Polish microentrepreneurs are aware of the economic crisis. The majority of them are implementing anti-crisis measures and, despite the current situation, are pursuing their goals in a consistent way. These are the findings of a survey conducted by The Citi Handlowy Leopold Kronenberg Foundation in cooperation with the Microfinance Centre and TNS Polska.
The crisis is having an effect on all of us, including microentrepreneurs. Operating in the current business climate is particularly difficult for them, often due to a lack of the financial resources available to larger enterprises and corporations, says Krzysztof Kaczmar, President of The Citi Handlowy Leopold Kronenberg Foundation. Our studies also confirm the situation of microentrepreneurs: more than half of the respondents acknowledge that the crisis has adversely affected the functioning of their businesses.
A survey by The Citi Handlowy Leopold Kronenberg Foundation indicates that one out of four microentrepreneurs are trying to expand their firms during this time of crisis. A similar proportion declare a willingness to wait out a difficult period. A strategy of growth is most often chosen by companies in the manufacturing sector, and least often in the retail sector. The majority of the latter are focused mainly on maintaining their current position. It is worth noting that the growth-oriented microentrepreneurs more often than other segments seek out opportunities for geographical expansion. Nearly one out of four offer their products and services nationwide, and less than half (47%) in their immediate vicinity.
Their approach to the crisis undoubtedly has an influence on how microentrepreneurs view the future. The biggest optimists are those who have implemented anti-crisis solutions in their firms. Thanks to such preventive measures, they feel safe and see the future in bright colors. This is reflected in surveys. The mood among microentrepreneurs is now much better than a year ago. In 2012 as many as 40% of those surveyed were sure that the condition of their firm would get worse by year's end. Now more than two-thirds believe that they can maintain the status quo in the short term. Although optimism is undoubtedly growing, there are also pessimists. Those who fear the future the most are representatives of smaller firms as well as companies in the retail and production sectors. Most of them are thinking of reducing their operating costs. Interestingly, the cuts being considered for the most part do not involve job reductions. Given the current high rate of unemployment, this is extremely important.
The survey by The Citi Handlowy Leopold Kronenberg Foundation "Ways of Dealing with the Crisis in Microfirms" clearly shows that microentrepreneurs are not only capable of dealing with the economic slowdown, but are even taking advantage of this period to increase the profitability of their firms. They are increasingly aware of the adverse effects of the crisis and also know how to prevent them. In 2011, only 30% of microentrepreneurs decided to implement preventive measures. In 2013 this percentage doubled. This is particularly important given the fact that the smallest firms employ around 40% of the workforce and are a barometer of the national economy.
Key figures:
- More than half of microfirms (57%) report that they put an emphasis on company growth,
- One-third of microfirms (33%) are satisfied with the status quo,
- Nearly one out of ten microfirms (8%) fear that they will go out of business,
- 27% of companies report a wider range of products and services,
- 84% of micro-enterprises have kept their employment levels unchanged in the past 18 months,
- 61% of micro-enterprises are considering cost-cutting measures,
- More than one -third of companies (38%), especially those in the manufacturing sector, are planning to reduce investment expenditures.
