The number of IT sole proprietors has dropped to a record low: what caused this
21 May 18:45
Between 2025 and 2026, the number of IT sole proprietorships fell by 21%, marking the sharpest decline since 2016. This is reported by DOU.ua, according to "Komersant Ukrainian".
“Between 2025 and 2026, the number of IT sole proprietorships fell by a record 21%. This is the largest decline since we began tracking this data in 2016. As the number of sole proprietorships decreases, the share of gig contractors is growing,” the publication states.
For the first time since steady growth began in 2018, the share of women has decreased. Overall, the number of IT entrepreneurs has declined in all regions, with the largest reductions traditionally occurring in the east and south of the country.
The number of sole proprietors in IT is falling
The total number of IT sole proprietors decreased by 21%. This amounts to over 56,000 people. This is a record drop for all time. Analysts note that the number of sole proprietors had been growing annually since 2016 until 2024.
The number of IT specialists has decreased across all economic activities. “Computer programming” remains the most popular field—67% of sole proprietors are registered under this category. Compared to 2025, there are now 35,000 fewer. While the decline was 6% last year, it is now 21%.
A significant portion of sole proprietorships are also in the “Consulting” (29,400) and “Data Processing” (25,900) sectors.
“The number of sole proprietorships declined the most in the ‘Web Portals’ sector—by 26% (450 people)—and in ‘Data Processing’—by 26.5% (9,327 people). For comparison, last year the decline was 3% (51 people),” experts report.
The fewest sole proprietorships are found in niche KVED categories: for example, “Computer Equipment Management”—only 0.6% (1,300), “Web Portals”—0.6% (1,300), and publishing sectors—less than 2%.
Reasons for the Decline
Among the reasons for the decline in the number of sole proprietors, analysts cite a mass shift to other employment formats. According to DOU salary surveys, in December 2024, 62% of surveyed IT professionals worked as sole proprietors, while in December 2025, that figure dropped to 53%. Conversely, the share of gig contractors and those registered through Diya Employment increased—as of December 2024, they accounted for 14% of surveyed IT professionals, and by 2025, that share had risen to 20%. The share of those working in another country under local legislation also increased by 1 percentage point.
“In addition, at the beginning of 2025, there was a record number of sole proprietorship closures in the first quarter—16,665. At the time, this number of closures was also attributed to the shift toward gig contracts and changes in tax regulations—specifically, the mandatory payment of the Unified Social Tax (UST),” analysts report.
The number of newly established sole proprietorships also decreased—between February 24, 2025, and February 24, 2026, 14,500 were opened, compared to 26,700 a year earlier.
Watch us on YouTube: important topics – without censorship
The number of IT entrepreneurs has decreased in all regions
Traditionally, the highest number of IT sole proprietorships is in Kyiv—24.6%—as well as in Lviv Oblast (11.2%), Kharkiv Oblast (11.4%), and Dnipropetrovsk Oblast (8.7%).
Over the past year, the number of IT sole proprietorships has decreased in all regions, by a total of 21% nationwide. The sharpest decline was in the frontline regions, particularly Donetsk and Luhansk, where the decrease exceeds one-third.
“At the same time, there has been a noticeable decline even in major IT hubs. Kyiv saw a decrease of over 13,000 sole proprietorships (-20%). There was also a noticeable decline in Lviv Oblast (over 5,000 — 19.5%), Dnipropetrovsk Oblast (over 3,000 — 17.9%), and Kharkiv Oblast (nearly 7,000 — 22.2%).” — analysts report.
The proportion of women has decreased again
Men account for 71.3% of all IT sole proprietors, while women account for 28.7%. That is, approximately one in three IT sole proprietors is a woman. At the same time, after a prolonged period of growth from 2019 (24.9%) to 2025 (31%), the share of women has declined again and now stands at 29%, experts report.
Among newly established sole proprietorships between February 24, 2025, and February 24, 2026, the number of women (6,672) is also lower than that of men (7,862).
The highest proportion of women is in “Data Processing,” where there is nearly parity with men, as well as in “Consulting” and “Web Portals,” where the share of women is significantly higher than the market average.
“In terms of regions, the highest proportion of women is in Lviv (33.9%), Kyiv (32.5%), and Ivano-Frankivsk (30.3%) regions, as well as in Kyiv (29.3%). The fewest women are in Luhansk, Kherson, and Donetsk regions, as well as in the Autonomous Republic of Crimea,” the report states.
According to analysts, IT sole proprietorships are considered “long-lived” compared to other industries. IT sole proprietors remain active for an average of four years. The oldest sole proprietorship, which closed in 2025, had been in business for 34 years.
Read us on Telegram: important topics – without censorship
