World Travel Guide

City Guide  - Warsaw  - Business
Business

Business Profile: Poland has accomplished most of the reforms necessary for moving towards a market economy. Many state subsidies and controls have been lifted and privatisation is taking place on a large scale, including the privatisation of Poland's national telecom in the year 2000. After battling the crisis caused by international market instability in 1997-98, the Zloty has remained relatively stable, leading to increasing investor confidence as the movement towards entry into the European Union progresses. This can be seen in the large number of cranes that hover against the skyline, causing Warsaw to be labeled the second construction site in Europe after Berlin. According to the Healey & Baker European cities survey, Warsaw was selected as the number one city of choice for companies to locate their headquarters.

The business climate in Warsaw is more heavily geared towards the service sector than the rest of the country. The city is very much the capital, and it is here that the most important government activities take place and, correspondingly, where major Polish firms and international investors choose to locate. Large international companies that are based in Warsaw include Coca-Cola Amatil, Daewoo, General Motors, Nestlé, Pepsico International, Philip Morris, Procter & Gamble and Westinghouse. ING Bank has a strong presence with its business centre and fashionable shops on Aleja Ujazdowskie.

Unemployment in Poland reached 14% on a national level in June 2000; 10.1% in the province in June 2000; but only 2.8% in Warsaw - the lowest in Poland. Warsaw also offers the highest salaries in Poland, and continues to draw young people from all over the country. The city benefits from a highly trained workforce - 20% of the city's population boasts a university degree. Nearly half (57.2%) of the workforce is in the private sector. Roughly 18.3% of the workforce is employed in the industrial sector - an area that has suffered greatly due with Poland's espousal of a market economy (in 1989, the workforce in industry accounted for over 30% of the total in Warsaw). However, 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. Warsaw now hosts the head offices and branches of 206 Polish banks, 27 foreign banks and international insurance and consulting firms. The Warsaw Stock Exchange considered by investors to be the best in Central Europe - was moved from its location in the former Communist Party Headquarters to an ultra-modern building on Ksiazeca Street in the year 2000.

Approximately 60 large-scale trade fairs and exhibitions (including 33 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 Jerozolimskie Avenue and Bitwy Warszawskiej Street (close to the Zachodni train station). The multi-functional venue will include a 20,000 sq metre exhibition-congress centre, two hotels, an office complex, a retail services area, a car park with 2,000 spaces and a shopping centre. 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 in Bokserska Street, the Torwar Sports Centre on Lazienkowska Street, the Exhibitition 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.

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 in 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, but business lunches and dinners are popular (Poles love to stay up late, talking and drinking). The person who issues the invitation is generally the one who pays the bill.

The end of Communism also brought the careers of many to a premature end in Warsaw (as throughout Poland), 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.

Government offices are open 0830-1630. Traditionally, offices in major industries were open 0700-1500, but many have adopted Western business hours (0830-1700). Some businesses may open on Saturday morning.



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