Abstract
This article examines the impact of the Russian invasion on micro, small, and medium enterprises (MSMEs) in Ukraine, which are essential for the country's economic stability. MSMEs play a crucial role in job creation, innovation, and economic development. However, in the context of war and political instability, these enterprises face numerous challenges that threaten their survival and development. The armed invasion caused massive migration and loss of workforce, particularly among the youth and skilled workers. At the same time, the mobilization of men led to a further decrease in the availability of labour resources. MSMEs, as major employers in the country, experienced a significant reduction in the number of employees, affecting their productivity and income. Scholars emphasize the importance of investing in human capital and education to ensure increased productivity and economic growth. Highly skilled workers can significantly enhance the innovative capabilities of enterprises and contribute to the development of new technologies and business models. This is particularly relevant for Ukraine, where there is a need to attract investment and improve the investment climate. To improve the situation, the authors recommend a series of measures aimed at supporting MSMEs. Specifically, the development of effective government programs for financial support, tax incentives, and credit guarantees are crucial. Additionally, reforming the tax system is essential, which could simplify the tax burden on MSMEs and stimulate their development. Significant attention is given to the need for legislative reforms to ensure greater transparency and fewer bureaucratic obstacles for entrepreneurs. It is also important to create favourable conditions for the return of migrants, which can help restore lost labour resources and contribute to faster national economic recovery. Researchers also focus on the importance of infrastructure investments, particularly in education and health, which could provide a higher quality of human capital and increase overall social and economic development of the country. Particular emphasis is placed on the importance of stimulating the development of small and medium-sized enterprises as the basis for economic recovery and stability, especially in post-conflict rehabilitation conditions. The authors of the study believe that MSMEs can serve as a source of stability, employment, and sustainable development of the national economy, capable of creating new jobs, providing opportunities for employment of refugees, and making a substantial contribution to the recovery of social and economic structures in affected areas.
Published Version
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