From: mk_thisisit
Poland faces unique challenges and opportunities regarding taxation and market competition, particularly for its domestic businesses. There’s a strong belief in the Polish entrepreneurial spirit, yet a perceived lack of global brands highlights underlying issues within the economic system [03:16:05].
Unfair Tax Burden
Polish companies, such as InPost, report paying increasingly high taxes to the state budget each year [00:00:25]. In contrast, foreign competitors operating in the Polish market often pay lower or even no taxes, despite achieving very similar revenues [00:00:30]. This disparity creates an uneven playing field, where foreign entities may accumulate tax benefits in their home markets [02:50:00]. This situation makes it difficult for domestic firms to compete effectively and hinders their growth [02:49:00].
The Polish Entrepreneurial Gene
Despite the challenges, there is a strong belief in the “Polish entrepreneurial gene” [01:36:05]. This is supported by metrics showing the high number of companies created and recreated, and the fact that over 70% of Poland’s GDP is generated by Polish private businesses [01:46:00]. However, only 18% of society is aware of this significant contribution, with many believing state-owned companies and the public sector are the primary economic drivers [01:59:00].
Culture of Overwork and its Impact
A “culture of disgusting work ethic” has been criticized, particularly by those who advocate for extreme activist, left-wing views [00:02:50]. This culture, which cultivates overwork, is seen as detrimental, as it “kills the gene of entrepreneurship, hard work, and work ethic” [00:02:53]. This decline in the culture of hard work over the last decade is considered a significant factor hindering entrepreneurial development [03:09:00].
The Domestic Market Trap
Unlike smaller countries like the Czech Republic, Slovakia, Estonia, and Finland, which have developed world-famous technology brands, Poland’s large domestic market has been identified as a “trap” [04:00:00]. This large internal market has allowed Polish businesses to grow to substantial sizes within Poland without needing to expand internationally [04:08:00]. This changes the mindset of entrepreneurs, institutions, and government, as there’s less immediate pressure to export and compete on a global scale [04:37:00]. However, this is changing as the domestic market becomes insufficient for continued growth, forcing companies like InPost to look abroad [04:49:00].
Proposed Solutions: Deregulation and Systemic Change
To foster economic growth and a more competitive environment, several key deregulation and philanthropy in Poland proposals are being advocated:
- Presumption of Citizen Innocence in Administrative Disputes: A fundamental change proposes that citizens are presumed innocent in administrative disputes with the state, shifting the burden of proof to the state [01:21:00]. This aims to protect citizens from bureaucratic overreach and simplify interactions with the state machine [01:59:00].
- Enforcing Instructional Deadlines: Polish law contains over 20,000 instructional deadlines, which state bureaucratic machines fail to meet in over 80% of cases [02:07:00]. Proposed changes suggest that if these deadlines are not met, there should be “tacit consent” from the taxpayer for the decision to be issued [02:37:00]. This would unblock the energy of entrepreneurs, citizens, and scientists [02:35:00].
- Speedy Trials and Judicial Reform: The right to a speedy trial, a constitutional principle, is often not met due to long delays in obtaining hearing dates [02:57:00]. Simple provisions are proposed to prevent 70% of economic cases from reaching the courts at all, utilizing methods like KSEF enforcement titles, mediation, and notarial orders [02:19:00]. The abolition of “locational jurisdiction” would also allow cases to be handled by courts in smaller urban centers, reducing waiting times [02:42:00].
These changes are seen as crucial to creating the best possible conditions for creating and developing businesses in Poland, turning it into an “incubator for global projects” [02:47:00]. The belief is that businesses must first succeed domestically before conquering international markets, akin to Spotify’s growth from Sweden to global dominance [02:40:00].