You all know what is happening in the world right now. We’ve set an ambitious goal — to give you, while still in your own country, an objective picture of what’s currently going on with Polish businesses and entrepreneurs.
We’ve gathered business owners from completely different industries, and each of them will share their perspective on the current situation and what they think will happen after the quarantine.
If we sum up the total business experience of all our participants, it exceeds 40 years.
We asked each participant five of the most important questions, taking into account the realities of quarantine and the crisis:
- Who are you, what do you do, and how long have you been in Poland?
- How has your Polish business been affected during the quarantine?
- Do you plan to accept support from the Polish government? If yes, what kind?
- What do you think awaits Polish business in 2020/2021?
- What would you advise our subscribers?
After watching these interviews, you’ll be able to form your own opinion — is Poland the right place for you or not? Will this country offer you what you’re hoping for? Are you ready to move and start a business in Poland?
We decided to include the full interview of each participant in case you’d like to get a more detailed insight. Under each video, we also provide the full interview transcript, in case you prefer reading over watching.
Dmytro — Business in Poland: IT company, car rental
— My name is Dmytro, I’ve been living in Poland for 8 years. I’m the co-founder of a software house (with offices in Poland and Ukraine), and I also run a car rental business.
How has the quarantine affected your business?
— The quarantine had a negative impact. Speaking of the car rental business — only 20% of our fleet is currently operating. What saves us is that we don’t lease cars — we own all of them.
In IT, we lost about 15% of our orders, so proportionally we had to part ways with some employees. The main goal now is to retain the ongoing projects. We’ve reduced office expenses. We negotiated a 50% rent reduction for our office in Ukraine and are now in talks about lowering the rent in Poland.
Government support in Poland
— I learned about the Tarcza Antykryzysowa (Anti-Crisis Shield program), called our accountant, and initially, we applied for everything available. But there are many eligibility criteria — we qualified for ZUS (Social Security Fund) support and a non-refundable loan of 5,000 PLN.
Our accountant said funds might run out quickly, even though we applied at the very beginning. It’s strange — applications just opened and funds are already lacking. But this information isn’t final yet — we’ll see how things unfold. I hope we at least receive ZUS support. I believe the Polish government should support entrepreneurs, because we are the ones who take the biggest hit. If we’re left without help, many businesses will simply shut down. We do have a Plan B and C, but of course, things would be much easier if the government steps in.
— Of course, Poland is not the US, where trillions of dollars were allocated to help businesses. Here it’s just a few dozen billion zloty — but at least there’s some support. Even help with just the ZUS payments would ease the tax burden for a while. The crisis is only just beginning — the peak is still ahead.
I hope Poland won’t suffer too much, like it did in 2008. But Poland’s economy is tied to Germany, and Germany has already announced it’s entering a recession on a scale not seen since World War II. Germany’s economy is the strongest in the EU, so if it declines — the others will follow. Still, we hope for the best.
Overall, I believe the situation in Poland will be better than in Ukraine or Belarus, thanks to the agricultural sector and domestic tourism.
Yurii — Business in Poland: personnel outsourcing
— I first came to Poland in 2009, and moved here permanently two years ago. Running a business in Poland is easier. Our main activity is outsourcing personnel — over 100,000 Ukrainians work in our company at major factories such as Samsung, Toyota, LG, etc. For the past two years, we’ve been transitioning our business to digital — we are developing the mobile app Workport for immigrants. Another new direction is a mobile app for the network of electric car charging stations. Overall, we analyze what is currently popular and what will be relevant in 5 years.
How the business was affected during the quarantine
— Any business is a chain, from production to the banking system. The most affected were businesses connected to employment, as many factories were closed indefinitely, and workers returned to Ukraine. In outsourcing, we dropped by about 20%. But I believe that where there is a crisis, there are also opportunities. We found a way to replace the people who left with those who stayed in Poland. They are now fulfilling the orders we receive. Currently, we have fully recovered to pre-crisis levels.
Regarding the restaurant and barbershop, we quickly launched a mobile app and focused on delivery. The barbershop is still closed, but there’s nothing we can do about that.
Regarding projects that were only in the initial stages, I also found a positive side to the quarantine. We were preparing documents for subsidies from certain EU committees, which had to be submitted by early April. Due to the quarantine, the deadlines were extended until mid-May, giving us an extra month and a half to prepare the documentation. My concept is: when everyone says everything is bad, you need to stay calm and try to find something positive in the situation. Often opportunities are right in front of us, but we don’t see them because we are used to only seeing the negative.
In our Ukrainian team, we didn’t lay off any employees, we temporarily reduced team expenses by 15%, plus we negotiated a discount on rent, so the company in Ukraine didn’t suffer much. In Poland, we had to cut about 15% of office employees.
