PRESS RELEASE

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%).

 

DOWNLOAD: PRESS RELEASE – “Material situation, private income and assets of Polish entrepreneurs”

DOWNLOAD: Report “Material situation, private income and assets of Polish entrepreneurs”

 

Press Release
11 April 2024
Brussels

 

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.

 

DOWNLOAD PRESS RELEASE

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.”

Brussel, December 05, 2023

 

Digital Single Market barriers continue limiting the SME’s potential for growth – conclusions from the debate of the Union of Entrepreneurs and Employers.

 

The advancement of digitisation has significantly benefited the European economy. Despite this, the Digital Single Market has yet to transition from an aspiration to a tangible reality. Over the forthcoming years, both European institutions and Member States must enhance their efforts to remove all regulatory barriers and establish a favourable digital environment for the growth of European SMEs – was the conclusion of the Working Lunch titled “Digital Single Market Future & Opportunities for SMEs”, that took place on December 5th in Brussels.

This year, we celebrated the 30th anniversary of the EU’s Single Market as a catalyst for growth, bolstering Europe’s economic and political influence on a global scale. While European member states’ political backgrounds may differ, we hold a unified vision for a Single Market that fosters increased business opportunities through trade, generating new jobs. The European Commission projected that eliminating barriers within the Single Market for goods and services could result in a potential gain of €713 billion by the end of 2029.

Technological advancements have created the need to broaden it and build the European Digital Single Market. The strategy officially outlined in May 2015 focuses on unlocking digital perspectives for individuals and businesses while strengthening Europe’s position as a global frontrunner in the digital economy.

Digital Single Market Future & Opportunities for SMEs

Now more than ever, digitalisation plays a crucial role in building Europe’s economic resilience. This is why The Union of Entrepreneurs and Employers (ZPP), in partnership with Member of the European Parliament Kosma Złotowski, brought together European institutions representatives and leading organisations to showcase and brainstorm on the Digital Single Market strategy and its role in developing the SME sector.

The discussion featured a group of speakers that included Dr Horst Heitz, Executive Director, SME Europe. Chair of the European Steering Board, SME Connect; Maria Grapini, Member of the European Parliament, S&D Group; Michał Kanownik, President, Digital Poland Association; Karol Kasiński, Public Policy Manager, Amazon; Vincenzo Renda, Associate Director for Digital Transformation Policy, Digital Europe and Filip Świderski ECR Advisor.

The discussion began with opening remarks from MEP Maria Grapini, who highlighted that the full potential of the Digital Single Market has yet to be delivered. She underlined that the Single Market is far from being completely in place in many areas, limiting its growth due to regulatory burden. 

MEP Kosma Złotowski highlighted in commentary to the report the crucial importance of small and medium-sized enterprises to the Polish economy. He focused on the main challenges the Digital Single Market imposes from the SME’s perspective.

“The SME sector in Poland has been struggling for years with excessive bureaucracy, overregulation, and restricted access to financing from EU funds. The crises that have hit Europe in recent years  and the unreasonable pace of the energy transition imposed by Brussels have burdened companies with additional costs.  In addition to the chaos it has caused in the economy, the pandemic  has become an accelerator of digital transformation and made businesses face the need to adapt to the demands of this revolution. It is this vulnerability to crises and the crucial importance  of small and medium-sized enterprises to the Polish economy that makes the SME sector require special treatment when creating new laws and regulations in all areas’’ commented ECR MEP Kosma Złotowski,  on the report “The Digital Single Market and its Future in the Context of Development Opportunities for the Polish SME Sector”

During the event Paulina Szkoła, Digital Forum Director presented the key findings from the report published by the Union of Entrepreneurs and Employers, “The Digital Single Market and its Future in the Context of Development Opportunities for the Polish SME Sector”. The report discusses the strategic, regulatory and economic scenario that the European Digital Single Market has been generating for small- and medium-sized companies and the barriers that hindered it from growth.

As the report states, the advancement of the Digital Single Market has driven favourable regulatory changes, stimulating cross-border business expansion and benefiting consumers. Though Polish SMEs are tapping into its potential, obstacles endure. Despite progress in unified trans-border e-commerce laws, companies face multiple challenges due to overregulation, inconsistent implementation of common regulations and impediments to exchanging services and goods. A unified, comprehensive strategy is essential to fortify the EU’s digital economy.

‘’The establishment of the Single Market is undoubtedly one of the most outstanding achievements of a united Europe, although it remains an unfinished project in practice. Technological advancements, new economic sectors, business models, and sales channels, such as the dynamically evolving e-commerce sector, introduce new barriers and associated regulatory challenges. These challenges are particularly burdensome for SMEs, which constitute 99% of all entrepreneurs in the EU, providing two out of every three jobs in the private sector while accounting for over half of the total value added’’ – commented on the report Mariusz Mielczarek, Regional Director CEE, Public Policy, Amazon.

