Business climate in Poland - Voices from Swedish Businessmen

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Business climate in Poland- Voices from Swedish
Businessmen

• Business sweden

• April 8th 2013

• Stockholm

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TABLE OF CONTENTS

• Introduction
• Investment environment, regulations and
  profitability
• Legislation, taxation and payments
• Establishment, infrastructure and human capital

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Poland is a good place to do business

• In general, Poland is a very good place to do
  business. Companies with Swedish capital find the
  growth potential, availability of competent local
  staff and productivity among the workforce as
  some of the most attractive aspects for business
  in Poland
• Swedish companies motivation to do business in
  Poland is strengthened by lack of corruption,
  well developed infrastructure, strategic location
  and positive expectations for development of the
  economy at large
• Stable political environment, good quality of
  life, profitability of local market, easiness to
  start a company and excellent ICT infrastructure
  these are some of the other aspects which make
  Poland attractive for business
• This attractiveness is confirmed by direct
  investments Swedish companies invested in the
  last year nearly 350 MEUR, which makes Sweden the
  7th biggest foreign investor in Poland, and
  investments are expected to slightly increase
  during upcoming years

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however Improvements in some areas are crucial

• Nonetheless, there are important areas for
  improvement. Amongst them payment moral, low
  transparency and high level of bureaucracy in
  public institutions are of the most concern
• According to Swedish companies, following payment
  terms, development of legal system to lower the
  bureaucracy would positively affect the business
  climate in Poland
• The study also revealed that the train
  connections and roads still are the major
  weaknesses of the Polish infrastructure even if
  major improvements have been done during the last
  four years
• Long term planning and increasing the competence
  in Polish authorities would have a very positive
  effect on the development of the public sector as
  well as decrease the bureaucracy
• Among several stated risks, currency risk is the
  only that affects Swedish companies doing
  business in Poland

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Majority of the respondents work in service
companies with an global Turnover of over 50 mEUR
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TABLE OF CONTENTS

• Introduction
• Investment environment, regulations and
  profitability
• Legislation, taxation and payments
• Establishment, infrastructure and human capital

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Swedish businessmen find poland an attractive
place to do business

• Generally, is Poland a good place to do business?

Poland has a perfect business landscape, people
are driven and the Polish economy is stable and
getting stronger.
Poland is a very good place to do business. The
people are professional and Poland is full of
opportunities
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TWO OUT OF THREE Swedish companies see a positive
growth potential

• How do you estimate the growth potential of your
  business in Poland?

Poland invests huge amount of money in several
sectors. This is a huge opportunity for many
companies
Poland is a country that is still full of
opportunities. You only need to find them.
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findING reliable business partners CAN BE TRICKY

• How easy/difficult do you think is it to find
  reliable business partners in Poland?

We had never problems with solving this issue.
The beginnings are always difficult, and you need
to be patient and know exactly what you want
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SOME Polish businessmen speak good english

• Does your experience show limited knowledge of
  English among Polish businessmen?

It is much easier to communicate in English with
younger people, almost all of them know English
Everything depends on the sector where you are
working. In some people speak good English, other
are underdeveloped
Many persons over 40 years have problems with
English
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oral agreements are followed from time to time

• Do you consider oral agreements to be followed in
  Poland?

Oral agreements tend to be followed, but they
are extremely rare
Oral agreements does not exist. Everybody writes
down all agreements
Polish agreements are very specific, stating
almost everything
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ESTABLISHING BUSINESS IS RELATIVELY EASY

• What is your assessment of establishment process
  for your business in Poland?

The establishment process is just a little more
bureaucratic than in other EU countries
Everything works just fine but takes one week or
two
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Swedish businessmen are very well perceived

• How are you perceived as a Swedish Businessman in
  Poland?

Swedes are very well perceived in Poland. We are
seen as honest, reliable and trustworthy.
It is important that not to be arrogant and
believe her/himself to be the smartest and best
in the field, this is something that Poles really
dislike
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Currency risk main threat for operations

• How do you value risks of the following

We can see quite frequent fluctuations in the
currency rates in PL. This is a situation of high
risk, because our margins go up and down, and we
can not plan properly.

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CORRUPTION IS VERY RARE

• Have you faced corruption in connection to your
  business in Poland?

I have really never heard of corruption in my
work, this is something that belongs to the past
There are sectors that are corrupt, but as a
foreign company we have never got any offer or
faced any action that could be seen as
corruption
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TABLE OF CONTENTS

• Introduction
• Investment environment, regulations and
  profitability
• Legislation, taxation and payments
• Establishment, infrastructure and human capital

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bureaucracy IS A PROBLEM

• To what extent is bureaucracy a problem for your
  operations in Poland?

A lot of paper work and a lot of stamping. But
bureaucracy is not on a problematic level
The level of bureaucracy in Poland is very high
All of the bureaucracy has a wicked logic in it,
but it is very tiring over time
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FINDING financial information about companies IS
OFTEN CHALLENGING

• How easy/hard is it to get financial information
  about Polish companies?

It is almost impossible to receive reliable
information
It is possible, but you will never be sure of
what you have found
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the legal system IS TRUSTED

• Do you trust the legal system in Poland?

I never had problems with the Polish law. It is
clear and you know what to do.
I trust the Polish legal system in a business
matter, but there are many scandals involving
politicians that seem to be corrupt
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Payments are USUALLY SOMEWHAT DELAYED

• To what extent are payment terms followed by
  private companies in Poland?

It all depends on your business partner, some
pay in time, others don't
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corporate taxation levels rather favorable

• What do you think about the corporate taxation
  levels in Poland?

When you begin to sum all charges and taxes
together, the levels are not far away from what
it is in Sweden
Taxation levels are lower than in Sweden, but
Poland is not a tax paradise
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RELATIVELY EASY TO COOOPERATE WITH AUTHORITIES

• How do you rate the contact/cooperation with the
  Polish tax authorities?

It works all right, but you need to know what
questions to ask and who to talk with
It works very well, they are hands on and
helpful
Source State where the information was found
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banking system SATISFACTORY

• How do you think the banking system works in
  terms of

It works really good, the banks are professional
and work as in Sweden
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TABLE OF CONTENTS

• Introduction
• Investment environment, regulations and
  profitability
• Legislation, taxation and payments
• Establishment, infrastructure and human capital

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BLUECOLLARS EASIER TO FIND than business
developers

• How do you think the availability of competent
  local staff is in regard to?

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Salary levels compared to productivity are
attractive

• The level of the salaries compared to
  productivity in Poland is

Poles are very effective and work hard
In Poland people work very hard, but not always
in a effective way, they are afraid of taking own
initiatives, because many Polish bosses doesnt
see it as a good thing.
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Infrastructure is well developed but roads and
the railway need attention

• How do you think the infrastructure in Poland
  works in terms of

Roads, roads roads more and better roads
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Contact details
For more information please contact

• Daniel Larsson
• Market Unit Manager
• daniel.larsson_at_business-sweden.se
• M 48 602 55 20 22
• Witold Szwed
• Senior Project Manager
• witold.szwed_at_business-sweden.se
• M 48 602 55 60 57