How Ukrainian entrepreneurs are closing their businesses
17 July 2025
Over 137,000 new sole proprietorships (FOPs) were registered this year — but at the same time, more than 157,000 entrepreneurs ceased operations, according to the Unified State Register. A third of the businesses that closed in 2025 had been active for less than two years. Another 5,300 were so-called “one-day FOPs” that lasted only a few weeks. 61% of new businesses are started by women.
Due to the temporary suspension of business registries and the introduction of new taxes at the beginning of the year, there was a spike in FOP closures in the first quarter of 2025 — 119,895 entrepreneurs shut down their businesses.
However, in the second quarter, the situation stabilized: the number of new registrations almost matched last year’s, and closures even decreased. From April to June, 73,799 new FOPs were opened — just 3% less than during the same period last year. Meanwhile, 51,830 entrepreneurs closed their businesses — 27% fewer than in the same period last year.
In total, 137,557 new FOPs were registered in Ukraine during the first half of 2025, while 157,605 FOPs closed — meaning the “FOP economy” went negative by around 20,000 businesses.
І quarter 2021 | ІІ quarter 2021 | І quarter 2022 | ІІ quarter 2022 | І quarter 2023 | ІІ quarter 2023 | І quarter 2024 | ІІ quarter 2024 | І quarter 2025 | ІІ quarter 2025 | |
---|---|---|---|---|---|---|---|---|---|---|
Opened | 62,599 | 77,491 | 71,560 | 29,980 | 45,322 | 69,144 | 74,050 | 74,060 | 63,758 | 73,799 |
Closed | 67,302 | 51,852 | 80,482 | 28,404 | 46,883 | 58,399 | 54,503 | 70,595 | 105,775 | 51,830 |
More than one-third of the FOPs that closed in 2025 had operated for less than two years. 22% of them were opened last year (2024), 15% — in 2023. At the same time, the number of so-called “one-day FOPs” — businesses that exist no longer than two weeks — is growing. In 2025, 5,323 such cases have already been recorded. By comparison, in 2021 there were only 96 of them.
61% of all new FOPs this year were created by women — that’s 83.7 thousand. Men started 39% — or 53.8 thousand — of new businesses.
The most popular sectors among entrepreneurs are: retail trade — 39.5 thousand new FOPs, wholesale trade — 10.7 thousand. IT, information services, and individual service provision are also common choices. However, these same sectors are seeing the most closures: over 48,000 retail FOPs closed in the first half of the year, 18,000 IT FOPs shut down.
Some sectors show growth — more FOPs opened than closed: education: +2,541, healthcare: +1,203, law and accounting: +975.
The highest number of new businesses were opened in: Kyiv — 18.8 thousand, Dnipropetrovsk region — 13 thousand, Lviv region — 10.4 thousand.
However, Kyiv also leads in business closures: Kyiv — 20.6 thousand closures, Kharkiv region — 13.6 thousand, Dnipropetrovsk region — 13.6 thousand.
Despite the overall decline in new FOPs, some regions still have a positive balance, with more businesses opening than closing: Rivne region — +291, Lviv region — +179, Kyiv region — +175, Ivano-Frankivsk region — +101, Volyn region — +69.
Source: Opendatabot
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