Regional Redistribution of Enterprises In Zakarpattia During the War Years

Abstract

The Russian–Ukrainian war has transformed both business operating conditions and the spatial distribution of economic activity, highlighting the need for a multilevel examination of Zakarpattia’s business structure. The study aims to identify changes in the region’s economic weight within Ukraine and disparities by enterprise size and territory. Its subject encompasses changes in the number and economic performance of active enterprises, the structural characteristics of incorporated enterprises and individual entrepreneurs, and concentration across districts and territorial communities. The research draws on secondary analysis of official Ukrainian business statistics and registry data, comparing the 2021 baseline with performance indicators for 2022–2024 and assessing registered entities across communities as of 1 July 2026. The methodology combines descriptive and comparative statistics with measures of composition and intensity, distinguishing active enterprises from the broader population of registered legal entities and from individual entrepreneurs. The results show that active enterprise numbers fell by almost one fifth, while Zakarpattia’s share of Ukraine’s enterprise population increased moderately and its turnover share rose substantially. Despite the numerical predominance of microenterprises and individual entrepreneurs, large and medium-sized enterprises accounted for more than three quarters of enterprise turnover. District-level comparisons reveal increasing concentration of the aggregate pre-tax financial result in Uzhhorod District, without a correspondingly higher proportion of profitable enterprises. Community-level data indicate the dominant role of urban centres and differences in the organisational composition of the rural areas examined. The findings can inform economic development programmes differentiated by territory and enterprise size. Strengthening local supplier linkages and supporting employment warrant consideration in urban centres, while improving access to markets, finance and business services is relevant to smaller communities. The study also provides a basis for further enterprise-level research across seven urban and eleven rural communities. It concludes that the region’s improved relative national position coincided with a shrinking active enterprise base and pronounced economic and spatial concentration; it therefore cannot be interpreted as an equally favourable development for all business groups and territories. Different reference years, changing coverage of wartime statistics and current-price financial data limit comparability; the relationships identified do not, in themselves, establish the role of relocation or demonstrate growth in real economic performance.