On the Anti-crisis Shield
— I don’t really understand much about this program. Why are there 236 pages? Let’s take Belgium as an example. There, you say you have 50 employees, they are out of work because there are no orders. You provide information on how much they earned last month (for example, each earned 4,000 euros) and the government fully compensates their salaries, no matter how long it takes — 1, 2, or 3 months.
As for Poland, for example, our company’s turnover is about 400-500 thousand zł, you can estimate the tax we pay annually — it’s not a small amount. And what does the government tell us? That we can get a delay on ZUS or 5,000 zł. A business that fills the budget 95% didn’t receive any real help. For me, real help would be compensation for employees’ salaries if I don’t lay anyone off. But maybe this program is really needed by some people. But I have a negative view of it.
My position is — instead of focusing on this shield and trying to figure it out, it’s better to spend that time looking for new opportunities, new clients, and earning the money faster.
What’s next for Polish business
— It depends on the industry, for example, in the service sector it’s bleak. Let’s take beauty salons — most of the staff of these companies are already gone. In Wroclaw, where I live, 80% of the service sector is made up of Ukrainians. Now most of them have left, and even if the salons and stores where they worked open again, there will be no one to work. Companies that have been on the market for at least two years have financial reserves. Large corporations like Samsung won’t feel it. The conclusion is: small businesses will suffer the most, medium-sized ones will get help from banks if it’s bad, and large ones will be unaffected.
As for ordinary citizens, in Poland today there is 10% unemployment, and if earlier Poles didn’t want to work at the reception desk, and Ukrainians did, now the trend is changing.
The Polish economy is tied to global markets — Germany, Switzerland, China, Japan, the USA. They can afford to get out of the crisis. Therefore, I think Poland won’t suffer too much.
Advice for those looking to start a business in Poland
— Leave your fear behind in the country you are moving from.
— Create a clear business plan.
— First, come to scout and see how the business you plan to start is already working.
— If possible, talk to the owners of that business. They are just people who have already gone through this path. By talking to them, you’ll understand whether you are on the right track or not.
— Conduct economic reconnaissance and if everything is okay, just move.
— Always focus on the positives — what’s good in any given situation.
Igor, Business — Real Estate in Poland
— I’ve been in Poland for 5 years. My main focus is real estate, which I closed before the quarantine started, and it turned out to be the right decision because those who are dealing with it now have suffered greatly. At the same time, I was involved in import-export and I’m developing a social project — the Entrepreneurs Club of Poland. I’ve also started a new direction — buying and selling businesses in Poland, including investment properties.
Running a business during quarantine
— The main projects are on pause. Import-export volumes have significantly decreased, sales have dropped not only for me, but it’s a general trend. I am an intermediary, meaning there’s a client who needs something sold, and I find who and how to sell it to. I managed to make money on masks, but I only dealt with wholesale sales. Now it no longer makes sense to focus on this. An important point in business is to enter at the right time and exit at the right time.
I kept all employees, and everyone is working remotely. We’ll return to the office on May 1st. Before the quarantine, I was planning to expand the office, but now I won’t do that. The crisis has given me optimization — even with an expanded business, we can work remotely.
Government support
— I am skeptical about government assistance. They will probably give something, but I don’t want to spend several days trying to figure it out. I personally have a negative experience with subsidies and anything free from the government. I prefer to move forward on my own. If one of my acquaintances actually receives assistance, then I’ll consider it, but for now, I’m skeptical. This is not just about Poland. I think this is something that people who have nothing to do engage in. I don’t have the time to go around offices and fill out papers. But maybe I’m wrong, maybe in this situation, I need to show persistence and patience.
What will happen after the crisis
— After the crisis, I think there will be a small surge in sales because people are bored at home and will inject their savings into the market. But then there will be a second wave — a decline because there will be less money. The VIP segment will move down to the middle class, the middle class will move down to the economy segment, and the economy segment will drop even further. The number of transactions will at least decrease. The third wave will be when there’s no money at all. Those who won’t be able to recover or adjust to the new economic situation and the new life will definitely fall out of the market.
Advice for those thinking of starting a business in Poland
— I think the recovery from the crisis in the CIS countries will take longer. In Poland, it will be easier, faster, more reasonable, and predictable. Therefore, if you have the opportunity, you should bring your products to the Polish and European markets. By opening a company in Poland, you can reach break-even much faster and move forward.
Maxim — Managing a YouTube Channel
— I’ve been living in Gdańsk for 6 years and I manage a YouTube channel and everything related to video and marketing.
My business has lost income right now. But I’ve found a positive side to this. I redirected my resources and started working on projects that I didn’t have time for before, which will bring me even more income in the future. However, the main income that I had before the quarantine is no longer there. I had two big clients with whom I had contracts; we terminated one contract, and the other client has paused work indefinitely.
At the beginning of the year, I managed to work productively, and this will allow me to not work for a few months at all. I still have a small income from my channel and advertising. Right now, I am focusing on information business. I’m transferring my knowledge about moving to Poland and managing a channel into digital format so that I can earn money from it in the future.
