Report on the Condition of the Small and Medium-Size Enterprise Sector in Poland for the Years 1999–2000 Polish Agency for Enterprise Development Warsaw 2001 Publication co-financed from the European Union Phare Programme Editors: W∏odzimierz Dzier˝anowski and Ma∏gorzata Stachowiak English Text Editor: Gina Podhorecka Authors: Krzysztof Berger Józef Chmiel, Ph.D. Krzysztof Chmielewski Krzysztof Dzier˝awski Marek Fiedoruk Krzysztof Gan Pawe∏ Grzelak Maciej Grabowski, Ph.D. Hanna Ignaczewska Tomasz Kaczor Andrzej Kondratowicz, Ph.D. Joanna Konieczna Natalia Letki Marta Mackiewicz El˝bieta Malinowska Wojciech Misiàg, Ph.D. Cezary Mi˝ejewski Sylwia Morawska, Ph.D. Adam Niedzielski Zofia Paw∏owska, Ph.D. Andrzej Sadowski Ma∏gorzata Skrzek-Lubasiƒska Jan Stefanowicz Liliana Sto∏owska Aleksandra Sztety∏∏o Agnieszka Tokaj-Krzewska, Ph.D. Marcin Tomalak Bohdan Wy˝nikiewicz, Ph.D. Miros∏aw Zieliƒski Prof. Leszek Zienkowski Translation: Joanna Nowak Cooperation: Wioletta Bryc Igor Czajka Tomasz Czajkowski Ewa Gocan Agnieszka Jankowska Witold Kajszczak Bartosz Korkozowicz Artur Nowicki Renata Olech Marek Rogowski Artur Wójcik Marcin Zembaty © Copyright by Polska Agencja Rozwoju Przedsi´biorczoÊci ISBN 83-88802-20-8 Cover design by: W∏odzimierz Walus 1st Edition Printed by: Naj-Comp, ul. Majdaƒska 4 m 48, 04–088 Warszawa TABLE OF CONTENTS Introduction: Tadeusz Donocik – Undersecretary of State, Ministry of the Economy, Chairman of the Supervisory Board, Polish Agency for Enterprise Development . .9 From the Authors: Krystyna Gurbiel – President, Polish Agency for Enterprise Development . .11 Executive Summary . .13 1. Macroeconomic Changes in 1999–2000 . .19 1.1. Economic Growth . .21 1.2. Inflation . .22 1.3. Public finance . .23 1.4. Financial Status of Enterprises . .23 1.5. Investment . .24 1.6. Labour Market . .24 1.7. Wages . .26 1.8. Foreign Trade . .26 1.9. Privatisation . .27 1.10. Poland Against the European Backdrop . .27 2. Condition of the SME Sector in 1999. Development Trends During the 1994–1999 Period . .29 2.1. Share of Small- and Medium-size Enterprises in Generating GDP and Gross Value Added . .31 2.1.1. SME Share in Generating GDP . .31 2.1.2. SME Share in Generating Gross Value Added . .32 2.1.3. Gross Productivity Per Worker in the Private Sector . .33 2.2. Number of Enterprises . .34 2.2.1. Registered Enterprises . .34 2.2.2. Active Enterprises . .34 2.2.3. Change in the Number of Active Enterprises . .36 2.2.4. Women as Entrepreneurs . .37 2.3. People Working in the SME Sector . .38 2.3.1. Number of People Working in SMEs as of the End of 1999 . .38 2.3.2. Structure of Employment in the SME Sector . .40 2.3.3. Dynamics of Change in the Employment Numbers in 1999 . .41 2.3.4. People Working in the Grey Area of the Economy . .42 2.4. Financial Condition of SMEs . .43 2.4.1. Revenues of Various Size Enterprise . .43 3 2.4.2. Income of the Smallest-Sized Enterprises . .44 2.4.3. Financial Condition of Enterprises Maintaining Accounting Records and Employing More Than Nine People . .44 2.4.4. Structure of Sources of Financing for SMEs . .48 2.5. Investment in SMEs . .51 2.5.1. Rate of Growth of Investment Expenditures in SMEs . .51 2.5.2. Share of Investment Expenditure of SMEs in Total Outlays . .53 2.5.3. Investment Expenditure Per Employee in Private SMEs . .53 2.6. Role of SMEs in Foreign Trade . .54 2.6.1. Changes in Foreign Trade of SMEs in 1999 . .54 2.6.2. Rate of Growth of Exports and Imports in Sectors of the Economy . .54 2.6.3. Changes in the SME Structure in Foreign Trade . .55 2.6.4. Key Export Markets for Foreign Trade of SMEs . .56 2.6.5. Differentiation of the Foreign Trade of SMEs by Region . .57 2.7. SMEs by Region (Voivodship) . .60 2.7.1. Registered Enterprises . .60 2.7.2. Active Enterprises – Changes in the Geographical Distribution of SMEs . .61 2.7.3. People Working in the SME Sector . .63 2.7.4. Revenues from the Sale of Products, Goods and Materials . .66 2.7.5. Investment Expenditures . .67 2.8. Summary . .67 3. Policy Towards SMEs . .71 3.1. State Policy – Programme Documents . .73 3.1.1. Socio-Economic Strategies . .73 3.1.2. Integration Strategies . .75 3.1.3. Industrial Strategies . .77 3.1.4. Policy Towards SMEs . .80 3.1.5. Policy Towards Rural Areas . .81 3.1.6. Labour Market Policy . .83 3.1.7. Regional Policy . .85 3.2. Implementation of the State Policy Towards SMEs . .89 3.2.1. Parliamentary Activities . .89 3.2.2. European Integration-Oriented Activities . .91 3.2.3. Industrial Policy and Policy Towards SMEs . .92 3.2.4. Financial Policy . .100 3.2.5. Programmes Related to Labour Market Policy . .104 3.2.6. Rural Area Development Programmes . .107 3.2.7. Programmes Related to Regional Policy . .109 3.3. Summary . .111 4 4. Position of the Roman Catholic Church Towards Entrepreneurship . .115 5. Legal Environment of the Functioning of SMEs in 2000 . .119 5.1. List of Legal Acts Affecting the Activities of SMEs, Adopted and Enacted in 2000 . .122 5.2. The Most Important Changes and Trends in Legislation in 2000 . .144 5.2.1. Changes in Civil Law and Commercial Law . .144 5.2.2. Changes in Administrative Law . .148 5.2.3. Changes in Financial Law . ..