Polish entrepreneurs who have entered foreign markets are satisfied and want more. 97% are pleased with their decision to launch international operations, and 39% plan further expansion abroad in the next two years. This is primarily because they see more challenges to operating in Poland than outside its borders - according to the latest survey by the The Citi Handlowy Leopold Kronenberg Foundation.
Polish companies show a great willingness to expand beyond the home environment. Data from the Central Statistical Office (GUS) shows that as many as 65% of large companies and 47% of medium-sized ones engage in exports. According to a survey by the The Citi Handlowy Leopold Kronenberg Foundation, entrepreneurs operate on average in 7 countries, mainly in the European Union and its neighbors. Most often mentioned are Germany (57%), Russia (27%), France (16%) and the UK (16%).
Some Polish companies already deserve to be called multinational corporations - they operate in many different markets at the same time and play an increasingly important role in them - says Piotr Kosno, Managing Director, Strategic Clients Department at Citi Handlowy. Not only that, research shows that they have no intention of resting on their laurels - their goal is to expand further and to take increasing advantage of the new opportunities that are appearing in their market environment. More than one-third of them (39%) intend to gradually expand their operations in the next two years.
According to those surveyed, success is not dependent only on product quality or price. Achieving it mainly requires a good knowledge of the sector - for most companies the top priority is to obtain information about new markets. This can be obtained in different ways, e.g. through business partners and through publicly available materials regarding the economic situation in a given country (1/3 of respondents). Another key to success is undoubtedly qualified, experienced staff and partners (according to 47%).
It is precisely investment in human capital that is identified as the best way to deal with barriers to expanding abroad. One-fifth of entrepreneurs put macroeconomic factors, such as exchange rates, in first place, and also often point to foreign competition (18%). Interestingly, labor costs are not significant barriers for entrepreneurs in international operations, in contrast to Poland, where expenditures on employment are much more challenging. For 46% of those surveyed, labor costs are the main barrier to conducting business in our country.
Many respondents admitted that they also had a problem with management of their companies on the international market and with bureaucracy. However, at the same they acknowledge that there are no problems that cannot be solved. Foreign exchange risk can be minimized by balancing revenues in foreign currency with costs. Companies can also manage by accelerating or delaying payment deadlines (34%).
Banks have an important role in this process. More than half of the companies surveyed see themselves as players on international markets. It is due to banks that reducing exchange rate risks has become easier. Entrepreneurs can also obtain external financing for further investments as well as the necessary technical solutions for managing the liquidity of companies operating simultaneously in multiple markets.
Surveys by The Citi Handlowy Leopold Kronenberg Foundation are accompanying the first edition of the Emerging Market Champions Award. It is directed at Polish firms that are successful beyond the borders of our country. It aims to identify leaders of entrepreneurship who are expanding their operations in foreign markets - adds Krzysztof Kaczmar, President of The Citi Handlowy Leopold Kronenberg Foundation. The award ceremony will be held on October 2 at 12.00 as part of the European Forum for New Ideas during the panel discussion "How the World Competes".
