STARTUP COMPANIES, CHALLENGES IN POLAND

Abstract

130,000 enterprises are created every day all around the world, some of them are startups, of which nine out of ten are liquidated, 60% in the second year of operation211. The aim of the article is to present the essence of a startup-type enterprise as the subject most often associated with new technologies and characterized by higher risk than traditional enterprises, but also a higher chance for above-average development and profits.Research on startups is of great importance. Many of these enterprises end their operation at a very early stage. These enterprises fail because, among other things, they have problems with raising capital, maintaining reputation, securing supplies, they are subject to limitations related to premises and high labor costs. However, many startups that survive and develop their businesses transform into successful enterprises that have an important role in the economy, an example may be Google, Apple or Microsoft. Therefore, this article attempts to define start-up enterprises operating in Poland and to recognize the challenges they must face.Only five years ago in Poland, the business model based on startups was small. Today, their potential was noticed not only by originators and founders of startups, but also by state authorities. In recent years, many measures have been taken in Poland to improve the conditions in the field of innovation at the government level. The Act on Innovation was adopted; the Polish Development Fund implements programs allowing to increase long-term economic and investment potential.In order to show that research on startups is important, four main issues were discussed: start-up enterprises were defined and described, startups' life cycles were explained, startups operating in Poland were presented using descriptive statistics and finally, analysis of problems related to starting and development of startups was made.The research method used in the study is a review of literature, reports and websites as well as descriptive statistics. Startup is a venture that can change the face of the Polish economy so far associated with low labor costs, and which has a chance to turn into an economy competing with companies around the world with innovation and highly qualified human resources.Researchers can develop each of these stages of company development and analyze the challenges faced by the company at each of these stages in different areas. The purpose of this research is to contribute to the development of a comprehensive startup theory.