More Polish entrepreneurs suspend business in 2023: survey
Source：www.rp.pl
From：Taiwan Trade Center, Warsaw
Update Time：2024/03/30
The number of business suspensions in Poland increased in 2023 by 61 percent when compared to 2022, and by nearly 250 percent when compared to the pre-pandemic period, according to newspaper Rzeczpospolita, citing data from Dun & Bradstreet Poland.
In January 2024 alone, another 12.9 thousand decided to suspend their operations. Companies may undertake this pause in pursuing business activity more than once a year
The construction sector has seen the most cases, followed by trade, research and science, production, food service and hotel industries as well as transportation sectors.
“Thanks to such a decision (business suspension), they want to wait out the worst moment,” said Andrzej Faliński, president of the Economic Dialogue Forum, adding that many companies are overwhelmed by rapidly growing operating costs.
“That is why companies prefer, for now, not to make a drastic decision to liquidate their operations, which is irreversible. Suspension is a more flexible and delicate form,” he noted.
In 2023, nearly 53,000 construction companies were suspended, which is a 65 percent increase compared to 2022; 37,000 companies were suspended in the broadly understood trade sector last year, the survey showed.
A big surprise was the presence of e-commerce. With the fierce competition in the market, most businesses cannot handle it. In 2023 over 7,200 online stores disappeared from the web, with the number of suspended online stores increasing 49 percent from the previous year, cited Tomasz Starzyk, spokesman of Dun & Bradstreet Poland.
Some experts are more optimistic, predicting better prospects.
“There are probably no grounds to claim that this or that industry is doing exceptionally poorly, he adds, emphasizing that there has been no increase in unemployment during this time, which proves the strength and flexibility of the Polish economy, so there is no reason to worry,” said Jacek Tomkiewicz, dean of the College of Finance and Economics of the Kozminski University.
Source: https://www.rp.pl/biznes/art39970501-przedsiebiorcy-coraz-czesciej-zawieszaja-dzialalnosc-to-ucieczka-przed-klopotami