The first half of 2023 showed an optimistic picture of the Ukrainian market regarding creating new businesses and non-profit organisations. New entities appear on this "landscape", so it can be assumed that legal entities and individual entrepreneurs are constructively oriented towards the national economy. The specific indicators and trends of newly created companies, individual entrepreneurs and non-profit organisations in Ukraine were studied using the analytical tool YC.Market. The study findings are in this article.
The first half of 2023 showed that a steady registration rate of Ukrainian legal entities and individual entrepreneurs has returned to the level before February 24, 2022. Specifically, from January 1 to June 30, 2023, the following were registered:
- 17,991 legal entities.
- 135,402 individual entrepreneurs.
Compared to the first half of 2022, this is an increase of 12% in legal entities and 45% in individual entrepreneurs.
The most active regions
Legal entities and individual entrepreneurs are registered in all regions of our country, even despite the military operations.
The map illustrates the number of legal entities and individual entrepreneurs registered in the first half of 2023 in different regions. Most registrations were in the capital.
Top 5 regions where new legal entities and individual entrepreneurs were registered from January to June 2023 inclusive:
- Kyiv (city) – 24941, or 16.3% of the total registrations.
- Dnipropetrovska oblast – 13480, or 8.8% of registrations.
- Lvivska oblast – 11673, or 7.6% of registrations.
- Kyivska oblast – 11216, or 7.3% of registrations.
- Odeska oblast – 10534, or 6.9% of registrations.
Which economic sectors are developing the most?
As for the field of activity, we see the trends of 2022 continuing.
Most legal entities (almost 20%) specified NACE 46 as their main activity: "Wholesale trade, except of motor vehicles and motorcycles". This division includes wholesale trade on own account or on a fee or contract basis (commission trade) related to domestic wholesale trade as well as international wholesale trade (import/export).
Interestingly, non-profit organisations took second and third place in the number of registrations. These are, respectively, NACE 94: "Activities of membership organisations" (11.7%) and NACE 88: "Social work activities without accommodation" (9.9%).
The share of non-profit organisations among all registered legal entities is 30%.
Among commercial legal forms of organisation, in addition to the aforementioned wholesale trade (No. 1), the Top 5 include the following areas:
2. Real estate activities (7.5% of new businesses).
3. Land transport and transport via pipelines (5.5%).
4. Construction of buildings (5.5%).
5. Retail trade, except of motor vehicles and motorcycles (5.5%).
As for new individual entrepreneurs, in the first six months of 2023, most of them (namely, 39092 sole proprietors or 28.87%) chose to operate in the field of "Retail trade, except of motor vehicles and motorcycles".
The second most popular field for individual entrepreneurs is "Computer programming, consultancy and related activities" (12065 sole proprietorships or 8.91% of the total registered in the reporting period).
How to find newly created counterparties in Ukraine
Legal entities and individual entrepreneurs must provide their contact details when registering. However, not everyone registered in the first half of 2023 adhered to this. In particular, some legal entities and individual entrepreneurs did not provide their email addresses, websites, or at least telephone numbers for communication. See the infographic for more details:
As you can see from the diagrams, very few legal entities and individual entrepreneurs have websites. Oddly enough, not all of them also provide a phone number. Therefore, communication with such counterparties may be more complex.
However, communication and awareness are essential levers for success in the market, especially for new players interested in finding customers, suppliers, partners, etc. The YC.Market tool solves this problem with the help of automatic monitoring. After activating this feature, YC.Market customers receive daily notifications about newly created companies and individual entrepreneurs.
The number of legal entities and individual entrepreneurs registered in Ukraine in the first six months of 2023 increased compared to the same period in 2022. The number of new players in the national market is distributed across regions, regardless of proximity to the frontline, with the leaders among the central, southern, western areas and the capital.
The report on registering new companies, individual entrepreneurs and non-profit organisations, prepared using the YC.Market analytical tool, can be considered optimistic and effectively used with other YouControl tools.