18.11.2024, Warsaw

BelTech Going Global 2.0

The #BelTechGlobal, the largest offline conference for Belarusian technology companies abroad, was held on Saturday, November 16, at the Cambridge Innovation Center in Warsaw, Poland. The event brought together more than 300 Belarusians becoming a key platform for the revival of the Belarusian technology ecosystem, which has been fragmented due to mass migration.

The conference was held entirely in English, with one presentation in Belarusian.

The event was opened by Dmitry Danilchuk – head of ZPP Belarus Business Center and Kuba Binkowski – Board member and director of the Law and Legislation Department of the Union of Entrepreneurs and Employers.

The conference included the following panels and discussions:

1. Foster Revival and Growth: Promote the revival, formation, and establishment of a new Belarusian technological and innovation ecosystem.
2. Strengthen Business Partnerships: Recreate and strengthen business partnerships among representatives of Belarusian tech businesses
3. Facilitate International Integration: Support the integration of Belarusian companies into global ecosystems, helping them establish sustainable international connections.
4. Panel discussion: IT outsourcing: transformation in times of global disruptions
5. Panel discussion: Hardware companies: supplier management and the arrival of the AI era
6. Panel discussion: B2B companies: navigating shaped needs of Global Belarusian IT firms
7. Keynote speech: Building a unicorn: What successful founders do differently
8. Keynote speech: How to sell a company with Belarusian roots: real-life cases
9. Panel discussion: Investments during venture winter: surviving or thriving
10. Pitch session: 7 raising Belarusian startups
11. Panel discussion: CSR and impact tech – this discussion was attended by Agata Boutanos. Director Brussels Office Union of Entrepreneurs and Employers
12. Speech: Belarus as a forge of high-tech businesses: Does the national high-tech sector have a future?
13. Speech: Top – 10 Belarusian startups in 2024

General partners of the event were SMAR Global, Melnichek Investments, FBA (Freedom Business Area), EXANTE, Partners, ALMA Agency and a partner of the event was ALMA Agency.

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ZPP | Belarus Business Center is a premier initiative launched by the Polish Union of Entrepreneurs and Employers (ZPP). Our project delivers comprehensive informational support, expert consultations, and legal advisory services to Belarusian companies expanding or relocating to Poland. The mission of the Business Center is to empower the Belarusian business community in Poland, throughout Europe, and on the global stage.

14/11/2024, Brussels

From Potential to Progress: Strengthening the CEE Region’s Digital Economy

 

On Thursday, 14 November 2024, the Union of Entrepreneurs and Employers (ZPP) in partnership with SME Connect held a working breakfast titled “From Potential to Progress: Strengthening the CEE Region’s Digital Economy” at the European Parliament in Brussels, Belgium. The welcome was delivered by Agata Boutanos, Director of the Representation to the European Union of ZPP, followed by opening remarks from the host of the event, Ľubica Karvašová, Member of the European Parliament and Vice-Chair of the Committee on Regional Development. The overview of findings from the report, “EU Digital Single Market: A Catalyst for the Development of Companies in the CEE Region,” was presented by Lusyne Kesziszjan, Public Affairs Manager at the European Enterprise Alliance. The keynote was given by Dariusz Standerski, Minister of Digitalisation of Poland. The panel discussion featured Kamila Gasiuk-Pihowicz, MEP and Vice-Chair of the Committee on the Internal Market and Consumer Protection; Rafal Kaminski, Advisor to MEP Kosma Złotowski; Jakub Bińkowski, Board Member at ZPP; and Anna Mazur, EU Regulatory Affairs Manager at Allegro. The discussion was moderated by Dr. Horst Heitz, Chair of the Steering Committee of SME Connect.

 

Agata Boutanos, Director of the Representation to the European Union of ZPP, welcomed participants and introduced the event’s focus on advancing the digital economy in the CEE region. She emphasized the importance of collaboration within the Digital Single Market (DSM) framework to unlock the region’s full potential and drive sustainable growth in the digital sector.

Lusyne Kesziszjan presented findings from the report, “EU Digital Single Market: A Catalyst for CEE Region Companies’ Growth,” which highlighted the benefits of digital integration for CEE SMEs. With e-commerce projected to reach significant retail shares in Poland and the Czech Republic by 2026, she emphasized that despite high cross-border delivery costs and competition from subsidized platforms, the DSM offers critical expansion pathways for regional businesses.

Ľubica Karvašová, Member of the European Parliament & Vice-Chair of the Committee on Regional Development, provided context for the meeting, connecting recent Commission hearings with aspirations for strategic initiatives in the incoming agenda. She highlighted the Digital Single Market’s (DSM) role in the EU’s digital transformation, noting advancements within Central and Eastern Europe (CEE) yet emphasizing the need for stricter regulatory enforcement by Member States. Karvašová’s recommendations focused on bolstering educational tools and infrastructure as essential foundations for sustained DSM progress.

Dariusz Standerski, Secretary of State, Ministry of Digital Affairs in Poland,linked DSM developments with the priorities of the upcoming Polish Presidency of the EU Council. He emphasized the focus on enhancing digital security and accessibility across the DSM, aiming to lay the groundwork for a resilient and inclusive digital Europe by embracing technologies like artificial intelligence and strengthening cybersecurity. Standerski highlighted the role of AI in driving innovation and efficiency within the DSM, alongside an agenda centered on digitalization and cybersecurity. He also underscored ongoing efforts to engage citizens and SMEs with practical digital tools, building a solid foundation for DSM growth while safeguarding the digital ecosystem against external threats.

Kamila Gasiuk-Pihowicz, MEP and Vice-Chair of the Committee on the Internal Market and Consumer Protection, projected DSM’s impact on the EU economy by 2026, stressing the need for robust, inclusive legislation. She spotlighted Poland’s e-commerce growth, particularly Allegro’s success, as a testament to DSM’s value. Gasiuk-Pihowicz advocated for sustained investment in digital education and tools to support SMEs and ensure a competitive DSM landscape.

Rafal Kaminski, Advisor to MEP Kosma Złotowski, emphasized the need for effective implementation of the Digital Single Market (DSM) rather than adding new regulations. Highlighting the challenges SMEs face in keeping up with complex digital rules, he advocated for consistent regulation across the EU and increased funding for SME training, stressing that SMEs are vital to the economy and must be prioritized in the DSM’s future.

Jakub Bińkowski, Board Member and the Director of the Law and Legislation Department, Union of Entrepreneurs and Employers, advocated for a cohesive regulatory approach across the EU to reduce compliance costs for businesses operating in multiple countries. He called for a level playing field, particularly with the rise of subsidized Chinese platforms in the market, emphasizing ethical concerns, cybersecurity, and the need for transparent data management. Bińkowski urged organizations to carefully consider partnerships, stressing ZPP’s responsibility to preserve European standards and security.

Anna Mazur, EU Regulatory Affairs Manager at Allegro, addressed Allegro’s leading role in Poland’s e-commerce sector, emphasizing the importance of developing DSM while protecting regional players from unfair competition. She stressed the necessity of implementing existing regulations across Member States to prevent exclusion due to subsidized non-EU competition.

