Main points
- In the first quarter of 2026, 63,555 new individual entrepreneurs were registered, while 51,667 closed, which resulted in a net increase of almost +12 thousand.
- Women accounted for 93% of the net increase in sole proprietorships, particularly in the areas of IT, education, and online commerce, where significant growth is observed.
Individual entrepreneurs in Ukraine 1st quarter 2026: statistics, registrations / Shutterstock
In the first quarter of 2026, the sole proprietorship market in Ukraine finally returned to the positive. In three months, 63,555 new entrepreneurs were registered, while 51,667 closed. As a result, there were almost +12 thousand sole proprietorships.
What are they – new sole proprietorships in Ukraine?
The growth was not due to a sharp influx of new businesses, but due to a sharp drop in the number of closures. If in 2025 there were 165 closures for every 100 openings, now there are 81, YC.Market analysts said.
The main change is gender. Women provided 93% of the total net increase in sole proprietorships: women: +11,035, men – only +796.
In total, 60% of new sole proprietors are women. And this trend is only intensifying: in 2022, there were 49%. Changes are especially noticeable in IT: the share of women among new entrepreneurs in this field has increased from 38% to 58% in four years.
Dynamics of individual entrepreneurs in Ukraine / infographics YC.Market
In which areas are the most sole proprietorships opened?
The largest number of new individual entrepreneurs is opening in retail trade – over 15 thousand per quarter. But there is a paradox: this is the area that gave a negative result: 15,355 registrations with 16,564 closures. That is, classic trade is gradually losing ground.
Instead, the largest increase was shown by:
- IT (+2,121);
- education (+2,064);
- other services (+2,032);
- online shopping (+2,472 – absolute leader).
Among the reasons for such indicators are a decrease in closures (the main “plus” factor is not a surge in new businesses, but a sharp drop in terminations), restructuring of the economy (Ukrainian business is adapting to new conditions, such as war, relocation) and changing behavior of entrepreneurs (people are more likely to open sole proprietorships for specific tasks, such as freelancing, online business).
What does this mean?
- The economy is becoming more digital. Online commerce and IT are displacing traditional formats.
- The role of knowledge and services is growing. Education, consulting, and analytics are becoming new drivers.
- Small businesses are becoming more flexible. A sole proprietorship is no longer just a “small shop,” but often an individual economic model.
Note! The sole proprietorship market in 2026 did not just “recover” – it changed. This means that Ukrainian small business is entering a new phase – more digital, flexible and focused on services, rather than classic trade.
The number of sole proprietors is growing in Ukraine: what are the reasons and consequences?
The number of individual entrepreneurs in Ukraine has exceeded 2.18 million, and since the beginning of the full-scale war, there have been almost 200,000 more of them. Despite this, experts urge not to draw hasty conclusions about the improvement of the economic situation, writes “Ukrinform”.
Micro, small and medium-sized businesses play a critical role in the economy today. It is not only about taxes, but also about providing the population with goods and services in conditions of disrupted logistics, creating jobs and opportunities for self-employment.
According to the State Tax Service, in 2025, individual entrepreneurs paid almost 60 billion hryvnias in single tax – this is 9% more than a year earlier. The main burden falls on entrepreneurs of the third group – about 800 thousand people provided almost 48 billion hryvnias in revenue.
However, the increase in the number of sole proprietors does not automatically mean an increase in budget revenues. It is more a signal of potential than of an already achieved result.
The situation should be considered more comprehensively, in a long-term perspective, because the changes that occur over the course of two or three months are not indicative. Previously, we have witnessed mass closures of businesses more than once. There are no guarantees that such surges will not be repeated – due to changes in economic, regulatory or tax conditions. Especially since the pace of economic growth in Ukraine slowed down in the first quarter, so there is no need to talk about a radical improvement in business conditions,
– says Andriy Zablovsky, head of the secretariat of the Council of Entrepreneurs under the Cabinet of Ministers of Ukraine.
Separately, experts note a change in the structure of small businesses: more and more entrepreneurs are moving into the field of online trading and digital services. This corresponds to global trends in the development of e-commerce.
Why are sole proprietorships being closed?
For Channel 24 client expert Anastasia Yamelinets told that business closures occur mainly due to the accumulation of various changes.
The expert also speaks of a significant increase in financial burdens, such as costs for logistics, rent, personnel, energy, etc. In addition, consumer behavior has changed noticeably.
For example, according to the marketing company Kantar, purchases are becoming more rational: people compare alternatives more often, reduce the frequency of purchases, and are more sensitive to price.
Anastasia Yamelynets
Client Partner at Kantar
Businesses that fail to adapt to these changes or continue to operate in a “business as usual” model and do not support their decisions with up-to-date data quickly lose their sustainability.
And given the situation in the country, one of the main factors for closure is war risks. Businesses may suffer from disruptions in work, customer migration, and supply instability.
No less important is the psychological factor: uncertainty, pent-up demand, and reduced willingness to invest.
In research, we see not only the direct impact of war, but also a change in consumer psychology: shorter planning horizons, greater caution in spending, reassessment of priorities. If the product does not have a clear value or the brand does not meet new expectations, the risk of closure increases much faster,
– remarks Ms. Anastasia.
What do you need to know about running a sole proprietorship in Ukraine?
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Different groups of sole proprietorships have specific restrictions – regarding employees, annual income, type of clients, etc. They also differ in the single tax rate on the simplified system; and Group III is considered the most universal.
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For activities without registration as an individual entrepreneur, a fine of 340 hryvnia is provided, and for economic activities without registration – from 17 to 34 thousand hryvnia with confiscation. In case of repeated violation, the fine is from 34 to 85 thousand hryvnia with confiscation, and improper record-keeping can lead to a fine of 51 to 136 hryvnia.