Government support for businesses in conflict zones: prospects for social enterprises in Ukraine

Abstract

Effective public management during wartime involves creating and implementing policies that support business continuity and foster resilience and recovery. This includes mechanisms for government support tailored to the challenges posed by the conflict and ensuring that businesses, small and mediumsized enterprises (SMEs) and social enterprises can navigate these turbulent conditions. Coordination among various governmental bodies, securing international assistance, and leveraging best practices are essential for adapting to the shifting economic landscape. Despite the ongoing war, Ukrainian social businesses have become pivotal in supporting the state through tax payments, volunteering, supporting the Armed Forces, and making investments. These businesses play a crucial role in maintaining employment, ensuring job security, and providing stable wages, vital for societal stability during the conflict. The war has forced businesses to adapt to new economic realities and geographical shifts. Many enterprises have had to relocate their operations to safer regions. In contrast, others have pivoted towards social responsibility and social business models, prioritising social goals in response to the conflict's impacts. To address these challenges, it is crucial to develop effective models of state support that can respond to the needs of businesses under duress. This includes formulating strategies to support the rapid relocation of enterprises, offering tax relief, and creating mechanisms for financial aid and credit support. This paper will explore the various dimensions of government support for businesses affected by war, including the mechanisms for relocation, financial support, and adaptation to business practices. By examining these aspects, the study aims to highlight the potential for enhancing the resilience of small and mediumsized enterprises and fostering the systemic socio-economic development of Ukraine amidst ongoing conflict