Over the past three years, Ukrainians have made a remarkable impact on the Polish business landscape, with nearly 90,000 new businesses registered. Specifically, Ukrainians have opened 77.7 thousand sole proprietorships (FOPEs), accounting for 9% of all new enterprises registered during this period. Additionally, 11.3 thousand companies with Ukrainian capital have been established in Poland. This significant entrepreneurial activity reflects not only the resilience and adaptability of Ukrainians but also broader trends in Poland's labor market. The data provided by the analytical center of the International Employment Company Gremi Personal, with reference to the Polish Economic Institute, showcases the changing dynamics of entrepreneurship in the region.

In 2024, Ukrainian citizens registered 12% of all new FOPEs in Poland. Moreover, Ukrainians accounted for a massive 84% of all FOPEs established by foreign nationals. This surge in business formation can be attributed to a variety of factors, ranging from personal necessity to more favorable business conditions for immigrants, and points to a significant shift in the way Ukrainians are integrating into the Polish economy.

The Rise of Ukrainian Businesses in Poland

In the period between 2022 and 2024, Ukrainian entrepreneurs have consistently increased their presence in Poland. The number of Ukrainian enterprises registered annually has grown by an average of 34%, with the most popular sectors being construction, information and communications, and other services. These three sectors alone represent over half of the total registered Ukrainian businesses in Poland.

Among the Ukrainian businesses, the construction industry is by far the most prominent, representing 23% of all businesses. This is followed by information and communication services (18%) and other services (13%), which includes a significant number of hairdressing and cosmetic services. In fact, a striking 82% of companies in the "other services" sector are involved in providing hairdressing and cosmetic services. This highlights the strong demand for personal care and grooming services, which many Ukrainians have successfully tapped into.

The rapid growth of Ukrainian businesses in Poland highlights a few important factors that are shaping both the Polish economy and the broader European labor market. On one hand, it shows the remarkable ability of Ukrainians to adapt and thrive in new environments, turning their challenges into opportunities. On the other hand, it also reflects a shift in the labor market, where self-employment and entrepreneurship have become attractive alternatives to traditional employment.

The Shift Towards Self-Employment and Entrepreneurship

For many Ukrainians who were initially employed in Poland, starting a business has become an increasingly appealing option. This trend is fueled by a combination of factors, including restrictions on the labor market, the desire to utilize one’s skills and experience more effectively, and the opportunity to create a sustainable livelihood in a new country. The decision to open a business is often seen as a response to challenges in the job market, but it is also a way for individuals to gain independence and financial security.

One significant advantage of starting a business in Poland is the relatively simple and straightforward process of registering a sole proprietorship (FOPE). The Polish government has made efforts to encourage entrepreneurship, with streamlined processes for foreigners and a favorable tax regime for small businesses. These factors, combined with the presence of a strong Ukrainian community in Poland, have made it easier for Ukrainians to start businesses in sectors that are experiencing high demand, such as construction, logistics, and personal services.

Practical Advice for Aspiring Entrepreneurs

For Ukrainians considering starting a business in Poland, it’s important to understand the key steps and challenges involved in the process. While the business environment in Poland is relatively friendly, there are still hurdles to overcome. Here are a few practical tips for aspiring entrepreneurs:

• Research the Market: Before starting a business, it’s crucial to conduct thorough market research. Understanding customer needs, competition, and industry trends can give you a competitive edge and help you choose the right business sector. For instance, the high demand for personal services like hairdressing and cosmetics offers a lucrative opportunity for new businesses.
• Understand Legal Requirements: Familiarize yourself with the legal aspects of running a business in Poland. This includes registering your company, obtaining necessary permits, and understanding tax obligations. While the registration process for sole proprietorships is relatively simple, it’s still important to seek professional advice on legal matters, especially when it comes to taxes and employment law.
• Leverage Local Networks: One of the keys to success as an entrepreneur in a foreign country is building a strong network. Joining local business associations, attending networking events, and connecting with other Ukrainian entrepreneurs can provide valuable support, advice, and potential business partners. The Ukrainian community in Poland has proven to be a strong source of collaboration and mutual support.
• Start Small and Scale Gradually: Many successful businesses in Poland have started small and scaled over time. This approach allows entrepreneurs to test their ideas, refine their business models, and build a loyal customer base before expanding. It’s also a good way to manage risks and minimize financial strain during the early stages of business development.
• Be Prepared for Challenges: While Poland offers a welcoming environment for entrepreneurs, challenges such as bureaucratic hurdles, finding the right partners, and adapting to local business culture are common. Be patient, persistent, and prepared to navigate these challenges as part of the entrepreneurial journey.

Comparing Ukrainian Business Growth in Poland with Polish Business Activity in Ukraine

Interestingly, while Ukrainian businesses are flourishing in Poland, Polish businesses in Ukraine have a much smaller presence. As of February 2024, only 3,635 Polish companies were registered in Ukraine, which is 21 times fewer than the number of Ukrainian businesses in Poland. This stark difference in business activity between the two countries can be attributed to several factors, including the relatively limited market opportunities in Ukraine and the economic challenges the country has faced over the past few years.

Among the Polish companies operating in Ukraine, 31% are involved in wholesale and retail trade, while 17% are in the processing industry. Another 8% of companies focus on professional, scientific, and technical activities. Around 7% of Polish companies are involved in administrative and auxiliary services. The majority of these businesses are concentrated in Ukraine's largest cities, particularly Lviv and Kyiv.

The Impact of Migration on the Polish Economy

The growth of Ukrainian businesses in Poland highlights the broader impact of migration on the Polish economy. According to a study by the Forum of Responsible Development, Poland's GDP in 2023 would have been 2.3% lower without the influx of migrants since 2014. In the long run, migration is expected to contribute to a 12.5% increase in Poland’s GDP by 2050. This economic boost is largely driven by the skills and entrepreneurial spirit that migrants bring to the country, as well as their contributions to the labor market in various sectors.

Ukrainian entrepreneurs, in particular, have demonstrated a high level of resilience and resourcefulness, turning challenges into opportunities and helping to revitalize key sectors of the Polish economy. As the number of Ukrainian businesses continues to grow, it’s clear that they will play an increasingly important role in shaping Poland’s economic future.

The Future of Ukrainian Entrepreneurship in Poland

Looking ahead, the future of Ukrainian entrepreneurship in Poland seems promising. The demand for services in sectors such as construction, logistics, and personal services is expected to remain strong, providing ample opportunities for Ukrainian entrepreneurs to continue growing their businesses. Additionally, as Poland’s economy continues to recover and expand, the demand for skilled labor and innovative business solutions will likely create even more opportunities for migrants and entrepreneurs from Ukraine.

However, challenges remain. Navigating the bureaucracy involved in registering and running a business, finding the right partners for growth, and adapting to the Polish business culture can be daunting for new entrepreneurs. Despite these obstacles, the success stories of many Ukrainian entrepreneurs in Poland show that with the right support, determination, and business acumen, anyone can build a thriving business in a new country.

Conclusion

The growth of Ukrainian businesses in Poland over the past three years is a testament to the resilience and adaptability of migrants and their ability to contribute to the local economy. Whether by responding to labor market restrictions or by capitalizing on opportunities in various sectors, Ukrainians have shown that they can thrive in a new environment. As Poland continues to grow economically, the influx of Ukrainian entrepreneurs will undoubtedly play a crucial role in shaping the future of Polish business.