In the following paper I want to pay attention to the SME (Small and Medium-sized Enterprises) Sector in Poland. Researches within this Sector are very important, because that sector is the most dynamic in the whole Economy. Entry and Exit Rates of Businesses are about 10 % in the EU (European Union) and are even more in Poland. Noreen Doyle described it as the backbone for a lasting and effective business environment. As well as in the Transitional Period, which will be examined in detail in this paper, as in the accession phase of Poland to become member of EU, the development of the SME Sector will determine the future of Poland to a great extent. After defining this Sector, I will show the development separated in phases since 1980. In the following chapter, I will try to sum up the most important influencing factors for SMEs. Finally, I will consider some specific problems of Poland joining the EU.
Table of Contents
Introduction
1. Definition and quantitative statistics
1.1 Europe
1.2 Poland
2. Development of SMEs in 4 Stages
2.1 Pre-transformation Phase (1980-1988)
2.2 Phase of Entrepreneurship Explosion (1989-1991)
2.3 Phase of Stabilisation (1992-1994)
2.4 Pre-accession Phase, Transition Period (1995-2004)
3. Polish SMEs in Single European Market
3.1 Analytic model
3.2 Levels of Influence
3.2.1 Macro- economic level
3.2.2 Mezo- economic level
3.2.3 Micro-economic level
3.3 Results of Analysis
3.4 Problems of polish SMEs in a single European market
3.4.1 Weak starting position
3.4.2 Domination of large companies
3.4.3 Full membership
3.4.4 Hidden economy
Final Comment
Research Objectives and Topics
This paper examines the dynamics and challenges of the Small and Medium-sized Enterprises (SME) sector in Poland, focusing on its development throughout various economic transition phases and its adaptation to the requirements of the Single European Market. The core research question addresses how SMEs can build sustainable competitive advantages amidst economic liberalization, changing legal environments, and the competitive pressures of EU accession.
- Historical evolution of the Polish private SME sector since 1980.
- Macro, mezo, and micro-economic factors influencing SME performance.
- Challenges associated with EU integration, including labor market issues and taxation.
- The impact of "hidden economy" practices and regulatory compliance on SME viability.
- Strategic requirements for SME survival in a post-accession market environment.
Excerpt from the Book
2.1 Pre-transformation Phase (1980-1988)
Already during the central planned economy the tradition of polish entrepreneurship was well established. VSEs always existed as a kind of spin-off of the larger state-owned companies. A worth mentioning part of these small firms was run by women. Therefore the entrepreneurial spirit always existed in Poland and even the working self-employed woman was component of the common business-life.
But anyway, the private sector development was modest, and the revival of entrepreneurship started in the beginning of the eighties with a number of driving forces. All of them were legislative actions, which lowered the barriers for running your own business:
June 1981: Change in Public Enterprise Act. It allowed shifting assets from state-owned to private enterprises.
February 1982: New Price Act. It reduced the state intervention in price fixing.
July 1982: Act of Small Scale Foreign Enterprise. It gave permission for foreign capital investments.
June 1983: Act of Legal Sanctioning. After this it was possible that a state-owned company went bankrupt and the law specified ways of using their assets for transferring it to private sector.
September 1983: Act of Borrowing. It opened access for private firms to foreign exchange loans.
Summary of Chapters
Introduction: The author outlines the importance of the SME sector as the most dynamic component of the Polish economy and sets the scope for analyzing its development during the transition to a market economy.
1. Definition and quantitative statistics: This chapter establishes the criteria for defining SMEs based on European Commission standards and provides a quantitative overview of the private SME sector in Poland as of 1999.
2. Development of SMEs in 4 Stages: The author presents a four-phase model to describe the evolution of Polish entrepreneurship, ranging from the pre-transformation era of the 1980s to the pre-accession period leading up to 2004.
3. Polish SMEs in Single European Market: This chapter applies an analytic model to examine how macro, mezo, and micro-economic factors influence SMEs, while identifying specific challenges such as weak starting positions and competition from large enterprises.
Final Comment: The author concludes by summarizing the essential role of the SME sector and reiterating that informational awareness and sustainable strategy are key to navigating the challenges of the European market.
Keywords
SME, Poland, European Union, Transition Economy, Entrepreneurship, Private Sector, Economic Growth, Market Liberalization, Business Strategy, Competitiveness, SME Development, Labour Market, Hidden Economy, Taxation, Regulation.
Frequently Asked Questions
What is the primary focus of this paper?
The paper provides a comprehensive analysis of the Polish SME sector, specifically examining its development, influencing factors, and the challenges faced by small and medium-sized enterprises during Poland's transition and accession to the European Union.
What are the main thematic areas covered?
The study covers the historical stages of SME growth, the legislative changes that enabled private enterprise, the role of macro/mezo/micro-economic influences, and specific competitive hurdles like taxation and labor costs.
What is the central research goal?
The goal is to assess the future prospects of Polish SMEs by identifying key characteristics of the Single European Market and determining how entrepreneurs can build sustainable advantages in an increasingly competitive environment.
Which scientific methodology is employed?
The author utilizes an analytical model that classifies influencing factors into three levels—micro, mezo, and macro—to evaluate market conditions and support the assessment with historical and recent statistical data.
What is covered in the main body of the work?
The main body details the evolution of the sector through four historical phases and provides an in-depth look at internal and external factors, such as finance, technology, organizational culture, and the "hidden economy" that impact enterprise survival.
Which keywords characterize this work?
Key terms include SME, Poland, European Union, transition economy, entrepreneurship, market liberalization, business strategy, and institutional competitiveness.
How does the author characterize the 'Pre-transformation Phase'?
The author describes it as a period of modest development where early legislative actions, such as the Public Enterprise Act and the New Price Act, began to lower barriers and allow the initial transfer of assets into the private sector.
What is the author's view on the impact of EU accession on Polish SMEs?
The author notes that while accession offers opportunities for trade and market expansion, it also exposes SMEs to intense pressure from larger, more established companies, necessitating a shift from labor-cost-based advantages to knowledge- and technology-based strategies.
- Quote paper
- Alexander Wunder (Author), 2003, The Polish SME Sector, Munich, GRIN Verlag, https://www.grin.com/document/29370
