From the ‘Wild West’ Towards Europe: Change and Challenges in SMEs in Poland

Tadeusz Borkowski and Aleksander Marcinkowski

Chapter 11 in Change in SMEs, 2008, pp 185-200 from Palgrave Macmillan

Abstract: Abstract This chapter deals with the problems of formation and dynamics of the small- and medium-sized enterprise (SME) sector in Poland encountered during, and after, the period of state and market transformation, characterized as the gradual evolution from a ‘Wild West’ stage in the 1990s to ‘Europeanization’ at the onset of the new century. The evolution of this sector, together with that of the whole national economy, represents, however, more than just an economic transformation. We argue that it signifies the emergence of the country from a state of ‘civilizational backwardness’ that had resulted from long communist rule. An indicator of this ‘backwardness’ are data on innovations and patents of Polish firms, which reveal the distinctly better position of the EU-15 economies in comparison to that of Poland (and the other new member countries). Creating and using innovative potential will play a significant role in further transformations in the SME sector (but not only in this area). We shall define this notion of ‘innovative potential’ and describe how it has changed in Poland over the last decade. Polish SMEs are still burdened with numerous barriers to development, as well as by corruption. The development of innovative potential must be linked to the elimination of existing barriers and pathologies.

Keywords: Private Enterprise; Innovative Activity; Innovative Potential; Western Firm; Communist Period (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-22778-1_11

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DOI: 10.1057/9780230227781_11

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