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Why enter the Polish market now? (02-01-12)

Why enter the Polish market now? (02-01-12)

Having avoided the recession that plagued the rest of the countries within Europe in the last decade, the market situation in Poland is currently seeing a steady rise in its economy due to its successfully programmed domestic market and is considered to have the most stable ones among countries that were put under Communist regimes in the past. In many areas of the world stage, Poland has been known for its many contributions ranging from various talented scientists, writers, musicians, including a well-renowned pope from the previously turned century. The country is situated in central Europe sharing the eastern borders with Ukraine, Belarus and Lithuania; Slovakia and the Czech Republic to the south; Germany to the west; and also the Baltic Sea on the northern part of the country, together with the political territory of Kaliningrad Oblast which is under present-day Russia. It has voted to join the European Union in 2003 and officially became a member the following year, leaving behind it the remnants of a government that was largely infused with Communist ideals and leadership. The country had been recognised as a full member of the Northern Atlantic Treaty Organisation (NATO) in 1999 as well as important world organisations including the World Trade Organisation, Organisation of Economic Co-operation and Development (OECD), and the International Energy Agency among several other memberships.

Poland at present has a population of 38 million people comprising mainly of 96.7% natural-born Poles and about 3.3% foreigners scattered throughout various industries such as agriculture, coal, steel and mining, privatized businesses, large telecom firms and financial institutions coming from foreign direct investments; is ranking very highly in terms of their Human Development Index, placing at the 39th spot among the rest of the countries of the world.
Poland had initiated in the 1990s trade liberalisation methods to steer entirely away from what they have grown used to previously under the rule of Communism and since then it has achieved high GDP status with rapidly increasing demands for market-based jobs. Although many Poles have travelled around Europe to find jobs and alternative opportunities, this scenario is neither a reflection of nor have a direct correlation with the current unemployment ratio in the country. As a point of reference, in May 2006, the unemployment rate went from 14.2% down to 6.7% in August 2008. The country’s economic boom has strengthened the Polish currency and the level of domestic unemployment is rather quickly diminishing; which has seen also an inflow of migrant workers from Asian countries and the neighbouring Easter European ones.
Within the last 10 years, Poland has maintained a record of rising economic growth of 3.7% annually in 2003; a GDP growth of 5.4% in 2004, 3.3% in 2005; and in 2006 a rise of 6.2%. Additionally, Poland had claimed the top spot in 2009 for having the highest economic GDP; also it surpassed in 2010 the economic development activities that of the Netherlands, placing the former on the sixth spot out of all the countries in Europe being an important economy to watch out for. Quite obviously, these data could bring in greater potential in the country’s market growth and expectations for near future would be that the country could possibly join the Euro zone before the year 2016, due largely to their strict observance of measures in order to qualify in their bid to implement the Euro currency. As for their currency information, Poland is currently using the Polish złoty which is approximately 0.225 to a euro/0.295 to a US dollar, and subdivided into 1/100 groszy with an average inflation rate of 2.6% as of 2010.

International and Foreign Relations
As a strategic arm in central Europe, Poland has enjoyed relations with its neighbouring countries as well as provided important contributions for the various organisations in which the country had joined to help develop and support in terms of security, protection, and conservation ideas. This central European country was able to repair their government system and social order soon after several decades of occupation by the former Soviet Union. Although promised of their democratic freedom and having established People’s Republic types of government, many Poles have been restricted of what democratic freedom might mean and have largely identified the country among others as a member of Communist-wide ideals due to various persecutions and imprisonment of freedom fighters at the time. It was only until a more solid form of resistance known in history as the Solidarity labour movement, created just before 1990 that Poland has finally come to terms with the real meaning of a proper system for the people. The first law-making system was then formed and eventually became the major cause that toppled the existence of Communism in the country, and eventually broke loose the chains of dictatorship across countries in Europe.
Poland after having officially been accepted into the European Union in 2004 provided its citizens freedom in crossing the borders of other countries with definitive ease. The signing of The Schengen Treaty gave such kind of fluidity in the flow and influx of Poles into and out of member countries; although it had also placed Poland in a very crucial position that would test its political strength as for the country’s quite strategic location within the European continent. As a matter of fact, Poland has to prove their position within the European Union; it must serve either as a gateway or a stronghold against the possible entry of non-European member countries such as Belarus, Russia, and Ukraine and it is the duty of Poland to protect member nations against the countries which are not politically privileged to benefit out of lack of membership in the European Union.

