Polish SMEs keen to develop, report shows

Polish small and medium-sized enterprises are keen to develop, according to a report by the Polish Ministry of the Economy. More enterprises declare eagerness to start new investments and create jobs.

Also a greater number of the enterprises expect their revenues to increase.The investment forecast index has risen for the first time since 2006 (although it still continues on a low level). Enterprises have been allocating financial resources primarily to vehicles, equipment and furniture. The most eager to invest were companies providing transport services (over 90%) and companies active in the services sector (70%).

The survey showed that entrepreneurs perceive the economic slowdown experienced in the first half of the year as a temporary situation. Numerous companies operating in bigger cities declared not to have felt any signs of the changing economic climate. In comparison to the previous editions of the survey, increased also the percentage of entrepreneurs expecting improvement in conditions for economic activity management. Every 10th owner of a micro enterprise expects revenues to grow. Similarly, more respondents managing SMEs count rather on a revenue increase than a drop. Prognoses concerning the next six months are more optimistic than forecasts published in the former survey.
Despite the current downturn, numerous entrepreneurs still declare to have hired new employees. Every 10th micro enterprise and every 4th small enterprise had or has job vacancies available.
A large proportion of exporters (around 3/4 declared to have done settlements in the euro) expect euro adoption to have a positive influence on their company. In the group of non-exporters positive attitude toward the currency change was expresses by 20% of the respondents.
The first half of the year saw around 2/3 of the companies use services provided by business support institutions. Among small and medium-sized companies it was economic consolations, human resources selection and recruitment, law counselling and various promotion forms that resulted especially popular.
The survey has been conducted by the Ministry of Economy twice a year since 1998. Its aim is to monitor changes taking place in the SME sector, observe major entrepreneurs' problems and to evaluate the current economic policy. (PAIIZ)

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

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