See more: From Potential to Progress: Strengthening the CEE Region’s Digital Economy

 

Kyiv, 12 September 2024

 

Two leading employers’ organizations from Poland and Ukraine signed a historic cooperation agreement during the „Europe-Poland-Ukraine: Cooperate Together” conference in Kyiv on September 12th. The Federation of Employers of Ukraine (FEU) and the Union of Entrepreneurs and Employers of Poland (ZPP) signed a Memorandum of Understanding, initiating cooperation on the future of trade between the European Union and Ukraine.

 

Ruslan Illichov, General Director of the Federation of Employers of Ukraine, and Marcin Nowacki, Vice President of Poland’s Union of Entrepreneurs and Employers, have signed a document formalizing the organizations’ cooperation in the coming years. The parties publicly announced their intention to join efforts in supporting Ukraine’s accession negotiations with the European Union, especially regarding trade, and business practices and regulations harmonization.

The European Union has formally opened long-awaited accession negotiations with Ukraine in June 2024. The end of the Autonomous Trade Measures system overlaps with the end of Poland’s upcoming presidency of the Council of the European Union. As Ukrainian and Polish businessowners and employers, we are acutely aware not only of common interests, but also of the difficulty in finding middle ground in contentious issues, the parties state in the opening remarks of the document.

The two organizations have worked together in the past. At the end of 2023, they organized and mediated unprecedented negotiations between Polish and Ukrainian hauliers during the protest of Polish hauliers at the Ukrainian border.

The upcoming time will be crucial for relations between Poland and Ukraine, as well as between Ukraine and the European Union. We expect the coming year to be challenging. Thanks to our organizations’ cooperation, FEU and ZPP already have experience meeting such challenges head-on. Signing the agreement cements our will to cooperate and support each other in providing the best outcome for all parties involved – said Ruslan Illichov, General Director of the Federation of Employers of Ukraine.

Cezary Kaźmierczak, President of Poland’s Union of Entrepreneurs and Employers, remarked: Cooperation between Poland and Ukraine has the potential to change the balance of power and the shape of Europe. While our governments build the framework, businesses in both countries need to tighten their cooperation. If we communicate, cooperate, and constantly improve, we can create a peaceful and prosperous future for our people.

The parties set out to organize a series of consultations with representatives of employers, entrepreneurs, and social partners in Poland, Ukraine, and Brussels to produce a joint White Paper before the end of 2024 defining and advocating for the common interests of Polish and Ukrainian businesses.

The newly formalized partnership has reached out to the officials responsible for the economic development of their respective countries to offer their capabilities and experiences in any and all initiatives relating to the future of trade between the European Union and Ukraine. The copies of the Memorandum were sent to the First Vice Prime Minister of Ukraine and the Minister of Economic Development and Trade, Yulia Svyrydenko, and the Minister of Development and Technology of Poland, Krzysztof Paszyk.

 

„Europe-Poland-Ukraine: Cooperate Together”  Conference

Objective: to deepen Polish-Ukrainian economic cooperation in the areas of transport and logistics, trade, and infrastructure cooperation. Also, to outline Poland’s role during its presidency of the EU Council.

The conference brings together high-ranking representatives of government, business, and the expert community from both countries to discuss the prospects for the development and consolidation of Ukraine’s and Poland’s economies. It provides an opportunity to establish B2B contacts between Polish and Ukrainian businesses.

The event focuses on the following key topics:

• Current state and prospects of Polish-Ukrainian cooperation: discussion of economic relations between Ukraine and the EU, as well as opportunities to deepen cooperation between Ukraine and Poland in the context of European integration.
• Scaling up trade cooperation: consideration of opportunities for consolidating the economies of the two countries and developing trade between Ukraine and Poland, including prospects for entering new markets.
• Infrastructure cooperation: the importance of developing transport infrastructure and transshipment terminals, which will further strengthen ties between the two countries and ensure efficient logistics.

Organizers: Union of Entrepreneurs and Employers of Poland (ZPP)

Co-organizers: Totalizator Sportowy Foundation, Business for Ukraine Center

 

Poland’s Union of Entrepreneurs and Employers

Union of Entrepreneurs and Employers (ZPP) is the fastest-growing employer organization in Poland. The organization brings together 18 regional organizations and 22 trade organizations. They gather 21,089 companies (as of 31st December 2023) with a total of 772,272 employees. As a member of the Social Dialogue Council in Poland, ZPP uses its influence to promote free market, fair competition, legal stability, and economic transparency. ZPP is represented in Brussels through its Representative Office, European Enterprise Alliance membership, and SME Connect membership. The union has two representatives in the European Economic and Social Committee.

https://zpp.net.pl/

 

Federation of Employers of Ukraine

The Federation of Employers of Ukraine (FEU) is the most influential association of Ukrainian businesses. Founded in 2002, the Federation has successfully represented and protected the interests of businesses in Ukraine and internationally for 20 years.

At present, the FEU unites more than 140 sectoral and regional organizations of employers representing the most critical sectors of the economy of Ukraine, such as machine building, metallurgy, automotive, aerospace and defense industries, agriculture, chemical industry, IT, media industry, energy, medical and microbiological industry, construction, transport and infrastructure, retail and logistics, light and food industries, tourism, utilities, services sector.

The Federation represents over 8,000 enterprises, collectively employing nearly 3 million people and generating about 70 % of the national GDP.

https://fru.ua/ua/

12.09.2024_Press_release_Kyiv

Warsaw, 26.06.2024

First edition of Ukrainian Tech Meeting Conference held in Google Campus Warsaw

 

On June 18, 2024, the Ukrainian Tech Meeting conference took place at the Google for Startups Campus in Warsaw, a hub dedicated to fostering innovation and supporting startups. This event aimed to showcase the remarkable potential of the Ukrainian tech sector, which, despite the ongoing war since 2022, has not only survived but also thrived amidst the turmoil caused by Russian military aggression.

“Currently, we see that the global market is becoming more accessible… Before the full-scale Russian invasion, Ukrainian companies mainly focused on the local market. Now everyone understands that due to the current situation, we need to scale our operations more broadly,” stated Andrii Sukhov from Checkbox.

The conference provided a comprehensive overview of the Ukrainian tech sector’s evolution more than two years after the war’s outbreak. Experts shared their insights on crisis management, business relocation, and new export opportunities. Additionally, the potential for collaboration in the defense-tech sector was highlighted.

“The Totalizator Sportowy Foundation consistently implements actions for the Polish-Ukrainian community. The ongoing Ukrainian Tech Meeting event shows both us—Polish citizens, Polish entrepreneurs, and Ukrainian ones—that such initiatives are justified and underscore the importance of international cooperation,” emphasized Izabela Wyżga, President of the Foundation.

Attendees had the opportunity to listen to keynote speeches and panel discussions featuring industry experts, tech leaders, and government representatives. These sessions provided valuable perspectives on development and investment opportunities within the tech sector.

