Wartime presents numerous challenges for developing the national economy and entrepreneurship, where the primary task remains to support efficiency and create competitive advantages in the market despite everything. Therefore, providing definitions for terms such as “source of competitive advantage,” “factors influencing competitive advantage,” and “formation of competitive advantages” is essential when researching the processes of their formation under martial law conditions. The work aims to study the processes of forming competitive advantages and business efficiency under martial law conditions. The methods applied include scientific literature analysis, synthesis, fact and phenomenon evaluation, generalisation, and data analysis. The article highlights the features of the operation of enterprises in various sectors of the economy during wartime, the specifics of social entrepreneurship, and the

functioning of volunteer organisations. Particular attention is given to analysing the performance dynamics of PJSC “Ukrnafta,” identifying the company’s tools and mechanisms to maintain its competitiveness considering wartime conditions and outlining how it enhances its competitive advantages and achieves high efficiency. A structural market analysis of where the company operates was conducted, and factors affecting the company’s economic performance were identified. The findings confirmed the author’s

hypothesis about the possibility of maintaining a high level of business efficiency even during martial law.