Sole proprietorship boom in unexpected niches: 400%, 500%, 1200% – what is happening in the market
22 November 02:29
Ukrainian small businesses are showing a rapid recovery. According to YC.Market, in the third quarter of 2025, the number of new sole proprietorships increased in almost all key sectors of the economy, from trade and IT to logistics, education, and technical services. In some niches, the growth reached hundreds or even thousands of percent.
In July-September 2025, Ukrainians registered 77.4 thousand individual entrepreneurs, a quarter more than in the previous quarter. The pace of starting a business has also accelerated significantly compared to last year’s level: the third quarter of 2025 yielded almost 38% more new registrations of sole proprietorships than the same period in 2024.
According to the results of the quarter, the difference between registered and terminated sole proprietorships amounted to about 25 thousand in favor of registrations. In other words, small businesses are expanding significantly again: for every 3 terminations, there are about 4.5 new registrations.
Retail trade holds the top spot: more than 22 thousand new sole proprietors
Retail trade remains the main driver of entrepreneurship in 2025.
In the third quarter, 22.3 thousand new sole proprietorships were registered, which is 37% more than in the same period of 2024.
This jump may indicate
- a gradual recovery in domestic consumer demand;
- return of entrepreneurs to the consumer and trade services segment;
- stabilization of the business environment in the regions.
Retail trade is traditionally the most popular sector for individual entrepreneurs, but this year’s growth rates demonstrate a significant market recovery.
IT sector retains leadership: almost 9 thousand registrations
IT is the second largest segment of small businesses.
In the third quarter, 8.9 thousand new sole proprietorships were registered, which was a 28% year-on-year increase.
Despite the military risks, IT remains a stable industry with high demand for contract work, and the sole proprietorship model is the most convenient format of cooperation in the industry.
Logistics and transportation is the fastest growing sector of the year
This is one of the biggest breakthroughs.
- 7.9 thousand new sole proprietorships compared to 3.9 thousand last year.
- The growth is 105% year-on-year.
Growth factors:
- increased delivery of goods within the country;
- business adaptation to changing routes due to the war;
- development of domestic e-commerce and delivery services.
Food market and catering: recovery after the fall
The food retail and HoReCa sector is also showing a significant recovery:
- 60-70% increase in the number of new individual entrepreneurs compared to 2024.
Entrepreneurs are returning to opening food outlets, small shops, food trucks, and coffee shops – formats that remain stable even in wartime.
Education, training and courses – up 70% in a year
Demand for training is growing.
In the third quarter, 4.5 thousand new individual entrepreneurs were registered in the education sector, which means about a 70% increase in the number of entrepreneurs.
The largest growth is demonstrated by:
- online courses
- educational platforms
- tutoring services;
- corporate training.
Financial services: 68% for the year
In the segment of financial consulting, brokerage, accounting and audit services, there were registered:
- 349 new individual entrepreneurs,
- compared to 207 last year.
This means an increase in demand for financial literacy, tax support, and cost optimization for small businesses.
Revival of stagnant industries: book publishing and infomedia
The publishing industry has shown impressive growth:
- 79% of new sole proprietorships,
- 86 vs. 48 registrations in 2024.
This may indicate a revival of the book market, online publications, author studios, and niche media projects.
Sectoral explosion in narrow niches: 400%, 500%, 1200%
Several sectors saw record growth rates.
1. Courier activities (NACE 53.20)
The growth of sole proprietorship registrations is 22 times higher (!).
The reasons are the development of delivery, marketplaces, and local postal services.
2. Support of theatrical and concert events (KVED 90.02)
The increase is 1200%, which indicates the recovery of the event industry.
3. Technical testing and research (NACE 71.20)
The growth is 500%.
It is related to military and technical requests, equipment development and engineering.
4. Manufacture of metal tanks and containers (CEA 25.29)
An increase of 400%.
The segment actively responds to the needs of defense infrastructure, fuel and logistics.
5. Vocational education and training
350% of new individual entrepreneurs – demand for applied professions and crafts is growing.
6. Mediation in the trade of industrial equipment
344% – entrepreneurs are looking for niche markets related to technical and production needs.
What do these trends mean for the economy?
1. Ukrainian small businesses are adapting to the war conditions
Entrepreneurs choose industries related to logistics, manufacturing, technical services, and education.
2. Demand for local services is growing
Especially delivery, catering, repair, training, and micro-retail.
3. New “micro markets” are emerging
Niche KVEDs are showing explosive growth because they respond quickly to changes in demand.
4. IT and trade remain the basis of small businesses
These are the two pillars on which the largest share of individual entrepreneurs in Ukraine rests.
