Only 1/3 of companies in Poland exist longer than 5 years


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In first years of activity, as many as 2/3 of enterprises go bankrupt. Why such young companies collapse so often?

According to experts, business failures of small and medium companies in first five yours from the foundation are primarily related to the lack of proper financing of development. However, in the opinion of the experts, general situation of companies on the Polish market improves systematically. “European Competitiveness Report 2014”, prepared by the European Commission and presented on 11th September, shows that Polish entrepreneurs have to deal with burdensome bureaucracy and not so efficient tax system.


Idea Bank research, in turn, presents that among clients who run one-man economic activity and hire not more than nine employees, entrepreneurs design ca. two hours daily for administrative issues. It is the time that they could intend for obtaining clients or elaborating their services. In order to improve the situation of those companies, the capital as well as time, which each entrepreneur may assign to the company’s development, are necessary. The crucial element is also the access to knowledge – believes Dariusz Makosz, member of the Idea Bank board.


See also: You do not want to bring down your company? Read!


The biggest difficulty for beginning entrepreneurs is looking for proper financing. Therefore, we are concentrating on the access to the capital within various kinds of the EU grants and bank loans. Except from the accessibility to the capital, there are also other important elements such as bureaucracy – says Dariusz Makosz.


A lot of entrepreneurs go bankrupt because of the lack of adequate knowledge which is necessary to run a company. After combining those three elements, that is public administration, accessibility to capital and knowledge, and with proper arrangement of priorities, entrepreneurs would have a greater chance to develop their companies. We should also notice that micro-companies produce 1/3 of Polish GDP – points out the member of Idea Bank board.


Every fifth company in countries of the OECD functions on the market less than five years. Among young partnerships dominate small and medium enterprises.

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