Warsaw, 8^th September 2020

 

Union of Entrepreneurs and Employers took part in the consultations of the European Commission regarding the Digital Services Act

 

The Union of Entrepreneurs and Employers took part in public consultations initiated by the European Commission regarding the Digital Services Act package that is being developed.

The new regulation on digital services commonly known as the Digital Services Act is a planned legislative initiative of the European Commission. Its main goal is to adapt European regulations to the evolving realities of the digital economy, including the revision of the e-commerce directive.

Until 8^th September this year, the European Commission conducted public consultations to gather the views of businesses, organisations, and consumers from across Europe. The presented data will help create new high-quality regulations that will enable, among other thing, the effective regulation of platforms in the EU. The in-depth survey covered the following areas: user safety (including illegal products, content, and services), platform transparency, harmful content, intermediaries’ liability, the role of platforms serving as the so-called gatekeepers; but also general issues relating to the management of digital services in the single market.

 

See: The Union of Entrepreneurs and Employer’s contribution to the European Commission Consultation on the Digital Services Act

 

Fot. Guillaume Périgois / Unsplash.com

Warsaw, 23^rd September 2020

 

It’s worth running a business.
According to the ZPP Portrait of an Entrepreneur survey, as many as 80% of business owners and entrepreneurs, in spite of difficulties, are satisfied with their career

 

The Union of Entrepreneurs and Employers, known in Poland as ZPP, conducted the largest in Poland, comprehensive study of the Polish sector of small and medium-sized enterprises that covered a representative sample of companies employing from 1 to 250 employees. The survey’s objective was to find out about the motivations, attitudes, and moods of Polish entrepreneurs.

The vast majority of respondents (80%), regardless of their reasons and circumstances, positively assessed their decision to start a business (41% assessed it positively, 39% – rather positively). Only 10% of entrepreneurs are not satisfied with their decision to start a business. Statistically speaking, dissatisfied respondents are slightly more often owners of companies from the trade sector, people with lower education (primary or vocational), but also people whose financial situation is not great – they have little to no savings, while at the same time have loans and outstanding credit.

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, comments: “We can be proud of Polish entrepreneurs, because they do really well even in such difficult circumstances, which is also reflected in the recent performance of our economy. Polish companies are moving forward despite the lack of capital and worse conditions for running a business compared to most EU countries. I dare not think how much faster we could be developing if only we managed to untap all the energy and entrepreneurial spirit blocked by thick reams of paper covered in regulations or by the politicians’ obsessive desires to constantly amend the law, control everything and their chronic distrust of business leaders.

Among the most burdensome disadvantages of being an entrepreneur as well as barriers to running a business, the respondents named:

• high labour costs and social security premiums – 53% of respondents;
• irregular salaries – 41% of respondents;
• financial and legal responsibility – 40% of respondents;
• high taxes – 40% of respondents;
• high stress levels – 37% of respondents;
• excessive obligations related to bureaucracy – 23% of respondents;
• legal instability – 22% of respondents.

Passion and escape from a 9-to-5 job, above all else

As many as 37% of respondents admitted that the main reason for starting a company was the desire to fulfil their passions, whereas 25% of entrepreneurs never wanted to work full-time and were looking for an idea for their own business. By way of comparison, for 23% of respondents, the decision to set up a business was impacted by the economic situation, while in the case of 10% of entrepreneurs surveyed, this was an order from their former employers.

Professor Dominika Maison, the author of the study and the report, comments: “Observing the changes taking place among Polish entrepreneurs for years, we can see that their motivations for starting their own business are evolving along with the generational changes. It is no longer just a desire to earn a lot of money or be a great entrepreneur with hundreds of employees. Especially among young people, what prompts them to abandon safe full-time work and start their own business is the desire for self-fulfilment and freedom, and to decide about their own fate, even at the cost of sometimes lower salaries or the uncertainty and risk related to running their own, sometimes small and niche business.”

