Poland´s accession to the EU in May 2004 is supposed to have positive long-term effects on the Polish economy. In the short-term it has considerably charged Polish companies with the burden of new costs and challenges linked to the EU accession, for instance adopting the EU´s environmental or quality standards. Particularly small and mediumsized, who are particularly sensitive to the changes in their business environment, struggle with the challenges of the EU accession and are seriously concerned by the increased competition on the internal market 1 . To cushion up these effects the EU supports Polish SMEs by means of different Community funds, whose legal basis can be found in Art. 130, 130a and 130b of the Treaty of Maastricht, stipulating that:
“In order to promote its overall harmonious development, the Community shall develop and pursue its actions in leading to the strengthening of its economic and social cohesion. [...] encouraging an environment favourable to initiative and to the development of undertakings throughout the Community, particularly small and medium-sized undertakings [...] The Community shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the
European Investment Bank and other existing financial instruments.”
Table of Contents
INTRODUCTION
1. EU DEFINITION OF SMALL AND MEDIUM-SIZED COMPANIES (SMES)
2. SMES IN POLAND: DEFINITION, NUMBER, ACTIVITIES
3. EU STRUCTURAL FUNDS FOR POLAND
3.1. SECTORAL OPERATIONAL PROGRAM (SOP) FOR HIGHER COMPETITIVENESS OF POLISH SMES ACTING ON THE COMMON MARKET
3.2. RESTRICTIONS IN THE SOP FOR HIGHER COMPETITIVENESS OF POLISH BUSINESSES
3.3. POLISH INSTITUTIONS INVOLVED IN THE SOP FOR HIGHER COMPETITIVENESS OF POLISH SMES
4. CONCLUSION: POSSIBLE IMPACTS OF EU STRUCTURAL FUNDS FOR POLISH SMES
Objectives and Topics
This paper examines how Polish Small and Medium-sized Enterprises (SMEs) can leverage EU Structural Funds between 2004 and 2006 to overcome economic challenges following Poland's accession to the European Union. It investigates the financial scope of available support, specific investment activities eligible for funding, and the institutional mechanisms governing the distribution of these resources to enhance competitiveness.
- EU definitions and criteria for classifying SMEs.
- Economic status and role of SMEs within the Polish market.
- Mechanisms and objectives of EU Structural Funds in Poland.
- Requirements and restrictions for accessing the Sectoral Operational Program (SOP).
- Administrative processes and institutions involved in project selection.
Excerpt from the Book
3.3. Polish institutions involved in the SOP for higher competitiveness of Polish SMEs
The are 16 Regional Financial Institutions (one for each of the 16 provinces) that check the formal correctness of the applications, which happens at latest 18 days after the application deadline has run out. By entering the application in the Informational System for Monitoring and Controlling Structural and Cohesion Funds (System Informatyczny Monitorowania i Kontroli Finansowej Funduszy Strukturalnych i Funduszu Spojnosci) the regional institutions produce a electronically version of the application. The applicant gets a confirmation, that the application has been received and obtains an application number.
If the applications have been found formally incorrect, the applicant is informed. If the application has been found formally correct, they are handed over to the national institutions in charge, depending on the project: Applications concerning the support of consulting and investment activities are passed to the Polish Agency for Entrepreneurial Development. Applications concerning the support of environmental protection go to the National Fund for Environmental Protection and Water Reserves. Finally applications concerning product and technology development are handed to the Ministry of Economy and Labour. These national institutions are in charge of the substantive analysis of the applications, until 60 days after the application deadline.
Summary of Chapters
INTRODUCTION: Outlines the economic context of Poland's EU accession and establishes the importance of Structural Funds as a support mechanism for SMEs facing increased market competition.
1. EU DEFINITION OF SMALL AND MEDIUM-SIZED COMPANIES (SMES): Explains the criteria established by EU Recommendation 2003/361/EC for categorizing businesses based on employee count, turnover, and balance sheet totals.
2. SMES IN POLAND: DEFINITION, NUMBER, ACTIVITIES: Analyzes the structural characteristics of the Polish SME sector, highlighting its vital role in economic growth and the discrepancies between local and EU classification methods.
3. EU STRUCTURAL FUNDS FOR POLAND: Provides an overview of the financial volume and objectives of the Structural Funds available to Poland, including the eligibility criteria and the role of the National Development Plan.
3.1. SECTORAL OPERATIONAL PROGRAM (SOP) FOR HIGHER COMPETITIVENESS OF POLISH SMES ACTING ON THE COMMON MARKET: Details the specific operational program dedicated to SMEs, covering its budget allocation and strategic targets for business environment and enterprise support.
3.2. RESTRICTIONS IN THE SOP FOR HIGHER COMPETITIVENESS OF POLISH BUSINESSES: Describes the eligibility requirements, such as company size and existence duration, as well as cost reimbursement caps and project-related constraints.
3.3. POLISH INSTITUTIONS INVOLVED IN THE SOP FOR HIGHER COMPETITIVENESS OF POLISH SMES: Outlines the administrative framework, including regional and national institutions responsible for application monitoring, verification, and final project selection.
4. CONCLUSION: POSSIBLE IMPACTS OF EU STRUCTURAL FUNDS FOR POLISH SMES: Evaluates the potential for Structural Funds to bridge developmental gaps while acknowledging persistent issues like corporate taxation and legal barriers that funds alone cannot resolve.
Keywords
Poland, EU Structural Funds, Small and Medium-sized Enterprises, SMEs, Economic Development, Sectoral Operational Program, SOP, European Union, Competitiveness, Business Innovation, Funding, Financial Assistance, Regional Development.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper examines the impact of EU Structural Funds on Polish SMEs, specifically focusing on the 2004-2006 period following Poland's accession to the European Union.
What are the core thematic areas discussed?
The core themes include the definition of SMEs, the Polish economic landscape, the mechanisms of EU Structural Funds, eligibility requirements for funding, and the institutional framework for grant distribution.
What is the main goal of the study?
The primary goal is to explain how Polish SMEs can access financial support through EU programs and to identify which specific investments and activities are supported to increase their competitiveness.
Which methodology does the author employ?
The author uses a descriptive and analytical approach, drawing on EU regulatory documents, official guidelines for operational programs, and economic studies regarding the Polish SME sector.
What topics are covered in the main body?
The main body details the Sectoral Operational Program (SOP), eligibility restrictions, the role of regional and national institutions, and the potential for these funds to address innovation and capital gaps.
Which keywords best characterize the work?
Key terms include Poland, EU Structural Funds, SMEs, Competitiveness, SOP, Business Innovation, and Financial Assistance.
How are applications for funding processed?
Applications undergo a formal verification by regional institutions and a subsequent substantive analysis by specialized national bodies like the Polish Agency for Entrepreneurial Development, depending on the project type.
Can EU funds resolve all problems faced by Polish SMEs?
No, the author concludes that while funds support development and innovation, they cannot address systemic issues such as high corporate income tax, lack of demand, or difficult legal regulations.
- Quote paper
- Joanna Mastalerek (Author), 2005, The Impact of EU Structural Funds on Polish Small and Medium-sized Enterprises, Munich, GRIN Verlag, https://www.grin.com/document/34910