The report also aims to inspire the Polish Government to push for an ambitious Digital Single Market agenda during its presidency in the Council of the European Union, which will be held in the first half of 2025. Michal Kanownik, President of the Digital Poland Association and Board Member of Digital Europe, shared his recommendations with the Polish representatives:

“The actions of EU countries, including Poland, in developing the Digital Single Market should primarily support achieving goals set by the European Commission in the policy programme “Path to Digital Decade”, whose foundation is the digital transformation of businesses. According to the framework, by 2030, more than 90% of SMEs should reach at least a basic level of digital intensity, and 75% of EU companies are expected to use Cloud, AI, or Big data. While these are highly ambitious goals, they are achievable under one condition – EU-designed regulations should support the development of modern technologies rather than create unnecessary barriers. Over-regulating certain areas related to digitisation poses a risk of limiting innovation potential, making it challenging for Europe to compete in this field with the United States or China. It will be a significant challenge for the upcoming Polish presidency in the EU Council to maintain the right balance between regulating the digitalisation sector and addressing the needs of innovative businesses and citizens“.

The full report is available HERE

Warsaw, September 27, 2023

 

The Union of Entrepreneurs and Employers presented the 2023 Economic Awards!

 

The 2023 Economic Awards of the Union of Entrepreneurs and Employers were awarded at a gala evening on Wednesday, 27^th September this year. During the ceremony, the Union honoured businesspeople and companies that achieved considerable successes in the field of entrepreneurship or actively supported Polish entrepreneurs. Awards were presented to the best journalist, economist, an organisation for a project, as well as to selected companies.

Among the invited guests, there were representatives of the media, the business world, central government and local authorities. Friends and members of the Union of Entrepreneurs and Employers also attended the gala.

During this event, the Union presented special awards to outstanding public figures. The winners included:

• Public Sector Manager of the year 2023: Beata Daszyńska-Muzyczka. She received the award for effectively managing an institution that supports and finances a significant number of major development projects in Poland. She heads the bank that played an important role in Poland’s battle with the crisis related to the COVID-19 pandemic – Bank Gospodarstwa Krajowego.
• Journalist of the year 2023: Krzysztof Jedlak. Prize PLN 25,000. For years, “Dziennik Gazeta Prawna” has remained a key opinion-forming specialist media title for people interested in law, economics and current political events. The laureate runs a newspaper providing data and knowledge to decision-makers, opinion leaders, and business representatives.
• Organisation for a Project of the year 2023: Fundacja Forum Konsumentów (Consumer Forum Foundation) – for the project “Żyj oryginalnie” (“Live originally”). Prize PLN 25,000. Protection of intellectual property rights is one of the key elements of a market economy. The laureate’s project disseminates knowledge about risks arising from purchasing counterfeit products and provides information how to distinguish fakes from original items.
• Economist of the year 2023: Professor Marcin Piątkowski. Prize PLN 25,000. This year’s laureate in the category was recognised for his constant and substantive advocacy of Polish economic success stories worldwide.

ECONOMIC AWARDS

During the gala, awards in the following categories were also presented to leading representatives of the Polish business community:

• Dynamic Development of the year 2023: Symfonia Sp. z o. o. Digitising a company is one of the best ways to boost efficiency. Symfonia has been offering modern ERP systems for years, consistently maintaining a double-digit annual revenue growth rate.
• Innovative Company of the year 2023: Uber Polska. The emergence of innovative applications enabling passengers to order a ride revolutionised the market and introduced real competition. Being a pioneer, the company remains the market leader and continues to develop its portfolio of services.
• Employer of the year 2023: EWL. The laureate in this category is the EU’s largest global mobility platform specialising in hiring employees from abroad, present on the market for over 16 years. Over the years, the company has supported more than 1,600 employers in Europe connecting them with over 150,000 employees. It actively participates in labour market research in cooperation with the University of Warsaw – thus far, the partnership bore fruit in the form of 16 reports on European labour markets and employee mobility.
• SME of the year 2023: Zakłady Mięsne Karol. The meat-processing company is a family-owned business striving for perfection and looking for novel solutions. Their unique approach to employees and ability to innovate sets an example for other companies to follow, inspiring them to create products and services of the highest quality.
• Socially Responsible Company of the year 2023: Totalizator Sportowy Foundation. The Foundation runs a number of programmes that address crucial social challenges, such as “Polska dziś i jutro” (“Poland Today and Tomorrow”) aimed at supporting Polish national culture, or “Odpowiedzialni społecznie” (“Socially Responsible”) focused on providing humanitarian support. The Foundation is also one of the partners of the Union of Entrepreneurs and Employers in the “Business for Ukraine Center” programme supporting Ukrainian companies planning to develop their operations within the EU as well as Polish companies looking for business partners from Ukraine.
• Startup Company of the year 2023: Infermedica. This startup introduces AI-powered solutions in healthcare to improve efficiency and address certain systemic problems.
• Exporter of the year 2023: Kompania Piwowarska S.A. Even though the domestic beer market has been going through a difficult period for the past several years, Polish beer is still a valued export product, and Polish brands enjoy recognition and popularity in many European countries. The company is one of the largest beer producers in Poland and a leader in beer exports.