The ZPP Portrait of an Entrepreneur survey was conducted in February 2020 on a representative sample of Polish entrepreneurs. A total of 678 respondents running a sole proprietorship and business owners employing from 1 to 250 employees shared their views.

 

Infographics

• Satisfaction with the establishment of a company
• Reasons for starting a business
• The company’s period of operations
• Perceived advantages of running a business
• Perceived disadvantages of running a business
• Perceived barriers to running a business

 

About the ZPP Portrait of an Entrepreneur survey

ZPP Portrait of an Entrepreneur is the largest in Poland, comprehensive study of the Polish sector of small and medium-sized enterprises. It was conducted in February 2020 on a representative sample of Polish entrepreneurs. It included a total of 678 respondents conducting sole proprietorship and business owners employing from 1 to 250 employees.

The objective of this study was to learn about the motivations, attitudes, and moods of Polish entrepreneurs. As part of the research project initiated by the Union of Entrepreneurs and Employers, also the first comprehensive segmentation study of companies from the SME sector in Poland will be developed, consisting in the selection of groups of entrepreneurs with different approaches to running a business. The study was carried out in February 2020 using the CAWI (Computer Assisted Web Interview) method on the Ariadna online research panel under the supervision of Professor Dominika Maison.

 

About the Union of Entrepreneurs and Employers

Founded in 2010, the Union of Entrepreneurs and Employers, known as ZPP, is the fastest growing and most active organisation of Polish entrepreneurs. Its members include over 52,000 companies, 15 regional and 20 industry organisations. Every year, the Union publishes over 30 reports, studies and films as well as over 100 legislative comments, positions and opinions. It organises numerous debates and meetings. Its goal is to make Poland the country with the best business conditions and tax system in Europe. ZPP is an apolitical organisation that supports the free market and common sense, regardless of political affiliations. Moreover, the Union is a member of the Social Dialogue Council and has a representative office in Brussels.

Warsaw, 25^th September 2020

GOOD COMPANY STATUETS AWARDED TO THE MOST INNOVATIVE AND FASTEST GROWING COMPANIES IN LESSER POLAND

The Union of Entrepreneurs and Employers chose the best companies in Małopolska – a region in the south of Poland know in English as Lesser Poland. Among the winning companies, there were enterprises from the engineering, technology, chemical, IT, advertising and marketing sectors.

As part of the first edition of the Dobra Firma 2020 Programme, seven statuettes were presented at the gala at the Best Western Efekt. The event was held under the patronage of the President of the City of Kraków, Jacek Majchrowski, the Voivode of Małopolska, Łukasz Kmita, and the Marshal of the Małopolska Voivodeship, Witold Kozłowski. The event’s partners included: the Industrial Development Agency ARP, the Polish Agency for Enterprise Development PARP, the Polish Development Fund PFR, Info Veriti business intelligence agency, the monthly magazine on business and innovation My Company Polska and the regional Polish national TV station TVP 3 Kraków.

During the qualification process, the Union’s experts carefully analysed financial data summarising several years of activity provided by Info Veriti, the potential to innovate and grow as well as the reputation of a broad group of companies from the Lesser Polish region. Having evaluated the data, a team of experts selected a set of 52 enterprises operating in Małopolska most dynamically, 7 of which became the programme’s laureates.

The winners are:

in the Most Effective Company category

• HAND MADE MARCIN PALARCZYK ARTUR LALEWICZ sj. – a 360 advertising agency providing their services to the largest Polish brands, offering a well-thought-out strategy and advertising creation.
• LEIER POLSKA S.A. – a company operating in more than 40 locations, which include brick factories, precast concrete plants, acoustic screen factories, car dealerships, mechanical plants, facilities specialising in soil for horticulture, and hotels as well as places where real estate management and rental services are provided.

in the Best Innovator category

• ATMAT Sp. z o.o. – a dynamically growing Polish production company specialising in the industrial engineering industry.
• SYNTHOS DWORY 7 Sp. z o.o. – the Group’s activity is based on the sale of chemical products used as raw materials and intermediate products in a wide range of industries, in particular in the automotive industry, packaging industry and construction industry.

in the Most Efficient Employer category

• NKK SYSTEM NOWAK, KUKUŁKA, KORNIJASZ sj. – a company providing services for institutional and individual clients, offering IT equipment, computers, peripherals, and ready-made solutions for business.
• TOBACCO TRADING INTERNATIONAL POLAND Sp. z o.o. – a company operating on the Polish market of high-quality tobacco products and related accessories. It is at the forefront of companies specialising in the import and distribution of tobacco and complementary products.

