CHALLENGES OF UKRAINIAN MANAGEMENT AND BUSINESS IN THE CONDITIONS OF WAR

Abstract

The beginning of war escalation in Ukraine in February 2022 divided the life of every Ukrainian into “before” and “after”. Since then, Ukrainian business and management have been trying to adapt to new challenges while maintaining a competitive position, raising the national economy, and providing Ukrainians with means for a decent life. The purpose of the article is to study the modern challenges faced by management and business in Ukraine during the war. It was determined that despite the war in Ukraine, a significant number of companies continue to work. The number of legal entities registered at the beginning of 2022 tends to increase every quarter: by 6,021 legal entities as of April 1, 2022 and by another 7,476 legal entities as of July 1, 2022. The largest number of legal entities was registered in sectors of non-specialized wholesale trade, complex maintenance of facilities, cultivation of grain crops (except rice), leguminous crops and oilseeds, and leasing and exploitation of real estate, the share of which is in the overall structure of legal entities has exceeded 3% during the first half of 2022. Microand small businesses are currently in a much more difficult situation than large companies, since its margin of safety is significantly smaller. The dynamics of the number of registered individual entrepreneurs showed a decrease of this indicator by 1,020 units during the second quarter of 2022 in comparison with the data as of April 1, 2022. It was established that from mid-March 2022, the government of Ukraine has aimed to maintain the stability of the national economy by relocating companies from territories close to war zones or located directly within war zones to safer regions in the west of Ukraine, implementing a business relocation program. It was found that since the start of the relocation program, 692 companies have already moved to safer regions of the country. Considering the development of business in Zakarpattia Oblast, it was established that in the first half of 2022, Zakarpattia Oblast exceeded the budget, which in turn is related to the results of the relocation program, since 358 enterprises were relocated in the first half of the year, of which 310 enterprises started operating. It has been proven that the positive dynamics of the economic development of the Transcarpathian region is marked by the preservation of business management in the conditions of war, which proves the effectiveness of the modern management in resisting war challenges.