«We still have not replaced the panoramic windows shattered by a shockwave»: Kharkiv coffee shop still pouring coffee in the city’s centre despite hardships

Together with her husband, Anastasiia Yaremchuk has already opened eight barbershops in Donetsk. The couple, both medics, were not afraid to start a business just 20 kilometres from the frontline. To employ locals, they had to retrain artists and locksmiths to become barbers. The staffing issue is one of the most painful, as people leave because of the proximity to the frontline.

Life in Uncertainty

In 2014, when the war began, I was finishing my internship in my hometown of Horlivka in Donetsk. However, living in the city was difficult due to frequent shelling. One day, the enemy bombarded the centre of Horlivka. There were many casualties and fatalities. I managed to survive. That day, July 27th, I will remember forever. It is my second birthday. That is when our small family made the decision to move to a safer place. We settled for almost two years in the village of Adamivka, 40 km from Kramatorsk. During this time, I commuted to the city for work. I worked as an assistant at the Department of Oncology and Radiology at Donetsk National Medical University. I only saw my eldest son, Timur, on weekends. He lived with my parents. To be together, we made another decision to move. There is nothing more permanent than temporary. This time, we moved to Druzhkivka in Donetsk, where I remarried.

I met my husband at work - he is an orthopaedic surgeon.

On the day the full-scale war began, we found out we were expecting a baby. My husband insisted on moving, but I firmly said: «I am not going anywhere»

We persuaded our eldest son and my parents to move to Uman in the Cherkasy region. But we stayed. Our work did not allow us to leave the city. As doctors, we had to be at our workplace to help people. That separation from my son and parents was challenging. They eventually returned. In October 2022, I gave birth to my youngest son. What we endured that year, with no gas, no water for almost six months, and power outages - this toughened us, and it is now taken as normality. Unfortunately, you get used to it. The most important thing is that we held on.

A Barbershop

At that time, many women with children had left the city, but their husbands stayed behind. I noticed there was a demand for men's haircuts. I could not even book an appointment for my husband. It was a real problem. One day, I had the idea to open a barbershop with a men's section. I wanted to create something themed, something unusual. Barbershops were always named «Olena», «Natalia», «Anastasiia» and so on. We had many name options - «Cactus», «Razor». A coincidence helped us decide. My husband is from the Chernihiv region. One day, we visited Nizhyn. There is a pedagogical institute named after Mykola Gogol, a street with the same name, and we accidentally went into a café also called «At Gogol's». Inside, everything was dedicated to the writer. Stylish and thematic. So, as we were leaving, I told my husband that we should link the barbershop's name to a character. Since we are both fans of detective stories, we settled on the name «Sherlock». Then we started thinking about the attributes: a smoking pipe, a violin, a plaid, a desk, a typewriter, a magnifying glass, a microscope. And that is how we started to recreate an English style in the establishment.

The first «Sherlock» is a very small space, just two by three metres. There is one chair and a work area with a sink. There are banners with the «English Queen with Gum», photos of The Beatles, and posters of London. In the waiting area, there is a small vintage-style cabinet. On the wall, there is a typewriter. We created a cosy men's section, with a design I came up with.

We searched for all these items wherever we could. We bought the typewriter and violin on OLX. A colleague gave us the plaid in the English style. We have a few books about Sherlock Holmes, gifted by our barber Danylo. Clients donated an old machine and scissors

My husband and I work as two sole proprietors. We were able to start the business thanks to a microgrant from «E-support». My husband received a grant for barber services, and I got one for the development of a café. So, we also offer coffee at «Sherlock». The barbershop has been running for over a year, and we have been selling coffee for almost seven months.

The most expensive part was buying quality clippers, shavers, and trimmers. Additionally, one must understand that this equipment wears out. We rent the premises, so we did minor repairs everywhere. The grant support helped a lot. But we received it during the growth stage.

We opened the first two locations by ourselves. Of course, before starting the business, I calculated everything carefully. A men's haircut costs from one hundred hryvnias. We keep our prices very democratic.

The Biggest Problem - Staff

The first problem was finding specialists. There were almost none because many people had left. We searched for staff everywhere. Eventually, we decided to train those who were willing to work. This could be done in Dnipro or Kyiv. Our first trainee was our barber Danylo. At the time, he had just had a baby, and there was not enough money to support the family. The young man was talented and had little experience cutting hair while serving in the army. He quickly mastered the profession of a barber.

