Changes in the Financial Liquidity of Business Entities of the Small and Medium-Sized Enterprises Sector in Poland

Abstract

Small and medium-sized enterprises are a special type of enterprise. They are characterized by unity of ownership and management, personal responsibility for business activities. Business entities today operate in an increasingly dynamic and complex environment. Small and medium-sized companies are particularly affected by rapid economic, political, social and technological changes. The development of the small and medium-sized enterprise sector depends on external factors that individuals cannot influence, as well as internal factors - determining the opportunities available to the entity and directly influenced by it (e.g., in terms of its resources, level of innovation, efficiency and effectiveness of management). Companies in the SME sector face many barriers in their operations that prevent them from growing. One such barrier may be difficult access to external funding. Raising capital to start and run a business is a very important problem for today's small and medium-sized businesses. The raising of capital, and consequently the handling of that capital, are closely related to development opportunities. Small and medium-sized businesses are an important determinant of the economy in Poland, but also in EU countries and around the world.