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Business
Business Profile
Warsaw is the undisputed business and commercial hub of Poland and also a major regional player on the rapidly emerging business map of Central Europe. The halcyon days of spiralling growth and low unemployment, which followed the impressive shift from a Communist to a capitalist economy, however, are well and truly over for Poland and its capital. Unemployment is at an all-time high, with a national rate of 18.1% in February 2002 and a city rate of 13.6% in the same period. Nationally some analysts are predicting that the level may even break through the confidence sapping 20% mark by the end of 2002. The government’s reaction to the economic crisis has drawn much criticism, as state intervention in the economy and moves for greater regulation of foreign business interests have put off some foreign investors. Foreign capital currently owns 75% of the Polish banking sector’s combined equity – one of the highest levels in Europe – but the government’s intervention has so far only seemed to exacerbate the downturn. With economic indicators plunging, more visible signs of hard times are becoming evident, with a proliferation of street vendors springing up, even on some of the city’s most chic shopping streets.
The business climate in Warsaw is more heavily geared towards the service sector than it is in the rest of the country. Large international companies that are based in Warsaw include KPMG, Daewoo, General Motors, Nestl, Pepsico International, Philip Morris, Procter & Gamble and Westinghouse. ING Group (banking, insurance and real estate) has a strong presence with its Zlote Tarasy (Golden Terraces) office service and entertainment centre, the headquarters of ING Group, with rented space for fashionable shops on aleja Ujazdowskie.
One benefit of the decline in industry has been a corresponding drop in the level of pollution in the city. Over 70% of the total working population (including retail) are employed in the thriving service industries. The biggest growth area in recent years has been in banking and finance. Tourism is also becoming increasingly important to the economy. The Warsaw Stock Exchange – considered by investors to be the most efficient in Central Europe – was moved from its location in the former Communist Party Headquarters to an ultra-modern building on ulica Ksiazeca, in 2000. Approximately 60 large-scale trade fairs and exhibitions, including over 30 international fairs, take place in Warsaw each year. The three leading events are the Computer Exhibition in January, the International Book Fair in May and the TT Warsaw Tour and Travel in September. Increased demand for doing business in Warsaw has led to plans for a modern large-scale Warsaw trade and exhibition centre to be built on the Millennium Plaza Centre, located at the corner of aleje Jerozolimskie and ulica Bitwy Warszawskiej. Construction for this ambitious project began in the year 2000 and the scheduled date of completion is 2003. Until the new venue is complete, events are held at the Palace of Culture and Science (the most prestigious and popular choice), the Mokotow Fair Centre on ulica Bokserska, the Torwar Sports Centre on ulica Lazienkowska, the Exhibition Fair Centre in Wolka Kosowska and occasionally buildings of the Physical Education Academy, the Warsaw University of Technology and hotels, such as the Victoria, Holiday Inn and Marriott. There are dozens of Internet cafs sprinkled around the city centre and Internet facilities are also available at most of Warsaw’s luxury hotels.
Business Etiquette
Letters of introduction are extremely useful for establishing contact with businesses in Poland. Presentations should be thoroughly prepared and, at a minimum, the executive summary should be translated. Decisions are often by committee, so negotiations may be protracted and a deal cannot be confirmed until all parties have signed.
Until familiarity has been established, a person’s title and surname should be used when addressing them. Handshaking is customary and business cards (preferably translated) should be exchanged with all participants at a meeting. The dress code is, on the whole, sober and conservative. Breakfast meetings are rare, despite the fact that the business day begins early, although business lunches and dinners are popular. Government offices are open 0830-1630. Traditionally, offices in major industries were open 0700-1500, however, many have adopted Western business hours (0830-1700). Some businesses may open on Saturday morning.
The end of Communism brought the careers of many Polish people to a premature end, as the older generation was thought to represent an outdated system and inflexible attitudes. Consequently, many of those holding high positions in Warsaw’s business world today are quite young. They are also more likely to speak English.
Poles love to stay up late, talking and drinking and dinner invitations are likely. The person who issues the invitation is generally the one who pays the bill. It is important for visitors to make sure that if giving a gift of flowers, there should always be an odd number.
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Business