The average monthly salary of a sole trader is PLN 4800 gross. After paying taxes, the entrepreneur gains a net salary of PLN 3,200 left. The owner of a micro-business therefore earns less than the national average, according to research conducted by Professor Jerzy Cieślik, director of the Entrepreneurship Centre at Kozminski University in Warsaw.

“The number of sole proprietorships, the so-called soloists, has increased by over 400 thousand over 10 years – their number has increased from over 1 to 1.5 million”, claims Prof. Cieslik. In his opinion, the economic situation, caused, among other things, by the war in Ukraine, will become a trap for many businesses. A significant number of micro-businesses are already facing rapidly rising costs, and not all of them will manage to persuade customers to pay more for services and products.

One-person companies now constitute two-thirds of all businesses in Poland. Micro-companies employing 2-5 people comprise more than half a million, with 6-9 employing- nearly 140 000. The number of small entities is almost 50 000, medium-sized companies are close to 15 000, while large ones are less than 4 000.

“In a few years’ time, ‘soloists’ will constitute as much as 75-80 % of the entire business landscape”, estimates Professor Jerzy Cieślik.

The low income of micro-entrepreneurs may look puzzling, as they could choose better-paid jobs in larger companies. However, the economist explains these decisions by a psychological factor.

“Operating on one’s own gives a certain bonus in terms of general well-being due to the autonomy and the lack of top-down instructions, which compensates for the reduction in income”, explains Prof. Jerzy Cieślik. “But economic motives are also important. In many countries, including Poland, the tax and contribution wedge is much higher for full-time employees compared to self-employed persons and, as a result, the latter have a higher net income”, he adds.

Adrian Andrzejewski