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BUSINESS FOR PEACE: HOW PROFIT-ORIENTED AND SOCIAL ENTERPRISES COPE WITH THE WAR REALITY

Dr Daryna Dvornichenko, British Academy Researcher at Risk Fellow

Visiting Research Fellow at the Department of Politics and International Relations

University of Oxford

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Methodology

  • The method of primary data collection was in-depth interviews:
  • 15 with representatives of profit-oriented MSMEs and 15 with social entrepreneurs. 
  • Criteria for selecting respondents:
  • Type of enterprise (profit-oriented / social enterprise);
  • Geographical location (macro-regions).

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Social Entrepreneurs

Macro-region

Area.

Field of activity

Western macro-region

1

Lviv

Educational children's centre and social centre for adults with disabilities 

2

Lviv

A social workshop for cabinet furniture made of wood, where veterans and rehabilitators from alcohol and drug addiction work

3

Khmelnytsky

Tourism

Central macro-region

4

Poltava

Inclusive enterprise, profits go to sports development

5

Cherkassy

A social enterprise focused on helping women

6

Vinnytsia

Sports medicine and rehabilitation 

Southern macro-region

7

Mykolaiv

Artspace for people affected by war 

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Odesa

Educational services for children with disabilities

9

Odesa

Sushi delivery where IDPs and pensioners work

Northern macro-region

10

Sumy 

Legal advice for people in need

11

Kyiv

A woodcraft workshop that supports an inclusive bakery

12

Kyiv

A bakery employing people with mental disabilities

Eastern macro-region

13

Donetsk

A coffee shop that donates 60% of its profits to a support centre for veterans and their families

14

Zaporizhzhia

Charity shop

15

Kharkiv

Production of accessories, decor and tableware from recycled materials

MSMEs

Macro-region

Area.

Field of activity

Western macro-region

1

Khmelnytsky

Cosmetics production and craft soap making

2

Lviv

Wholesale trade and transport activities

3

Lviv

Production of sweets

Central macro-region

4

Vinnytsia

Production and sale of military and tactical equipment

5

Vinnytsia

Production and supply of electrical equipment

6

Poltava

Travel services

Southern macro-region

7

Odesa

Hotel and restaurant business

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Odesa

Wholesale trade (construction materials)

9

Odesa

Catering and food delivery service

Northern macro-region

10

Kyiv

Art coaching, neurography

11

Kyiv

Software Development Management

12

Kyiv

IT 

Eastern macro-region

13

Dnipro

Trade (orthopaedic footwear)

14

Zaporizhzhia

IT 

15

Kharkiv

IT 

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Key challenges MSMEs face

  • The location has a negative impact on business - Eastern macro-region
  • The location has a neutral impact on business - Northern and Southern macro-regions
  • Location has a positive impact on business - Western and Central macro-regions
  • Staff shortages
  • Loss of customers/markets
  • Decreased demand for goods/services
  • Decreased purchasing power of customers
  • The psychological state of employees and a decrease in their ability to work

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MSMEs responding to war-related challenges

  • horizontal coordination and cooperation;
  • shortening the planning period for the company's activities
  • emergency planning;
  • adaptation to market needs and the military context;
  • support for employees

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Key challenges social enterprises face

  • All interviewed social enterprises in all regions of Ukraine experience a negative impact of the war
  • Power cuts
  • Loss of target audience
  • Lack of preferences and benefits
  • Psychological state of employees

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LOOKING INTO THE FUTURE

  • HOW PEACE FOR BUSINESS MAY LOOK LIKE
  • The Ukrainian economy faces a high risk that wartime damage will lead to a deep and long-lasting division between the Eastern and Southern regions, on the one hand, and the rest of the country, on the other
  • Many men returning from the war may face physical injuries, PTSD, or difficulties adapting to civilian life
  • Women, who have taken on caregiving responsibilities during the war, will need tailored support to return to the labour market.
  • WHAT BUSINESS CAN DO FOR PEACE
    • Prioritizing inclusive hiring practices.
    • Offering services that address mental health
    • support reintegration of veterans and displaced people

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THANK YOU

  • Dvornichenko, D., Baetens, F., Kopytsia, I. (2024). RE: BUILDING UKRAINE FOR ALL: Recommendations for Ukraine Recovery Conference 2025. University of Oxford.
  • daryna.Dvornichenko@politics.ox.ac.uk