Due to the tax increase, 27% of surveyed private entrepreneurs plan to close, – Opendatabot

This is evidenced by the results of the Opendatabot study, which were published on December 24.

Opendatabot conducted a study on the status and plans of sole proprietorships in Ukraine, involving nearly 32,000 entrepreneurs. 27% of respondents plan to close soon. More than half of these businesses are ceasing operations due to a sharp increase in tax burdens.

The platform notes that in December, for every sole proprietorship opened, two are closed, whereas last year, there was one closure for every four new entrepreneurs.

The study included 31,694 respondents who indicated they operate as sole proprietorships. 27% or 8,621 respondents plan to close in the near future. 2,297 or 7% planned to close this year. Another 20% or 6,324 participants mentioned they plan to cease operations next year.

More than half of those planning to close — specifically 62% — have decided to cease operations due to tax increases. Another 19% of entrepreneurs are terminating their activities due to business problems.

The largest number of surveyed sole proprietorships are in retail — 24.6%, with another 21% in IT.

Since the law introducing a military levy for small and medium-sized businesses was signed, there has been a ratio of 2 closures for every new sole proprietorship. Thus, 24,497 entrepreneurs have ceased operations since the law was signed by the president and as of December 17, as noted by Opendatabot.