Polish companies not keen on new products - report

Only 10 percent of surveyed Polish entrepreneurs declare that they plan to launch a new product or service within the next year, according to Grant Thornton's International Business Report. This is the worst result of all the countries surveyed. It is also well below the EU and global average (33 percent and 31 percent respectively). The reasons for such low result is twofold. Firstly, Polish companies are raking in benefits of the current good economic situation, when there is a strong demand for already existing products, which makes the incentive to create new ones relatively small. Secondly, they expect that the situation is only temporary and the demand will weaken, which forces them to focus on optimizing the business in the current shape. The report said. Polish entrepreneurs attach great importance to saving and are eager to opt for optimization or restructuring. According to Grant Thornton, in the next 12 months, most companies will implement productivity enhancements (62 percent) and sales optimization (50 percent). By comparison, only 40 percent, plan to expand on the domestic market, and 32 percent plan to hire a talent search specialist. "Pessimistic sentiment among entrepreneurs regarding future financial condition, employees scarcity, and the uncertainties of the unstable business environment are not always conducive to the development of new products and services. Companies are most often focused on cost-effectiveness, while at the same time demonstrating a lower risk-taking tendency in the new product development process,” said Jolanta Jackowiak, Partner at Grant Thornton said.