SME and Entrepreneurship Performance in Poland Today

SMEs in Poland contribute significantly to employment, investment and value-added, as well as to economic diversification. However, the sector remains weak. There is a disproportionate share of micro-enterprises, with fewer than 10 employees, and relatively few firms in the intermediate size classes, especially the 10-49 employee class. SMEs in Poland are rarely involved in export activity, they tend to lack the capacity, resources or willingness to invest in new technology and the low quality of their products or processes makes them generally uncompetitive in global markets. In addition, variations in framework conditions are reflected in significant regional variations in SME performance and new venture creation rates. Key barriers to SME development include: i) regulatory complexities and administrative costs ii) high tax rates iii) inadequate access to financing iv) lack of qualified labour and v) deficiencies in knowledge, management and competitiveness.