Later, two more specialists from other barbershops wanted to join us. So we began to expand. In Druzhkivka, we already have four establishments. There were also four in Kostyantynivka. However, due to the increased number of shellings, we had to relocate the business from there to Kramatorsk. For now, there is only one barbershop left there. Overall, we have 16 barbers working in two cities.

We have people with disabilities. We have an artist who works as a barber. In the café, the barista is a woman with six children. We also have a seamstress who retrained and is now a colourist and hairdresser

Women are amazed by her talents. Only two barbers were working in their profession. The rest we trained. We organised the training at our own expense. This was also a risk. There were cases where our employees, after training with us, went to competitors. But everyone has the right to choose. If one person leaves, two more will come. You should never try to keep anyone.

We have plenty of clients. Nowadays, we have versatile specialists. In addition to hairdressing services, the girls do eyelashes, brows and nails. As for power and water outages, we have adapted. Moreover, the situation is more or less stable now. We also work with battery-powered tools. We always have a constant water supply stored in tanks. Therefore, we can wash someone's hair or beard even if the city has no water.

20 km from the frontline

Chasiv Yar, where the frontline is, is very close - about 20 kilometres. Sometimes people ask me if we were afraid to open a business so close to the fighting. Yes, it is scary, but if you do nothing, it becomes even scarier. I had already experienced starting life from scratch in 2014. So I really did not want to believe or even think that we would face the same situation again and have to leave. I believe until the very end. I have no doubt that the region will endure. Even this close to the frontline, people still care about good haircuts.

I can not say whether people are leaving the city. On the contrary, some are returning. Home is home, and everyone holds on to their house, to their chance to be at home. Life does not stop

We have very clean and neat streets. There are shellings. You fear them, but you fear even more when they are not happening because of the waiting. It really weighs on your mind. But everyone adapts and tries to live. These are living cities. Yes, they are ravaged, but everything still works here. There are many entrepreneurs. As for how I cope psychologically, I just stay calm. My second degree is in psychology. I also find peace in my children and my work.

If I am busy, I do not analyse what is happening around me 24/7. My eyes are not glued to the battle map. I will not be able to hug the whole world and make the war end. Therefore, we must find happiness and balance in what we have. Pull yourself together. Currently, I work in Druzhkivka as a radiologist at the Central City Clinical Hospital, and part-time as a radiologist at the Kramatorsk Oncology Dispensary. And, of course, I also run the barbershops.

Plans - Business Expansion and Opening a School

We are on the verge of opening the fifth barbershop in Druzhkivka. In total, there will be seven. When we were buying a mirror and a small waiting sofa, my husband said: «Everyone is moving things out, and we are buying and bringing things in». I hope this sofa serves us for many years.

Our dream and plan is to open a school of hairdressing. We could train staff for ourselves and others. Healthy competition should exist, as the lack of it leads to complacency and no toughening. But this is all in the future. We would like to expand across the region, opening establishments in Kramatorsk and Sloviansk. I also have plans for the café. I really want it to be more than just a coffee-to-go point, but a full-fledged establishment.

Combining work and business is not easy. It is very exhausting. In addition, I am a mother of two children who need attention. My parents help me. Sometimes I can forget, for example, to deliver clean towels or pick up an order. But I have a boss, my husband, who helps with everything. We work as a single organism. What I cannot do, he manages. And it is very convenient when you work as partners. It is comfortable not only to be husband and wife but also friends and work partners.

As for the future, it is difficult to say what lies ahead. I remain very calm in any situation and try to solve issues as they arise. We need to keep an eye on the situation on the frontlines and prepare some alternative plans. However, it is essential not to forget that life is happening here and now. We must continue to work and live.

The war has taught me to appreciate my loved ones and every moment of life

By the way, my work in oncology has also taught me this. When I started working at the oncology dispensary, I was 25 years old. It is terrifying when you realise that it is not only war that can take away the most precious thing - life. That is why you appreciate every minute and try to do something good for your family. At this point, I am not considering moving, but if there is destruction and a threat to the lives of my loved ones, I will choose safety for them. Despite the war, I believe we have the best country, with strong education, incredible nature, and, of course, excellent doctors. I think people living in Europe now have long realised this. Therefore, I probably would not change anything in Ukraine. I would just somehow stimulate its development. I dream of the end of the war and stability. Also, after the war, I really want to send my children to my parents and go to Venice or Portugal with my husband. I am really craving some romance.