“Since the war escalated in February 2022, we launched the Google for Startups Ukraine Support Fund, which supported 50 startups with up to $100,000 in equity financing. We received nearly seven hundred applications. The great interest in the program led us to continue the Fund initiative and support Ukrainian startups further,” explained Michał Kramarz, Head of Google for Startups.

Among the distinguished experts participating in the conference were:

Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine

Michał Kramarz, Head of Google for Startups, Central and Eastern Europe

Przemysław Kania, General Manager of Cisco Poland

Andriy Kolodyuk, Chairman of the Board of the Ukrainian Venture Capital and Private Equity Association (UVCA)

Denys Gurak, Co-Founder of MITS Capital

Oleh Piskozub, Country Director of Intellias Poland

Denys Sychkov, Director at Horizon Capital

During the event, it was noted that many Ukrainian IT companies have a long history of working with clients across the globe. The war introduced numerous challenges, such as the availability of infrastructure, a lack of new projects in Ukraine, and specialists being mobilized. Observing the 2022-2024 period, it is clear that these operational and communication challenges were successfully addressed by the majority of Ukrainian IT players.

However, the global market turbulence, cost savings, and changes in the structure of demand represent more complex issues and negatively impact revenue. Adaptability, innovation, and a creative approach to marketing and sales have started to play a key role in the ability of Ukrainian IT companies to expand their business. Unfortunately, not many companies were able to cope with these challenges properly, and future business prospects are not so bright at the moment.

One of the event’s outcomes is that partnering and cooperating for Polish and Ukrainian companies is important with for gaining further business growth.” – Oleksandr Pluzhnikov, Head of Cyber Security Office at ELEKS.

The conference was part of the Business for Ukraine Center project, a collaboration between the Union of Entrepreneurs and Employers and the Totalizator Sportowy Foundation.

Event partners included: Polish-Ukrainian Startup Bridge, Ukraine Invest, IT Ukraine Association, and the Coalition for Polish Innovations.

Content partners: Google for Startups, FundingBox.

Media partners: BiznesAlert, CyberDefence24, Diia Business Warsaw.

The event was held under the honorary patronage of the Ministry of Development and Technology and the Mayor of Warsaw.

More: 26.06.2024_Press_Release_UTM

 

Warsaw, 18 April 2024

Leaders of the TSL sector at the ZPP conference ‘Poland in Motion’

The TSL (transport, shipping and logistics) sector is one of the champions of the Polish economy. In the more than 30 years since the political transformation, the sector has established a strong position on the European market. Today, the market faces a great opportunity for further growth, but at the same time companies have to deal with a number of challenges.

After a difficult period of global crises, the market looks to the future with optimism, seeing the potential for growth, but also the need to adapt to new political and economic conditions. This and other topics were all discussed by the guests of the ‘Poland in Motion’ Conference organised by the Union of Entrepreneurs and Employers on 18 April in the Listing Room of the Warsaw Stock Exchange. Infrastructure Logistics Transport, which announced new strategies and solutions for the effective management of the sector.

The Vice President of the ZPP Marcin Nowacki, delivering an opening speech, recognised the importance of the development of the national transport infrastructure for the development of the TSL sector in Poland.

‘The Union of Entrepreneurs and Employers is actively involved in the development of the TSL segment in Poland. Our involvement has visibly intensified in the context of EU regulations and the difficult situation on the Polish-Ukrainian border. We have advocated and continue to advocate for extensive measures to increase the capacity of border crossings, warehousing space, the expansion of domestic seaports, the development of the road and rail network, as well as the construction of the Solidarity Transport Hub. Our location on the map of Europe gives us the opportunity to become the largest transport and logistics hub in this part of the world’, said the ZPP Vice President.

The event commenced with a panel discussion: ‘Poland on the European Map of the TSL Market’. Speakers drew particular attention to the challenges posed by the lack of investments driving rail and combined infrastructure development. Poland is a transit country between Western and Eastern as well as Northern and Southern Europe. For this reason, according to the speakers, investments should be made in rail transport corridors for road transport, as well as the development of intermodal transport.

Panel II, ‘The TSL Sector in the Face of Contemporary Challenges’, addressed the most pressing challenges that the logistics and transport industry is facing.

MEP Mirosław Suchoń, chairman of the parliamentary Infrastructure Committee, emphasised that one of the key issues in the context of the sector’s development is the proper shaping of the legislative and institutional environment.

‘This major challenge faced by the transport industry can be divided into two areas. The first concerns internal, national regulations. We need to organise the whole regulatory area so that companies can finally get on with running their business rather than focusing on bureaucratic obligations. On the other hand, however, we need to have a serious talk with our partners in the EU, as the majority of regulations are adopted in Brussels’, said Mirosław Suchoń.

The TSL industry is particularly sensitive to changes in climate policy regulations, especially in the context of European Union initiatives, including the Green Deal and Fit for 55. The legislation introduced to reduce CO₂ emissions and incentivise the use of greener solutions, such as low-emission transport or electrification of the vehicle fleet, will require companies to invest in new technologies and adapt to new standards.

‘In my view, there are two key areas that need to be addressed. One of these are regulations concerning carbon footprint reduction. The second challenge Poland has been facing for years is the shortage of labour. This applies to both drivers as well as warehouse workers’, emphasised Adam Galek, Member of the Management Board, Rohlig Suus Logistics.

During the panel ‘Infrastructural Must-Haves – Essential Investments in Infrastructure’, speakers addressed topics related to the most important infrastructure investments for Poland.

‘Poland needs investments in road, rail and port infrastructure. This has been clearly vividly demonstrated by the events of recent months related to Ukrainian grain that should be handled quickly and efficiently at Polish ports and then transported further to other countries around the world. There are similar problems with other agri-food products, which need to be exported from Poland as quickly as possible. This is why the funds under the National Recovery and Resilience Plan are crucial to ensure that these investments are implemented in order to continuously improve Poland’s infrastructure’, stressed Stefan Krajewski, Secretary of State at the Ministry of Agriculture and Rural Development.

In turn, Rafał Zahorski, Board Representative for Port Development, Zarząd Morskich Portów Szczecin i Świnoujście, paid particular attention to the link between port and rail infrastructure:

‘Poland’s maritime economy has been on the upward growth trajectory. Polish ports are developing. All ports allocate significant amounts to investment. At the moment, we are waiting for a very strong development impulse for the railway infrastructure, because this is the first condition for the ports to be able to absorb a much higher volume of cargo’, he stressed.

In the concluding panel of the conference  ‘Can Poland Become a European Transport and Logistics Hub?’, discussions revolved around the accession of Ukraine to the EU. Today, it is certain that Poland will be one of the most important  links connecting Ukraine with the West. This requires strengthening and modernising existing routes and delivery models, but also creating new ones based on domestic infrastructure. However, transports from other parts of the world also pass through Poland. Our country has everything it takes to become the most important transport and logistics hub in this part of the continent.

During the panel, Katarzyna Ostojska, Marketing Manager at Raben Logistics Polska, emphasised the importance of the conference in developing new strategies and technological solutions to effectively manage the TSL sector:

‘Conferences on transport, or transport solutions, and the logistics industry in general, are very important. They provide a platform for sharing experience, exchanging views and perhaps finding new ways to build a positive image of companies’, she emphasised.

