Recent analysis by the CRIF – Czech Credit Bureau has revealed a notable upswing in the presence of Ukrainian entrepreneurs in the Czech Republic, with approximately 9% of the 55,000 new businesses established during the first three quarters of 2023 being led by Ukrainian nationals. This data stands in stark contrast to the pre-war period when Ukrainians accounted for only 1-2% of business start-ups in the country.

According to Vera Kamenickova, an analyst at CRIF, this surge can be attributed to the influx of approximately 360,000 more Ukrainians into the Czech Republic since the onset of the war. Many of these newcomers have opted to establish their own businesses. In the first three quarters of the year, a total of 4,904 Ukrainians initiated businesses, averaging around 545 new businesses per month. Kamenickova anticipates that this annual figure will exceed last year’s total of 5,709 Ukrainian-led businesses (approximately 476 per month).

Among the regions in the Czech Republic, Prague emerged as the prime location for Ukrainian-owned start-ups, with 1,733 new businesses launched between January and September 2023. This number represented a substantial 19% of all start-ups in Prague and a significant 35% of all Ukrainian-led start-ups in the country.

The Usti nad Labem Region and South Moravia also attracted substantial numbers of Ukrainian entrepreneurs, with 625 and 432 start-ups, respectively. Notably, the distribution of these new businesses has become more even across different regions, with Prague and Usti nad Labem experiencing a decrease in the share of Ukrainian-led businesses, while regions like Zlin and Olomouc have seen an increase.

In terms of sectors, the construction industry remains a preferred choice for Ukrainian entrepreneurs. In the first three quarters of 2023, 1,919 Ukrainians initiated businesses in the construction sector, constituting a quarter of all start-ups in this field and 39% of all Ukrainian-led start-ups in the Czech Republic. Kamenickova explained that the construction industry has long been attractive to Ukrainians due to its relatively low language proficiency requirement, making it accessible for newcomers to start a business in a foreign country.

Another sector of interest among Ukrainians is water management, where they accounted for 29% of new businesses this year. Although the absolute number of new businesses in this sector remains relatively low, Ukrainian presence significantly boosts the percentage. Out of 124 new businesses in this sector, 36 were initiated by Ukrainians in 2023.

A demographic breakdown reveals that approximately 35% of Ukrainians starting businesses in the Czech Republic in 2023 are aged between 18 and 30, while another third (36%) fall within the 31-40 age group. Only 1% of Ukrainian business owners are aged 61 and older. In the broader context of the Czech Republic, half of all new business owners are aged 18 to 30, underlining the entrepreneurial spirit and dynamism of the Ukrainian community in the country.

Article by Prague Forum