The Union of Ukrainian Entrepreneurs (UUE) - one of Ukraine's biggest business associations- opened its first European office with headquarters in Warsaw on June 17th. This is a significant event for both Ukraine and Europe: it manifests not only the endurance and ambitions of Ukrainian businesses in times of deep crisis but also the readiness for integration into the European commonwealth. Among the main challenges of the agency are advocacy and support for Ukrainian business in Europe, making connections with international partners and attracting investments into the Ukrainian economy.

The Union's CEO, Kateryna Glazkova, often visits Poland and not only due to business matters: her children have been living here for over a year - 16-year-old Pavlo and 5-year-old Mark. She confesses she is a very anxious mother, and if her sons were in constant danger in Ukraine she would not be able to concentrate on her work goals. «I understand how hard it is for both those who stayed and those who left because I find myself on "both ends" every two weeks: at one time I am in Ukraine and the other abroad. I am much more effective at work now that I am sure my children are safe», - my interviewee shares.

We met in one of the Ukrainian restaurants near the Ukrainian embassy in Warsaw that made it to the list of the best establishments in the Polish capital a few years ago.

Irena Tymotiievych: Lady Kateryna, it is quite significant that in the time of the full-scale war, it is you who is representing a major part of the Ukrainian business in Europe. I think the role of a Ukrainian woman, especially a woman in business, is gaining a completely different meaning right now.

Kateryna Glazkova: A colossal meaning. In times of war, additional responsibility is placed upon a woman’s shoulders. Women learn male professions, and companies are more eager to hire them because the risk of mobilisation is lower. As we are literally losing men - more and more women will be taking key positions not only in the country but also within the area of international relations.

On the other hand, it could give us a certain drive forward. More often than not we, women, underestimate ourselves and do not believe in our own power. For example, in 2020, when our organisation tried to «portray» the Ukrainian entrepreneur and conducted appropriate research, we concluded that the owners of large Ukrainian companies were mostly men. And women, for the most part, own small businesses that often have a «glass ceiling» of development. Now is the moment when there is an opportunity and need to straighten our wings. Moreover, there are plenty of grants, support and educational programs for women entrepreneurs both in Ukraine and abroad. It is worth taking advantage of them.

You have been involved with entrepreneurship for many years now. How is it - being a woman in the Ukrainian business?

Personally, I am quite comfortable in the Ukrainian business, despite it being mostly «male-dominated». Maybe I just got lucky or perhaps it is a personality matter. Entrepreneurs’ energy inspires me. They think differently and do not fall into disbelief: there are no problems - only goals. The word «impossible» does not exist to me, - that is what I learned from them. It can be «very difficult», can be «we have tried a hundred times but did not succeed», but «impossible» - is not an option for me and my team. If we, Ukrainians, categorised things as impossible, we would not have endured this fight for so long.

Without the economy, the war can not be won

The question puzzling the whole international community regarding Ukrainian business today - how is it possible that in the third year of the full-scale invasion, it does not only function but also demonstrates good positive dynamics: it enters new markets and implements innovative solutions?

We simply do not have a choice. Ukrainian business has unprecedented resilience. It is hard to explain to people who never lived in wartime what it means in practice.

In ten years of war and over two years of the full-scale invasion our entrepreneurs have learned to perform quite successfully, despite the constant shellings, blackouts, border blockades and employee mobilisation. And I am sure that cases of Ukrainian companies will soon be taught in international business schools.

In two years of the great war, the sole members of the Union of Ukrainian Entrepreneurs have invested 630 million euros into business development in Ukraine: reconstruction of destroyed facilities and warehouses, launching new products, entering international markets and implementing technologies.

This is our country and we believe in it.

Just like our defenders protecting the country’s borders on the frontlines, each of us at our positions has to do everything we can, and even more for victory. Ukrainian business is also performing its duty. Because without the economy - the war can not be won.

