UNDP SMEPS Rapid Business Survey
Impact of the Yemen Crisis on Private Sector Activity
This report presents the findings of a rapid assessment into the impacts of the violent conflict (war)on businesses in Yemen. The report is divided into six sections. Each section is illustrated with the
key findings in an infographic format accompanied with a brief written summary and recommendations.The business profile section examines impact on businesses by type and size. The findings show
that SMEs were most affected by the conflict with as much as 34% of medium enterprises closing compared to 17% of large businesses. Businesses belonging to the services sector were most affected
with as much as 35% of them closing.
In the direct impact of conflict section, the report presents physical damage by governorate and the estimated amounts for these damages as perceived by the business owner. Physical damage
in Aden and Taiz was more widespread, affecting 95% of all businesses, but most of these damages were partial. In contrast, damages to businesses in Sa’dah were more intense with higher
incidences of complete damages recorded (43%). Estimated cost of average damages to business premises are highest in Sa’dah at 35.5 million (YER) and this high figure is due to the large portion
of complete physical damage, this was followed by Aden at 5 million (YER) – and this lower figure is not including the four star hotels damaged in the governorate.
The third segment of the report deals with legal issues and presents a finding of a north-south divide on business registration with 92% of firms in Aden formally registered compared to just 34% in Hajjah
and 42% in Sa’dah.