Furthermore, we awarded two Special Prizes this year. The first one was awarded to Ogólnopolski Związek Pracodawców Transportu Drogowego (OZPTD – National Association of Road Transport Employers) on the occasion of their jubilee: 25^th anniversary of the association’s establishment. Polish road transport has the largest share in the European Union market and has a high share in Poland’s trade in the area of services. It is responsible for PLN 10 billion out of the PLN 30 billion surplus in the services balance.

The second Special Prize was awarded to Servier Polska Sp. z o. o., which has been present for over 30 years on the Poland market. Nearly 100% of drug packaging intended for the Polish market is produced at their Production Plant in Warsaw which is of paramount importance in today’s geopolitical situation.

***

The ZPP Economic Awards 2023 were organised by the Union of Entrepreneurs and Employers (ZPP). The Union is the fastest growing and one of the most active employers’ organisations in Poland. ZPP was founded in 2010 and brings together 17 regional and 19 industry organisations. Apart from publishing official positions on all key issues present in the Polish public debate, the Union conducts a number of special activities as part of the Digital, Work, Energy and Climate, Agricultural and Health Forums. ZPP organizes approximately 40 original events a year.

ZPP is an apolitical organisation that supports the free market, fair competition, legal stability and transparency, beyond political divisions.

It is a representative organisation of employers and a member of the Social Dialogue Council in Poland. Moreover, ZPP is present in Brussels through its Representative Office, participates in the European Enterprise Alliance, and is a member of SME Connect. The Union also has two representatives on the European Economic and Social Committee. In July 2022, ZPP opened an office in Kyiv actively supporting the development of economic cooperation between Poland and Ukraine.

 

Main partners of the event: Agencja Rozwoju Przemysłu SA, Edenred, Google Polska, ORLEN SA, PKO Bank Polski

Supporting partners of the event: Browary Polskie, Polska Federacja Producentów Żywności Związek Pracodawców, Stowarzyszenie Dystrybutorów i Producentów Części Motoryzacyjnych, Związek Cyfrowa Polska

Content partner: InfoCredit

Warsaw, 27^th July 2023

“The time is now”. This is the conclusion from the “Europe–Poland–Ukraine. Rebuild Together ‘23” conference and advice for all those wondering whether to already invest in Ukraine

On Thursday 20^th July in Warsaw, the 2^nd edition of the international conference “Europe–Poland–Ukraine. Rebuild Together” took place. Almost as many as 1000 participants, a lot more than a year before, came to the Hilton Hotel in Warsaw to listen to 59 experts who voiced their opinions during the event. “Let’s hope that when they go back to their offices, they will pass on the positive conclusions of the conference and will become motivated to get involved on the Ukrainian market,” said Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers ZPP who summarised the entire event.

Last year’s edition of the “Europe–Poland–Ukraine. Rebuild Together” conference answered the question “Should we invest in Ukraine during the conflict?”. In 2023, the question posed by the organisers and participants evolved towards “When should we invest?”. The answer to this question, a simple sentence that summed up all the opinions voiced last Thursday at the Hilton Hotel, came from Andrzej Kopyrski, Vice-President of the Management Board of PKO Bank Polski: “The time is Now”.

During five plenary sessions, invited guests discussed such issues as: Polish-Ukrainian relations in the context of the Western world’s plans for the reconstruction of Ukraine, investment prospects, financing and guarantees for entrepreneurs.

During the first session, Minister Michał Dworczyk emphasised that research on the attitude of Ukrainians towards other countries shows that Poland is an unrivalled winner with a positive attitude among 86% of the society. “This proves how good the relations between our countries have become. Such positive perception of Poles as well as Polish enterprises and products in this context is certainly the most important capital from which we can draw,” he added.

Serhiy Pylypenko, ICG Kovalska CEO, pointed out during the debate how receptive the Ukrainian market was. He noted, among other things, the lack of a manufacturer of plasterboard products in Ukraine, for which there is a huge demand during reconstruction. He even stated that whoever builds their factory in Ukraine first will likely monopolise the market.

Serhiy Tsivkach, Executive Director at UkraineInvest, mentioned that large Polish companies from the construction industry already had their facilities in Ukraine. However, how prospective this market is, indicates the fact that financial support for projects related to the reconstruction of Ukraine worth USD 400 million had already been declared – and these are not military projects, but infrastructural ones.

The Conference was also attended by a group of officials from Kharkiv, the second largest city in Ukraine, headed by Mayor Ihor Terekhov, who presented plans to rebuild the city’s infrastructure and described the potential of Kharkiv as a city with a strong IT industry and abundant scientific and teaching facilities. During his speech, he also guaranteed favour for Polish companies and transparency of investment processes. He assured that his city’s authorities were at the disposal of Polish entrepreneurs at every investment stage.

