Businesses invest in areas that value cooperation, education
Polish cities and regions are becoming increasingly diversified in terms of their business climate and overall attractiveness to investors, according to research gathered by City Guide Polska.
The criteria that a business uses before investing in a city is location, the cooperativeness of local officials, the skill level of employees, as well as infrastructure and entertainment options, businesspeople said. While the majority of cities more or less meet these needs, others are lucky enough to have born with a few advantages. Warsaw, for example, houses the federal government's offices and many company headquarters. Krakow, which is renowned for its charm and intellectual life, has a mass of entertainment options and a pool of young, skilled employees. Poznan is superbly located midway between the capital and Berlin. And the Silesian region is home to the country's largest special economic zone, where investments are tax exempt for the first 10 years. At the other end of the scale is Radom, a city famous for the violent protests of its Lucznik factory, a producer of military gear, and its own brand of hooligan, the "dresiarz" (sweatsuit wearer).
The City Guide Polska survey asked local businesspeople to rate their city in terms of overall business climate and attractiveness. Gliwice, Gdynia and Wroclaw scored at the top of the cities evaluated with marks of 8.4, 8.1 and 8 (on a scale of 10) respectively. Radom received a mark of 3.1, while Warsaw mustered up a mediocre 6.5.
Gdynia has the advantage of belonging to the northern Tri-city region, along with with Gdansk and Sopot. Gdynia's administrative office is also well known for its quick decision making, said Michal Gorski, president of the Pomeranian Chamber of Commerce. Radom, however, is haunted by its city officials' lack of a unified long-term investment plan and its citizens, who lack business initiative, said Zenon Madej, director of the Radom Area Chamber of Commerce.
Warsaw's relatively low score was mainly due to complaints about the uncooperative nature of its officials and poor infrastructure. "The cities that are not so developed are more concerned with how to attract investors," said Patrycja Smolenska, director of residential sales at AIG/Lincoln, a real estate developer.
Investment strategies used to develop certain cities were also important in evaluating their business climate. The lack of a plan discourages potential investors and blocks the way for investment, said Madej, citing Radom as an example. Other cities claim to have long-term investment strategies. Warsaw is focused on the financial sector and education, according to Jerzy Guz, deputy to the mayor of Warsaw. Krakow officials consider tourism and high technology as investment priorities, Mroz said.
City officials attempt to use other methods, such as city promotions, to attract investment. Krakow, for example, is involved in its "Krakow 2000" program, which spotlights the city as one of the cultural capitals of Europe. Wroclaw has launched a media campaign through billboards and articles in international papers. Gdansk created a great stir with its "Family portrait of Gdansk inhabitants at the turn of the century," which will soon be included in the Guinness Book of Records. Such activities were unheard of in Poland a few years ago.
In the eyes of businessmen apart from a city's ability to self-promote and its cooperative officials it's the people living in a particular city that matter, both in terms of their education and "entrepreneurial spirit." Soltysiak stressed that the attitude of Poznan area residents is one of the key factors in making the city so successful in attracting investment, such as Hochland, a producer of dairy products and the WBK bank, which is moving its headquarters into the region.
Moreover, Poznan was the first city to introduce an economic "sejmik," a small body of officials that helps integrate businessmen into the region, Soltysiak said. Gdansk also has an economic sejmik and prides itself on its entrepreneurial attitude, Gorski said.
Warsaw is the most successful city in terms of attracting a highly skilled, ambitious workforce. However, the competition for jobs is high and there's a clear trend to continually improve skills, Smolenska said. "If one just looks at different CVs, each person has many faculties and is still learning," he said.
Naturally, the education and skill level of potential employees affects a city's business climate. Therefore, academic centers in Krakow, Wroclaw or Poznan have an advantage over other cities. "Krakow's prospects lie primarily in its scientific potential," Mroz said. The city brought itself even more favorable conditions through its special economic zone. The Krakow Technology Park, which is located within that zone, offers hi-tech industry investors a decade-long tax holiday. The Wroclaw Technology Park is also looking to attract hi-tech industry as well as laboratories with research and development arms.
