The results of research show that the situation in the sector of family businesses is stable. 57% of Polish and 70% of European family companies expect that the economic situation of their companies in the next few months will be very good or good. The share of family run business with negative approach towards their financial situation decreased at the end of 2014 and amounted to only 7% for Poland and 5% for European countries. Similar trend has been noticed regarding income and employment forecasts. The share of companies that have reduced the level of income and the level of employment declined in favor of those companies, which increased or maintained the income and employment at the same level. In Poland nowadays, only 15% of family business’ income is falling, while six months ago it was a problem of a quarter of such companies. Then, the reduction in employment occurred in every tenth company.
One of the parameters in which Polish family owned companies differ from European ones is doing business abroad. Only 45% of Polish family businesses operate outside the country, while in Europe 72% of family owned companies are global players. According to experts, such difference is caused by the lack of knowledge regarding foreign markets and the possibility of selling specific products and services abroad. Also a kind of fear towards global expanison has been notices. Many Polish family business feel much more confident in the domestic market.
Still, the labour market seems to be the biggest challenge for family businesses. 63% of Polish companies are worried about high labour costs (that‘s the increase by 8% comparing to previous research). As Wojciech Feet from KPMG Poland argues, hiring staff with appropriate qualifications is becoming a huge problem in the family business. This factor clearly shows an unfavourable change in the local labour market.
Source: Polish Infomation and Foreign Investment Agency
Photo © Anna Karahan