To solidify our position but also to provide the business with conditions for constant growth, the industry now needs strong investment impulses and a predictable, transparent law. These and a number of other issues were discussed during the ZPP Conference ‘Poland in Motion – Infrastructure, Logistics, Transport’ by experts, journalists, and representatives of government and business. The conference brought together representatives from the maritime, road, and rail transport industries but also from the agricultural sector and a number of other cooperating segments of the business community.

The Minister of Economic Development and Technology assumed honorary patronage of the conference. The event was partnered by the Warsaw Stock Exchange. Honorary partners of the event were: The General Inspectorate of Road Transport, the Civil Aviation Authority, the Road and Bridge Research Institute and the Poznan School of Logistics. The media patrons were Obserwator Logistyczny and Polska Press.

 

Warsaw, 23 April 2024

Conference ‘European Parliament Elections 2024: Challenges for Digital Democracy in the CEE Region’

On 22 April, the SGH Warsaw School of Economics hosted the conference ‘European Parliament Elections 2024: Challenges for Digital Democracy in the CEE Region’, partnered by the Union of Entrepreneurs and Employers (ZPP).

Present as a guest of honour was Secretary of State at the Ministry of Digital Affairs, Dariusz Standerski. The meeting was opened by the co-host of the event Piotr Wachowiak, PhD, lecturer and rector of the SGH Warsaw School of Economics. In a discussion moderated by Zosia Wanat, Senior CEE Correspondent from Sifted, the ZPP was represented by Paulina Szkoła, Director of the ZPP Digital Forum; other members of the panel were:

– Jan Jęcz, digital economy analyst, Polityka Insight;

– Mateusz Łabuz, Technische Universität Chemnitz; and

– Aleksandra Wójtowicz, Senior Analyst, NASK.

During the meeting, the report ‘Things to Watch For in European Parliament Elections in 2024’was presented, which you are warmly encouraged to read!

The event was organised by the CEE Digital Democracy Watch.

Warsaw, 25 April, 2024

Polish micro-entrepreneurs – passionate individuals with a sense of mission. They are satisfied with their jobs, although the earnings are not too high. They save money, take short holidays and do not take sick leave. They value independence

 

The Union of Entrepreneurs and Employers presented the results of the original and one of a kind Polish survey entitled “Material situation, private income and assets of Polish entrepreneurs”, portraying the owners of Polish micro-businesses. The main objective of the project was to draw a portrait of the socio-demographic and material situation of small Polish entrepreneurs and to find out their attitudes and opinions on the conditions and prospects for doing business in Poland. The survey was commissioned by the the Union of Entrepreneurs and Employers to the research company Maison & Partners. The survey – as emphasised by experts during the presentation of the report – is unique in the country and shows a profile of the Polish micro-entrepreneur that differs from many prevailing stereotypes.

Passionate individuals with a sense of mission and a need for independence…

For the majority of Polish micro-entrepreneurs, the most frequently mentioned motive for setting up a business was the need for independence (37%) and the desire to pursue one’s passion (31%). The need for independence as a motive for setting up own business dominated among sole proprietors (43%). Among company owners, the more frequently indicated motive for setting up a company was reluctance to work full-time for someone else, as well as economic necessity. In turn, individuals combining a full-time job with running a business were more likely to explain their decision to start a business by coincidence.

Confident in their decision to set up a business

The majority of entrepreneurs (75%) positively assessed their decision to set up a business and would continue to run it if faced with a choice between this and other forms of employment (in this case, there were also more entrepreneurs who were not simultaneously working full-time and were mainly running a business). However, some entrepreneurs, mainly less educated and younger people, would be more willing to work full-time for someone else.

Highly educated

Polish micro-entrepreneurs are mainly educated individuals – there are more people with higher education in this group (69%) than in the population as a whole, and fewer with primary and vocational education (6%). In addition, there are also fewer residents of rural areas among entrepreneurs (19%) than among Poles in general (38%).

Parents of children in state schools and kindergartens

The majority of entrepreneurs have children (68%), 60% of whom have more than one child. The majority of children of small entrepreneurs benefit from public education (88%), attending state nurseries and kindergartens, state schools and universities. Polish entrepreneurs do not spend high amounts on their children – 39% do not spend more than PLN 1,000 per child per month.

No spectacular earnings

Around a third of Polish micro-entrepreneurs, after paying the necessary levies, earn no more than the national average. Only 10% of the respondents declared earnings of more than PLN 15,000 per month, while only 4% – above PLN 30,000. Larger monthly earnings were observed in the case entrepreneurs running larger companies, with higher turnover and number of employees.

No spectacular property or luxurious cars

The majority of Polish micro-entrepreneurs own their own flat or year-round house (86%) and private car (83%). This also means that 14% of respondents do not own their home and 17% do not own a private car. In addition, around a third of them own a house or flat for rent (30%), while fewer own a holiday cottage or apartment (27%).

The dominant car makes owned by the entrepreneurs included Audi (10%, with significantly more cars of this make among this group than among Poles in general), as well as Opel, Skoda and Toyota – makes also popular among Poles who are not entrepreneurs. Only 14% of the respondents declared the value of their car to be over PLN 100,000

But with savings

Most micro-entrepreneurs are frugal. Polish entrepreneurs have more savings than the average Pole. However, it must be stressed that these savings are not always used for private purposes – as many as 47% of micro-entrepreneurs had to finance the operations of their business with private money at some point; quite obviously, this applies more often to sole proprietors than to companies. At the same time, the opposite also happens – small entrepreneurs borrow money from the company for private purposes.

Content with life despite difficulties

Interestingly, despite their material situation that is not much different from from that of Poles in general, it is entrepreneurs who seem more satisfied with their situation (56% of entrepreneurs vs. 36% of Poles in general). Of course, there are also people in financial difficulties among entrepreneurs who do not have enough money for their basic needs. Most of them come from the Łódzkie and Podlaskie provinces, have been in business for less than a year and mainly do physical work.

On average, Polish micro-entrepreneurs show a similar level of satisfaction with their lives as the general Polish population. Interestingly, satisfaction with life is not really related to the type of business run, but to universal demographic characteristics (i.e. similar to other Poles) – entrepreneurs who are better educated, have children and are older tend to be more satisfied with life. This may show that family, education and experience acquired with age constitute assets that translate into a better life.

Expert comments

Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers

The Union of Entrepreneurs and Employers is the only employers’ organisation dealing with the micro- and small-business segment. Poles are an exceptionally entrepreneurial nation and this spirit of entrepreneurship and courage to take matters into one’s own hands is one of the very important factors driving Poland’s development. Keeping the micro and small business segment in good shape ensures the stabilisation of the middle class and the development of small towns. It is often the case that 100 companies employing 10 people each contribute more to the stable development of a region than one company with 1,000 employees. We should take care of their development because, as our survey shows, micro-entrepreneurs are extremely hard-working, thrifty people who do not succumb to conspicuous consumption and who do not want to live off state benefits.