Political Outline of the Country
Poland observes their established 1997 Polish Constitution in which contains their various democratic freedom and rights, the country being a parliamentary representative democratic republic which allows a president to be elected by popular vote and to serve a 5-year term to become the head of state. Meanwhile, the Prime Minister works alongside the elected president, primarily by heading several parties as well as the government issues and operation. The legislative body of Poland consists of the Senate and the lower chamber, with the former being called the Senat having 100 elected members and must fulfil a 4-year term; and the other chamber traditionally called the Sejm that is housing 460 members with the same duration of office term.
The president has some discretionary and singular powers to exercise in convening Cabinet Assembly and could also assign the official people who will be sitting on the judiciary levels, such as First President of the Supreme Court or the President of the Constitutional Tribunal, and so on, even without the approval from the various branches of the government nor would he need the signature of the Prime Minister in order to pass a bill. Even though mostly representative in terms of roles, a president is able to dismiss certain officials within the lower chambers, as well as he could call on them to assign a credible person who could take on the role of President of the National Bank of Poland.

Investment Climate in Poland
Highly regarded as a potentially powerful economy with its virtually clean record of being a recession-free country in the past decade, Poland is definitely the fastest rising country for its market-based employments as well as having flexible monetary reserves. Unlike many other countries that thrive in export and import industries, Poland has long enjoyed the benefits of independence from any of it and largely due to privatization of banks and financial sectors, where the country is known to have the widest network of banking institutions around the region in Europe. The privatized sectors have secured the country’s stature in the field of banking, financial investments and development of the local trade such as agriculture, railway system, coal energy consumption, as well as the massive success in the telecommunications industry. In fact, one astounding privatizing business deal the country had undertaken was the selling of the Poland’s largest telecoms network to a private French firm, thereby boosting the stock market profitable shares of the country’s principal bank by up to 30%. This continuous assertion of the government’s plan of centralizing the economy has been evidently well-received and already benefiting a lot of the industries in Poland.
The Warsaw Stock Exchange is on the lead among its contemporary European counterparts in terms of foreign investments. What could be seen in the financial industry is that the number of privatized organizations had lured foreign investors to buy shares and profitable markets within Poland. In effect, this action had led into leaving only just about 5 Polish banks, which might have been overcome in terms of position, but it had actually introduced and encouraged competitiveness within the said sector. While there are 600 network banks all over the country, the FDIs run more than half of the countrywide banking assets and business interests.
Multinational foreign companies have taken advantage on this kind of investment climate since Poland had applied a shock therapy to its economy back in the early days of Post-Communist era and most especially during the time when the country finally joined the European Union and opened its borders widely to member nations. However, no matter the rise in the area of banking and investments, FDIs could have more extensive access to Poland’s resources, however, since Poland have yet to meet the stringent requirements set by Euro zone in order for the country to join in the single currency unit projected sometime before 2016. For the meantime, many FDIs see this case as a sort of hindrance to investment on a wider scale, which is not only the issue at present. The other challenge is that there have been many concerns arising between the private employer and the employee which the government has been quite laid-back about and incapacitated to bring the kind of settlement that is equal to both parties; there has just been a total lack of regulation on this part to protect the interests of investors, such that the country found itself down the bottom pile according to the OECD in terms of the political will needed to resolve these ongoing issues.
In relation to that, there is also a study which came out saying that with the joining of several more countries in the European Union in the recent years, FDIs are also seeking other avenues and fresher economies that are potentially going to boost businesses. However, this decline in Poland’s indispensability has only been temporary as its domestic market only continues to rise on top of its game until their eventual unification with the European single currency in a few years, and therefore Poland will be using the Euro currency which will eventually make business dealing much easier in the country.
Despite the mentioned setbacks, domestic and foreign workers alike have an average salary information of PLN3,848 or roughly around EU1,012 as of late 2010; which is roughly equivalent to USD1,374 and this average is actually on the rise more than ever. As for the capital city of Warsaw, the average salary information is at PLN4, 603 or EU1, 177/ USD1, 680.
Moreover, study conducted by a widely respected Swiss multinational financial service provides a glimpse into the fiscal standing of Pole workers in relation to their European neighbors – they actually come in closely next to the Czechs in terms of earning capacity and accumulation of wealth; in which case makes the unmistakable impression that jobs and opportunities are not scarce in this emerging powerful central European country. Also, the GDP per capita of Poland had reached a high 61% in the overall standing of European countries in the last couple of years.
Additionally, a survey by a British research firm discovered that Poland has one of the rapidly growing markets in internet access and making online purchasing. The potential buying power and wealth of many Pole consumers is said to be a factor in this kind of activity. With as much as 63% of the population having online presence and purchasing being done, it is no surprise the country exceeded Italy, Spain or any the other European countries in terms of being the big online buyers; Poland is currently at the fifth place in terms of doing huge online market activities along with other online big spenders that came out in the study, including the UK, Germany, and Denmark. And in this light, many FDIs and small and medium private enterprises look at this advantageous and potentially profitable opportunity for market entry by telemarketing and generating sales done online.

