How it started, how it evolved: Ukrainian entrepreneurship in Poland

Objective: This exploratory article analyses the entrepreneurial activities of Ukrainian immigrants in Poland from 2018 to the present. We examine immigrant and refugee entrepreneurship as part of socio-economic adaptation. Despite being the largest immigrant group, Ukrainian entrepreneurship remained limited until 2022. The article highlights three key events-the Revolution of Dignity, the COVID-19 pandemic, and the Russian invasion-and their effects on entrepreneurial activity. Research Design & Methods: We used a mixed methods approach, focusing on three waves of qualitative surveys with Ukrainian entrepreneurs in Małopolska, Southern Poland. The first round (April-August 2018) included 32 interviews. The second round (May-August 2021) during the COVID-19 pandemic involved 20 immigrant entrepreneurs, including seven Ukrainians. The third round (May-October 2023) focused on 10 Ukrainian refugees. This qualitative data is supplemented by two large-scale surveys: one with 607 respondents (November 2021-January 2022) and another with 500 Ukrainian refugees (May-June 2022), both in Małopolska. Findings: Initially, Ukrainian entrepreneurs in Poland focused on mainstream businesses with limited use of ethnic or transnational networks. The COVID-19 pandemic disrupted business but prompted proactive measures. Paradoxically, border closures increased demand for ethnic goods and services. Businesses established by refugees after 2022 now mainly cater to ethnic customers, marking the rise of an ethnic enclave economy. Implications & Recommendations: Our study shows that refugees benefit from an expanded ethnic market and ethnic solidarity when settling in areas with established immigrants from the same background. However, the key factor is Poland’s favourable entrepreneurial environment, with ease of starting a business. Poland’s laissez-faire approach, marked by limited social benefits, can support socio-economic integration, especially when refugees have immediate access to the labor market and the ability to start businesses. Contribution & Value Added: This study contributes to the literature on immigrant and refugee entrepreneurship in several ways. First, it highlights the unique dynamic between economic immigrants and war refugees in the Ukrainian diaspora in Poland, where refugees leverage existing ethnic networks for socio-economic adaptation. Second, the cultural and linguistic proximity between Poles and Ukrainians aids smoother integration. Third, despite the war, many Ukrainian entrepreneurs maintain transnational networks with clients and partners in Ukraine.