Prof. Dominika Maison, Maison & Partners.

Our survey has shown that the typical Polish micro-entrepreneur is not a rogue who just wants to make as much money as possible. Many micro-entrepreneurs are highly-educated people who set up their own business in order to be independent and pursue their passions. They work more than the average full-time employee, do not take sick leave and do not complain that they are not earning a fortune.

Mariusz Filipek – Plenipotentiary of the Minister for Deregulation and Economic Dialogue, Ministry of Development and Technology

The Union of Entrepreneurs and Employers has prepared a very valuable report for the economy and the business sector. It contains a range of data showing the largest segment of companies in Poland. From the perspective of the Ministry of Development, the key part was information on the development prospects of micro-enterprises. Taking into account the expectations of entrepreneurs, we are preparing a deregulation law to make it easier to do business in Poland.

Ignacy Morawski, Chief Economist, Puls Biznesu

Entrepreneurs play a very important role in the economy, creating companies and jobs, and at the same time providing the economy with flexibility to adapt to technological changes. Small companies tend to be quick to adopt new technologies, trends and products, playing a huge role in the growth of economy and productivity. At the same time, we must take into account that they are less efficient than large organisations. What surprised me most about the report of Union of Entrepreneurs and Employers was that almost half of those surveyed would be willing to change their current business for a full-time job, which shows how hard it is to run a business.

About the survey

The survey was conducted using the CAWI (Computer Assisted Web Interviews) method based on online surveys on the Ariadna survey panel. The persons invited to take part in the survey were representatives of the micro sector (companies with up to nine employees, regardless of employment form) and sole proprietors. The total sample size was N=658 respondents. The survey was conducted from 8-14 February 2024.

Lifestyle and related expenses

• Restaurants. Half of the entrepreneurs do not eat in restaurants at all, eat there rarely (21%) or once every few months (29%). The other half eat in restaurants at least once a month. Only 3% go to restaurants at least once a week.
• Takeaway food delivery. Ordering takeaway food with home delivery is slightly less popular, with 31% of entrepreneurs not using this type of service at all. However, those who regularly order takeaway food (at least once a week) are slightly more numerous than those who frequently eat in restaurants (5%).
• Eating-out expenses. Among those eating in restaurants and ordering takeaway food with home delivery, half spend on these services less than PLN 200 monthly.
• Cultural events. 41% of the entrepreneurs surveyed declared that they participate in cultural events at least once a month. Half of them declared an average expenditure of up to PLN 200 per month for that purpose.
• The dominant pattern of private travel is relatively frequent but short (2-3 days) domestic trips, which 78% of respondents declared in 2023. The most popular international destinations among Polish micro-entrepreneurs were Italy, Spain and Greece.

Assessment of the material situation

• Enough to survive. The vast majority of entrepreneurs surveyed described their material situation as sufficient to survive, but insufficient to afford additional major expenses (42%). 11% described their situation as bad to the point of not having enough to live, of which 8% had to significantly cut back on the spendings to “make ends meet”, while 3% did not have enough for even their immediate needs.
• No changes. Two-thirds (63%) of the micro-entrepreneurs surveyed declared that there had been no change in their material situation over the past year. One in five respondents (20%) declared their material situation got worse, while 16% replied that it improved. Interestingly, the perception of a change in one’s situation compared to the previous year was less negative among entrepreneurs than among Poles in general.
• Who was worse off and why? Deterioration of one’s material situation was declared more frequently by respondents from the Podlaskie, Łódzkie, Dolnośląskie and Kujawsko-Pomorskie provinces, by entrepreneurs performing both physical and white-collar work, not employing people, over 45 years of age. The most important reasons for the deterioration of one’s material situation were: inflation (25%), price increases / higher costs (25%), reduced income / turnover (17%), fewer customers (12%), government policies (8%), employment costs, social security contributions (6%) and the general economic situation in the country and around the world.
• Who was better off and why? The improvement in one’s situation was more often felt by entrepreneurs from the Mazowieckie and Podlaskie provinces and by people with higher (post-secondary and tertiary) education. This was due to: an increase in own or partner’s earnings (35%), an increase in the number of orders/customers (19%), change of own or partner’s job (6%).
• Satisfaction with life. Regardless of the assessment of one’s own material situation, the vast majority of entrepreneurs are satisfied with their lives and that level of satisfaction is not substantially different from that of Poles in general. As with Poles in general, also among entrepreneurs, those who are more satisfied with life tend to be older (over 55), better educated and have children.

Reasons for setting up own company and retrospective assessment of this decision

• Independence, passion and challenges. A very strong motive for starting own business was the desire to be independent and to have a sense of freedom (37% of answers to the open question), as well as reluctance to work full-time for someone else (22%). For 59% of the entrepreneurs surveyed, these were two key factors that had influenced their decision to set up own business. The desire to pursue one’s passions was mentioned as a motivating factor for setting up own business by 31% of the respondents. 16% decided to set up their own business because they had discovered a niche in the market, while 7% wanted to implement an interesting project they had come up with. For 12%, setting up own business was a form of investment or a way to raise money.
• Coercion or coincidence. 19% of the respondents set up their own business due to economic necessity or unemployment, while 11% did so at the suggestion of their former employer. It is interesting to note that 22% of the respondents declared that they had set up their own business as a result of a coincidence. Probably this factor, as well as the sense of compulsion to open own business felt by some contributed to some extent to the fact that a significant proportion of respondents, in retrospect, viewed their decision to start their own business negatively (12%), while a very high proportion (47%) of them would be more willing to work for someone else if they had the choice. What is particularly interesting is that one-third of young and uneducated respondents, working physically in production, would be more willing to work for a multinational corporation, possibly a private company, than to continue running their own businesses. This suggests that the group in question fares worst at running their own business.
• Assessment of the decision to set up own business. In retrospect, 75% of those surveyed assessed their decision to set up own business positively and, given a choice, just over half (53%) would continue to run it. Particularly for those aged 55 and over (70%), with more than 10 years of experience in the market (59%), operating in the service sector (57%), combining manual and white-collar work (59%), not hiring employees (57%), with a university or post-secondary education (56%), continuing running own business remains the best option.