Going back to Andrzej Kopyrski whom we quoted above, one should mention that KredoBank (belonging to the PKO Bank Polski Capital Group) has been operating in Ukraine continuously since the outbreak of the war. Currently, together with Bank Gospodarstwa Krajowego, the Polish Development Fund PFR and KUKE, KredoBank is involved in the guarantee system for investors on the Ukrainian market. Kopyrski pointed out that the project of rebuilding Ukraine may be an opportunity of the century for the Polish economy.

One of the plenary sessions touched upon the prospects of Ukraine joining the structures of the European Community, as well as the country’s integration with Western markets. Horst Heitz, chairman of the Brussels-based Steering Committee of SME Connect, stated that EU institutions, as well as individual Member States, should encourage Ukraine to implement reforms so that Ukrainian law complies with EU legislation. The country’s rapid reconstruction of its infrastructure is the key to its further development.

Yaroslav Demchenkov, Deputy Minister for European Integration at the Ukrainian Ministry of Energy outlined the energy strategy for Ukraine until 2050. The objective of this strategy is to full integrate with the EU energy market, whereas integration with the Polish energy market is to take place within the next 5 years. He assured that Ukraine wanted to be in the EU’s avantgarde of green energy. The topic of energy was also elaborated on during one of the industry discussion panels.

Piotr Sabat, Member of the Management Board for Development at ORLEN, stressed the fact that ORLEN had already been involved on the Ukrainian market prior to the war, mainly in the fuel sector. He then emphasised that this market was a big challenge due to the legislation in force and the normalisation of the energy market. A factor that affects the Ukrainian market is also the shadow economy in fuel trading. Nevertheless, ORLEN on an ongoing basis analyses both the situation in Ukraine and the prospects for expanding its operations there.

Jan Sarnowski, Member of the Management Board at KUKE S.A., said that rebuilding supply chains remained a challenge. “Nonetheless, it is noteworthy that banning imports of products from Russia made it possible to replace them with Polish ones, especially in the food industry. It should also be emphasised that KUKE, as the only foreign insurer, remained on the Ukrainian market after the outbreak of the conflict and provides surety bonds on pre-war terms,” he stressed. He also commented on the fact that the number of entities exporting from Ukraine decreased by 1/3, yet those that remained on the market increased their market share by 40%.

Luca Ponzellini, Deputy Head EU Neighbourhood Banking Division, European Investment Bank, described the enormity of funds that had been mobilised for the reconstruction of Ukraine. A few weeks before the Conference, the EIB and the European Commission signed an agreement on financial support in the amount of EUR 375 million for the SME sector. Individual Member States’ programmes amounted to date to EUR 600 million. This means that funds amounting to almost EUR 1 billion will be at the disposal of potential investors.

The guests gathered at plenary sessions debated on an extensive range of topics, while Polish and foreign guests focused during industry sessions on 4 markets: energy, digital, health and labour.

Major conclusions of Rebuild’23 Industry Sessions:

The role of new technologies in the reconstruction and development of the Ukrainian economy

The digital industry responded immediately to the Russian aggression in Ukraine, trying to maintain or even develop its activities within the country to the highest degree possible, as well as providing direct financial and humanitarian assistance.

While the IT sector is the only one in Ukraine not to be affected by the recession in 2022, a certain slowdown in the industry has been observed this year.

There is great potential for exchanging experiences between the Polish public sector and its Ukrainian counterpart in the field of digitising services for citizens and businesses. The COVID-19 pandemic accelerated digitisation processes in Poland, while Ukraine is one of the leaders in the field of digital public services. For example, the Diia app offers 14 digital documents and provides 21 online services.

Both Polish and Ukrainian digital sectors have a number of significant market advantages (access to excellent specialists, absorptive markets, preferential legal solutions), but at the same time key development gaps, for instance, workforce shortages or regulatory barriers.

The speakers agreed that the sector of new technologies played a critical economic role in both countries and could become a vital driving force in Ukrainian reconstruction. When it comes to the coexistence of the Polish and Ukrainian industries, the target model should probably take the form of friendly competition with the fullest possible use of synergies resulting from the potential of both markets.

Ukraine’s energy shift towards EU integration: milestones

Since the beginning of the war, Ukraine’s energy infrastructure has been the main target of Russian attacks. A report by the World Bank dated April 2023 estimated total losses at USD 6.5 billion, with USD 3.9 billion in generation, and USD 1.9 billion in networks – and that covers only the area controlled by the government in Kyiv.

The modern operational challenges that Ukraine is facing in the field of power infrastructure resemble the problems faced by Polish grids more or less 45-50 years ago. And although the war exacerbated the scale of the challenges, as Russian attacks caused unforeseen infrastructural damages, transregional transmissions had been an obstacle to the proper balancing of the system already prior to the war.

Before the war, the Ukrainian energy sector was responsible for generating 72% of the particulate matter produced in Europe. The accountable power plants have no raison d’être in the reconstructed energy system.

Presently, the issue of balancing the Ukrainian system, after merging it with the EU, has become a pan-European affair. In the first year of the synchronised UA-EU market, approx. 800 GWh of energy vanished, which was not regulated as trade flows. Furthermore, within cross-border exchanges, the surplus of energy contracted in trade agreements introduced to the European grid amounted to approx. 6 TWh, and 3 TWh was sent to Hungary, with which Ukraine had not contracted these flows.

