The key word in the analysis of the title topic is the concept of change according to the definition taken from the Dictionary of Polish Language, the change is: „the fact that someone becomes different or something becomes different than before”. It seemed to us that this process of changing and constantly becoming different was a natural, even a controllable process. Before the pandemic, everyone felt like an actor in a theater of changing reality. An actor who co-created the performance within his professional activity influenced reality and had the impression that he could actually shape it.
The pandemic made us realize that the changes can be more dynamic than we previously thought and that their range can be almost unlimited. And this is also the landscape of changes in the pandemic reality in the world, in Poland and also in Małopolska. The change is visible in practically every area of reality, but the most reliable data shows us the economic picture.
Let’s start with some serious data and changes. According to experts of the Federation of Polish Entrepreneurs (FPP) and the Center for Legislative Analyzes and Economic Policy (CALPE), the cumulative level of losses of the Polish economy caused by the Covid-19 pandemic amounted to approximately PLN 180 billion in the period from March to the turn of July and August 2020. The process of „defrosting” the restrictions resulted in slowing down the pace of losses to PLN 420 million a day from PLN 2.1 billion a day during the hard lockdown.
The losses would have been much greater had it not been for the measures taken, including as part of the Anti-Crisis Shields, both at the national and regional level, which constituted a significant help organized by the government and local governments.
Looking from the perspective of Małopolska, as part of the Małopolska Anti-Crisis Shield, the Self-Government of the Małopolska Region allocated PLN 361 million in the entrepreneurship package for entrepreneurs to maintain employment in companies struggling with financial difficulties, as well as to support the labor market and the self-employed. Additionally, PLN 111 million in the liquidity package was allocated to loans for entrepreneurs who suffered financial losses as a result of the pandemic.
In the medical package, PLN 223.5 million was allocated to support hospitals and health units in Małopolska for equipment and supplies necessary for an effective fight against the pandemic. The amount of PLN 116 million in the social and educational package was allocated to 24-hour care facilities and for the purchase of technology and equipment for distance learning, and as part of the development package in the revitalization module was paid as much as PLN 740.5 million.
The support provided in Małopolska in the total amount of over PLN 1.5 billion allowed to save many jobs and saved the economy from the harmful effects of the COVID-19 pandemic.
Let us hope that we are currently in the last wave of the pandemic and that the next macroeconomic data will be successful. The Małopolska region still has enormous economic potential. Currently, the unemployment rate in Małopolska is 4.9%. Over 439,000 business entities operate here and the average gross salary in the enterprise sector is nearly PLN 6,100.
The export of goods and services from Małopolska amounts to over EUR 10 billion, which places the region on the 6th position in Poland. The BPO / SSC business services sector is not slowing down and, despite the COVID-19 pandemic, it is still one of the fastest growing sectors of the economy and a significant employer in the region.
The change also took place in the area of the regional labor market. The introduced remote work system replaced the previous 40-hour week of work performed at the stationary. This has positive consequences also in terms of the quality of the services provided. An employee working from home is in many cases more creative and effective, and former meetings with partners now can be quickly arranged online. The pandemic, according to a report prepared by ABSL, showed the necessity of, among others, a more innovative approach to processes, changing the work formula to online, searching for new talents and creating a friendly work environment while maintaining the principle of effective balance of professional and private life. Changes are taking place not only in the enterprise sector but also in public administration.
A very important aspect for the Management Board of the Małopolska Region is the development of Małopolska’s investment potential. The functioning of the Małopolska economy is based primarily on investments. The pandemic also changed the structure of investments in Małopolska and had a significant impact on investors’ optimism. At the peak of the pandemic, the activity of most enterprises focused mainly on maintaining employment and maintaining financial liquidity. The quick decisions of the National Bank of Poland regarding to cut interest rates and the introduction of support mechanisms in the form of Anti-Crisis Shields allowed the majority of enterprises to survive the economic collapse. This year in Małopolska we are observing increased activity of entrepreneurs. In 2021, 35 support decisions were issued as part of the Polish Investment Zone, and total investment outlays were declared for the amount of approximately PLN 1.4 billion. The most representative investment in Małopolska recently is the reinvestment of MAN Truck. The value of the declared investment outlays is as much as EUR 95 million. As part of the aforementioned investment, a truck factory in Niepołomice will be expanded in the years 2021-2025. This will significantly increase the production capacity and employment in the plant, which will become one of the largest employers in the region. It is worth emphasizing that this is one of the largest investments in the current activity of MAN firm. The BPO / SSC business services sector is also not slowing down and despite the COVID-19 pandemic, it is still one of the fastest growing sectors of the economy and a significant employer in the region. There are new investments, there is a qualitative change towards comprehensive services, but the industry is also faces many challenges.
All companies operating in Małopolska, as well as foreign investors planning investments, can use the support of the Business in Małopolska Centre. The Centre’s activities are based on supporting the export of Małopolska enterprises by organizing trade fairs and missions, workshops and industry training, as well as promoting the investment potential of Małopolska and supporting the investment process at every stage. A potential investor can contact the representatives of the Business in Małopolska Centre and obtain professional support in the preparation of the planned investment.
We invite you to Małopolska!
Marshal’s Office of Małopolska Region
Department of Ownership Supervision and Economy
- Racławicka 56, 30-017 Kraków; Poland
phone: +48 12 63 03 444
Business in Małopolska Centre
- Podole 60, 30-394 Kraków, Poland
phone: +48 12 620 91 40