Decreasing number of companies

In the first half of the year the number of companies have whittled by 65 K. The decreas in number of the companies does not pose threat to the market.

According to “Dziennik Gazeta Prawna” the number of companies have decreased by 65 K. 151 K. companies were registered and at the same time 216 K. have ceased functioning.

Fluctuations, both in the country as well as abroad, have had an adverse influence in safety of the business activity. “Dziennik Gazeta Prawna” maintains that the reason for the development slowdown of polish companies is accounted for the decreased help from departments, which up to now would support initiatives associated with creation of new workplaces.

It appears that formal requirements, which ought to be fulfilled before starting a business, are an insurmountable barrier for many investors. Entrepreneurs, who hoped for having been given the return of their expenditures on time, also fight with bureaucracy.

Part of the terminated companies did not cope with the lack of financial liquidity. Other did not manage to become competitive enough in their industry. Among them were also artificially created companies based on public resources, when the support was the largest.

Decline in number of companies does not pose an imminent threat for the job market. However, according to analysts, if this trend will continue and the number of small and medium companies will still be decreasing then at the end of 2011 the unemployment might increase.

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