Before Ukraine starts earning significant amounts from cross-border transmission, the issues of regulation of the Ukrainian system need sorting out. That system is based on a steam and gas system while regulation is based on hydropower installations. As a result, it reacts slower than the European system based on turbine generators.

The example of Poland’s development after accession to the EU is proof that only the enforcement of uniform regulations, a common market, uniform tender procedures and anti-corruption mechanisms had the power necessary for international economic relations to gain momentum. That same scenario is expected in Ukraine, maybe even quicker than in Poland, provided that legislative solutions are urgently adapted.

Ukraine is already today seeing a slow recovery in demand for energy, but there is lacking infrastructure and room for efficient investments in distributed energy, which seems to be the only direction for Ukraine.

Despite the enormous efforts in the process of repairing current damages and removing failures, Ukraine is developing plans to build hybrid installations, to develop a storage system, and to initiate hydrogen projects. The challenge lies in finding partners who, in many cases, have suspended their operations out of fear for their employees.

Everyone present at the session agreed that Ukraine’s energy system following the Russian war should be rebuilt in a new design and have new tasks, such as supplying the EU with surplus green energy. For now, however, there are potential problems with raising funds for this purpose.

With a huge RES potential estimated at 900 GW along with other emission-free sources, such as nuclear energy, Ukraine has a chance to become an important supplier of green energy not only for the needs of its own transformation, but also of the entire EU.

The role of economic migration on the Polish and Ukrainian labour market in the nearest future

The data indicate that 500,000 migrants from Ukraine are responsible for an additional increase of 1% in Poland’s GDP. Although at the beginning of the war Poland was the main direction of migration, today our country is increasingly less attractive for refugees to live and work.

In 1991, Ukraine had a population of 52 million, and in 2023 its population fell to 29 million. Currently, there are approx. 8 million Ukrainian citizens living abroad. This indicates significant problems for the Ukrainian economy and labour market that may arise after the war, along with the beginning of investments related to the reconstruction of this country.

Poland is currently one of the countries struggling with the greatest demographic problems in the world. Day to day instability is also not conducive to decisions regarding having a family. While Poland has a fertility rate of 1.26, there are many indications that it has dropped in Ukraine below 1.

Polish companies are nowadays struggling with a considerable shortage of employees. Undoubtedly, refugees from Ukraine who have been coming to Poland since the beginning of the Russian invasion are of great value to our economy. The problem with lacking workforce, which currently affects Poland, may in the future impact Ukraine. It is crucial for our country to be able to both attract Ukrainians to work here and to retain them after the war.

The scale of housing problems or the need to provide childcare to single women is of key importance in settling in Poland. The role of learning the local language in enabling migrants to stay permanently in our country is frequently emphasised. It is also imperative to facilitate the recognition of qualifications.

Many companies and institutions run activation and training programmes for migrants from Ukraine. Some of these initiative are run in cooperation with the Union of Entrepreneurs and Employers.

The transformation of the Ukrainian economy will be very similar to the Polish transformation. Poland has already gone through this process and has experience with processes related to it. Furthermore, no business culture in the European Union is as close to the one in Ukraine as that of Poland. The Polish transformation from an emigration market to an immigration economy was very rapid. Today, we issue more work permits than Germany, for instance. We can without a doubt share this experience and it can be very valuable for Ukraine.

The pharmaceutical sector in Poland and Ukraine: the potential for partnership in the context of war and European integration

Ukraine is the largest country in Europe in terms of area, ranks 6^th in terms of population size and 2^nd in the number of cancer patients (1.2 million).

From the healthcare perspective, Ukraine has been struggling with such problems as: the lack of reimbursement or mutual recognition, restrictions on certificates of compliance with EU standards since the COVID-19 pandemic until the current military operations. On the flipside, one can be optimistic due to the openness to cooperation with the Western pharmaceutical industry, the country’s motivation to become as soon as possible an important member of the European Community with a significant place in European health policy. As of now, the Ukrainian Ministry of Health has decided to attach great importance to medical research in the economic strategy for Ukraine until 2030, which is currently under development.

Even prior to the war, Ukraine had had a highly developed pharmaceutical and scientific sector. This was a legacy that had been growing in recent decades. Our eastern neighbour exports drugs to over 50 countries around the globe, including numerous member of the EU, and medical products manufactured in Ukraine are sold on all continents.

Presently, the reconstruction of the Ukrainian healthcare requires: continuous development of pharmaceutical companies, cooperation based on dialogue, mutual understanding and trust.

Secretary of State Marcin Przydacz, Head of the Office of International Policy in the Chancellery of the President of the Republic of Poland, gave the closing speech at the conference. He presented the three advantages Polish companies have in the reconstruction of Ukraine: we are the geographically Ukraine’s closest partner with infrastructure at the ready, we are now on the best terms ever in history, we are culturally and linguistically close, and the largest minority in Poland are now Ukrainians.

