Small Business Sentiment Index: entrepreneurs’ assessments and expectations
The Small Business Sentiment Index remained at 2.3 out of 5 in 2025. Entrepreneurs are cautiously assessing the business climate, while at the same time expanding more actively into foreign markets and developing digital channels.
The European Business Association, within the framework of the Unlimit Ukraine project, in partnership with OLX Ukraine and UKRSIBBANK BNP Paribas Group, has conducted the 2025 Small Business Sentiment Index survey. The overall Index score remained unchanged at 2.3 out of 5. Despite this stabilisation, overall sentiment remains restrained, with no tangible improvement in the business climate.
In 2025, the values of most Index components remained broadly in line with 2024 levels. The lowest score among the components was again given to the assessment of the economic situation — 1.9 points — while the highest scores were recorded for the assessment of the current situation and expectations for the next six months, both at 2.6 points.
Currently, 21% of entrepreneurs believe their business is performing well, while 31% assess the situation as neutral (compared to 27.5% in 2024). At the same time, the share of negative assessments decreased by 4 percentage points year-on-year and now stands at 48%.
Over the past six months, business assessments have stabilised: 56% of entrepreneurs reported a deterioration, 32% observed no change (6 percentage points higher than in 2024), and 12% reported improvements.
However, expectations for the next six months have become less optimistic. Only 21% of entrepreneurs anticipate improvement (previously 22%), while 48% expect the situation to worsen. The share of those expecting no change stands at 31%.
Entrepreneurs predominantly assess Ukraine’s overall economic situation negatively: 76% consider it unfavourable or catastrophic, and only 4% describe it as favourable.
Among businesses planning growth, priority areas include expanding the customer base (63%) and updating their range of services (42%). Notably, export activity has intensified: the share of companies operating in foreign markets increased from 17% in 2024 to 28% this year.
The proportion of entrepreneurs planning to attract external financing has declined markedly — from 62% last year to 53% in the current period. Businesses are increasingly relying on internal resources: the share of own funds as the primary source of financing rose to 51% (+4 percentage points). Other planned sources include grant programmes (12%), bank lending (12%) and investment capital (9%).
The assessment of access to bank lending has remained largely unchanged. 33% of entrepreneurs consider loans inaccessible or difficult to access, while 22% note that credit is accessible or that there are numerous offers available.
Businesses continue to make active use of digital channels. Marketplaces (32%) and social media (31%) have become the leading sales channels, while physical stores have lost their top position. The share of businesses operating almost entirely through digital channels (90–100% of turnover) has increased to 30%.
The key challenges for small businesses remain attacks on Ukraine’s energy infrastructure, rising prices, economic instability, the war and occupation of territories, as well as low purchasing power among the population.
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