Notably, the UUE analytics centre conducted major research in 2021, not long before the full-scale invasion, regarding the attitude of various segments of the society towards stakeholders: the government, president, business, business organisations and oligarchs. The trust level in small and medium businesses in Ukraine was the largest after the Armed Forces - over 80 per cent. And if we combine the large businesses and business associations - it is an unprecedented percentage for Ukraine. For comparison, the government was only at the eighth place in the trust level ratings.

What is the cause of this?

In the country’s most difficult times, the entrepreneurs were the first to help. In times of Maidan, businesses gathered teams of young men and helped with food and money. During the pandemic, they bought equipment for hospitals, organised headquarters and delivered food to the elderly, who could not go outside.

And when the full-scale invasion happened - they evacuated people, provided them with shelter, brought them back from the occupied territories and fed them. Entrepreneurs gave away the supplies from their warehouses to guys and girls in the Armed Forces of Ukraine, sometimes even risking their own lives. At the moment the only source of financing for the army in Ukraine is the taxes, and each one of us who pays them is helping to win this war.

We have not done analogical research at this time, but the business has lived up to the community’s trust.

Are we talking about small and medium businesses right now?

About any businesses. Large included.

UUE - is also a representation of the state of the business. Our organisation has been active since 2016. Among its founders are both small and large companies like, for example, Nova Post, Rozetka and UBC Group. Now the Union consists of over 1200 companies from all regions of Ukraine. We function on the member fees that depend on the company’s size.

In February 2022, we had a two-month decline for obvious reasons, there were no incoming fees: in such times, the Union membership fee is not the first priority financially. Additionally, the members of our collective were busy taking care of their families' safety in the first days of the war. And then they would get in touch with other organisation members to help each other out. They formed new priorities and reacted to new inquiries. I am proud of my team.

When we received the first annual membership fee from a small company in April 2022, we thought: «Finally, fresh optimists have appeared among us». Those five thousand hryvnias [approximately 120 US dollars, - Edit.] became a kind of symbol of trust and hope, that everything will be okay. And in the last two and a half years we have not only restored ourselves but also grown. We have a 35 per cent increase in members, there are new applications each week.

Ukrainian business - is about a high level of creativity. On one hand, there is strategy, but on the other - you always have to be ready for changes if a new challenge appears

There are no problems - only goals

Regarding the challenges. What does Ukrainian business live with now and how does it cope with it?

Firstly, there are obviously questions of safety. Safety of the workers, equipment and facilities. Larger companies invest wild sums of money into this. For example, after the enemy destroyed the Nova Post warehouse in the Kharkiv region - the company fully rebuilt it taking into account an improved safety system. This cost over 34,5 million hryvnias.

Secondly, the decrease in Ukraine’s purchasing power. The Ukrainian market has become too small, and because of that, companies are forced to move to international markets, even if they had not planned to do so.

At the same time, some sectors are growing. These are, primarily, the defence industry, goods transportation, medicine, suppliers of electrical/gas equipment that ensures energy autonomy, fossil fuel industry (for example, as of May 2024, «Ukrgazvydobuvannya» has increased natural gas production by 10 per cent) and the supply of energy resources, online trade, and the sale of agricultural products. If we look at growth by types of activity through the revenues to the State Budget of Ukraine for May 2024, we see that wholesale and retail trade, repair of motor vehicles, extractive industry and quarrying, processing, transport, warehousing, postal, and courier activities are growing.

The third challenge is the lack of people. There was a colossal problem with personnel even before the large-scale invasion, and during the war, it is a deep crisis that businesses can not solve on their own. Mobilisation, migration, a sharp decline in birth rates, and the loss of the working-age population require an effective strategy on the state level.

Money. They are always needed for development. And now they are needed for the sole purpose of survival. Generally, there is support, there are many grant programs from our partners, and we are thankful for that. But the queue for receiving available finances has become much larger.

How about the issue of inclusivity? According to the latest announced data, in two years of the full-scale invasion, the number of people with disabilities in Ukraine has increased by 300 thousand. How are companies adapting to these realities?

This is a new challenge that has not yet caught up with us but is already emerging. We are all just at the beginning of the path. For example, the UUE is currently looking for a lawyer in the team - a specialist who will work specifically with veterans' requests. For employees to return to their workplaces, it is necessary to go through all the required procedures, obtain a combatant status document, etc. We want to simplify these processes.

