Business operations in Southern Ukraine hampered by labour shortages and logistical challenges

07/ 11/ 2025

The overall assessment of business conditions in the Southern region this year stands at 2.39 points out of 5, slightly higher than in 2024 (2.15 points). These are the findings of a recent survey conducted by the European Business Association among companies in its regional offices.The number of entrepreneurs who consider business conditions difficult has fallen from 75% in 2024 to 61% this year, while 39% describe them as satisfactory. Among the factors negatively affecting business, respondents unanimously (100%) pointed to labour shortages caused by mobilisation and migration abroad. 72% of companies currently have mobilised employees: in 5% of cases, they account for up to 10% of eligible male staff, in 39% – 10–20%, and in 28% – 20–30%. Other major obstacles include logistical difficulties (56%), declining consumer purchasing power (50%), challenges with staff reservation (44%), corruption (33%), loss of assets due to the war, pressure from supervisory authorities, and limited access to finance (each 28%). Currently, 44% of companies in the region operate at full capacity, while 56% face certain limitations. A majority (56%) have not attracted additional funding since 24 February 2022. Those that did relied mainly on bank loans, with 38% using the state “Affordable Loans 5-7-9%” programme and the same share receiving grants. Funding was primarily directed towards working capital replenishment and supporting operational activities. The share of companies reporting no losses has slightly declined – from 20% in 2024 to 17% this year. At the same time, 17% reported losses exceeding USD 10 million, 28% reported losses between USD 1–10 million, and 38% suffered losses below USD 1 million. Among the positive factors influencing the business environment, companies cited the operation of ports, business flexibility, and entrepreneurs’ adaptability. However, businesses are calling for the restoration and preservation of infrastructure (67%), preferential lending (56%), greater access to grant programmes (50%), and an effective and transparent staff reservation process (44%). The tax and customs services enjoy the highest levels of trust among businesses in the region. Meanwhile, relations with the Odesa City Council and Territorial Recruitment and Social Support Centres received the lowest ratings, as last year, and require improvement. Despite the challenges, companies remain future-oriented: 50% plan to digitalise business processes and introduce AI tools in 2026. Furthermore, 39% intend to expand operations, make new investments, increase staff, and enter new markets. Entrepreneurs emphasise that the post-war recovery of the Southern region will be impossible without the restoration of human capital and return of citizens, rebuilding of logistics infrastructure, veteran reintegration programmes (veterans are already employed in 56% of companies), and simplified conditions for attracting foreign investment. For reference: The survey was conducted among member companies of the Southern Ukrainian Office of the European Business Association between 11 September and 13 October 2025. The full news release is available via the link.

The overall assessment of business conditions in the Southern region this year stands at 2.39 points out of 5, slightly higher than in 2024 (2.15 points). These are the findings of a recent survey conducted by the European Business Association among companies in its regional offices.The number of entrepreneurs who consider business conditions difficult has fallen from 75% in 2024 to 61% this year, while 39% describe them as satisfactory.

Among the factors negatively affecting business, respondents unanimously (100%) pointed to labour shortages caused by mobilisation and migration abroad. 72% of companies currently have mobilised employees: in 5% of cases, they account for up to 10% of eligible male staff, in 39% – 10–20%, and in 28% – 20–30%.

Other major obstacles include logistical difficulties (56%), declining consumer purchasing power (50%), challenges with staff reservation (44%), corruption (33%), loss of assets due to the war, pressure from supervisory authorities, and limited access to finance (each 28%).

Currently, 44% of companies in the region operate at full capacity, while 56% face certain limitations. A majority (56%) have not attracted additional funding since 24 February 2022. Those that did relied mainly on bank loans, with 38% using the state “Affordable Loans 5-7-9%” programme and the same share receiving grants. Funding was primarily directed towards working capital replenishment and supporting operational activities.

The share of companies reporting no losses has slightly declined – from 20% in 2024 to 17% this year. At the same time, 17% reported losses exceeding USD 10 million, 28% reported losses between USD 1–10 million, and 38% suffered losses below USD 1 million.

Among the positive factors influencing the business environment, companies cited the operation of ports, business flexibility, and entrepreneurs’ adaptability. However, businesses are calling for the restoration and preservation of infrastructure (67%), preferential lending (56%), greater access to grant programmes (50%), and an effective and transparent staff reservation process (44%).

The tax and customs services enjoy the highest levels of trust among businesses in the region. Meanwhile, relations with the Odesa City Council and Territorial Recruitment and Social Support Centres received the lowest ratings, as last year, and require improvement.

Despite the challenges, companies remain future-oriented: 50% plan to digitalise business processes and introduce AI tools in 2026. Furthermore, 39% intend to expand operations, make new investments, increase staff, and enter new markets.

Entrepreneurs emphasise that the post-war recovery of the Southern region will be impossible without the restoration of human capital and return of citizens, rebuilding of logistics infrastructure, veteran reintegration programmes (veterans are already employed in 56% of companies), and simplified conditions for attracting foreign investment.

For reference:

The survey was conducted among member companies of the Southern Ukrainian Office of the European Business Association between 11 September and 13 October 2025. The full news release is available via the link.