As Cezary Kaźmierczak, President of ZPP, concluded his speech: “(he) who will be the first on the Ukrainian market will have the most time to dominate it”. ZPP is the only Polish association of entrepreneurs that provides assistance in Ukraine through their offices in Kiev, Lviv, Lutsk and Vinnytsia.

***

The conference in its entirety, along with industry sessions, is available on the YouTube channel of the Union of Entrepreneurs and Employers: https://www.youtube.com/@ZPPnetpl.

The event’s agenda can be found at: https://ukraina.zpp.net.pl/rebuild_together.

Warsaw, 29^th May 2023

 

Press conference:
Marcin Nowacki elected the EU’s head of the EU-Ukraine Civil Society Platform

 

On 29^th May 2023 at 1 pm, at the Polish seat of the European Parliament and the European Commission, a press conference was held during which Marcin Nowacki, Vice-President of the Union of Entrepreneurs and Employers, was elected head of EU-Ukraine Civil Society Platform (EU-Ukraine CSP) representing the European Union. The platform operates within the framework of the European Economic and Social Committee (EESC) in Brussels, which is an EU advisory body.

At the conference, Cezary Kaźmierczak, President of the Union of Entrepreneurs and Employers, pointed out during his opening address that the European Economic and Social Committee is a platform for dialogue between employers, trade unions, NGOs, and politicians: “We are truly happy that a Pole has become the plenipotentiary for Ukrainian affairs, even more so a member of our organisation. Marcin Nowacki took on his new duties already at the beginning of the month.”

“The EU-Ukraine Civil Society Platform is the foundation of institutional cooperation between social partners from EU member states and Ukraine. I have been elected for a term of 2.5 years, and I hope that we will soon begin the accession negotiation process. This is what will motivate me the most in the months to come. After the negotiations start, the Civil Society Platform will become the EU-Ukraine Joint Consultative Committee,” – said Marcin Nowacki, the Union’s VP.

The EU-Ukraine CSP integrates social partners from the EU and Ukraine. The body aims to supervise the process of Ukraine’s integration with the EU and to integrate the business community and employees between the parties. As part of the undertaken activities, reviews of the process of adapting Ukraine to EU requirements and support in the field of Ukrainian business entering the EU market are held.

The EESC is an EU advisory body with a specific role in the EU’s decision-making process. Before being processed by the European Parliament, each regulation is subject to an opinion process at the EESC. It consists of 329 representatives of employers’ organisations, trade unions, and NGOs from all Member States.

Warsaw, 13 June 2023 

 

In order to ensure the development of SMR technology in Poland and Europe, we need fleet-oriented investments of regional coverage

 

That’s the conclusion of a discussion among industry experts, technology providers, investors and researchers who attended the “SMR – Modular Nuclear Energy for Business” conference on Monday, June 12, held in Warsaw by the Energy and Climate Forum of the Union of Entrepreneurs and Employers. PKN ORLEN was the Main Partner of the event, EDF was a Partner, and Honorary Patrons included three ministries – the Ministry of Climate and Environment, the Ministry of Development and Technology and the Ministry of State Assets, as well as the National Atomic Energy Agency, the National Center for Nuclear Research and the National Fund for Environmental Protection and Water Management.

The event brought together both nuclear lawmakers, the regulator, several US and European SMR manufacturers, recipients declaring interest in small reactors of various capacities and nuclear experts, who sought to take prepare an inventory of the state of the art of modular nuclear reactors to date and outline the outlook for the development of such investments in our country and region.

In the opinion of Adam Guibourgé-Czetwertyński, Undersecretary of State at the Ministry of Climate and Environment, the Polish nuclear special-purpose act and nuclear law are sufficient for SMR investments to be developed on their basis, with technology neutrality and a desire to streamline the processes involved in obtaining the necessary permits at the core of the national legislation. Nonetheless, seeing the growing interest in small nuclear reactors, work is currently underway at the ministry to detail regulations for smaller modular nuclear reactors. The minister also encouraged a concerted international effort to bring nuclear technologies from a background player to the front lines of energy transition efforts – as complementary solutions to RES and hydrogen investments.

According to Kamila Król, Undersecretary of State at the Ministry of Development and Technology, small nuclear reactors have the potential to become a lever of the Polish economy in the coming decades. SMRs can be a remedy for the rising cost of CO₂ allowances and ensure Poland has the right composition of the low-carbon energy mix on the one hand, and guarantee a stable and secure energy supply on the other.

As noted by Jarosław Dybowski, Executive Director of Energy PKN ORLEN and Vice Chairman of the Board of ORLEN Synthos Green Energy: “We cannot think of nuclear reactors today as classically understood power plants, which in the past were only meant to provide electricity. The use of SMRs in domestic conditions is naturally the replacement of depleted coal-fired units, but the modular reactors will also work in the combined heat and power economy and find application in numerous industrial processes.” District heating and energy-intensive industries are identified as the main beneficiaries of SMR technologies, and the number of entities declaring interest in these solutions is growing.

