January was a blow to business: who is closing down sole proprietorships en masse?
4 February 09:04
The beginning of 2026 was marked by a significant reduction in the number of individual entrepreneurs in Ukraine. In January alone, 17,709 individual entrepreneurs ceased their activities, with the highest number of closures recorded in regions with traditionally high business activity — Kyiv, Kyiv region, and Dnipropetrovsk region. This was reported by "Komersant Ukrainian" with reference to data from the YC.Market analytical system.
How many individual entrepreneurs closed down and how the dynamics are changing
Although nearly 18,000 businesses ceased operations in a month, which is a significant number, it is still significantly lower than in January 2025. At that time, 57,699 closures were recorded, which was explained by technical factors — a temporary suspension of the Unified State Register, which led to a backlog of registration actions.
However, if we compare the current data with previous years, a steady trend of growth in the number of closures of sole proprietorships emerges:
- January 2023 — 11,093 sole proprietors
- January 2024 — 15,258 sole proprietorships
- January 2026 — 17,709 sole proprietorships
This indicates not a one-time surge, but a gradual structural change in small business.
In which regions were the most businesses closed?
The largest number of closures was recorded in the economically active regions of the country:
- Kyiv and Kyiv region — 3,258 sole proprietors (Kyiv — 2,049, region — 1,209)
- Dnipropetrovsk region — 1,747 sole proprietors
- Kharkiv region — 1,283 sole proprietors
- Odesa region — 1,247 sole proprietors
Analysts note that the concentration of closures in these regions is associated not only with the war and security risks, but also with market saturation and increased competition.
Which sectors were most affected
A sectoral breakdown shows that the areas under the greatest pressure are those where the largest number of sole proprietors traditionally operate:
- retail and wholesale trade — over 7,000 sole proprietors (about 18% of all closures);
- computer programming and IT consulting — 1,680 entrepreneurs;
- personal services — 1,177 sole proprietors;
- catering (food and beverages) — 877 closed businesses.
The increase in the number of closures in the IT sector confirms the nationwide trend: more and more IT specialists are abandoning the sole proprietorship format due to changes in tax conditions and instability of orders.
What does this mean for the economy?
Analysts at YC.Market believe that the situation indicates a phase of consolidation of small businesses in Ukraine.
“The consistent growth in the number of sole proprietorships ceasing operations in January looks like a structural trend. The market is being cleansed, and the most adaptable and effective business models remain,” the experts note.
According to their estimates, this trend may continue in 2026, especially in highly competitive and low-margin sectors.
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