Threats and potential risks for the functioning of small and medium-sized businesses in Ukraine during the war

Abstract

In conditions of war, Ukrainian small and medium-sized businesses have beenunder significant pressure due to numerous economic, social, and political challenges.The direct consequences of the war, including infrastructure destruction, decreaseddemand, rising costs, instability in the financial system, and political uncertainty, create amultifaceted problem for entrepreneurs. A review of the literature revealed that there isno comprehensive study that fully describes the potential risks for the operation of smalland medium-sized businesses in Ukraine during wartime. Therefore, the aim of the studyis to identify the business environment, its threats, and the main areas of activity toensure the functioning and support of small and medium-sized businesses in the wartimeeconomy.The article examines the potential for growth in small and medium-sized enterprises undermartial law. The author presents the essence of the concepts of the topic under study and thepractical impact of these economic units on the economic situation. Medium-sized enterprisesin our country are domestic and multidisciplinary, unlike foreign ones. The author outlines thecommon problems and risks faced by our private business. Among the main driving forces ofthe 'new order' was the reduction of opportunities and harassment in this sector. Under theprevious method of regulation, the state tried not to interfere in the affairs of privatebusinesspeople. The existing tax system is no longer suitable. There are fewer opportunitiesto pay the required and prescribed contributions. This inextricably affects the activities of thestate regulatory apparatus and the provision of the funds necessary for its functioning. Whatis important for the population is the conduct of social policy at the appropriate or previouslevel. The general trends in this important sector of the economy, possible difficulties forcompanies, people working there, and the economy in the updated environment areinvestigated. The formation and development of Ukrainian medium-sized enterprises is a prerequisite for solving socio-economic problems. Most of the unemployed are involved inentrepreneurial activities, adjusting credit and tax policies to stimulate the production,formation, and development of Ukrainian medium-sized enterprises and the transition toinnovative economic development. The author outlines the state apparatus's actions intaxation, organization, assistance, and innovation-especially changes in the energy andagricultural sectors, as Ukraine specializes in the latter. The geopolitical situation, in general,is also important. Therefore, finding out the situation and investigating the risks is important.This is a unique situation that requires our attention, and it is the reconstruction that needs tobe done. After the victory, a new Ukraine must emerge, worthy of the heroic people whoinhabit it.