Small enterprises dominate the Polish economy, constituting more than 99% of all active companies. According to a report on the state of the SME sector presented by the Polish Agency for Enterprise Development (PARP), their condition is not good.
Due to decreasing investments, companies slow down their development and lower their international competitiveness. The share of SMEs in the GDP oscillates around 50% but has been decreasing for the last two years.
Analysts believe that small companies are jointly the largest employer and continue to increase employment even during periods of economic slowdown, when medium and large companies conduct restructurings.
According to the Central Statistical Office (GUS), 267,000 new companies with less than 9 employees were registered last year. 65% of the 1.5m Polish micro-enterprises were still active after one year and the sector has created 1m new jobs in the last 5 years.