Benefits of Using Telemarketing and Telesales
With the internet and the potential of Poles for purchasing within their maximum capacity, as well as the foreign direct investors that hold much of the country’s business interests, while keeping the economic activities competitive and flexible, telemarketing plays a vital role for all these activities to be put into order. As we all know, telemarketing is an organized process of business-to-business and business-to-customers relations for businesses especially coming into a robust economy such as that of Poland’s and also, it is way of introducing businesses to like projects within the country. And these telesales could be possibly done in the language of the prospective business wanting to set up their local business with an entrepreneur that speaks the Polish language in order to find lead sales immediately without the language barrier to deal with.
Why Setting Up Business With a Telemarketer in Poland Is More Beneficial
With the present market situation in Poland, the quicker a potential investor gets its act together, the easier to get market entry into Poland and this goal could only be achieved by an established telemarketing company, such as the Danish company called Dania International. They have long been in the telemarketing and telesales projects in countries such as Lithuania and Poland, employing only the most dedicated telemarketers to organize the business of their clients. Partnerships and trust take a little while to build up, which is why to save precious time, a business investor only needs to seek the most reliable and knowledgeable telemarketing group especially as they enter into the currently strong domestic market of Poland.
Dania International helps in selecting the potential customers the exact way that a business investor wants and efficiently gives them the option to select, approach, generate a lead, deliver, and also write a report for the investor. There are no complicated processes for the investor; being a valued client of Dania International, they would virtually have less to worry about the activities and instead focus on the more important aspects of their business. The company has telesales projects all over various European countries including Russia, Ukraine, Lithuania, Denmark, and of course Poland.
The whole process generally helps in keeping an investor away from the long red tape which they might not want to deal with since Dania International could provide such stellar telemarketing services for them and they have actual experienced sales people that could do the face-to-face meet-up in behalf of the investor. Needless to mention, letting the expertise of telemarketers do all the legwork of any business at market entry in Poland is so much more practical, affordable, reliable, convenient, time-savvy, and also organized as it should be.
The rising market potential of Poland adding to the huge possibility of its impending entry into the EU is going to increase sharply in the coming years; therefore companies from other countries should be able to strike while the iron is hot and there is no other perfect and most favorable time to do that than right.


Dania International S.M.B.A. * Raadhuspladsen 16 * 1550 Copenhagen V * Denmark * Telephone: +45 70272677 * Skype: dania_international * VAT: DK34048142

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