The challenges of female entrepreneurship in Ukraine during wartime
All Ukrainian businesses face challenges due to Russia’s ongoing war, but their impact is often greater on female-led businesses.
Women entrepreneurs in Ukraine face significant challenges during wartime. These obstacles can include limited access to financing, disruption of supply chains, and difficulties in operating businesses due to the ongoing conflict.
Moreover, the socio-economic impacts of war can hinder opportunities for growth and expansion in their ventures.
In this difficult environment, female entrepreneurs often need to balance their businesses with personal responsibilities, including caring for families affected by the crisis.
Despite these challenges, many women continue to demonstrate resilience and adaptability, striving to sustain and grow their enterprises amidst the turmoil.
Economic instability and supply chain disruptions
The wartime situation has made Ukraine’s economy unstable, reducing purchasing power and leaving entrepreneurs to contend with fluctuating currency and inflation.
For women-led businesses, disrupted supply chains further compound these economic challenges. Damage to infrastructure and restricted transport routes make it difficult to source materials and reliably move products.
Forced relocations and market shifts
The war has compelled many entrepreneurs to relocate, displacing them from their established markets and networks.
Women business owners now face the challenge of rebuilding in unfamiliar areas, which requires them to invest time in understanding local market dynamics and establishing new connections to sustain their operations.
This challenge is especially daunting for those who lack support networks in these new regions.
Labour shortages and increased operational costs
Labour shortages pose a significant issue, as many individuals have either joined military efforts or fled the country, resulting in a reduced workforce.
For women entrepreneurs, recruiting and retaining employees becomes challenging when potential hires are also affected by the stresses of war.
Additionally, rising operational costs—due to increased energy prices and heightened security needs—further strain already limited financial resources.
Safety, security, and psychological stress
With conflict zones constantly shifting, women entrepreneurs face threats to both their physical assets and personal safety.
The emotional toll of worrying about the safety of their families, along with the uncertainty of war, places a heavy psychological burden on these business leaders, which can affect focus, decision-making, and productivity.
Reduced consumer demand
Consumer behaviour has shifted dramatically as individuals prioritize their basic needs.
This shift has resulted in many small businesses experiencing a significant drop in demand for non-essential goods and services.
Entrepreneurs must navigate this unpredictable demand while also dealing with regional fluctuations depending on where people feel safest.
Power outages and downtime
Frequent power outages of eight-12 hours disrupt production schedules, and perishable goods or processes that require continuous operation are at higher risk.
Using high-power generators as a temporary solution significantly increases production costs due to fuel and maintenance costs.
All of these factors increase production costs, which ultimately increases the cost of goods.
Access to digital resources and infrastructure
For businesses that rely on digital operations, the war has introduced additional challenges, such as limited internet access and unstable connections, particularly in areas hardest hit by conflict.
Many women-led businesses that operate online face interruptions in sales, e-commerce, and customer communication, further hindering growth and consistency.