Meanwhile, the network of laboratories of the CSD Lab company, which is our member, is working to make each of its services accessible to people with mobility impairments - both for employees and clients. Some locations are planning to be re-equipped, and new laboratories are being built according to new standards.

There are many examples like that.

Entrepreneurs are very quick to react to all changes and implement innovative solutions.

Ukraine is already becoming a competitor and supplier of innovative solutions for many developed countries. In particular, the field of military-technical solutions has grown several times, and the Ministry of Digital Transformation has identified this direction as a priority for the coming years. How are companies showing themselves in this area?

For example, two of our members - IT companies STFalcon and Ajax - created and launched the mobile application Air Alert at the beginning of March 2022. It signals the missile danger in different regions of Ukraine. Currently, 6 million people in Ukraine have downloaded this application, including me. This year, Ajax also began producing surveillance cameras. This is an opportunity to occupy a niche that has always been dominated by Chinese manufacturers, but the market is now changing due to sanctions imposed against certain Chinese companies.

The products of other members, such as K.tex, a manufacturer of non-woven materials, are now used for sewing military uniforms and even for reinforcing defensive lines and critical infrastructure. Another example is Milliform, which relocated its production from Kharkiv to the Lviv region in 2022 and, by 2023, launched its own production of cosmetic containers with investments of about 600 thousand dollars.

This is also an answer to the question I am often asked abroad: Why should someone invest in Ukraine right now, despite the high risks? It is because the Ukrainian business does not wait for the war to end. Now, the air raid alerts and shellings are seen like the weather, which you have no control over.

I always say in cold business language: whoever came first - gains the profit. Consider it right now, look for partners among Ukrainian companies right away

According to President Zelenskyy, Russia has destroyed 80 per cent of Ukraine's thermal and a third of its hydroelectric generation capacity. How do you plan to address the energy supply issue?

Energy supply problems are not new, we stocked up on equipment and seemed ready for another winter. However, we did not expect the destruction to be so extensive.

To ensure uninterrupted production, some large companies have begun importing energy from the EU. For instance, the Nova group (which includes Nova Post) has founded its own electricity production company. Currently, the UUE is lobbying for legislative changes in Ukraine that will allow for the liberalisation of the electricity generation and supply market, which will promote the development of small-scale generation. It is much harder to destroy hundreds of thousands of small stations than one large one, which a significant number of consumers and critical infrastructure depend on.

We see a strategic path in developing distributed generation based on natural gas, renewable energy sources using modern mobile energy storage systems, and smart grids.

Distributed generation is favourable for investment, its cost is relatively low, and it takes less time to launch them into operation

Playing by new rules

One of the factors deterring investors from coming to Ukraine is the widespread perception of Ukrainian business as oligarchic. How strong is the influence of the oligarchic system on the economy and business in Ukraine now?

Ukraine has started playing by new rules. The elites are also changing. The influence of the former oligarchs on political institutions and specific politicians has significantly decreased. In agriculture, oligarchs are very conditional. There are questions regarding the finances’ origins, but now these are market companies traded on international exchanges.

At the same time, the influence of the private non-oligarchic sector is growing significantly. UUE is an organisation that fundamentally does not accept businesses connected with oligarchic capital. After the start of the war, we also began checking for connections with beneficiaries from Russia and Belarus. We take court decisions into account if there are questions about specific companies. In Ukraine, some data has been classified due to the war, but overall, the amount of open data in our country is one of the leading examples in Europe.

"The areas of our constant focus are the tax system, customs regulation, international trade regulation, public procurement, labour legislation, and the digitalisation of public services"

Photo source: Facebook‍

I have no illusions that all the oligarchs have gone under the radar - definitely not. But representatives of our association, founders, and members of the board of directors, are now part of many quasi-governmental institutions and influence decision-making. These are people who earned their money through their own efforts, hard work, and ideas

For example, there is the Business Support Council during wartime under the President of Ukraine. It consists of seven people, six of whom are entrepreneurs from the UUE.

There are concerns that a new class of oligarchs may form in Ukraine during the war. Are there such risks?