The Union’s Special Prize was awarded to MORE BANANAS Sp. z o.o. Sp.k. – a company specialising the advertising and public relations campaigns in social media.

The full list of winning companies is available at nagrody.zpp.net.pl.

Cezary Kaźmierczak, the President of the Union of Entrepreneurs and Employers, comments: “As part of our activity, we wish to distinguish the best Polish companies and entrepreneurs who, in spite of the difficult conditions for development, consistently strive forward, implement innovations, and provide stable, employee-friendly jobs. It is thanks to such companies that the Polish economy is handling the current economic crisis better than others. For the last 10 years, all of us at the Union have been actively working towards improving the operating conditions for companies in Poland. We initiate many and support all initiatives aimed at eliminating from the Polish legal system any and all restrictions on economic activity that exceed EU requirements, thus levelling the competitive opportunities between Polish and European enterprises.”

***

The awards in the Dobra Firma (Good Company) project are awarded by the Union of Entrepreneurs and Employers, also known as ZPP. Founded in 2010, the Union is the fastest growing and most active organisation of Polish entrepreneurs. Its members include over 52,000 companies, 15 regional and 20 industry organisations. Every year, ZPP publishes over 30 reports, studies and films as well as over 100 legislative comments, positions and opinions. It organises numerous debates and meetings. Its goal is to make Poland the country with the best business conditions and tax system in Europe. ZPP is apolitical and supports the free market and common sense, regardless of political affiliations. Moreover, the Union is a member of the Social Dialogue Council and has a representative office in Brussels.

Warsaw, 23^rd September 2020

The new version of dobry.biz – the platform for aid and cooperation for members of the Union of Entrepreneurs and Employers – has been launched

Thus far, an effective programme that would significantly contribute to supporting the SME sector in Poland has not been implemented yet.

Over the last two years, we have been closely monitoring what is happening on the market, fully aware of the fact that dobry.biz must evolve. We have browsed dozens of portals and websites, learnt from our mistakes, and listened to our members. This way, we created dobry.biz anew with the following in mind:

• to make it more transparent,
• that it provides real assistance to our Members – offers them the ZPP Assistance package, including legal assistance as well as advice on financing and subsidies,
• that it gives access to valuable knowledge and information, all in one place – the Law and Legislation Bulletin, templates of letters, specialist articles, examples of legal advice, interviews with experts,
• to allow for company and offer presentations,
• to inform about promotional campaigns and special offers – a weekly newsletter,
• to design a new offer search layout,
• to include new possibilities – adding a company’s employees,
• to connect it with social media.

Feel invited to get to know our new website, to find out all its possibilities and the benefits of creating a community of entrepreneurs on the dobry.biz profile on Facebook.

We are here for you
Your dobry.biz team

Warsaw, 24th September 2020

 

Marcin Nowacki and Tomasz Wróblewski have been nominated to be members of the European Economic and Social Committee. As of 21 September, they represent the Union of Entrepreneurs and Employers in the European decision-making process

 

The European Economic and Social Committee (“EESC”) is an advisory body established by the Treaties. It consists of three groups representing respectively Employers, Workers and Diversity and provides expertise to the European Parliament, the Council and the Commission. Its’ 326 members are employers, trade unionists and representatives of social, occupational, economic and cultural organizations, who are appointed for a renewable 5-year term by the Council on a proposal by the Member States.

