What is the vision of Ukraine's future after the war and what sentiments does business declare? 2023 was another stage of testing our endurance and courage. Having completed more than 300 research projects in 2023, Gradus Research has formulated 5 business key trends of the past year.
Trends in Ukrainian business
1.Businesses are showing resilience and staying in Ukraine
The migration of Ukrainians abroad caused by russia's full-scale invasion of Ukraine is tangible and affects the operations of Ukrainian companies. Despite the challenges of staff shortages, finding new and retaining existing markets and customers, and ensuring staff safety, numerous Gradus Research surveys show a proactive stance of businesses and their willingness to address these issues. Companies also expect the government to take decisive action to restore human capital by fighting corruption, supporting entrepreneurship, and creating new jobs.
At the same time, businesses tend to stay in Ukraine: both traditional businesses and startups overwhelmingly declare that they do not need to relocate.
2. Businesses are increasingly planning for the short term, but tend to build active and moderate development strategies
The business planning horizon has shrunk during the war - most Ukrainian companies, according to Gradus Research surveys, plan their activities one year in advance or less.
At the same time, businesses in Ukraine continue to be optimistic about their growth prospects, and mostly include active or moderate development plans in their strategies.
3. Ukrainian business actively supports the Armed Forces of Ukraine and the society
In general, we can state that the involvement of Ukrainian companies in addressing social issues has been high since the beginning of the war — the vast majority of them are involved in such initiatives. Most efforts are focused on supporting the military, community development, social protection, healthcare and education. The most common ways of assistance declared by businesses are transferring funds directly to recipients, involvement through partner charities or NGOs, and independent implementation of social or own volunteer programs.
In most cases, the initiative comes from business owners or managers, and they are often the ones who handle the functions related to the implementation of such projects.
It is worth noting that even companies with an annual turnover of up to UAH 100 thousand find the opportunity to donate to social needs on a monthly basis with products, money, or volunteering. Moreover, the vast majority of businesses are ready to continue these social initiatives even after the end of the full-scale war. This once again demonstrates the strength of horizontal ties in Ukrainian society.
4. Owners and top managers of Ukrainian companies began to work more closely and in a coordinated manner
Russia's full-scale invasion of Ukraine has provoked a return to more active involvement of owners in the operational management of their businesses. When Gradus Research conducted a survey of the interaction between top management and company owners, it observed a significant increase in the effectiveness of their communication. In particular, managers have become more trusting of their owners, stated that they feel strongly supported by them, and generally declared satisfaction with the level of their authority and freedom of action in their companies.
5. Businesses are transforming to survive
Compared to last year, the share of businesses that have undergone partial or complete sectoral transformation or need it has increased significantly. In general, according to Gradus Research surveys, businesses have adapted to the challenges of war, and most Ukrainian companies are currently operating in pre-war mode.
"For almost two years of war, Ukrainians have been demonstrating rapid adaptation to the conditions in which we find ourselves. However, of course, fatigue from the war and uncertainty is accumulating, so next year may show us different social dynamics," comments Evgeniya Blyznyuk, sociologist, CEO&Founder of Gradus Research.
The surveys were conducted by Gradus Research using a self-administered questionnaire in the Gradus mobile application. The Gradus online panel displays the population structure of cities with more than 50 thousand residents aged 18-60 by gender, age, settlement size, and region.
