90% of female entrepreneurs in Ukraine feel impact of war – survey

Богдан Петришин

Ukrainian Women Entrepreneurs Hub announces a presentation of the results of a study of women's entrepreneurship in Ukraine in conditions of full-scale war. The Corporate Social Responsibility Development Center prepared the study based on the results of a survey conducted in February 2023 during the registration of female entrepreneurs to participate in the UWE Hub 2.0 online training program. The program is implemented within the USAID "Dream and Act" framework. It aims to support women entrepreneurs (current and future) in modern conditions and challenges through training, exchange of experiences to strengthen each other, networking, and assistance in creating businesses with social impact.

Six hundred thirty-nine women entrepreneurs participated in the study, 75% of whom were in Ukraine at the time of the survey, and 31% were internally displaced persons.

Key figures and facts from the Power of Transformation: Women's Entrepreneurship in war time study:

• 58% of surveyed women entrepreneurs have a desire to create their own business but do not yet have a clearly calculated business idea, or their idea is at the concept stage. 30% already have a functioning business or are at the stage of launching it.
• Women entrepreneurs are involved in a variety of businesses, including services (33%), educational services (11%), manufacturing (17%), and other industries.

• An important factor affecting a business's legal registration is its development stage. 86% of women who already have or previously had a business legalized their business. About 2/3 of women who only had a business idea at the concept stage have yet to begin to legalize it.
• Women describe the uniqueness of their business or business idea and emphasize the product's ecological/natural nature, individual approach, complexity, and quality. There are also mentions of innovation, development, authenticity, and social impact.
• 53% of women entrepreneurs have additional sources of income or savings, apart from the primary source, for business implementation. Of them, 56% finance their business at the expense of their own funds, primarily due to a lack of understanding of the processes of obtaining grant funds for business development. At the same time, 15% are ready to reinvest their profits for business development at the first stages of starting a business.
• The main challenges for female entrepreneurs are the unstable economic conditions in Ukraine caused by the war with Russia (40%), as well as the problems of entering the international market and the consequences of natural disasters and pandemics.
• 89% of female entrepreneurs are already involved in implementing a business idea or developing their business. Among those who have not yet started, the most common reasons are lack of knowledge, negative previous experience, and hesitation due to the situation in the country or being abroad.

• 90% of female entrepreneurs noted that the war in Ukraine impacted their business. In particular, 14.6% experienced negative consequences, and 18.8% said that the war was an impetus for opening a business. And this indicator is only growing. In June 2023, the share of female entrepreneurs who stated that the war was an impetus for starting a business was already more significant than those who stated that their business was closed (or its activity was suspended) under the influence of the war.
• The greatest expectation and need from the UWE Hub Program for women entrepreneurs is the acquisition of practical knowledge about running and developing a business, structuring business models at all stages of its development, as well as the desire for networking, new ideas, inspiration, insights, finding partners, increasing confidence, self-development and mastering modern marketing methods. Women also want to gain skills in attracting investors, scaling businesses, promoting their businesses, and mentoring. June saw an increase in the percentage of female entrepreneurs hoping to improve their skills in financial literacy and attracting investors, legal knowledge, management, and team building.

Many women are motivated to participate in training programs that help them develop their own businesses when they see examples of successful and famous women who are skilled in managing their businesses, persistent, and self-assured. Approximately 50% of respondents named women who inspire them, and not all of these women are known to the general public. Often these women are part of their personal environment – close acquaintances, friends, and colleagues. About 10% of respondents believe that every woman in Ukraine is an example of the strength of spirit, resilience, and confidence in achieving their goals.

Also, during the online presentation of the study, the following recommendations were developed by experts and speakers regarding the systematic support of women entrepreneurs:

• Programs such as the UWE Hub need to be promoted more actively, as they bring together both IDP women and those who remain in cities and focus on community building.
• It is important to encourage entrepreneurship development among women under the age of 24, whose number of female entrepreneurs is relatively small.
• It is necessary to promote the emergence and popularization of more female entrepreneurs (role models), including in sectors where women can start their own businesses and which are not "traditionally female."
• Encourage women to partner and collaborate with other women entrepreneurs so they strengthen each other's businesses.
• It is essential to increase women's awareness of grants at the national level and simplify the mechanism of reporting on grants from the state.