Abstract
This article examines financial support (especially EU Structural Funds as the main tool of cohesion policy) for investments as a lever for the development of SME innovativeness in Poland. The European Commission strongly stresses the importance of their cohesion policy and support for SMEs. European enterprises have suffered significantly from the credit crunch, and the situation could worsen as banks engage in restructuring to eliminate impaired assets from their balance sheets. Supporting SMEs and promoting entrepreneurship is essential for economic development and competitiveness, especially in less developed regions. The main aim of this study is to establish the impact of financial support for investments, especially from EU Structural Funds, on SME competitiveness in Poland. We have analyzed empirically the data drawn from CATI carried out among 805 firms. We have learned how SMEs assess the financial support from different sources along with the resulting impact on the competitiveness of SMEs. The main statistical test for relationships and dependencies was the chi-square independence test and Cramer’s V. The results of our research show that SMEs have not used financial support efficiently. Moreover, micro-enterprises were shown to be the least effective after receiving financial support from EU funds. This support often has a demand-driven effect, but it does not improve firm competitiveness.
Highlights
Despite the growing role of small and medium-sized enterprises, in Poland this sector only accounts for a small share of the economy compared to the EU average
The general aim of our research is to explore the effectiveness of financial support of investments in innovation and their impact on SME competitiveness
The main aim of this study is to evaluate the financial support for investments, especially from the EU funds, and its impact on growth and SME competitiveness in Poland
Summary
Despite the growing role of small and medium-sized enterprises, in Poland this sector only accounts for a small share of the economy compared to the EU average This finding is echoed in the performance of the SME sector, which shows a lower share for SMEs in sales revenues and productivity than the EU average (PARP, 2011-2013; Ministerstwo Gospodarki, 2014). Supporting SMEs in an economically underdeveloped region might be considered one of the most effective pro-development factors. In this perspective, it is necessary to support business development in these regions and in less developed countries, affecting the competitive position of SMEs as well as increasing employment, tax bases and regional development (Lewandowska et al, 2019). EU efforts for SMEs in the years 2004-2006 and 2007-2013 were based mainly on the support and promotion of entrepreneurship with the goal of creating an environment that supports innovation and competitiveness and enhancing market access for businesses
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