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Poland’s small and medium-sized enterprise sector has growth potential

by Dignity News

According to the Central Statistical Office, in February 2023, there were 4.3 million active business activities and over 600,000 companies registered in Poland. The vast majority of these were micro, small or medium-sized enterprises. The number of SMEs per capita is still the lowest in the European Union, according to the Polityka Insight report ‘Small and medium-sized enterprises in Poland – barriers and development’. Experts are of the opinion that the Polish SME sector has development potential.

The MAISON & PARTNERS report ‘Barriers to doing business in Poland’ examined the general problems of Polish entrepreneurs. They indicated high taxes, labour costs and an excess of bureaucratic duties as the main obstacles to running a business in Poland. Respondents also mentioned difficulties in understanding and implementing economic law. Interestingly, a sizable proportion of responses referred to the administrative sphere, including arbitrary decisions by officials, tax office inspections and others.

Lack of financial resources, unwillingness to take responsibility for possible failures and lack of a business idea were cited by respondents as obstacles to starting a business.

A deficit of knowledge about the market and running a business is also a problem. As an incentive to set up their own business, most respondents considered non-refundable financial aid from the state, an extended period of preferential ZUS contributions, as well as substantive assistance during the entire period of running a business.

According to the ‘Entrepreneurship Survey Report’ of the Polish Agency for Enterprise Development (PARP) and the Global Entrepreneurship Monitor, in 2022, the main factor for setting up a business is the desire to ensure one’s livelihood due to the lack of job offers on the market (73%) and the desire to get rich (48%).

Adrian Andrzejewski

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