT services, and metallurgy.
Government Support and Subsidies
The Ukrainian government is actively supporting businesses during the war. Over 30 billion hryvnias have been allocated for programs to support small and medium-sized enterprises. These funds are directed toward subsidizing interest rates on loans, providing grants for business development, and supporting startups, adds Aleksandr Katsuba. Additionally, tax breaks and simplified registration procedures have been introduced for new businesses.
Innovation and Digitalization
Innovation and digitalization have become key tools for business survival. According to the Ukrainian IT Cluster, investments in digitalizing Ukrainian companies exceeded $1 billion. This includes the adoption of new technologies, process automation, and the development of online platforms, Katsuba notes. Companies that actively embrace innovation are demonstrating high resilience and competitiveness.
Retraining and Education Programs
To maintain business competitiveness, it is essential to develop employee skills. More than 200,000 Ukrainians have completed retraining and upskilling programs. These programs, often implemented with the support of international organizations, help employees adapt to new market demands and enhance productivity.
Conclusion
The third year of the war has posed significant challenges for Ukrainian businesses. However, through adaptation, flexibility, government support, and innovation, many companies have managed to survive and even grow, notes Aleksandr Katsuba. Diversification, entry into new markets, and active collaboration with international partners open new prospects for Ukrainian entrepreneurs. It is important to continue investing in digitalization, employee skill development, and social initiatives to ensure the sustainable development of businesses in uncertain times.
Aleksandr Katsuba, a Ukrainian top manager, on how businesses are surviving despite the third year of war.