Obstacles and desire to continue running own business – summary

• Labour costs and taxes. Entrepreneurs identified a great deal of barriers to running own business. These were linked to high costs, both due to rising fixed overheads (51%), high taxes (49%) or high labour costs (43%).
• Law and bureaucracy. The second group of barriers was linked to the legal system and bureaucracy. Entrepreneurs frequently mentioned instability of the legal system (29%) and intricacies of the business law (20%), as well as excessive bureaucratic requirements (26%) and EU-imposed restrictions on the activity/development of companies and industries (13%).
• The future of business. When thinking about the coming 12 months, only one-third of the respondents did not consider ending or suspending their business. The majority of the entrepreneurs surveyed (60%) did not think about the issue, while 11% admitted that it was likely that they would terminate or suspend their business. This proportion is significantly higher among entrepreneurs from medium-sized cities (20-99,000 inhabitants), those who have been on the market for 6-10 years and those with primary and basic education (it is worth noting that the latter are the group generally least satisfied with running their own business).
• Reasons for continuing own business. The most frequently mentioned reason for continuing own business was its good condition. However, there were also less optimistic reasons, including lack of other alternatives (6%) or long-term commitments (4%). These answers indicate a certain bitterness about the situation, and may indicate that although running own business may not fulfil the expectations or aspirations of the entrepreneurs, at the moment some of them are bound by their choices and act in a sense ‘out of habit’, struggling to stay in the market.
• Reasons for closing down business. Among the reasons forcing entrepreneurs to close or suspend their business the most frequently mentioned ones included the excessive cost of running a business, the amount of contributions and taxes paid (26%), as well as insufficient revenue to continue operations (13%). Other reasons mentioned included age (6%), lack of orders, customers (6%) and growth opportunities (4%).

 

See more: 11.04.2024 Financial situation, private income, and assets of Polish entrepreneurs

Brussels, 11 April 2024

EU Competitiveness in a Global Arena: Charting the Path Forward – Debate Summary

 

On Wednesday, 10 April 2024, the European Enterprise Alliance and Union of Entrepreneurs and Employers held a working lunch titled “EU Competitiveness in a Global Arena: Charting the Path Forward” in partnership with SME Connect at Sofitel Europe in Brussels. The opening remarks were delivered by Dr Horst Heitz, Chair of the Steering Committee of SME Connect followed by the keynote presentations given by Agata Boutanos, Director of the Representation to the European Union, Union of Entrepreneurs and Employers & Seyide Direk, Policy Analyst at the European Enterprise Alliance. The panel discussion showcased Dr. Laurent Maurin, Head of the Economic Studies Division at the European Investment Bank, followed by Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP; Coordinator of the Working Group on Trade with SME Europe of the EPP, Dr. Daniel Wennick, Policy Director at Orgalim, Harald Past, Head of International Trade & Taxation at EuroCommerce, Michael Jäger, President of the European Taxpayers Association, Ralph Kamphöner, Head of Brussels Office at textil+mode; moderated by Dr. Horst Heitz, Chair of the Steering Committee of SME Connect.

Agata Boutanos, Director of the Representation to the European Union for the Union of Entrepreneurs and Employers, presented the ZPP report on “EU Competitiveness in a Global Perspective.” She emphasized the need for direct regulation over directives to ensure faster and more effective implementation, citing discrepancies in implementation across EU member states. Boutanos highlighted the importance of clarity in regulatory environments, particularly for the tech industry, to foster innovation and the development of future solutions. To enhance competitiveness, Boutanos advocated for equal and free market access for all EU members and the simplification of regulations to promote fair competition. She stressed the need to empower smaller states, including those in Central and Eastern Europe, and called for coherence in regulations across the EU. Boutanos suggested measures such as introducing e-declarations and standardizing procedures to facilitate compliance for small businesses. Moreover, she underscored the significance of strengthening transatlantic ties and cooperation in the tech sector to learn from other regions and develop together. Boutanos emphasized the importance of regulatory alignment and collaboration to ensure that the EU remains competitive and able to keep pace with global technological advancements.

Seyide Direk, Policy Analyst at the European Enterprise Alliance, presented the report titled “Underrepresentation of Central and Eastern European (CEE) Region in EU Institutions.” Direk emphasized the significance of ensuring that the voices of these regions are heard in the institutions. Equal representation is not only a matter of fairness and inclusivity but also essential for effectively tackling the multifaceted challenges encountered by the EU. The report highlighted concerning trends in leadership positions, with Western and Southern Europe dominating appointments while the Central and Eastern European region is marginalized. For example, Poland’s overall representation percentage in EU institutions remains low despite notable appointments. Several factors contribute to this underrepresentation, including political dynamics, population demographics, and economic disparities. In conclusion, Direk provided recommendations for creating a more inclusive environment to ensure equal representation in policymaking within the EU institutions.

“Europe leads in green technology, boosting its economy and future competitiveness. As renewable energy dominates, electricity costs drop, driving manufacturing power. With strong democratic and social policies, Europe offers ample support and subsidies.” — Laurent Maurin, Head of Economic Studies Division, European Investment Bank

Dr. Laurent Maurin, Head of the Economic Studies Division at the European Investment Bank, emphasized the need to take a positive outlook on economic developments, considering the unexpected strength of the recovery despite challenges such as high energy costs and monetary policy tightening. Maurin then shifted to discuss the long-term trends in European growth, expressing concerns about demographic changes, lack of innovation, and the retention of innovators within Europe. He stressed the importance of implementing new policies to address these challenges and ensure Europe can maintain pace with the U.S. economy. Maurin highlighted strategic challenges such as securing European supply chains and enhancing territorial defense capabilities, suggesting these issues should be on the agenda of the new European Commission. Drawing from corporate surveys conducted by the European Investment Bank, Maurin noted that companies in the EU are more concerned about regulatory issues and skills shortages than financial conditions. Despite these challenges, Maurin highlighted Europe’s strengths in green technology and social policies, suggesting they could contribute to future competitiveness. He concluded by emphasizing the importance of raising the potential growth of the European Union through coordinated policy efforts.

“Companies face heightened exposure while implementing regulations, blurring lines between business and politics globally. Increased investment in ongoing geopolitical risk assessments is imperative for both European and American companies.” – Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP; Coordinator of the Working Group on Trade with SME Europe of the EPP.

Dr. Tudor Petru Fabian, Policy Advisor to Iuliu Winkler MEP and Coordinator of the Working Group on Trade with SME Europe of the EPP, discussed EU competitiveness in the global arena, reflecting on insights from a Responsible Business Conference in the U.S. He highlighted companies’ proactive initiatives in sustainability and supply chain mapping, driven by the EU’s value-based policy push. Fabian noted companies’ concerns about regulatory coherence across the EU, U.S., and globally, particularly regarding compliance and the pace of regulatory changes. He emphasized the impact of China-related regulations on global supply chains and the need for greater investment in geopolitical risk assessments. Fabian stressed the interdependence of business and politics, calling for increased cooperation between public and private sectors. He highlighted trust disparities between government and companies and advocated for strategic alignment and cumulative impact assessments to ensure the feasibility of regulatory frameworks. In navigating the green and digital transitions, Fabian underscored the importance of aligning legal and statistical frameworks with the practical needs of businesses. He cautioned against both excessive speed and insufficient assessment of regulatory impacts, emphasizing the need for a balanced approach to policymaking.

Dr. Daniel Wennick, Policy Director at Orgalim, emphasized the competitiveness of the EU, highlighting challenges in competition against the US and China. He pointed out the impact of factors such as regulations, innovation, and high energy prices on competitiveness. Wennick underscored the need for a market-driven framework to achieve climate goals, stable policies, and equitable taxation. He called for new legislation to ensure market conformity assessment processes and addressed geopolitical challenges regarding international and European standards. Wennick also stressed the importance of reducing trade barriers and strengthening partnerships with countries like the US, Switzerland, Australia, and the UK. In the long term, he advocated for funding support for sectors and enhancing public-private partnerships.

