5 facts you should know about Ukrainian Women in Business

According to research, businesswomen in Ukraine have twice the index of entrepreneurial sentiment (58%) compared to the all-Ukrainian one (27%). The index is based on three components: desire to start business, resilience to obstacles and assessment of the business project's feasibility.?

In 2021, 500 women participated in the study ‘Ukrainian Women Entrepreneur Portrait’. 30% of respondents stated that they faced various stereotypes about female entrepreneurship, the key of which is ‘business is not women's business’.?Let's take a look at the portrait of a woman entrepreneur in Ukraine today — through the facts that will help get rid of many prejudices about women in business, as well as through the prism of the ongoing war in Ukraine.

? Fact?No.?1. Women's entrepreneurship is gaining momentum – the share of women among sole proprietors (Individual persons-entrepreneurs) has increased to 46.6%.

According to various studies, the number of women entrepreneurs in Ukraine is really growing, mostly working as sole proprietors (individual persons-entrepreneurs) developing micro or small businesses.

According to the?survey , 74% of respondents chose such a form of enterprise as a sole proprietorship, 22% — LLC, 4% — chose other forms of enterprise. In terms of business size,?68% of respondents run a micro-business, 23% a small business, 8% a medium-sized business, and only 0.4% a large business. The average age of female business in Ukraine is 8 years.

These figures confirm that female entrepreneurs have a huge impact on the formation of the small business ecosystem across the country.

A striking example of persistence in business is the work of Yana Slavatinska, who lost her business for the second time during the war with the Russian Federation.?However, she does not plan to stop. She is temporarily living in Western Ukraine, looking for new opportunities and sources of funding to open a mini-poultry farm. She is not going to leave for another country, Yana seeks to work and create jobs in Ukraine.

? Fact No. 2. Most female entrepreneurs implement corporate social responsibility

According to the?survey , 63% of business owners implement corporate social responsibility, including the strategy of "green office", which today is an integral attribute of a modern company.

For example, Kateryna Uvarova 3,14 BAN's business includes successful examples of good CSR practice. The company creates bright, unique bags and accessories from old out-of-use banners, and is also a partner of the?Mamaplantatree ?initiative and after each sale of the bag transfers funds for planting trees. That was before the war, now everything has changed. For Kateryna, the war with the Russian Federation equals to the destruction of a workshop in Kharkiv, a trip to another country, and the loss of a team. She herself has moved to another country and is working to use the time for new developments – attending various events to find new partners to implement joint projects on the topic of upcycling.?

Today, women-run enterprises implement corporate social responsibility through humanitarian support to meet society's needs and military needs. The direction of supporting vulnerable groups, helping orphanages, caring for the environment (garbage sorting, eco-strategy) is actively developing.

? Fact No. 3. Self-sufficiency, independence and self-realization are key motives for starting a business for women

There is a stereotype that the main reason why women start their own business is the struggle for a balance between home and work responsibilities.?However, according to the?survey ,?the key motive for starting a business for 74% of women is the desire to earn a good living to provide for themselves and their families. In addition, women are motivated by the desire for independence from the employer (48%) and the desire for self-realization and the ability to implement their own ideas (46%).

A study by Jennifer L. Merluzzi and Ronald S. Burt found that 97% of Chicago Booth graduates began working?‘for others’ immediately after graduation. Of these, 15% left their jobs to go their separate ways, and another 9% started their own businesses, continuing to work as employees. Women who held senior management positions in any company were reluctant to go and start their own business because they had the opportunity to run their own business within a larger corporation.

Ukrainian ?survey?also found interesting data that help to better understand women entrepreneurs. For example, the fact that before starting a business, the majority of respondents (94%) entrepreneurs worked for hire and only 6% immediately started their own business.

? Fact No. 4. The effort spent on business was worth it – according to almost 100% of female entrepreneurs

According to the survey, 91% of women who started their own business,?believe ?that the effort spent on business was worth it, because there is a profit from their own activities, which also brings satisfaction, there is independence from the employer and prospects for further development.

Also, 63% of surveyed women entrepreneurs are positive about the development of their business, as the effort and resources spent paid off. For example, Anna Lozova began her career in the 3D printing, when few people knew about the possibilities of this technology. And already at the beginning of 2022, her 3D printing studio was so loaded with orders that it was impossible to cope on its own (10 powerful printers). Therefore, some of the orders were outsourced, which contributed to the creation of ‘their 3D community’ around the project. During its existence, about 30,000 different products, 5,000 prototypes and 4,000 models have been printed. Anna had big plans for further development, but the war has changed it — she had to move her equipment from the office to the basement to maintain its integrity and be able to work. Now they combine their main activities with the execution of military and territorial defence orders to protect Ukraine.

? Fact No. 5. In Ukraine, there are opportunities for the development of female business – say 9 out of 10 women entrepreneurs

73% female participants of the?survey ?consider unpredictability a key characteristic of Ukrainian entrepreneurship. Most businesses are relocated from the Eastern regions of Ukraine to the West, 27% shut down due to the war, 9% lost their jobs, and 30% moved to other countries, according to a mini-survey of 200 female entrepreneurs.

However, despite the existing obstacles and unpredictability, 42% of female entrepreneurs are optimistic and continue to work. Victoria Maslova, co-founder of the natural cosmetics brand ‘Vesna’, is optimistic about the development of her business. Despite the fact that her production, laboratory, office, shop in Bucha were destroyed by the Russian occupiers, she found the strength and opportunities to resume operations in Lviv. Victoria is actively working to fully launch production and attract partner/donor funding for the purchase of new equipment (the previous one purchased with grant funds was destroyed). In addition, the company is engaged in volunteer activities and manufactures healing ointments for the Ukrainian military.

In 2015, Ukraine, like other United Nations member states, joined the global process of implementing 17 Sustainable Development Goals, 5 of which are to ensure gender equality. In addition, the Government adopted a National Action Plan to implement United Nations Security Council Resolution 1325 ‘Women, Peace, Security’ in February 2016, becoming the only country in the world to adopt such a plan during the military conflict. We believe that after the war, Ukrainian business will be revived and expanded into the international community, and there will be many successful female entrepreneurs among these companies.

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