Why Ukraine Is a Great Place for Business
Author’s column by Artur Lupashko, founder of Ribas Hotels Group
Despite difficult circumstances — war, economic turbulence, and the challenges of reconstruction — Ukraine remains a promising platform for entrepreneurship. There is a continued demand for new ideas, space for bold innovation, and a community of professionals capable of executing ambitious projects, even in tough conditions.
A business that grows despite adversity
Throughout its years of independence, Ukraine has consistently offered unique opportunities for business — and today is no exception. A growing market, low competition in many niches, and strong demand for products and services create fertile ground for launching and scaling projects.
Today, the business climate in Ukraine is a land of opportunity — easy to enter, but just as easy to lose your footing. Yet small and medium-sized enterprises (SMEs) show high profitability because the market is still “hungry” for new offerings.
At the same time, we operate in a context where the state has yet to become a true service provider for entrepreneurs. The tax system — especially for small businesses — remains one of the most liberal in Europe. The real challenge lies not in tax rates, but in administration. Entrepreneurs face complex reporting, unpredictable audits, and account freezes.
Ukraine also continues to be a country of highly skilled professionals with relatively moderate wage demands. This is one of the country’s key assets, attracting both local and international entrepreneurs. We have a well-developed IT cluster with a solid global reputation, a competitive technical infrastructure, and strong educational traditions. According to the Lviv IT Cluster, there are 302,000 specialists in the field, with 238,000 of them being technical experts living and working in Ukraine.
How the business environment has changed
The war has significantly altered the conditions in which Ukrainian businesses operate. Logistics has been hit the hardest: rising transportation costs, limited routes, and instability. This has increased the cost of goods and forced developers to rethink construction strategies, which have become 20–30% more expensive amid declining demand.
At the same time, the war has spurred the development of local IT solutions — especially in CRM, ERP, and LMS systems. While not yet perfect, these tools are already accessible to small businesses and allow for process automation.
The communications infrastructure has also adapted: the spread of Starlink, flexible teams, and the shift to hybrid work formats have ensured stability and introduced new standards in management practices.
Ukraine as an investment magnet
Investment activity in Ukraine remains cautious — which is natural during wartime. However, some players are already recognizing the potential in rebuilding and transforming key sectors — and they are shaping a new wave of investment dynamics.
In 2024, the inflow of foreign direct investment (FDI) into Ukraine amounted to $3.33 billion — 25% ($1.16 billion) less than in 2023, according to Danilo Hetmantsev, head of the Verkhovna Rada Committee on Finance. A significant share of that — 71.6% ($2.38 billion) — came in the form of reinvested earnings by foreign investors in Ukraine. However, this amount was 30% ($1.02 billion) lower than in 2023.
Read more in LIGA.net.
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