Impact of the Russia-Ukraine Conflict and Global Events on Beneficiaries of Microfinance Services: A Comparative Study of Romanian Small Companies
Abstract
Recent global events, notably the COVID-19 pandemic, and the conflict between Russia and Ukraine leaded to unprecedented challenges for companies worldwide. This study examines the impact of the Russia-Ukraine conflict on small companies in agriculture, animal breeding, and the services sector in Romania. A survey was conducted among 110 beneficiaries of a microfinance company. The respondents evaluated the impact of the Russia-Ukraine war on income, expenses, and the economic situation using a set of 8 items, evaluated on a 5 points Likert scale type. The results revealed that the analyzed companies were most affected by the increase in fuel price and electricity price. Despite a moderate impact on income decrease, there were significant differences regarding the effect of the increase of interest rates, savings reduction, and liquidity reduction among different types of companies. Limited Liability Companies (L.L.C.s) were the most affected. Most companies are seeking solutions to reduce energy costs. These findings suggest a need for targeted interventions to mitigate the impact of crises situations on small companies.
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