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Why Expand to Poland?

With bilateral trade and contacts growing between the UK and Poland, and Poland's new found status as one of the most attractive locations for foreign investments, there are many reasons to consider starting up a business in Poland. This country has suffered economically in the past but has a new found freedom and a new lease of life. It has gone from strength to strength since joining the EU and continues to grow.

Whats the Attractions for UK Businesses?

The UK is Poland's fourth largest trading partner and Poland remains the UKs largest export market in Central and Eastern Europe. Things are on the up for Poland and UK businesses can flourish in this environment. Poland is attractive to the business community for a variety of reasons: it has an abundance of natural resources, an educated workforce and a positive economic outlook. Licensing or incorporating a business in Poland are also potential highly profitable options.

Business Opportunities

With Poland hosting EURO 2012, the European Football Championships, there is potential growth in the following sectors as the country prepares for the influx of people:

• Sport infrastructure - Three new stadia will be constructed and other three upgraded. 16 new training and accommodation centres will be established for the football teams

• Roads - 1650 km of express roads and 900 km of highways will be built/upgraded.

• Railways - Over 1,500 km of railways will be modernised

• Airports - Eight airports with the surrounding infrastructure will be expanded

• Hotels - Around 400 new hotels need to be constructed. Expansion of the tourist base by 75% needed in 6 hosting cities

Other areas of growth for companies interested in setting up a business in Poland include:

• Security - CCTV systems; innovative access control solutions including bio-metric technologies; vehicle and people recognition systems; stadia and cities' monitoring systems and handling of emergency issues of fire/terrorist threats

• Water - EU funds of EUR 6bn allocated for meeting environmental standards in 2007-2013

• Education & Training - EU funds of EUR 1bn earmarked for vocational education in 2007-2013. Opportunities for UK training providers, especially those providing certified vocational courses.

• Science & Technology - EU funds of EUR 9 bn allocated for innovative projects in 2007-2013

• Advanced Engineering including - Automotive: know-how in innovative production, design, technology transfer and re-manufacturing. Aerospace: research and technology transfers as well as advanced.

• Engineering. Engineering: purchase of new advanced technology engineering products facilitated by the availability of EU funds

• Power - reduction of greenhouse gases emission required

• Agriculture - boom in the organic sector

Main cities and potential places to start your business in Poland are:

• Warsaw

• Lodz

• Krakow

• Wroclaw

• Poznan

• Gdansk.

There are another 43 cities in Poland with a population of over 100,000 which means the large population is spend throughout the country.

Challenges Foreign Companies Face

There are many positive reasons for starting up a business in Poland but they are counteracted by potential risk such as having a turbulent relationship with its bordering neighbours, in particular Russia, and a bureaucratic governance system inherited from the days of communist rule. The importance of research just cannot be stressed enough. Before setting up a business in Poland, research your market area, your location, business form and potential finance. Having a well constructed business plan can be a vital tool.

Click here to Ask an Expert about Entering the Market in Poland