– I am honored that I can contribute to the work of the European Economic and Social Committee. – Marcin Nowacki, Vice President of ZPP, stated and added – What is crucial for companies’ performance in the market is a good regulatory environment and the European Economic and Social Committee has a crucial role to play in the creation of better European legislation for businesses.

Most importantly, however, the EESC participated in the European law-making process. It issues between 160 and 190 opinions and information reports a year. Opinions can be requested by the European Commission, Parliament or Council. The EESC has also the right to provide an opinion of its own motion. In this way, the EESC ensures that important socio-economic interests are well-represented in the Union’s decision-making process.

According to Tomasz Wróblewski, WEI President, the function of an EESC member is an privilege and a responsibility – Direct participation in the European decision-making process is an opportunity that is not available to many and I intend to use it to duly represent the interests that are important for Poland on the international arena.

Furthermore, the EESC organizes several annual initiatives and events with a focus on civil society and citizens’ participation such as the Civil Society Prize, the Civil Society Days, the Your Europe, Your Say youth plenary and the ECI Day.

– The first step towards improving the EU’s trade balance is increasing the competitiveness of European businesses. Companies in third countries often face smaller regulatory hurdles that allow their businesses to grow and thrive more easily. To increase the competitiveness of European businesses, the EU should focus on decreasing red tape and administrative burdens, especially on SMEs – Nowacki noted.

Marcin Nowacki, Vice President of the Union of Entrepreneurs and Employers, President of European Enterprise Alliance,  Board Member at Warsaw Enterprise Institute

In the years 2006–2007, director of the Investor Acquisition Department at the Łódź Special Economic Zone S.A. In the period 2008–2009 he was the director of the Entrepreneurship Department at the Marshal’s Office in Łódź (Regional Government). He participated in the management of over 40 investment projects with a total value exceeding EUR 1 billion. Marcin has been involved in the Union of Entrepreneurs and Employers (ZPP) since 2011. Today ZPP belongs to the group of three largest employers’ organizations in Poland. As part of the ZPP, he coordinates departments responsible for law and legislation as well as relations. Marcin also oversees all foreign relations and partnerships, including the ZPP Representation in Brussels, participating in key regulatory processes for Polish entrepreneurs in the EU. Initiator and head of the European Enterprise Alliance, an organization of entrepreneurs registered in Brussels associating organizations of employers from the region of Central and Eastern Europe. Marcin Nowacki is also a chairman of e-commerce working group at the SME Connect, Brussels-based SME platform.

Tomasz Wróblewski, President of the Warsaw Enterprise Institute

President of WEI. Creator of such titles as “Newsweek Polska”, “Forbes Polska”. He started his professional work in the United States. After graduation from the University of Houston he cooperated with Newsweek and Washington Post. After returning to Poland he successively served as director of RMF antenna, deputy chief executive of “Wprost” and then chief executive of “Newsweek Polska” and “Forbes”. He worked as Vice President of Polskapresse publishing house. He also held the post of editor-in-chief of Dziennik Gazeta Prawna and Rzeczpospolita.

 

fot. Giampaolo Squarcina / ma lic. Flickr.com

Warsaw, 19^th September 2020

 

Commentary of the Union of Entrepreneurs and Employers on Ursula von der Leyen’s State of the Union Address

 

The State of the Union Address touched upon key issues that will shape our reality in the years to come. The fact that the President of the European Commission, Ursula von der Leyen, noticed the problems of the internal market and proposed the creation of a new strategy for the Schengen Area, which will undoubtedly improve the quality of the regulatory environment for entrepreneurs, should be assessed positively. Nevertheless, the introduction of a European minimum wage or the excessively rapid increase in climate goals may adversely affect the condition of the Polish economy and the competitiveness of European industry. With this in mind, the Union of Entrepreneurs and Employers reminds that the improvement of the global position of the European Union will not take place without an increase in its economic importance.

