Small and medium size enterprises

One of the characteristic traits of the social-systemic changes in Poland over the past 10 years has been the dynamic development of the small and medium sized business sector (SME). It has reflected the freeing up of private enterprises and the involvement of citizens' private capital in the development of economic activity. A factor in developing small and medium sized enterprises has also been the reactivation of local governments interested in the economic development of local communes and the introduction of systemic solutions. The state's economic policies related to supporting the development of this sector have also started to bring positive effects. Thanks to the National Credit Guarantees Fund, SMEs have been able to get easier access to credits. Centers for Supporting Enterprise (running training and advisory courses in the areas of setting up and running one's own businesses) have also been set up, Enterprise Development Funds (giving credits to the unemployed to start their own economic activity) and Enterprise Incubators (supporting small enterprises starting out). Despite the modest - compared to the EU - field of pro-development instruments and size of financial sources earmarked for supporting the development of small and medium sized companies, this sector has drawn significantly closer to the level and significance it has in more developed countries. By 1997, small and medium sized companies represented 99.76% of all registered companies in the entire economy. By 1999, the sector had a more than 48% share in GDP.

Of great significance for the development of SMEs was the creation of the Polish Agency for Enterprise Development (PARP). This is an institution that co-ordinates activities aimed at raising the competitiveness of SMEs on the national and foreign markets and implements the SME development programs based on foreign assistance funds. On this initiative the National System of Services (KSU) came into being, grouping 130 regional centers supporting businesses in information, advice, training and finance. The KSU network at present covers the whole country. Regional programs, including PHARE STRUDER, implemented by PARR in six voivodeships, are also of great significance. Its effect has been the creation of 11,000 new jobs in the sector. The Poland-Switzerland Regional Program and other programs of this type have also offered valuable experience.

Today, one of the main aims of the government’s economic strategy is leading the Polish economy back onto the path of fast economic growth, and creating new jobs. To achieve this goal a legislative package was introduced, "Enterprise above all", creating better conditions for the development mainly of small and medium sized companies. The package includes proposals in the area of legal instruments intended amongst other things to simplify the tax system, lower labor costs and make labor relations more flexible and the liquidation of bureaucratic obstacles. Equally, the National Program for Preparation for Membership in the European Union anticipates financial support for small and medium sized companies, which is designed to lead to greater competitiveness and higher exports of such companies.

source: www.poland.gov.pl