FINANCIAL CHALLENGES OF TRANSFORMATION PERIOD ECONOMIC AGENTS: LESSONS FROM PRACTICE

Abstract

INTRODUCTION. The relevance of this study lies in the necessity to examine the financial aspects of business entities operating in a period of transformation, precipitated by the ongoing military conflict that began in 2022. Given this critical context, along with global challenges related to COVID-19, understanding financial challenges becomes pertinent for developing more resilient and effective strategies for enterprise management and the economy in these conditions. RESEARCH HYPOTHESIS: The research hypothesis posits that business entities operating in conditions of economic transformation induced by a military conflict are learning from practice and developing strategies to address financial challenges. The aim of the research is to analyze the financial challenges faced by business entities in the context of economic transformations resulting from a military conflict, with the goal of deriving valuable learning insights. METHODS. The following methods were employed for the research: statistical data analysis, comparative analysis, retrospective analysis, data analysis using the "Maddison Project Database" of the University of Groningen, literature review. FINDINGS. In the course of the research, it was found that Ukraine suffered significant losses in its real GDP and industrial production during the military conflict, and these losses proved to be substantial even when compared to other countries that experienced wartime events. The decline in real GDP in 2022 amounted to 29.2%, while industrial production decreased by 38%. The results also underscore the necessity of studying and implementing strategies to support economic recovery in the context of armed conflict. CONCLUSION. The research has confirmed significant losses in Ukraine's real GDP and industrial production during a prolonged military conflict. These results highlight the importance of developing and implementing comprehensive strategies to support economic recovery in the context of armed conflict. For future research, potential directions could include further analysis of the impact of the military conflict on various economic sectors, the study of the effectiveness of implemented recovery programs and their influence on economic resilience, as well as an examination of best practices from other countries in addressing similar financial challenges following wartime conflicts. KEYWORDS: military conflict; real GDP losses; economic recovery support; financial challenges of economic entities.