Paper

Study of the Financial Sector and SME Development in Poland

How can private sector growth be nurtured?

This paper explains the transition from a centrally planned economy to a free market system. Although expansion of the private sector has been dramatic, the rate of further development is constrained by:

  • Traditional business practices;
  • Lack of management and planning experience;
  • Cash flow problems;
  • Individualism;
  • Links between SOEs and the private sector;
  • Marketing, financial and accounting methods.

The paper concludes that:

  • The government should adopt a comprehensive policy in support of small and medium sized business;
  • Government activity should focus on removing constraints to SMEs that are within their control;
  • It will be necessary to receive continued support from foreign assistance agencies.

The paper makes the following recommendations:

  • Establish a new government institution in support of SME development;
  • Ongoing technical assistance should be provided to the new SME advocacy unit to transform policy guidelines;
  • Address the financial constraints to SME development;
  • Establish a selected task force of bankers, private sector entrepreneurs and government representatives to advocate implementation of financial recommendations.

About this Publication

By Heatly, B., Chrzan-Lanigan, C., Silverstein, C.
Published