From: mk_thisisit
Polish entrepreneurship is characterized by a strong “entrepreneurial gene,” with over 70% of the country’s GDP being generated by Polish private business [00:01:52]. Despite this, only 18% of society is aware of this fact, often believing that state-owned companies and the public sector are the primary contributors to the gross domestic product [00:01:59].
Challenges to Polish Entrepreneurship
Challenges for Polish entrepreneurship include:
- Culture of Overwork and Negative Perception of Hard Work: There has been a “disgusting work ethic” culture over the last decade, with some activist groups deriding those who work hard [00:00:02], [00:02:31]. This culture is seen as “killing the gene of entrepreneurship, hard work, and work ethic” [00:00:17], [00:02:56].
- Lack of Global Brands: Despite being a country of almost 40 million people, Poland lacks internationally recognized technology brands, unlike smaller countries such as the Czech Republic, Slovakia (motorization), Estonia, Finland (Nokia, Angry Birds), or Lithuania [00:03:21], [00:03:36]. InPost, while regional, is not yet global [00:03:23].
- Large Domestic Market Trap: Poland’s relatively large internal market has allowed Polish businesses to develop to substantial market shares and absolute values (measured by sales or employment) by operating exclusively within Poland [00:04:06]. This contrasts with smaller markets like the Baltics or Scandinavian countries, where businesses must export to grow, thus fostering an international mindset [00:04:22].
- Bureaucracy and State Practices:
- Bureaucracy is seen as “killing the gene of entrepreneurship” [00:06:59].
- Polish companies like InPost pay significantly higher taxes to the state budget compared to foreign competitors operating in Poland with similar revenues, some of whom pay no taxes at all [00:00:25], [00:24:54].
- In administrative disputes with the state, the citizen is presumed guilty, unlike in criminal proceedings where the accused is presumed innocent [00:18:21], [00:19:03]. This puts citizens and taxpayers in a disadvantaged position [00:19:27].
- Over 20,000 “instructional deadlines” exist in Polish law, but the state bureaucratic machine fails to meet them in over 80% of cases [00:20:47]. This causes companies to cease operations and citizens to lose property or disputes [00:21:26].
- Lack of a fast-track court system means disputes drag on for years, with a first hearing often taking 6 to 12 months to schedule [00:22:03].
Strategies for Global Market Expansion
For Poland to foster global companies, several strategies are proposed:
- Domestic Market as Incubator: It’s crucial to create optimal conditions for creating and developing businesses in Poland, as a strong domestic base is essential before expanding globally [00:23:44], [00:24:41].
- Internationalization: Polish companies are increasingly realizing that the domestic market is no longer sufficient for continued growth, necessitating international expansion [00:04:51]. Examples of Polish companies expanding abroad include InPost, Mr. Toni (logistics), and OSHI [00:05:03].
- Deregulation Efforts: Entrepreneurs are actively proposing changes and deregulation to improve the business environment [00:16:12]. Key proposals include:
- Presumption of Innocence: Establishing the principle that a citizen is innocent in administrative disputes with the state, requiring the state to prove guilt [00:18:21].
- Tacit Consent for Missed Deadlines: If instructional deadlines are not met by state offices, there should be tacit consent from the taxpayer for the decision to be issued [00:21:37].
- Speedy Trials: Implementing simple provisions to ensure 70% of economic cases do not reach courts, utilizing KSEF enforcement titles, mediation, notarial orders, and abolishing locational jurisdiction [00:22:03]. These measures aim to unblock energy for entrepreneurs, citizens, scientists, and students [00:20:35].
- Investing in Talent: While there’s a risk of talent migration, supporting young people through scholarships for education at leading universities is seen as fostering a “give-back reflection,” with the hope that the majority will want to return to Poland or proudly represent their Polish identity globally [00:25:31], [00:26:35].
- Fostering a Positive Mindset: Young people are encouraged to embrace ambition, hard work, and the ability to set high standards for themselves [00:31:45]. They should be proud of being Poles, seeing this as a great undiscovered value in society [00:32:00].
- Combating Hate Speech: Hate speech and the use of bots in political and ideological fights dissipate energy and hinder progress [00:33:34]. The increasing ability to track down anonymous haters may help curb this issue [00:35:45].
Case Study: InPost’s Evolution
InPost’s journey reflects Polish innovation and a strategy for global competition:
- InPost 1.0: Founded in 2005, it initially aimed to enter the traditional postal market, which was then worth PLN 6 billion (compared to a 120 million zloty leaflet distribution market) [00:11:18].
- InPost 2.0 (Parcel Lockers): Recognizing the shrinking traditional postal market, in 2009, InPost pivoted to the parcel market [00:12:16]. This market in Poland was dominated by foreign giants offering cheap and efficient home delivery services [00:12:29]. To compete, InPost developed parcel lockers – a cheaper, technology-based, and innovative solution that changed Polish social habits [00:12:45], [00:13:02].
- Global Aspiration: InPost’s deepest aspiration is to become the largest logistics operator in Europe, dethroning DHL, and expanding into key markets like Great Britain, France, Spain, and Italy, in addition to Poland [00:01:03], [00:17:04].
- Competition as a Driver: The competition with Poczta Polska (Polish Post) was crucial for the creation of the parcel locker system; without it, InPost would not exist as it does today [00:52:00], [00:14:04].