Transcript High-Employment-Growth Firms in Poland Determinants and policies Ministry of Regional Development - 6 November 2015

High-Employment-Growth Firms
in Poland
Determinants and policies
Ministry of Regional Development - 6 November 2015
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Key points
• High-growth firms in Poland
• Local determinants – operation conditions,
expectations, competitiveness and innovations
• National and local policies
• Policies vs. determinants
Ministry of Regional Development - 6 November 2015
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High-growth firms in Poland
– firms which achieved average
annual increase in the
revenues of 20% or more in
the period of 3 years (CSO)
– enterprises with average
annualised growth greater
than 20% per annum, over a
three year period  growth
can be measured by the
number of employees or by
turnover (EUROSTAT)
35
% share in total number of firms
• Statistical definitions:
30
25
30,6
20
27,9
28,8
15
10
12,0
5
14,6
13,1
12,2
8,6
13,8
13,5
8,2
10,2
0
hi gh-growth
fi rms
growth fi rms
s tabl e fi rms
2007
2008
decl i ni ng
bus i nes s es
3,6
2,3 1,8
compa ni es of
ra pi d decl i ne
2009 Source: own work based on CSO 2011
• Definitions do not fully embrace the employment aspect and
innovativeness
• Too rigid to provide more detailed data or to analyse the
determinants for their creation and operation
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Local operation conditions for enterprises
Encountered difficulties (enterprises functioning between 2005-2010)
Demand difficulties (% of enterprises)
100
60,8
80
24
legal persons
86,9
90
69,4
70
12,2
60
3
53,9
50
24,7
30
52,1
20
natural persons
0
9,9
insufficient funds too severe market price reduction by
of the clients
competition
competitors
2,0
Factors to be influenced
by local public policy
70
10,1
60
2,1
other reasons
79,2
80
34,4
enterprises
insufficiently
known on the
market
Supply difficulties (% of enterprises)
90
53
all enterprises
11,0
10
35,5
50
37,2
40
0
10
20
30
40
50
60
70
No difficulties
20
Demand difficulties
10
Supply&demand difficulties
Supply difficulties
27,1
30
21,0
17,6
10,7
7,5
0
inadequate
technology
insufficient difficulties in
financial
collecting
resources receivables
limited
access to
loans
shortage of
raw
materials
shortage of
qualified
workforce
other
reasons
Source: own work based on: Creation and operation conditions, development prospects of Polish enterprises
established in the years 2005–2009, CSO 2011
Ministry of Regional Development - 6 November 2015
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DETERMINANTS
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Companies’ expectations towards public policy
Types of services which the companies need (survey)
90%
2,5%
27,6%
3,2%
5,3%
2,5%
5,3%
10,3%
14,6%
1,7%
8,0%
4,9%
13,3%
17,8%
80%
70%
50%
2,0%
5,0%
16,2%
23,3%
36,0%
38,1%
60%
2,1%
9,5%
DETERMINANTS
100%
32,3%
41,6%
41,8%
37,6%
35,9%
40%
30%
29,1%
17,3%
20%
10%
43,2%
44,4%
35,9%
30,6%
29,1%
16,8%
14,9%
0%
launching
economic
activity
definitely interested
external
financing
development protecting the
cost
by innovation environment optimisation
rather interested
rather not interested
preventing
bankruptcy
project
accounting
definitely not interested
not sure
A study of services and clients of Consulting Centers, PARP, 2010
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Local determinants in PL
Challenges to policy makers
DETERMINANTS
• Spatial variations in SMEs, entrepreneurship activity, business
climates and business performance among 16 regions in PL (not
to mention the local level)
• Some factors not embedded in local context
• Need to adjust local policies to diverse and varying needs
• Finding the proper balance in national-regional-local delivery
of entrepreneurship/ SMEs development policies
• Urban-rural contrasts pertaining – rural area 90% of the
country with 40% of population, 16% employed in agriculture
• Crucial role of foreign direct investments at local level
Ministry of Regional Development - 6 November 2015
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Innovative enterprises – barriers or determinants
Economic
• Insufficient own financial resources (industry: 31,8%; services: 24,1%)
• Insufficient external financial resources (industry: 26,9%; services: 21,3%)
• Innovation costs perceived as too high (industry: 34,2%; services: 27,4%)
DETERMINANTS
Knowledge-related
• Lack of qualified HR (industry: 14,6%; services: 13,2%)
• Insufficient information on technology (industry: 12,4%; services: 12,3%)
• Lack of information on the markets (industry: 11,8%; services: 11,4%)
• Difficulties in finding partners for innovative cooperation (I: 16,7%; S: 14,5%)
Market-related
• Market controlled by dominating companies (industry: 21,1%; services: 19%)
• Unsure demand for innovative products (industry: 21,7%; services: 18,4%)
Other
• Innovation implemented in previous years (industry: 14,4%; services: 14%)
Innovation activities of enterprises,
• Lack of demand on innovation (industry: 14,8%; services: 15,1%) Source:
CSO, 2011
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Innovative and competitive enterprises
• Personnel policy and HR management in the company
• Expectations from employees – stereotypes, attitudes
• Organizational culture – flexicurity, pro-family policy, external
expertise, talent and competence management
• Leadership
• Motivating for ideas and innovations
• Attitudes - conditions, possibility to develop, remuneration, free
flow of information, appreciation
• Employees’ qualifications and skills – qualified managers,
approach to training, (low) participation in E&T, empowerment
CONCLUSION: significant part of these social determinants might be
(and are) shaped by public policies – e.g. ESF measures
Social determinants of the innovative character of the enterprises, Pentor Reasearch Intl, 2008
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DETERMINANTS
Social determinants
Innovative and competitive enterprises
Employees’ qualifications
Competitive advantage on the local market and competences of employees
(results of the survey)
8,5
DETERMINANTS
8
7,5
7
6,5
6
5,5
5
language skills
ICT skills
week competitiveness
