Entrepreneurial challenges and opportunities in three Ukrainian oblasts - February 2024
Executive Summary
The onset of full-scale war of Ukraine in February 2022 upended the country’s economy. Millions fled their homes and jobs, entering a future of great uncertainty. Others, even those living in frontline areas, decided to remain and maintain their livelihoods, despite security concerns and devastated local economies. Furthermore, as the war enters year three, some individuals are returning to areas they fled. This report examines opportunities for employment, particularly self-employment, in Dnipropetrovsk, Zaporizhzhia, and Donetsk oblasts.
Among the findings of the report are that—even in the face of war—some sectors of the economy are relatively productive, the service sector in particular. Retail stores, bakeries, pharmacies, automobile repair shops, rural transportation services, and hairdressers are successfully operating in Dnipropetrovsk Oblast. Should government plans for reconstruction proceed as planned, SMEs involved in small-scale manufacturing that offer auxiliary support to the construction sector could thrive, although this will depend on the security situation, especially in Zaporizhzhia and Donetsk oblasts.
Employment interventions must also be sensitive to vulnerable populations, such as people with disabilities (PWDs), older people, and parents with small children. Programming should find ways to accommodate such individuals. As the war takes its toll, the number of PWDs is climbing rapidly. Programming that supports adaptations to make workplaces, vehicles, and agricultural and industrial machinery accessible would open employment possibilities to this growing segment of the population.
Another key part of any programming to support employment opportunities will be support in navigating bureaucracy. Many IDPs fled without the personal or professional documentation that they now need to qualify for loans or benefit from existing government programs. Consultation services designed to assist IDPs in overcoming these challenges could allow some of them to tap into support systems.
The report also recommends exploring opportunities to support entrepreneurs and small businesses closer to more conflicted-affected locations. Support for conflict-affected small businesses and entrepreneurs has largely gone to businesses relocated to areas of the country further afield. While much of the three oblasts covered in this report are occupied or along the frontlines, most of Dnipropetrovsk Oblast, parts of Zaporizhzhia Oblast (including Zaporizhzhia city), and parts of northeast Donetsk Oblast continue to be home to significant populations engaged in economic activity, including returnees. While security would demand that assistance be assessed on a case-by-case basis, supporting employment opportunities would help stabilize local economies and promote community resilience. Furthermore, while there has recently been an increase in agricultural programming support in rural areas, attention should also be paid to expanding employment opportunities in urban areas, where IDPs are largely concentrated.
Finally, support for employment opportunities cannot ignore the trauma of war. Programs that strive to reintegrate war-affected population into the workforce should coordinate with providers of psychological support, ensuring that the availability of such services is promoted to program participants.