5 reasons why you should NEVER invest in Poland
Lately, we have seen a lot of multinational companies, such as DLA Piper, Amazon or Whirpool (couldn’t miss this one, France?) transfer their back-offices or warehouses to Poland. This post-communist cold and grey place has for some strange reasons been attracting a lot of foreign investors, and they seem to be weirdly happy about it.
Here are 5 reasons why you should not follow their path, and not even consider Poland as an investment destination. Instead, just keep your business within the national borders, as it will save you from getting exposed to those risks:
- You risk opening your business to 500-million European market
Being 6th European country by its area, Poland is a home to 38-million consumers. Its central European location and strategic borders make it one of the most favorable markets in Europe. Moreover, it is where the main communication routes intersect, and recently it’s been announced that a new international airport with the initial capacity of 45 million passengers will be built. This would make it possible for you to export goods to all European countries and thus reach over 500 million consumers. Who would want that?!
- You will get spoiled by well-educated local workforce
Every year, the number of graduates of Polish universities increase. They account for 10% of all European students, with approximately half of the country’s youth going on to higher education. Moreover, meeting Polish university graduates will leave you speechless, as, besides regular courses, they have a tendency to do thousand extracurricular activities, involving associations, sports, languages, and side jobs. Don’t even think what such skillful workforce, who speaks fluently at least three foreign languages could do to your business.
- You will find it weird to find a modern office surface in the city centers
Another pitfall you might fall into when considering to open or extend your business to Poland is its office space. You risk finding the real estate search rarely easy, as modern stock in Warsaw totals approximately 5 million of sqr m, 34% of which is located in the city center. The even worse news is that the increasing developer’s activity has been observed in Poland over previous years and the trend is going to be continued. The reason to complain would also be a quality, as in each of regional cities we can find at least several A-class projects representing the highest global quality, which were completed in the last five years or are currently being developed. If you don’t want your premises to be certified as energy-efficient buildings, water saving, reduction of heat production and loss, and operating costs optimization, never consider Poland.
- You will get surprised that we still pay in zloties, and the shock will hit you, even more, when you find out its exchange rate
You say “what? we don’t pay in euros?”. To your surprise, we still hold to our national currency, zloties, although the negotiations with the EU has been going on for last 14 years. Poland’s independent currency has helped it weather crises and succeed. And for you, dear Investor, issues with us being so unfaithful to the Eurozone will definitely take a backseat as you realize that one euro is approx. 4,2PLN and your purchase power much stronger than in other economic powers. Yes, you read me well, all we talked about: excellent workforce and innovative office space for a relatively cheap price! The danger of falling for an idea of investing in Poland is even larger as you learn that Poland has been granted from the EU a record sum of more than EUR 82.5 billion for the years 2014–2020, which is currently the highest allocation in the history of the EU! Yes, aids equally available for foreign investors.
- Immersed in a vibrant entrepreneurial environment, you will exceed your expectations. And that’s scary!
Least, but not last, by investing in Poland, you might expose yourself to a dynamic start-up environment, filled with people with high ambitions and incredible drive. Such powerhouse might be nothing but dangerous, as it can expose you to new horizons, and make your business grow more than you have imagined.
Therefore, as you continue on thinking of potential markets for your business, do not consider Poland. Do not take a risk of joining Bertrand Touraton (Michelin-Poland), Richard Lada (Motorola-Poland) or Andreas Clinge (VW Motors), who are part of those 97% satisfied companies forced by their experience to speak highly about the benefits that Poland has to offer to foreign investors.