The Role of Sole Proprietors in Ukraine's 2023 Economy
In 2023, sole proprietors remained a vital force in Ukraine's economy, creating jobs and sustaining economic activity. Official statistics show that 302,260 individual entrepreneurs provided employment for more than 817,000 Ukrainians last year. On average, each proprietor with employees hired three staff members. Notably, 14% of all sole proprietors hired staff, directly contributing to new job creation.
Geographic Distribution of Entrepreneurs
The regional distribution of these business owners reveals that Dnipropetrovsk Oblast had the highest number of proprietors with employees, at 27,491. Lviv Oblast followed closely with 27,275, and the city of Kyiv registered 25,782. The regions demonstrating the most significant growth in the number of proprietors hiring staff were:
- Rivne (22%)
- Kyiv Oblast (20%)
- Volyn (19%)
- Chernivtsi (18%)
- Ivano-Frankivsk (16%)
Lviv Oblast also employed the largest workforce through sole proprietorships, with 74,648 hired workers. Dnipropetrovsk Oblast ranked second with 71,983 employees, and Kyiv city was third with 70,272. Overall, the activities of individual entrepreneurs provided jobs for over 2.9 million Ukrainians last year. Of this total, 2.1 million were self-employed proprietors, while the remaining 817,000+ were hired employees.
Authorities also identified 3,368 mass-registration phone numbers used to register entrepreneurs. One contact number was linked to 1,549 active sole proprietors, a second to 786, and a third covered 773.
The government is implementing measures to support these small businesses. The Cabinet of Ministers has updated the 'Energy Support for Sole Proprietors' program, extending the application deadline to May 31, 2026. Since February 2, entrepreneurs have been able to access a government support package that includes direct payments of up to 15,000 hryvnias and zero-interest loans for energy equipment. This support is crucial for businesses navigating the economic challenges of wartime.
Newly eligible economic activities for the 'Energy Support for Sole Proprietors' program now include:
- Food production, specifically dairy and confectionery products
- Water supply services
- Support activities in the education sector
- Specialized retail trade of hardware, construction materials, sporting goods, plants, seeds, and animal feed
In summary, sole proprietors continue to play a critical role in Ukraine's economy by providing employment and receiving targeted state support. The growth in their numbers and their contribution to employment underscores the importance of small and medium-sized businesses for Ukraine's economic recovery and development, especially under current challenging conditions. The 'Energy Support for Sole Proprietors' program represents a significant step in aiding enterprises facing rising energy costs, which may foster further entrepreneurial growth and job preservation.
As the government continues to enhance support for small businesses, the recent updates to the Energy Support for Sole Proprietors program highlight the importance of these entrepreneurs in sustaining the economy. With the application deadline now extended, more sole proprietors can benefit from these initiatives, further facilitating job creation and economic stability across the regions.