employee's
identification
with the
company
ethics and
values
moderate competitiveness
ability to
ability to
ability to
cooperate with cooperate with cooperate with
external
collegues
the superior
entities
strong competitiveness
dominant position
Education of employees and the competitive position of enterprises, PSDB, 2010
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• Polycentric urban framework – metropolies being the driving force of national,
regional and local development
• PL strategic approach to regional/ local development - defined in the National
Strategy of Regional Development – ‘new paradigm of regional policy’
– The best use of development potential
(esp. endogenous) of the cities as subregional centres
– Intervention accompanied by with
measures consisting in the dissemination
/ diffusion of development process to the
less developed centres and establishment
of absorption potential
– Establishing competitive advantage of less
developed areas
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NATIONAL AND LOCAL POLICIES
Polycentric development model – policy approach
National and local policies supporting HGF
Public services for
SMEs (KSU)
Tools supporting
innovative companies
Grants
Investor assistance
Venture capital
Information
services
for investments
PAIiIZ
Cluster policy
Bottom-up approach
Pro-innovation
services
for employees
training
Regional Investor
Assistance Centres
Special Economic
Zones
Commercialisation
Technology audit
for launching
economic activity
Grants for launching
R&D activity
Technology transfer
process
for new technology
implementation
Grants for innovative
activities
Financial services
for e-commerce
loan funds
for international
cooperation
loan guarantee funds
for export activity
Pilot services
for social enterprises
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NATIONAL AND LOCAL POLICIES
Public policies
• Effective coordination essential if policies are to be efficient in
achieving given objectives and addressing the right target
groups
• Providing coordination mechanisms for:
–
–
–
–
–
–
National and regional OPs
KSU network
National and regional innovation policies
Loan funds and loan guarantee funds
Cluster policy
Social enterprises
• Need for a more active role of business support institutions and
a more coordinated partnership of public, private and third
sector organisations supporting the enterprises (learning
ecosystem)
Source: Poland Key issues and policies, SMEs and entrepreneurship in PL, 2010, OECD
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NATIONAL AND LOCAL POLICIES
Challenges for national and local policies in PL
Developing innovation potential and competitiveness
NATIONAL AND LOCAL POLICIES
Determinants influenced at local level by instruments provided by
national authorities financed by national or EU funds
Human capital
ICT usage
Promoting
flexicurity,
modern mngt.
systems
Innovation
potential and
competitive
advantage
Promoting
cooperation
among
companies
Financial support
Ministry of Regional Development - 6 November 2015
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Local determinants
• PL regions and cities economically attractive, esp. in the period
of economic slowdown and financial crisis
• Poland indicated as top potential investment destination for FDI
projects in Europe (2010 Ernst & Young European Attractiveness Survey)
• Financial resources having crucial impact on companies’ growth –
the main determinant and barrier in launching economic activity
• Local authorities focussed on attracting and embedding foreign
investments and supporting entrepreneurship
• FDI perceived in local societies as the key to improving the
situation of local labour markets and economic development
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POLICIES vs. DETERMINANTS
The role of foreign capital and business environment in PL economy
Local determinants – case study
The role of foreign capital and business environment in PL economy
Entrepreneurship
1 860 do 2 200
1 500 do 1 860
1 140 do 1 500
780 do 1 140
420 do 780
Distribution of foreign investments
Number of companies with foreign capital in poviat
20 500 do 20 600
800 do 20 500
200 do
800
100 do
200
0 do
100
Economic growth
GDP per capita in NTS 3 (in PLN)
70 100 do 105 400
38 400 do 70 100
27 000 do 38 400
23 300 do 27 000
19 300 do 23 300
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POLICIES vs. DETERMINANTS
Number of economic entities per 10,000 inhabitants
Local determinants – case study
Stable economy based on
Niepolomicka Investment
Area and the local
economic potential
Further development of
the investment area
Provide favorable
conditions
for development of
local entrepreneurship
Strengthening the
economic brand of
Niepolomice
Institutional support
system for start-ups and
the already existing SMEs
Ensuring high quality
space for the
development of local
trade and services
Provide support for the
preservation of traditional
forms of management in
agriculture
Ministry of Regional Development - 6 November 2015
Improving
communication
functionality and
accessibility
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POLICIES vs. DETERMINANTS
The role of foreign capital and business environment in PL economy
Niepołomice – strategic approach to entrepreneurship
Local determinants – case study
High importance of foreign capital in PL economy - example
Niepołomice Investment Area (NIA)
POLICIES vs. DETERMINANTS
• NIA attracting the highest volume of foreign investments in PL
and in Malopolska – 2,3% of all Polish investments in 2009-2010
• USD 283 mio invested in 1989-2010, incl. USD 45,8 mio in 20092010
• Investors: Coca-Cola, Woodward Governor, Kreisler, Staco, Silgan
White Cap, Royal Canin, MAN, Nidec
• Investors from the USA, Japan, Netherlands, Germany from
different sectors
• High impact of FDI on local economy - employment rate (45%
increase in the no. of job places), unenployment (decreased by
19%) and local entrepreneurship (33% increase of the no. of
enterprises)
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Thank you for your attention!
Ministry of Regional Development
Department for ESF Management
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