Poland's economy is booming – and Ukrainians are helping | DW News

Key Concepts

• Poland's Economic Growth: 20th largest economy globally, projected GDP of €900 billion in 2025.
• Attractiveness for Entrepreneurs: Strong domestic demand, low unemployment, structured tax system.
• Ukrainian Entrepreneurship in Poland: Significant contribution to GDP (2.7%), presence since the late '90s, over 90,000 companies with Ukrainian involvement.
• Ease of Doing Business: Electronic government processes, straightforward company registration.
• Challenges: Raising capital can be difficult.
• Sectors of Growth: Tech (AI-driven mental health), manufacturing (doors, sliding systems), hospitality (pizza chains), innovative loan services, beauty salons.
• Cultural Proximity: Mentality and language understanding facilitate integration.

Poland's Economic Landscape and Entrepreneurial Appeal

Poland is positioned as the 20th largest economy globally, with a projected Gross Domestic Product (GDP) of €900 billion by 2025. This economic strength is underpinned by robust domestic demand and a low unemployment rate, creating an environment highly conducive to entrepreneurial ventures. A key factor contributing to this attractiveness is Poland's clearly structured tax system, which simplifies operations for businesses.

Ukrainian Entrepreneurial Integration and Contribution

The influx of entrepreneurs from Ukraine has been a significant driver of Poland's economic dynamism. Ukrainians have been migrating to Poland for work since the late 1990s, and their entrepreneurial presence has grown substantially. Currently, over 90,000 companies in Poland have some form of Ukrainian involvement. This presence is not new or exotic; as Alexander Bondar, head of PZO therapy, notes, "Ukrainian founders were present in Poland even before the war. So we are not some you know exotic entity here and everyone understands that yes we are Ukrainians but everyone proved already that Ukrainians can build businesses here can raise the money."

Ukrainian contributions are substantial, accounting for approximately 2.7% of Poland's GDP through their businesses, job creation, and investments. This integration is facilitated by a cultural proximity and linguistic understanding, as highlighted by Nikolas Nikovski, founder of Boky Group: "There is a place for Ukrainians here. The mentality is close to ours, and we understand the language."

Case Study: PZO Therapy's Relocation and Growth

PZO therapy, an AI-driven mental health platform, exemplifies the entrepreneurial migration to Poland. The company relocated from London to Warsaw in 2022, shortly after the full-scale Russian invasion of Ukraine. Alexander Bondar describes the process of establishing the company in Poland as "quite a straightforward process. It was easy. I think everything to do with the government is quite easy, quite electronic. So, I think it is very fair. Um, I believe that Poland is one of the better examples in Europe." PZO therapy has since grown to approximately 70 employees, predominantly based in Poland, and collaborates with over 500 licensed therapists across Europe. The company initially received support from the Google Ukraine Support Fund, followed by other accelerator programs.

Case Study: Boky Group and Diversified Ventures

Nikolas Nikovski, founder of Boky Group, moved to Poland with his family in March 2022. His company specializes in manufacturing doors and sliding systems, sourcing from five Ukrainian manufacturers. Beyond this core business, Nikovski has successfully launched diverse ventures, including innovative loan services in Africa and a beauty salon in Warsaw. He identifies Poland's strong economy and the disposable income of its population as a positive aspect, alongside the structured tax system. Within his own business empire in Poland, nearly 30 employees are locally based, with the majority being Ukrainian and other international staff, and only one Polish employee.

Expansion in Hospitality: Mimosa Brooklyn Pizza

The expansion of Ukrainian brands into Poland is evident across various sectors, including hospitality. Mimosa Brooklyn Pizza, founded in Kyiv in 2017, has opened its first location in Poland, replicating its original menu and design. This expansion is seen as a direct response to the arrival of people from Ukraine in Poland following the war. "I think it was established mainly in response to the arrival of people from Ukraine in Poland after the beginning of the war in Ukraine. They simply needed places where they can feel a little bit more at home," the transcript suggests.

Challenges and Opportunities

While Poland offers a welcoming environment and significant opportunities, raising capital remains a notable challenge for Ukrainian entrepreneurs. Alexander Bondar states, "I have to say that one of the harder part in Poland specifically is to raise capital." Despite this, Ukrainian entrepreneurs continue to expand their presence in sectors ranging from technology to hospitality, playing an increasingly vital role in Poland's economic growth.

Conclusion

Poland's economic strength, coupled with its structured business environment and welcoming approach to foreign entrepreneurs, particularly those from Ukraine, presents a compelling case for investment and business establishment. The successful integration and growth of Ukrainian businesses, from tech startups to manufacturing and hospitality, underscore the mutual benefits of this economic partnership. While challenges like capital acquisition persist, the overall trend indicates a significant and growing contribution of Ukrainian entrepreneurship to Poland's economic prosperity.