Ralf Kampöner, Head of the Brussels office at the Confederation of the German Textile and Fashion Industry, highlighted the complexity of the textile sector and its role in innovation. He emphasized the sector’s reliance on small to medium-sized companies and the need for a conducive policy environment for competitiveness. Kampöner discussed the importance of global value chains and cautioned against protectionist measures, advocating for collaboration instead. He underscored the challenges of navigating international trade agreements and the risks of regulatory complexity, particularly for small businesses. Kampöner stressed the importance of considering the entrepreneurial perspective in policymaking to avoid unintended consequences and fragmentation of the internal market. Kampöner urged policymakers to prioritize the creation of a level playing field across the EU to avoid further fragmentation. He emphasized the need for coordinated efforts to strengthen Europe’s economic position globally.

Harald Past, Head of International Trade & Taxation, at EuroCommerce, highlighted the challenges facing the retail and hotel sector in Europe, particularly emphasizing the digital, green, and skills transformations. He stressed the need for significant investment, estimating up to 600 billion euros by 2030, to address these challenges effectively. Past also pointed out the neglect of global competitiveness in the EU’s agenda, citing the disproportionate impact of certain measures on SMEs. He called for a more workable framework for small companies to succeed globally, emphasizing the importance of trade relations and urging the EU to take a more proactive approach in tackling global challenges like the green transition. Additionally, Past expressed concerns about potential barriers for smaller companies, particularly in customs reforms, and advocated for measures that would facilitate their ability to compete on the global stage.

Michael Jäger, President of the European Taxpayers, highlighted concerns regarding EU competitiveness, particularly in the context of the green transition. He expressed reservations about the centralized approach to addressing challenges and emphasized the need for market-driven solutions and innovation. Jäger called for deeper engagement with entrepreneurs and stakeholders to ensure sustainable growth and advocated for a stronger voice for entrepreneurs in policymaking. He stressed the importance of effective communication and dialogue to address collective challenges and promote EU competitiveness.

Pauline Weil, Economist, Bruegel presented research into the macroeconomic situation two years into the Russian aggression against Ukraine. She emphasized the significant role of the UK and Russia in the globally traded food supply, highlighting challenges in both production and logistics arising from the aggression. Weil expressed global concern over historically high food prices, noting the potential for heightened food insecurity, reminiscent of events like the Arab Spring. However, she mentioned that prices have eased since April 2022 due to strong harvests, declining shipping costs, and more affordable energy and fertilizer prices. Weil discussed the impact felt at local levels in the UK, EU, and Ukraine, particularly the disruptions in grain exports from Ukraine through the Black Sea. She highlighted the EU’s financial support package and measures to address import restrictions, emphasizing the enduring local impacts and the need to address competition distortions amid trade liberalization in the food sector.

Brussels, 14 February 2024

European Food Security & Impact of Ukraine – Lunch Debate Summary

 

On Tuesday, 13 February 2024, the Union of Entrepreneurs and Employers (ZPP) held a working lunch titled “European Food Security and Impact of Ukraine” in partnership with SME Europe of the European People’s Party (EPP) at the European Parliament. ZPP partnered also with the European Enterprise Alliance.  The opening remarks were delivered by Ivan Štefanec, MEP and President of SME Europe followed by the keynote address given by Janusz Wojciechowski, the European Commissioner for Agriculture. Taras Kachka, Deputy Minister of the Economy of Ukraine, and Trade Representative of Ukraine provided an intervention about the importance of the topic to set up the floor for the panel. The panel discussion featured Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers, along with Michaela Šojdrová, MEP, Nazar Bobitski, Director of the EU office, Ukrainian Agribusiness Club Association (UCAB) and Pauline Weil, Economist at Bruegel; moderated by Dr. Horst Heitz, Executive Director of SME Europe.

Ivan Stefanec, MEP, IMCO, ITRE Committees, President of SME Europe, In his welcome speech, as the host of the event, extended his gratitude to the distinguished guests, including Commissioner Janusz Wojciechowski for their valuable presence. He emphasized the critical importance of European food security, particularly amidst the challenges posed by Russia’s unjust military aggression against Ukraine as well as the significance of the EU’s Common Agricultural Policy (CAP) in ensuring food availability and supporting European farmers. Regarding Ukraine, Stefanec highlighted its pivotal role as the “breadbasket of Europe” and a major supplier of essential commodities to the EU. Despite disruptions caused by Russia’s invasion, Ukraine remains a reliable partner in ensuring global food security. The EU’s adoption of trade liberalization measures, including Autonomous Trade Measures (ATMs), underscores its commitment to supporting Ukraine in this challenging time. Crucially, Stefanec acknowledged the concerns raised by European farmers regarding the impact of unlimited imports from Ukraine, which have led to a sharp decline in the value of cereals production in the EU. MEPs’ calls for a comprehensive EU food security plan and the importance of the Strategic Dialogue on the Future of EU Agriculture in shaping the EU’s farming and food system carry a strategic development. Policymakers need to ensure that they implement policies to strengthen European food security while addressing the challenges faced by the agricultural sector. 

“Europe is safe; there is no need for future concerns regarding food security as the EU, the biggest food exporter in the world, boasts surplus agricultural products.’’ — Janusz Wojciechowski, European Commissioner for Agriculture.

Janusz Wojciechowski, European Commissioner for Agriculture, addressed several critical points regarding the EU’s agricultural landscape and its relations with Ukraine, highlighting the significant surplus of agricultural products within the EU, boasting a surplus of over 20 million tonnes, and emphasizing the region’s robust food security measures. Regarding Ukraine, Wojciechowski noted a substantial increase in Ukraine’s exports to the EU post-2020, reaching a value of over €12 billion. Despite this increase, he expressed concerns about the negative balance of trade between the EU and Ukraine, which stood at approximately €10 billion in recent years, underscoring the challenges posed by Russia’s influence in pushing Ukraine out of certain markets and stressing the need to support Ukraine’s transport infrastructure, particularly focusing on Baltic ports and Germany. Additionally, he discussed the need for harmonized standards between Ukraine and other trading partners like Morocco to ensure fair competition for EU farmers, addressing legislative procedures affecting agricultural markets. Emphasizing the importance of European cooperation, Wojciechowski also highlighted the need to diversify export markets beyond neighbouring countries, shedding light on the complex dynamics of EU-Ukraine agricultural relations and the challenges ahead in ensuring fair trade practices and food security.

Taras Kachka, Deputy Minister of Economy of Ukraine – Trade Representative of Ukraine, discussed various challenges impacting Ukraine’s agriculture, including security concerns and disruptions in global trade patterns. He highlighted logistical issues faced by traders, particularly regarding port blockades, which led to market turbulence and increased reliance on Romanian ports. Kachka emphasized the importance of security support from the EU and emphasized positive relations with Romania. He also noted the evolving dynamics in the Black Sea region and the ongoing efforts to align with EU standards. There is a necessity of support in adapting to EU policies and caution against speculative practices. Furthermore, he underscored the significance of strategic partnerships for ensuring food security and maintaining a balanced trade approach, especially amidst invitations to join the EU. Overall, Kachka shed light on the intricate challenges within Ukraine’s agricultural sector, advocating for informed decision-making to sustainably navigate trade dynamics and ensure long-term stability.

