Abstract

In the conditions of martial law, relocation is one of the main ways to ensure business continuity. In order to help domestic businesses move their economic activities to relatively safer territories, the Enterprise Relocation Program was developed, which provides for the provision of informational, logistical, and financial support. The article reveals the essence of relocation and its main types. The dynamics of domestic business relocation within the country, the structure of relocated business by relocation regions and industries are analyzed. It was established that the size and industry significantly influence the relocation of enterprises. Full relocation is characteristic mainly for small enterprises, while medium and large ones can usually carry out only a partial relocation. Thus, large enterprises, in particular, heavy industry, need access to sources of raw materials, large production areas, transportation of very large and complex equipment. State relocation support programs should focus on such enterprises. It is estimated how quickly relocated enterprises manage to resume their economic activity. Among those enterprises that have resumed their activities, trade enterprises and enterprises of the processing industry predominate, which together make up 71% of all relocated. Using the example of the IT sector, the factors that influence relocation and the reasons that limit it are analyzed in more detail. Relocation of enterprises is accompanied by a number of risks, including the high and often unpredictable actual amount of relocation costs, organizational and technical complexity of relocation, especially of property, limited opportunities to export all necessary assets, difficulties with areas for locating production; the likely high cost of renting production premises at the new location and with the selection of qualified personnel at the new location after the move, therefore it is especially important to retain the key composition of employees, ensuring their relocation to the new location and providing comfortable living and working conditions; loss of counterparties, suppliers of raw materials, etc., the need to find new ones, which requires additional financial costs and some time, which can lead to the failure of the enterprise.

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