The state and problems of development of domestic start-ups in international markets during the war

Abstract

Introduction. Start-ups are one of the accelerators of developing the innovation potential of the modern economy. In the problematic socio-economic conditions created by a full-scale war, start-ups can respond flexibly and quickly to the critical needs of society. Ukrainian start-ups have been actively developing in domestic and foreign markets in recent years. However, the full-scale invasion also created several problems for its functioning. It is worth noting that amid the war, the entry of Ukrainian start-ups into international markets allows them to diversify existing risks and creates additional development opportunities. We are discussing increasing market share, product and geographical diversification, additional export earnings, gaining experience abroad, attracting foreign investment, etc. The purpose of the paper is to identify and study the state and critical problems of the development of start-ups when entering international markets, taking into account the impact of full-scale war. Results. The study found that under the current war conditions, Ukrainian start-ups have been forced to expand their activities to international markets to diversify risks and increase investment attractiveness. At the same time, the full-scale invasion has created new challenges and problems for the development of Ukrainian start-ups at home and abroad. Thus, the study identified the main problems of entering and operating start-ups in international markets: the formation and functioning of a start-up team, attracting start-up financing, adapting to the regulatory framework for start-ups abroad, cultural and linguistic differences, and adapting products or services to a foreign market. It is worth noting that one of the main problems caused by the war was the reduction in investment in domestic start-ups. Conclusions. Thus, an important task today at various levels is ensuring start-ups' progressive development based on practical solutions to existing problems. After all, Ukrainian start-ups have great potential and can succeed internationally with the proper government support and competent management.