Business Opportunities: Warsaw
Warsaw, the capital city of Poland, is one of the fastest developing cities in the European Union and the most attractive region for investments in terms of GDP per capita. Since the vast majority of people are visiting the city with their main focus set on seeking business opportunities, it became an obvious choice for the location of our latest branch. Therefore, with in-depth market research conducted in the central-eastern region of Poland, we will attempt to present you results and observations behind our studies. However, while discussing Warsaw we will take under consideration the whole Mazovian region which together with the capital city brings many opportunities to Polish and European economy.
The estimated population is 1.74 million residents, making the city the 9th most populated capital city in the European Union and ranking it as one of the most liveable cities in Central Europe. Polish people are known for their fundamental hard-work ethic. According to Iwona Chojnowska, the director of foreign investment agency PAIZ, the UK economic downturn led to the return of many qualified Polish emigrants. Therefore, Warsaw has recently welcomed approximately 20 per cent skilled white collars who are now returning with acquired skills gained abroad and often working as managers for foreign businesses. It is said that prodigious work ethic is especially noticeable among the younger Polish generation as they are devotedly keen on learning new things. In addition, Forbes Magazine has stated that the Polish nation is ranked in the top 10 English speaking countries in the world, exceeding Germany, Switzerland and Belgium.
It is worth highlighting that the main advantage of the city is its location, mainly the intersection of traffic in the trans-European transportation. Thanks to international airports and continuous development of railways it enables setting the connection to the majority of polish cities and other parts of the world. It is said that Warsaw Chopin Airport is able to handle approximately 50% of the whole passenger traffic and maintains around 100 regular plane connections with domestic and foreign airports. Fast and easy movement of residents allows to establish the multinational corporations and their headquarters in central part of the continent, bridging developed Western part of Europe with still developing Eastern. Therefore, Poland with focus on Warsaw, is seen as the ideal gateway to the emerging markets of the Central Eastern European region. In comparison to the high rate of productivity and relatively high level of wages of qualified and specialized people, the costs of living in Warsaw remain low.
Moreover, one of the characteristic features of the Mazovian region is booming tertiary sector such as financial intermediation, business services, telecommunications and education. Despite the great deal of national institutions and government agencies, it has recently become a destination for domestic and international companies. It is said that the largest investments were made mainly by Procter and Gamble Operations Poland and ATM S.A. In 2013 the region took the 1st place in Poland in terms of accumulated share capital in the companies with foreign capital participation (an 49% share of its total value in all region). Therefore, it has made the capital city of Poland the most attractive location for business opportunities.
Cooperation as the key to success
Successful cooperation in partnerships of companies in different sectors of the economy is based on several crucial factors. The increasing demand for innovation leads companies to struggle with high level of risk, strong competition and complex process of product development. As a result, corporations in order to achieve multinational recognition, seek for global strategic relationships. Economic effectiveness is nowadays mainly based on tight cooperation between business and science and particularly improved access to sources of funding and availability of unconventional solutions for financing innovative projects. As being part of “Europe 2020” strategy, introduced by European Commission, Warsaw is able to maintain the economic growth and successfully confront global competition. Thanks to huge investments made by government and private investors, the city has become a destination for venture capitals and private equities.
Warsaw is a role model of rapidly developing capital city in Central Europe that buries the outdated Cold War clichés and is open for external visitors. It has become a desirable place for globetrotters and potential investors. Both the influence of Western Europe and strong marketing strategies have made this Polish city worth considering as a business opportunity.