The risk of running a business in Poland
Every future entrepreneur who plans to start a business must take into account the dangers that lie ahead. The risk associated with running your own business is an element of the market game.
For foreigners, this topic should be particularly important, due to the fact that activity in new, often unknown market conditions may pose many risks.
Business activity in Poland is influenced by market factors (otherwise systematic) that result from legal, political, economic and global conditions. This risk is beyond the control of the entrepreneur.
There are also individual factors that the entrepreneur can influence (eg change in demand or availability of materials).
When conducting business, we must pay particular attention to the following types of dangers:
– currency risk, or exchange rate risk – concerning unfavorable changes in foreign exchange rates, this risk may result in loss of funds, in the case of entrepreneurs who cooperate with contractors and clients from other countries, this factor should be particularly important for foreigners who have decided to run your business in Poland,
– economic risk – is associated with the danger of obtaining worse results than those planned, in this case we deal with the so-called revaluation,
– insolvency risk – this is the risk of losing financial liquidity, which is defined as the ability of the entrepreneur to pay liabilities on time,
– market risk – is related to the current or forecast economic situation for a given industry, it manifests itself in the possibility of changes in the price of materials, raw materials,
– operational risk – the possibility of a loss due to, for example, machine breakdowns, computer software,
– financial risk – is related to the structure of financing sources of the company’s assets, in particular, changes in interest rates on loans and advances granted can be included,
– political risk – refers to political changes affecting companies, for example the amount of taxes – for this type of risk the entrepreneur, especially non-resident, has no influence (if persons of Polish nationality have the opportunity to influence the power of the Republic of Poland through participation in elections, referendums – foreigners living in Poland are deprived of this right),
– cultural risk – is associated with the specificity of a particular culture, community or religion.
Every responsible entrepreneur or a person who is just planning to start a business should take actions that will lower the risk level and thus affect the achievement of success.
Every company that operates effectively and focuses on its development should thoroughly analyze the market and its dangers. Awareness of their occurrence allows such directing with their own activities, so that they can be partially saved from them.
Bearing in mind the multitude of dangers, and the fact that their analysis often requires specialist knowledge, it is important to use the services of companies that professionally deal with the protection of their client’s interests. In this way, the entrepreneur can focus on the “core” of running his business, and the issues related to market analysis and lurking dangers are entrusted to specialists.