“Failing to address the economic and social challenges jeopardizes Ukraine’s integration momentum and risks losing crucial social support. Monitoring and mediating activities along the Ukraine border, especially regarding agriculture and carriers, are vital for maintaining stability.” — Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers.

Marcin Nowacki, Vice President of Union of Entrepreneurs and Employers, highlighted crucial aspects of the EU’s policy toward Ukraine. He emphasized the need for transparent and predictable trade policies between Ukraine and the EU, urging against sudden trade blockades and recommending revisions to the embargo on Ukrainian agri-food products. In addressing EU food security, he advocated for a shift away from restrictive climate policies, stricter mechanisms to combat animal diseases, and mandatory compliance with EU production standards for imported food. Nowacki also stressed the necessity of a careful review of EU trade agreements and support for organized forms of farming to bolster small farms’ market position. Additionally, he highlighted the importance of developing transport infrastructure on the eastern flank of the EU, emphasizing increased state border capacities and investment in warehousing, storage, rail, and port infrastructure in Poland to facilitate goods redistribution from Ukraine, backed by EU financial support.

Michaela Šojdrová, MEP, CULT, AGRI Committees, echoed the urgent concerns of farmers grappling with the repercussions of climate change and the European Green Deal’s stringent regulations on fertilizer usage. She deliberated extensively on Ukraine’s internal agricultural policies, particularly its ongoing accreditation process, highlighting the need for swift interventions to mitigate unfair competition and uphold EU standards. Notably, there was also an emphasis on the imperative of proactive measures to safeguard the livelihoods of farmers amidst the influx of imports from Ukraine. A collective call for a thorough examination of the Commission’s proposed strategies to address these challenges effectively is a necessity. Moreover, It is significant to engage in constructive dialogues to foster collaboration and ensure equitable conditions for all farmers. The exchange of insights and perspectives paved the way for innovative solutions and actionable steps to protect the interests of European agriculture while promoting sustainable practices. As the discussions progressed, Mep Šojdrová articulated the expectations from the Commission, urging it to take decisive actions that align with the best interests of farmers and uphold the integrity of the agricultural sector. 

Nazar Bobitski, Director of the EU office, of the Ukrainian Agribusiness Club​ Association (UCAB) presented significant points regarding Ukraine’s macroeconomic outlook for 2024. He highlighted the country’s grim economic situation, citing a record-high NBU currency reserves at the beginning of the year but a concerning balance of payments deficit reaching the worst levels since the 2008 financial crisis. He also raised concerns about the 2024 national budget deficit and the potential consequences of inadequate financial support, including significant currency devaluation and economic shocks. Moreover, Bobitski underscored the importance of preserving access for Ukrainian agri-food products to the EU market, highlighting their critical role in Ukraine’s trade balance and economic stability. He also discussed the challenges posed by Russian aggression, including production losses and environmental damage. Looking ahead, a need for Ukraine to align with EU agricultural policies while ensuring a level playing field for Ukrainian agroproducers and promoting sustainability principles.

Pauline Weil, Economist, Bruegel, presented research into the macroeconomic situation two years into the Russian aggression against Ukraine. She emphasized the significant role of the UK and Russia in the globally traded food supply, highlighting challenges in both production and logistics arising from the aggression. Weil expressed global concern over historically high food prices, noting the potential for heightened food insecurity, reminiscent of events like the Arab Spring. However, she mentioned that prices have eased since April 2022 due to strong harvests, declining shipping costs, and more affordable energy and fertilizer prices. Weil discussed the impact felt at local levels in the UK, EU, and Ukraine, particularly the disruptions in grain exports from Ukraine through the Black Sea. She highlighted the EU’s financial support package and measures to address import restrictions, emphasizing the enduring local impacts and the need to address competition distortions amid trade liberalization in the food sector.

 

Warsaw, December 7, 2023

 

The transportation crisis at the Ukrainian-Polish border is causing losses for for many entrepreneurs. Polish and Ukrainian employers are creating a dialogue platform to reach a compromise

 

The Union of Entrepreneurs and Employers (ZPP) and the Federation of Employers of Ukraine (FRU) addressed this initiative to the Governments of the two countries and the President of the European Commission, Ursula von der Leyen.

After the onset of Russia’s full-scale invasion of Ukraine, Poland not only became the main logistical hub for the distribution and sorting of aid to Ukraine but also ranked first among countries that received the most goods exported from Ukraine. In addition, after the decision of the European Union to grant Ukraine the possibility of free trade with EU countries, the total level of trade between Poland and Ukraine demonstrated new record indicators, which had a positive effect on the creation of new jobs and the expansion of production capacities in both countries.

Since November 6, 2023, there has been a protest by Polish carriers at several border crossings between Poland and Ukraine. This has significantly disrupted the transportation of goods in both directions. The protest is supported by all major transportation associations in Poland.

Joint statement of leading business associations

Every day that the border is blocked means new losses for business. The situation needs to be resolved as soon as possible, and for this it is necessary to use all possible tools.

Representatives of the largest associations of employers in Poland and Ukraine – the Union of Entrepreneurs and Employers (ZPP) and the Federation of Employers of Ukraine (FRU) – form a negotiating platform aimed at accelerating and optimizing dialogue and developing mutually agreed solutions. These decisions will help the governments of both countries to reach a mutually beneficial compromise and unblock the checkpoints on the Polish-Ukrainian border.

“As representatives of employers’ associations, we are more than anyone else interested in finding a constructive and effective compromise that would allow us to resolve claims on both sides, unblock the border and existing logistics routes as soon as possible, restoring the normal level of trade between Poland and Ukraine” , – says the joint statement of the Union of Entrepreneurs and Employers (ZPP) and the Federation of Employers of Ukraine (FRU).

Next Friday, December 8, 2023, the first closed meeting of Polish and Ukrainian entrepreneurs will take place.

Director General of the Federation of Employers of Ukraine (FRU), Ruslan Illichev noted:

“Trade and production chains between Ukraine and EU countries suffer from the blocking of transportation, which causes losses to European companies, including Polish ones, which supply goods to Ukraine. We and our Polish colleagues are joining forces in order to prevent further escalation of the situation and to speed up the achievement of a compromise. Based on the results of our discussions, we will soon present a developed list of possible compromise solutions for unblocking the border. We hope for understanding and support for our initiative.”

Vice President of the Union of Entrepreneurs and Employers (ZPP), Marcin Nowacki emphasizes:

“We must learn to conduct continuous dialogue on difficult issues. In Poland-Ukraine economic relations, this is the second industry that generates strong emotions and conflicts. Permanent formats of cooperation should allow us to react earlier to difficulties and resolve them based on respect for mutual interests. The first meeting is ahead of us, which I hope will be the beginning of a constructive dialogue.”