Polish Business

Polish Business, those of you who are involved in business may be interested in developing business, an agency or other contact with Poland. Let me point out some of the plusses and minuses of business in Poland.

My qualification is that I am a business consultant of many years standing, having worked for the Polish Government and spent four years as President of two large Polish companies. My other experiences have involved advising major companies in Syria, Saudi Arabia, Canada, USA, UK and several other countries on business development and projects.

Historically

When communism failed there were many companies privatized by the government by incorporating them into management companies known as the NFI’s. These management companies held the shares, usually between 51 and 100% of Polish major companies. The idea being that the NFI’s would hold the shares on behalf of the Polish public and would sell off and obtain investment for the companies in which they participated. I was personally involved with this mass privatization but became disillusioned when corruption and dishonesty reared its head. The NFI’s have several years ago cleaned up their act and now, in the main profitable and honorable.

There were also many companies that fell prey to outside investors and were ‘sold’ for pennies, their  assets then transferred to the new owners, who could then use those assets to guarantee large loans. The condition was normally agreement of the Workers and the local Woiwoda, (Governor of the region). This system has eventually worked quite well; most of these companies today are successful.

The Polish Economy at present

Whilst many of the workforce has commuted to the UK, Ireland and the rest of Europe there are still opportunities in Poland for low cost production. With a typical wage being 7 zloty per hour, (about  2.2 US$), labor costs are low and likely to remain so for at least a generation.

The land ownership laws that were very restrictive have been relaxed and modified to enable foreign companies to invest in the country. Some of the well-known investors are Avon Cosmetics, General Motors and HP to name a few.

There are still many tracts of land available and property vacated or not completed during the communist era that are available outside the main cities. The infrastructure is one problem although the Motorway from Lvov to Berlin has created a large corridor of new business through Eastern Poland; an immense amount of building has been instigated and Polish Business is taking advantage of the improved road communication.

Much commercial transport in the rest of Poland still relies on trains. The EU has several incentives available for incoming companies and infrastructure improvements.

Business Culture

This is perhaps the main problem for incoming companies entering the Polish Business Community,. many Polish businesspersons are internationally disposed, although if you are contemplating a new business you will at some time probably encounter an agent, smoothie or someone who it may be prudent not to trust. Whilst corruption has certainly reduced in some circles, it is still prevalent in business and local government.

It is often difficult to ascertain the person trying to be helpful as a future liability so I suggest take advice and enlist help to smooth your entry to the Polish Market. Of course, this is within my area of operations, and whilst this site is not an advertisement for my services, I would be pleased to assist with any business in Poland, please email me

Polish Market

The market in Poland is rather different to Western Europe, some growth items in the market at present (2009) are :-

Cosmetics – Polish girls and women are very fashion conscious and usually very beautiful; they consume a tremendous amount of cosmetics including lipstick, powders, perfumes and anti ageing creams. I know from experience, not as a user, but my wife is Polish.

Mobile Phones – Whilst there three main suppliers in Poland who also have communications license, phone accessories have a considerable market and whilst internet sales are taking off, most sales are still conventional.

Tablets, Vitamins and Medication –  To a westerner, the Polish nation consumes a phenomenal amount of tablets and medicines. I believe this is partly explained by the lack of optimism generally compared to Western countries.

Processed and Frozen Foods – Whilst Poland has consumed frozen vegetables for many years, processed and added value foods are really taking off, particularly with the plethora of Hypermarkets which are continually opening such as Tesco and Real.

There are many other products, which do well in the Polish Market, please contact me if you require more information or figures on market size etc.

Help in Poland

As stated earlier, if you are interested in exploiting the Polish Market, or starting a Polish Business, please contact me I have a wealth of unique experience and can help in many ways. I also have a comprehensive list of contacts in Poland so if I cannot assist I probably know someone who can. Please email me.