The main challenge appears to be not so much the technology of light-water nuclear reactors themselves, of which there are about 150 in operation worldwide and only their power and size need to be scaled up; it is the cost that may be a barrier. Experts agree that two aspects can help investors in this regard. On the one hand, suitable government guarantees and a refined financial model, so that involvement in SMRs for banks entails acceptable risks. On the other, the economies of scale brought about by a fleet-oriented investment campaign of regional range, which will reduce unit costs and build locally the competence, service facilities and structures necessary for the new sector.

“After listening to the participants of the discussion, several recommendations come to mind, such as the involvement of Polish regulators in work on harmonizing nuclear regulations and standardizing certification of SMRs in Europe, the need to consider establishing a TSO (Technical Support Organization) within the structures of the National Center for Nuclear Research and, finally, opening a debate on the future of the nuclear energy in the EU taxonomy, which assumes support for nuclear investments only until 2045, at the European forum.” – concluded Jakub Bińkowski, Board Member of the Union of Entrepreneurs and Employers.

The conference also touched upon many other aspects of SMR projects, such as safety considerations and the important role of the PPA, which will evaluate small nuclear on the same basis as full-scale nuclear investments. According to experts – despite the already clear support for nuclear in Poland – an extremely important aspect determining the success of SMR investments will be properly conducted communication due to the particular public perception of risk from nuclear facilities. As experts point out, there is no shortage of ideas for small nuclear reactors in the world today, as there are already about 80 projects at the “early design” stage, including also high-temperature reactors using other types of fuel and cooled by gas, HTRs (including a Polish one!) or nuclear batteries that can operate for 20 years without human intervention and the need for fuel supply. Another thread raised by the participants in the discussion was the possibility of involving Polish companies in the development of the European SMR sector, in which experts see significant potential given the pace of development of SMR projects in our country.

The event was attended by over 150 participants. The Union of Entrepreneurs and Employers will soon make a full recording of the conference available on its YouTube channel.

Link to the event page: https://zpp.net.pl/en/events/event/conference-smr-small-reactors-for-business-is-poland-the-smr-technology-incubator-in-europe/

 

Warsaw, 5^th April 2023

We need a strategy to restore Poland’s importance on the international arena!

On 4^th April at 3 pm, a conference inaugurating the Agenda Poland 2030 project was held in the Freedom Lounge. During the meeting, issues that are essential from the perspective of Poland were discussed, including national security, as well as how to respond to future challenges.

The dynamics of events that transpired in recent years are but a historical opportunity that is opening up for Poland. Not only our prosperity and security, but also the political order of the whole of Europe and its relations with what will emerge from Russia in the future may depend on how we make use of Poland’s growing significance in Europe today. The strategic goal of Polish policy should be to create a permanent Berlin-Warsaw-Paris axis within which decisions would be made on the most important aspects of European foreign and economic policies, as well as concerning the model of EU cooperation. To achieve this, Poland must be wealthy and strong. We want to help build it; therefore, we updated the programme of the Polish Agenda regarding the critical areas of the functioning of the state.

The first Agenda Poland was published 4 years ago. You can find it on our website: agendapolska.wei.org.pl. A number of our postulates resulting from that analysis of the political and economic situation were taken into consideration, while others over time have become even more urgent and are still waiting for their implementation. The experience of the first Agenda Poland gave us not only a wealth of knowledge, but also faith that even the most ambitious and seemingly abstract goals can be achieved. The project, to which we invite not only our experts, but all those who see the uniqueness of the moment and the opportunities ahead of Poland, will be widely consulted and will not be limited to pure theory, but also practical ideas for its implementation.

The following are our key postulates:

1. The most urgent task for the state is to restore the authority and dignity of the judiciary. Things have gone so far that the only option available is the Zero Option, which includes, among other things, the liquidation of the Constitutional Tribunal and the State Tribunal, and a transfer of their powers to the Supreme Court; the appointment of a new National Justice Board whose members would be appointed in equal numbers of 5 persons by the judiciary itself, the President of the Republic of Poland and the academic community, and 3 persons by the government of the Republic of Poland, the parliamentary opposition, and civic society (Social Dialogue Council, Commissioner for Human Rights). The National Justice Board should deal with disciplinary matters and carry out the decommunisation of the judiciary.
2. EDUCATION AND HIGHER EDUCATION. Radical reforms are necessary that will encourage the creativity, entrepreneurship, and inventiveness of Poles. We postulate, among others, for the introduction of an Education Voucher and changes to the role of the state in education – the state should not organise, but finance education, while schools ought to be transferred (excluding real estate) to parents, teachers, private companies, associations, local governments, foundations etc. by way of tenders.
3. The role of the state in healthcare ought to be changed from running hospitals, clinics, and medical facilities to financing healthcare for citizens. Furthermore, universal health insurance should be introduced, which the state would purchase for each citizen in the insurance company of their choosing. Insurers must organise themselves into a Reinsurance Fund in the event of bankruptcy of one of them.
4. If we are to quickly catch up with wealthy Western economies in terms of development and have the necessary funds for national defence, it is necessary to radically deregulate the economy according to the EU+0 formula, and to make the labour market more flexible. It is also necessary to introduce fundamental stability of the legal system. New economic regulations should only enter into force once a year, after a vacatio legis of at least twelve months.
5. SOCIAL POLICY. We are changing the model of social policy to a fully automated one. Both the available IT tools and data collected by the National Revenue Administration and the Social Insurance Institution are sufficient for this purpose. We eliminate the human factor in the social benefits’ process. Mechanisms for benefits valorisation should also be automated. We exclude affluent people from the support system, and at the same time we introduce the “one zloty for one zloty” rule so that exceeding the income threshold per family member is not tantamount to the loss of the entire benefit, but only its reduction in proportion to exceeding said threshold.
6. A key security objective is Poland’s ability to defend itself. At the same time, we draw attention to the necessity of the greatest possible involvement of the Polish defence industry. The potential of the Polish economy and science should be used to the maximum extent in defence of Poland. Purchases from foreign “shelves” should be limited to the absolute minimum.

