Business closures have dropped by a third: how small businesses have adapted to the realities of 2026
19 August 12:10
In the first half of 2026, the number of sole proprietorships that closed decreased by one-third compared to the previous year, while the number of new registrations exceeded closures by 40,200 (in 2025, the net change was negative—-15,600). In total, 140,300 sole proprietorships were registered in the first half of this year, while 100,100 ceased operations. According to a study by the YC.Market, April–June 2026 set a record among second quarters over the past five years: 77,100 sole proprietorships were registered, while 48,900 ceased operations, reports "Komersant Ukrainian"
As the researchers note, in the second quarter of 2026, 60% of new sole proprietorships were registered by women (46,300 compared to 30,700 by men). Women also accounted for 80% of the total net increase for the half-year. This trend has now firmly taken hold (in 2022, the share of women was 43.3%).
Regional Trends in the Second Quarter of 2026
In the second quarter, the number of sole proprietor registrations increased in all regions of Ukraine, with the top 10 regions accounting for 66.7% of all new businesses (51,500).
“The capital leads in total numbers (9,500 registrations, 6,200 closures), but the Kyiv region shows higher quarterly growth (22%, to 5,700) amid an 11% drop in closures. This confirms the expansion of the economic zone and local services around the capital,” the report states.
According to the study’s findings, Dnipropetrovsk Oblast ranks second—7,600 new sole proprietorships, with a net increase of 2,900. The region demonstrates high rates of both new business openings (13% year-over-year) and closures (7% year-over-year).
In Odesa and Lviv regions, the surge was driven by tourism and relocation. In Odesa Oblast, nearly 6,000 sole proprietorships were opened (a 30% increase for the quarter, with a net change of 2,200). In Lviv Oblast, 5,800 sole proprietorships were registered (a net change of 2,600).
According to the report, the situation in the Kharkiv region has also stabilized (5,300 new registrations, a 28% increase for the quarter; closures down 6%).
“The Poltava region showed record quarterly growth in registrations (49%, up to 3,300), but closures also rose by 32% (net increase of 1,100),” the report states.
In the Vinnytsia region, registrations rose by nearly 28%, while closures fell by 17% thanks to the development of a logistics hub and relocated businesses. In the Khmelnytskyi region, 2,600 sole proprietorships were opened (net increase of 0.7 thousand). In the Ivano-Frankivsk region, 2,500 were opened (a 6% year-over-year increase; closures down 17%).
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Sectoral Shifts: Logistics Is Growing, While Programming Is Declining
As noted in the study, the biggest changes are occurring not in numbers but in the profile of new entrepreneurs. E-commerce has begun to outpace retail, while the traditional driver of the economy—the IT sector—has shown a decline for the first time.
“Retail trade is the absolute leader with 20,500 registrations (27% of the total). Growth through the first quarter was 35%, but on an annual basis, registrations fell by 12%,” the report states.
As noted in the study, online commerce remains the most popular type of business activity: 6.1 new sole proprietorships (a net total of 3,500), but new registrations were 34% fewer than last year, while closures increased by 35.6%.
As for the food service industry, registrations rose by 67% over the quarter—to 4,100. Annual growth in registrations was more modest—6%.
In the beauty sector, the net total also reached 1,300, though this was mainly due to a 38% drop in the number of closures.
“Tourism and the agricultural sector showed a typical spring surge—85% and 64%, respectively,” the report states.
The study showed that postal and courier services achieved record growth—a fivefold increase year-over-year (2,800 new sole proprietorships).
In transportation and logistics, 7,400 sole proprietorships were opened (a 55% year-over-year increase), and the net change for the half-year reached 4,200.
” Sole proprietorships related to property leasing were established 46% more frequently (net total of 1,300). A total of 1,900 sole proprietorships were registered. In real estate transactions, the number of registrations increased by 45% year-over-year; in advertising and marketing, by 35%; and in construction, by 27%,” the report states.
It also notes that the overall balance in the IT sector remained positive (790), however, the largest sector—”Computer Programming”—went into the red for the first time: 506 more sole proprietorships closed than opened (4,000 were registered, while 4,500 ceased operations).
As noted, the study covers only the first half of 2026. In the second half of the year, the security situation will remain a key factor for small businesses. It may either curb entrepreneurial activity or alter its structure, boosting demand in certain sectors.
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