SMEs Not Borrowing Capital

Paying For It Alone

Paying For It Alone

Some 70% of Polish micro, small- and medium-sized enterprises do not make use of investment bankloans. Instead, these business finance their activities using their own resources or the resources of their owners. Although this is a safe solution for these enterprises, it inhibits economic development. If the average bank loan of a small enterprise, which today is PLN 25,000, increased by as little as PLN 5,000-10,000, the boost to GDP growth would be considerable. Apart from an increase in business bank loans, another impulse for economic growth would be an increase in the number of new companies. According to experts, the Polish government should focus its attention on facilitating the creation of new businesses, especially by young people. “Over 50% of young people living in the European Union are out of work. This means that if we do not create jobs for them, we must at least create the conditions for them to create these jobs themselves. This is the foundation and basis for growth,” according to Jacek Janiszewski of the Integration and Cooperation Association. We seem to be discouraging young people from setting up businesses because of complicated laws and procedures. “We need to stop seeing these citizens as potential criminals and help them,” adds Janiszewski.

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One comment

  1. bilunov77 · February 28, 2014

    Reblogged this on 50963182600013.


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