There are always risks. No country is perfect, and ours is no exception. The media, civil society, and the private sector have a huge role to play here: to do everything possible to prevent this from happening. There are many high-profile stories about corruption scandals in Ukraine in the media space right now, but there is also a positive side to this: it is a sign that corruption is being fought. Corruption was greater in silence. And if there had been no progress, negotiations with us about joining the EU would not have begun, as this was one of the three main points for starting the negotiations.

When the official negotiations for Ukraine's accession to the EU began on June 25, you wrote on your Facebook page: «I hope that in the process of these negotiations we will not compromise our interests, and the opinion of Ukrainian business will carry significant weight». What interests are you referring to, and what role does your business association want to play in this process?

For the business sector, joining the EU is a colossal stress, especially for SMEs [small and medium-sized enterprises, - Edit.], since companies have to comply with certain norms and standards: from environmental norms to minimum wages. But production processes cannot change overnight. In the negotiation processes on the government level, transition periods must be established in addition to the terms of trade. To avoid an unfortunate situation where we agreed to everything at once to quickly join the EU, but then were unable to fulfill the obligations on time.

Our business is competitive, but many companies need help to become so. For example, pharmaceutical companies need to re-equip. Large companies can afford to spend money on this, while small ones can not. Then it is also a matter of financial support. Within the framework of the single European market, some French company with extensive experience, support, and development over all these years, and without the war - without everything that Ukrainian business is currently experiencing - will definitely be more competitive than a Ukrainian one.

These aspects need to be considered so as not to «kill» the Ukrainian business. In this, I see our important role. On the other hand, we will encourage international companies to invest in Ukraine. We will not be able to manage without investments.

One of the most painful issues in the economic dialogue between Poland and Ukraine is agriculture. In your opinion, how should the Ukrainian business build a dialogue to avoid situations like the farmer protests we observed at the Polish-Ukrainian border?

We do not have large agricultural companies here in the UUE, as most do not meet our criteria. But why is this question directed at businesses and not politicians? Business simply does its job. If it produces good, competitive products, there are buyers. And in Poland, someone buys them, that's the market. If a business produces a bad product or imports it illegally, there are law enforcement and customs authorities, and court decisions hold the business accountable.

The incidents that occurred at the border - are beyond business logic, they are primarily political stories.

While Polish farmers protest against Ukrainian products, dumping the grain that people often collect at the risk of their lives, grain from Russia and Belarus flows into Poland. UUE, along with colleagues from leading Polish associations Leviathan and the Ukrainian-Polish Chamber of Commerce, raised this issue at the EU level and appealed to Brussels. Russia is trading grain here that it stole from Ukraine

I would very much like to convey this to Polish society.

From the perspective of economic relations between Poland and Ukraine, it is no secret that last year the export of goods from Poland to Ukraine was at a record high - 51,6 billion zlotys (12 billion euros). Poland's trade surplus with Ukraine reached 6,8 billion euros, a historical record. Meanwhile, imports from Ukraine to Poland have significantly dropped, especially after the embargo on agricultural products was imposed.

As for business matters, let's look at what some Ukrainian companies did when the transport collapse happened. Entrepreneurs calculated and decided that waiting at the Polish border was more expensive than redirecting logistics to Romania. And there, the port of Constanța accepted everything without issue. This is also a telling situation.

According to the latest statistics, every tenth business in Poland is Ukrainian. From my observations, it seems that Ukrainian entrepreneurs often target not so much the Polish markets as the «Ukrainian markets» in Poland. Some UUE members already have businesses here, how is the integration going?

Cooperation with Ukrainians is indeed smoother. Finding a Polish client or becoming a supplier for a Polish company is very difficult. There is a certain scepticism and media narratives that «this is temporary», «the war will end, and Ukrainians will return home». There is also the perception that Ukrainians are «unreliable partners» who work to «low standards», despite many examples proving the opposite. We opened an office here because we realised we need to build closer ties. We are conducting educational work on both sides to establish personal connections among entrepreneurs and build trust.

In this context, it is also worth mentioning the recent results of a study by Deloitte, according to which Ukrainians who arrived after February 24, 2022, added 0.7-1.1 per cent to the Polish economy's GDP (in absolute figures, this is 6-9 billion dollars). In the long term, this effect will increase to 0.9-1.35 per cent.

I am convinced that the share of Ukrainian business will increase, and competition with it will grow.