On 16^th September 2020, the President of the European Commission, Ursula von der Leyen, delivered her first State of the Union Address, an annual speech to the European Parliament at the September plenary session. Without any doubt, the announcement of an increase in climate targets by 15 percentage points from 40% to 55% by 2030 drew the most attention. Still, the President in her address raised many important issues such as health, social rights, industry and the common market, and digitisation. Moreover, in her speech, the President raised important geopolitical issues, this commentary, however, will focus on issues related to the economy and the internal market.

The coronavirus pandemic and the resulting economic challenges have left their mark on the priorities of the European Commission (hereinafter referred to as “EC”). Madam President began her speech thanking the care workers, nurses, and doctors for their dedication, as well as all other workers who continued to perform their duties even when the lockdown was most severe. These events according to the President showed the great fragility of our society, but also the importance of humanity. Moreover, they constitute a new starting point for the European Union (hereinafter referred to as “EU”) whose task for the coming years is to rebuild the economy, and the driving force of economic growth will be the Next Generation EU Recovery Fund. Speaking of the Recovery Fund, President von der Leyen assured that thanks to the unique model of the social market economy, the EU can achieve stability and prosperity.

The first part of the speech was dedicated to strengthening the EU’s activity in the field of health. The President referred to the introduction of export restrictions on medical goods and breaks in supply chains during the pandemic and stressed that it was cooperation with European industry that allowed us to ensure the right amounts of strategic goods. In this regard, von der Leyen considered it crucial to build a stronger health union and supported the European Parliament’s demands to increase health spending in the future Multiannual Financial Framework (hereinafter referred to as “MFF”). Among the President’s proposals, there were, among others, the postulate of making strategic reserves. The Union of Entrepreneurs and Employers supports initiatives aimed at strengthening the EU’s economic position and independence vis-à-vis partners from other parts of the world. However, we believe that one should be cautious about expanding EU competences and that expansions as such should only take place where action at the EU level brings added value.

The second subject to be addressed was related to jobs and workers’ social rights. The President of the EC recalled the creation of the SURE programme, under which EUR 100 billion will be allocated to national short-term work programmes and similar measures to protect jobs, employees and the self-employed from the risk of dismissal and loss of income. Furthermore, Ursula von der Leyen called for “dignity of work” to be ensured by establishing a European minimum wage. Importantly, the President decidedly emphasised that she was a supporter of collective bargaining systems and that all European solutions would respect national traditions. In our view, to support entrepreneurs during the pandemic is necessary and beneficial. Nevertheless, the Union of Entrepreneurs and Employers has consistently opposed the idea of introducing a European minimum wage. We believe that the minimum wage – if at all – should be regulated on a regional, not national, and certainly not a European level. In our previous studies, we also questioned the EU’s competences in this area.

The economy and the common market were the third issue raised by the President of the EC in this year’s address to the European Parliament. Following a 12% fall in EU GDP in the second quarter of this year, the time has come for a rebound, but the economies of the member states still need support, said Ursula von der Leyen. The Recovery Fund will be of key importance in this process, as will also be the strengthening of the EU internal market. “We must tear down the barriers of the single market. We must cut red tape. (…) And we must restore the four freedoms – in full and as fast as possible,” said the President of the EC and added: “We will work with Parliament and member states to bring this high up our political agenda and we will propose a new strategy for the future of Schengen.” Then, von der Leyen announced an update of the industry strategy and a reform of the competition framework. In our opinion, support for enterprises in a crisis is needed, but in the long run, a good regulatory environment is the most important factor for business performance. The Union of Entrepreneurs and Employers has consistently emphasised that in order to maintain the competitiveness of European enterprises, the EU should focus on reducing red tape and administrative burdens, especially for SMEs. Therefore, we welcome the declaration of the President of the EC and stress that any new EU strategies – be they on industry, climate protection or digitisation – must be accompanied by a regulatory policy aimed at improving the business environment in the EU.

