Globalization and development in the harsh conditions of war: Resilient Ukrainian SMBs are seeking growth

Payoneer (NASDAQ: PAYO), the financial technology company empowering the world’s small and medium-sized businesses (SMBs) to transact, do business and grow globally, today unveiled its second Ukrainian SMB survey report tracking macro trends across Ukrainian businesses impacted by the war.

Despite significant obstacles, the new data uncovers a positive story that Ukrainian businesses are returning home and showing great independence as they battle disruption on every front. The survey also shows that businesses are shifting from survival mode to pursuing growth and looking to hire more staff.

Payoneer surveyed more than 2,300 Ukrainian SMBs during March of this year in various industries, including IT, manufacturing, education, agriculture and others, to gain insight into their state and outlook after a year of full-scale war. The new research indicates that Ukrainian SMBs continue to show remarkable resilience and are shifting from survival mode to seeking growth.

A year on, there’s no doubt that the war has caused unprecedented challenges for Ukrainian businesses, but key findings reveal how these SMBs are persevering in the face of adversity:

• 69% of businesses now have all staff based in Ukraine
• 30% of businesses, despite the war, are looking to grow their business in 2023
• 36% are looking to hire more staff this year
• 44% of businesses believe they have enough of their own resources to pursue their business goals
• 81% have not turned to international or state programs for support

Resilience and returning jobs to Ukraine

The initial phase of the war in Ukraine had a significant and devastating impact on the country’s economy. According to the National Council for the Recovery of Ukraine from the War* almost half of its businesses stopped, or almost stopped, their operations, and total direct losses to SMBs were $83 billion. About 10 million Ukrainians, around 25% of the population, left their homes.

A year later though, results of the Payoneer survey show SMBs have adapted to their new reality and entered a more stable rhythm as Ukrainian business is gradually returning home. 69% of the entrepreneurs have all their staff in Ukraine and 25% have only part of their staff abroad. Furthermore, 44% of those surveyed believe they can achieve their goals without external government support, highlighting the unwavering resourcefulness of Ukrainian businesses. Despite the stress that war has placed on businesses’ finances, Ukrainian businesses are employing their resources not only to survive but to grow.

SMBs can now plan for the future

Unlike at the beginning of the war, when many businesses could not plan their activities for more than two or three weeks ahead of time, they can now plan work a year in advance as 56% of those surveyed plan to maintain their current positions in the market this year. Similarly, this newfound stability may allow SMBs to develop and scale their business. Despite the unprecedented impact of the war, the survey indicates that Ukrainian business shows no sign of slowing down plans to expand and operate on a global scale.

While innovation may have taken a hit, gradually, Ukrainian businesses can look again to the future and compete in the global economy. These plans are also reflected in the number of SMBs planning to hire more employees in 2023. 36% of those surveyed plan to expand their teams, despite the extreme difficulties of running a business during wartime.

“More than a year of heroic struggle has passed, and we, Ukrainians, continue to defend our independence - each on our own front. I am very proud of the people behind the Ukrainian small and medium businesses, driving our economy forward. Their unwavering dedication to the development of their businesses is truly inspirational as we look to move forward under unprecedented conditions," said Liubov Danylina, Country Manager of Payoneer in Ukraine.

James Allum, SVP Europe at Payoneer, said, “It’s inspiring to see the resilience being shown by entrepreneurs in Ukraine in horrific circumstances. It is remarkable to see businesses not only surviving but looking to grow and exploring new opportunities. As Ukrainian businesses migrate back home, I hope to see their growth trajectory continue to increase with the support of businesses across Europe.”

You can find out more on the state of Ukrainian SMBs after a year of full-scale war in Payoneer’s report “Defying the odds: How Ukrainian businesses thrive during war”.

About Payoneer

Payoneer is the financial technology company empowering the world’s small and medium-sized businesses to transact, do business and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable anyone anywhere to participate and succeed in the global digital economy. Since our founding, we have built a global financial platform that has already made it easier for millions of SMBs, particularly in emerging markets, to pay and get paid, manage their funds, and grow their business.

Forward-Looking Statements

This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, projections of future revenue, transaction cost and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical and other economic, business and/or competitive factors; (3) Payoneer’s estimates of its financial performance; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2022 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.

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