Attitude to Tarcza Antykryzysowa
— In March, I wanted to apply for ZUS and one-time help (2000 zł). But after checking my documents, I realized I don’t meet the criteria. I plan to apply again for April. In general, it’s very difficult to figure out this program; if it wasn’t for a lawyer, I would have wasted a lot of time. And it doesn’t provide that much money. I mean, if I had an order for a video, it would be easier to just make the video and earn that money than deal with all the details of the program. Entrepreneurs always rely on themselves, not the government. I have entrepreneur friends who meet the criteria but don’t apply because it’s too much hassle.
What will happen to the Polish economy
— We can only speculate about what will happen next. Many businesses are starting to resume their activities. Those who were able to quickly adapt have managed to stay afloat, such as cafes and restaurants that organized delivery.
I wouldn’t advise investing in something new, possibly because I always err on the side of caution. But if we’re talking about large investments, now is the time because many businesses are being sold cheaply.
Advice for those planning to develop their business or open a company in Poland
— Don’t panic, use the time productively, read useful literature, spend time with family,
look for new opportunities, learn new skills,
learn Polish and English.
Do everything you can so that as soon as the quarantine ends, you’ll be ready.
Arthur, 5 years in Poland, business — barbershop chain
— The situation is sad, nothing is working. Every day is a loss. We managed to negotiate some discounts on rent. On one rental, we agreed on a 50% discount until we can return to the levels we had before the quarantine. No employees were let go. In fact, one of our employees arrived from Ukraine on March 10th, and on the 15th, we closed down. We didn’t send him back; we are covering his housing and meals.
During the quarantine, I got involved in charity work, which helped me psychologically deal with the situation more easily.
What kind of help from the government do you plan to take?
— We plan to take advantage of several options. To reduce the financial burden on the whole company, we want to cancel the payment of all Polish taxes — PIT, CIT, VAT, and ZUS. We applied for employee subsidies and a non-repayable loan of 5,000 zł. We haven’t received anything yet. But I understand that it will take some time. As far as I know, 2 million applications have been submitted, and of course, someone has to review and verify them. Overall, I believe that there will be government assistance.
What’s next for the Polish economy?
— In my opinion, the biggest problem is political instability in the country, the situation with elections, constitutional changes, etc. If there is a political problem, there will be an economic one. But if we talk about the economy as a whole — the market will restructure, reformulate, and there will be many bankruptcies. But there will also be opportunities for those who think quickly and can adapt. Those who reorient their activities and adapt to the new situation and time will be able to grow quickly.
Advice for those who want to open a company in Poland
— The Polish economy is much more stable than in the CIS countries. Poland is close to the EU, which also supports the country’s economy. Now is not the time to invest. I think it’s best to wait a bit to see how the market will behave moving forward.
Dmitry, beauty salon in Krakow
— I’ve been in Poland for 8 months. We opened the salon 1.5 months after moving and reached the break-even point within 2 months. There was a stable growth of 10-20% every month.
Nothing foreshadowed trouble, so all the money from the turnover was reinvested into the salon’s development — new equipment, materials, and advertising. By the time the quarantine began, there was no extra money. We had 7 employees, 5 of whom had to be sent on unpaid leave. We worked until the last moment, until the government officially prohibited us from operating. Now, there is no income. It was difficult to negotiate with the landlord, but what we managed to get was to pay only 10% of the rent during the quarantine and postpone the rest for six months.
Attitude toward Polish government assistance
— I spent three weeks dealing with the Anti-Crisis Shield, really hoping for help because I thought, this is a European country, it should support the economy. I applied for everything I could. This program is very confusing, with thousands of amendments, and nothing is clear. I still haven’t received any help and don’t know anyone who has. My summary is — they talk nicely but do nothing. The concept of the assistance is that they help those who are already doing well and don’t help those who are struggling. For example, I could have applied for a loan of up to 500,000 zł and only get 25% back if I didn’t lay off employees, but if I provided the turnover for the same month of the previous year. So, companies that have been on the market for several years, are established, and have a financial cushion are helped even more, while companies like ours, which have just gotten on their feet, are left to drown.
What will happen after the quarantine
— I hope that in May-June, we will fully exit the quarantine. And despite the fact that not everything I’ve described here is rosy, the exit in Poland will not be as painful as, for example, in Ukraine. Purchasing power will decrease, but not critically.
Advice for those planning to start a business in Poland
— Don’t rely on others, only on yourself, whether you’re doing business in Ukraine, Europe, or America.
Plan ahead for at least six months.
If you plan to start your own business, after the quarantine is the best time. Many great spaces will become available at affordable prices. In general, rental prices will decrease because demand is decreasing.
Don’t be afraid of risk. Money is the least you can lose.
