Government adopts small-business policy
Prepared by the Industry and Trade Ministry, the document became official government policy earlier this month. It brings the country into line with similar policies in the European Union (EU) and could make the country eligible for further assistance under the PHARE program.
About two million SMEs, defined as businesses with up to 250 employees, currently operate in Poland and "employ about 60% of the labor force, generate almost 50% of the GNP and significantly contribute to budget revenues," the government policy asserts.
The document recognizes three significant barriers to development: an inadequate taxation system not conducive to SME activity, poor credit conditions and incoherent legal regulations governing the principles of conducting economic activity.
Under the plan the Finance Minister has until the end of this year to complete work on a new draft law on business taxation. In addition, the Industry and Trade Ministry has until mid-1996 to prepare an industrial law, designed to supersede the wide range of "constantly changing," contradictory and "often incoherent" laws being submitted to the legislature by various conflicting segments of society.
The Finance Minister has two years to come up with an enhanced system of credit guarantees, designed to overcome the widely recognized inadequacies of the current banking system at providing loans for small, entrepreneurial companies. The system will be based on the credit guarantee fund for SMEs established last year by the Bank Gospodarstwa Krajowego and mutual guarantee funds, to be administered by local governments.
About two million SMEs, defined as businesses with up to 250 employees, currently operate in Poland and "employ about 60% of the labor force, generate almost 50% of the GNP and significantly contribute to budget revenues," the government policy asserts.
The document recognizes three significant barriers to development: an inadequate taxation system not conducive to SME activity, poor credit conditions and incoherent legal regulations governing the principles of conducting economic activity.
Under the plan the Finance Minister has until the end of this year to complete work on a new draft law on business taxation. In addition, the Industry and Trade Ministry has until mid-1996 to prepare an industrial law, designed to supersede the wide range of "constantly changing," contradictory and "often incoherent" laws being submitted to the legislature by various conflicting segments of society.
The Finance Minister has two years to come up with an enhanced system of credit guarantees, designed to overcome the widely recognized inadequacies of the current banking system at providing loans for small, entrepreneurial companies. The system will be based on the credit guarantee fund for SMEs established last year by the Bank Gospodarstwa Krajowego and mutual guarantee funds, to be administered by local governments.