Ursula von der Leyen devoted the next part of her speech to the fight against climate change. By announcing an increase in the target of reducing carbon dioxide emissions from 40% up to 55% by 2030, the President said that she “recognised that this increase from 40 to 55 was too much for some, and not enough for others”. She also added that the climate strategy must go far beyond reducing emissions. Among the initiatives that will be financed from the Recovery Fund, she mentioned, among others, investments in hydrogen and the renovation of buildings that consume excessive energy. In the opinion of the Union of Entrepreneurs and Employers, the European Green Deal (hereinafter referred to as “EGD”) is a reality to which the Polish economy will have to adapt. Obviously, this will require efforts both on the part of the regulator and on the part of market participants. It is also evident that some member states are better prepared for the green transition than others. Therefore, increasing climate goals from the Polish perspective may entail certain threats. At this stage, it is important that President von der Leyen’s declaration of understanding is reflected in the strategy of the EC. Additionally, as von der Leyen herself pointed out, the European economy needs deregulation and the strengthening of the internal market. Henceforth, the Union of Entrepreneurs and Employers calls the Commission to remember about maintaining the competitiveness of European industry when designing the assumptions and requirements of the EGD.

The last point analysed in this commentary touches upon digitisation. “We must make this Europe’s digital decade,” announced the President of the EC. To do so, she proposed various initiatives, including building a European cloud, regulating artificial intelligence, creating a European e-identity, developing infrastructure, fighting digital exclusion, and investing in supercomputers. Undoubtedly, the EU needs to step up its efforts to develop digital technology if it is to maintain a prominent position in a changing world. Understanding the need to create regulations that provide European consumers with an appropriate level of security, the Union of Entrepreneurs and Employers draws attention to the risks that may arise from over-regulation of the digital market. This is especially apparent in the case of artificial intelligence. There currently is a debate whether to extend its definition to automated decision-making processes that are harmless from the point of view of individual rights, and at the same time to cover these processes with potential EU regulation of artificial intelligence. If this scenario does take place, then companies using low-risk technologies will face a disproportionate regulatory burden, which will have a negative impact on their competitiveness. Concurrently, by creating one regulation, we risk that technologies that carry the risk of violation of fundamental rights, such as, for example, remote biometric identification, will be subject to standards that are too low. At this point, the Union of Entrepreneurs and Employers once again calls for maintaining an appropriate balance between the protection of individual rights and the creation of an appropriate regulatory environment for entrepreneurship. Interventionism that is too far-reaching will not allow the European economy to achieve competitiveness and develop and will thus threaten the recovery of the EU’s global position.

The State of the Union Address touched upon key issues that will shape our reality in the years to come. The fact that the President of the European Commission, Ursula von der Leyen, noticed the problems of the internal market and proposed the creation of a new strategy for the Schengen Area, which will undoubtedly improve the quality of the regulatory environment for entrepreneurs, should be assessed positively. Nevertheless, the introduction of a European minimum wage or the excessively rapid increase in climate goals may adversely affect the condition of the Polish economy and the competitiveness of European industry. With this in mind, the Union of Entrepreneurs and Employers reminds that the improvement of the global position of the European Union will not take place without an increase in its economic importance.

The State of the Union Address touched upon extremely important issues that will shape our reality in the years to come. The fact that the President of the European Commission, Ursula von der Leyen, noticed the problems of the internal market and proposed the creation of a new strategy for the future of the Schengen Area, which will undoubtedly translate into an improvement in the regulatory environment for European entrepreneurs, should be assessed positively. Equally positive is the importance that von der Leyen placed on developing technology and improving the EU’s strategic resources. However, we are concerned about some of the proposals. The introduction of the European minimum wage or the excessively rapid increase in the EGD climate goals may adversely affect the condition of the Polish economy, as well as the competitiveness of European industry. With this in mind, the Union of Entrepreneurs and Employers reminds that the improvement of the global position of the European Union will not take place without an increase in its economic importance.

 

19.09.2020 Commentary of the Union of Entrepreneurs and Employers on Ursula von der Leyen’s State of the Union Address

 

Fot. GregMontani/pixabay.com