SME Framework Conditions and the Business Environment in Poland

Many elements of the transformation of the business environment in Poland to make it supportive of small- and medium-sized enterprises (SMEs) and entrepreneurship have been accomplished during Poland’s accession to the World Trade Organization and the European Union. Today the strategic policy framework for pursuing structural reform and economic development in Poland is built around the Lisbon Strategy at the EU level and the National Development Strategy at the national level. Implementation takes place through the Operational Programmes (OPs) of the National Cohesion Strategy, which determines the allocation and distribution of the EU Structural Funds amounting to around 3% of gross domestic product (GDP) over the period 2007-13. This approach provides scope for improving framework conditions, notably by reinforcing the “Better Regulations” framework in areas such as taxation, inspections and reporting requirements with a view to reducing compliance costs and administrative burdens. But addressing some barriers will involve institution building and longer term reform, such as adapting the educational and vocational training systems better to the needs of the economy and strengthening the capacity of the financial sector to meet the needs of SMEs and growing firms.