Small business massacre in Poland. Experts: Many entrepreneurs will not survive the winter

"Entrepreneurs suspend or liquidate their activities. Many of them will not survive this year and winter, experts say. 

The pandemic, the sanctions on Russia and inflation are hitting the Polish economy more and more. Successive entrepreneurs, following increases in gas and electricity bills, are thinking about closing their business.

 

- Indeed, recently over 200,000 companies have closed or suspended their activities - confirms Adam Abramowicz, spokesman for small and medium-sized enterprises.

 

Signals from accounting offices also show how difficult the situation is. - Offices account for various industries and are the first to see impending crises. We receive information that entrepreneurs are considering suspending or closing their activities. Currently, we see a lot of nervousness among clients - says Julia Dybkowska, vice president of the Foundation for the Support and Development of Accounting Offices and the owner of the Clever Tax accounting office.

Companies seek help or withdraw from the market. Rising prices and tax changes are to blame.

The fact that the mood among clients is not the best is also confirmed by Beata Boruszkowska, president of the National Chamber of Accounting Offices and owner of the BEATA accounting office from Brodnica. - There is no panic yet, but companies are already closing.

 

Many of them are nervously waiting for the end of the year. - The first quarter of 2023 may be decisive. In this period, I expect that entrepreneurs, after the first settlement according to the Polish Order, may seriously consider continuing their business. The increase in costs and tax and contribution burdens may also encourage people to flee into the gray economy, especially micro-companies - forecasts Beata Boruszkowska.

 

The government has found an antidote to rising electricity bills. It is an act introducing maximum energy prices, also for the sector of small and medium-sized enterprises. These provisions are positively assessed by Adam Abramowicz.

- If it had not been done, many companies would not have survived next year. However, I expect the government to take a few more stones out of the bag that entrepreneurs have to carry on their backs. And it should introduce, for example, the voluntary payment of personal social security contributions for entrepreneurs, following the example of Germany - lists Adam Abramowicz.

He also points out that next year the lump-sum the Social Insurance Institution contribution will increase by over PLN 200 per month.

It's high time for the government's business rescue plan. For now, it seems that the government is not impressed by the deterioration in business conditions.

- Paying about PLN 1,500 a month, regardless of the amount of income, for many tiny companies will be a nail in the coffin - a spokesman for the Ministry of State Treasury is afraid.

This is confirmed by Arkadiusz Pączka, vice-president of the Federation of Polish Entrepreneurs. - Industries that have been hit hard by the pandemic, in which we have invested heavily to rebuild them, may not survive this year and this winter. We can witness the closure of many economic activities - the expert forecasts.

A large part of companies is also thinking more and more often about reducing employment and layoffs."