We encourage you to have a look at the full contents of our Agenda, which can be found HERE.

Until now, these were Germany and France who decided the fate of Europe. Paradoxically, the geopolitical turmoil we are witnessing today means that Poland will be able to join these two countries, provided it introduces appropriate internal reforms. The outline of such reforms was presented by the Warsaw Enterprise Institute, the WEI Centre for Strategic Studies, the Union of Entrepreneurs and Employers, and the Consumers Forum on 4^th April 2023 at 3:00 p.m. at the Liberty Lounge.

During the conference, Adam Eberhadt, Director of the Centre for Strategic Studies, pointed out that the European Union is not about establishing dogmas, but pursuing a flexible form of cooperation. Poland’s strength lies in its initiative-taking policy and ability to build coalitions with the strongest European countries. This was the case recently with Internal combustion engine vehicles. As a country, we will become a valuable partner for Berlin and Paris, but only if we cooperate with them and stand together against them.

Cezary Kaźmierczak – President of the Union of Entrepreneurs and Employers said that when it comes to the economy, we are successfully catching up with wealthy Western countries. However, we are hindered in this race by a tragic tax system, bad economic law, and legal instability. These obstacles must be removed so that we can start acting faster, because it gives us a position in conversations with the Germans or the French. If we have a solid economy and an army, it will be possible to achieve the goal.

Tomasz Wróblewski – President of the Warsaw Enterprise Institute, in turn, stated that the goal is to create an agenda that everyone can make use of, which will determine our prospects and directions of action. Differences in society will always be there, but maybe when we engage in a strategy that deals with matters and not people, there will be less hatred.

Agnieszka Plencler – President of the Consumers’ Forum Foundation took up the topic of consumer choices vs. civic choices. Consumers, expecting social leadership in business, want to know the values and missions of brands, but in demanding situations, the price becomes the most important criterion for them. The citizen, on the other hand, choose the opposite, turning off rational thinking in a crisis situation and following emotions. This is how elections are held, people do not consider the politicians’ postulates of, and give in to empty promises. Consumers learn that when they pay, they demand, and the citizen pays, but does not account for efficiency.

Warsaw, 5^th April 2023

A new health platform – the Health Forum of the Union of Entrepreneurs and Employers

Healthcare has always been a challenge for experts, representatives of government and local government institutions, medical specialists, representatives of patients’ organisations, but also entrepreneurs and employers themselves. Health is and should be treated as the foundation of all values. But it also is an important branch of the economy. In response to the enormous needs of all stakeholders on the medical market and the challenges it faces, the Union of Entrepreneurs and Employers brought to life the Health Forum.

Daily problems of Polish healthcare are issues that concern us all and further deepen the need dialogue within the sector. These problems include, among others, the lack of reimbursement for treatment of given patients, employers’ costs related to employees on sick leave, queues to specialists, staff shortages, digitisation, and finally the effects of various pandemics, wars and their impact on medicine supply chain safety are.

“There is much to be done in healthcare. This is a particularly sensitive area that requires careful consideration of the views of all parties involved. Therefore, the Health Forum of the Union of Entrepreneurs and Employers, being a completely new health platform is an optimal place to exchange experiences, to present the postulates of various entities, to advocate ideas, and develop the best solutions with the possibility of their implementation in health policy,” says Aleksandra Sienkiewicz, Director of the Health Forum.

The goal behind establishing the Forum is to promote the postulates of rational systemic reforms and an attractive regulatory and institutional environment for companies from the universally understood health sector, which will ultimately translate into change that will benefit everyone. The Union’s Health Forum focuses on the organisation of an expert discussions on a broad spectrum of issues related to healthcare, from prevention to treatment, taking into account the financial and regulatory environment. As part of the Forum, we will publish commentaries, positions, and reports that help draw attention to current problems and find the best approach to difficulties in each area of healthcare in Poland.