Challenges of Entrepreneurship

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Scientific Editors’ Note
For many years now, entrepreneurship has been one of the key research areas of management science in Poland and in the world. It is this topic that is addressed by the first “Management Issues” this year. We wish to present its various aspects that are discussed by scholars in Poland and abroad. The review that we offer does not, obviously, exhaust the complexity of the subject in question, yet it allows the identification of different perspectives adopted by researchers.

The first part of this Issue contains texts on the economic and financial facets and determinants of entrepreneurial activities. The next part reports organisational and socio-institutional dimensions of entrepreneurship.

The initial article addresses entrepreneurship and competitiveness in theEuropean Union, with a particular focus on the Visegrad countries. Based on the World Economic Forum data, its authors, Anita Pelle and Marcell Zoltán Végh, have developed three indicators to measure competitiveness at different levels (country, sector, market institutions). They use the GEDI index to measure entrepreneurship. On this basis, two categories of countries are identified within the EU: central and peripheral. The Visegrad countries belong to the latter category. The authors analyse their position and draw conclusions about competitiveness.

It is worth mentioning that the article was presented at the third international conference “Entrepreneurship for the XXI century”, where it won the Best Paper Award.

Marta Postuła has devoted her text to external financing of enterprises in Poland. Her article assesses the efficiency of some external sources of financing of enterprises and the impact of the decisions about the selection of financing sources on how efficiently such sources are used for the development of both enterprises and the whole economy. The research has revealed that, taking into account all factors, credit can be considered the most affordable, although not the cheapest, solution.

The author of the next text, Adam Samborski, discusses fiscal barriers to entrepreneurship development in Poland. His objective is to identify such barriers and to put forward solutions to reduce them. His considerations are confined to natural persons pursuing business activities who personally carry out these activities as the only source of income. The author claims that income tax and VAT do not impede the development of small entrepreneurship. Social and health insurance contributions are, in contrast, a very heavy burden on small entrepreneurs. These burdens undoubtedly hamper the development of entrepreneurship and lead many entrepreneurs to refrain from disclosing their business. The author suggests that social and health insurance contributions should be linked to the income earned.

Private equity funds are explored in the article by Joanna Małecka and Teresa Łuczka. The authors focus on Poland and Central and Eastern Europe. They note that capital markets in Poland and Central and Eastern Europe have grown significantly over more than 25 years after the systemic transformation. The paper analyses reports on capital markets and their own research. The authors emphasise that although the private equity market is not yet as developed in this region as in many Western European countries, Poland plays a leading role here, being the first choice for private investors.

Marek Ćwiklicki considers the so-called public entrepreneurship. His article presents the importance of such entrepreneurship for value creation. The author characterises the main actors (managers, citizens) and the relationships between them, and offers specific guidelines for investigating the role of public entrepreneurship in value creation.

The study by Leszek Kwieciński and Patrycja Matusz-Protasiewicz depicts ethnic entrepreneurship. The authors point out that research on such entrepreneurship, referring to the Central and Eastern European countries, is relatively limited, partly owing to the scale of migrant entrepreneurial activity. They propose a system approach to ethnic entrepreneurship that will allow these phenomena to be analysed in a broader context, and suggest the integration of various study areas.

The following article addresses women’s entrepreneurship. The authors (Sandra Sunanto, Agus Gunawan, Theresia Gunawan, Meine Pieter van Dijk) outline female entrepreneurship in Indonesia, paying special attention to women’s willingness to take the risk of entrepreneur, self-efficacy, participation in enhancing local economy, perceived opportunity, and fear of failure. The basis for this study was provided by the Global Entrepreneurship Monitor (GEM) data.

Maria Isabel Barreiro Ribeiro, António José Gonçalves Fernandes, Paula Sofia Alves Cabo and Alda Maria Vieira Matos consider entrepreneurship perceptions and behaviours of Portuguese students. The text reports the results of a survey conducted in 2014–2015 on a sample of 336 students at one university. The survey has indicated that students believe that entrepreneurship contributes to job creation and the launch of new ideas in the market. Nearly half of the respondents can imagine themselves as entrepreneurs, although many of them (over 50%) believe that regular employment is more stable and provides financial security. The authors stress that students show a somewhat chauvinistic approach to entrepreneurship and little proactivity, frequently expecting the teaching institution to provide them with ideas for their own business.

Michał Chmielecki and Łukasz Sułkowski explore the images of entrepreneurs and entrepreneurship. They report research outcomes concerning how entrepreneurship is perceived and understood by entrepreneurs and non-entrepreneurs. 124 people were surveyed and the metaphors used by them to describe entrepreneurship were analysed.

In another article, Nelly Daszkiewicz outlines research results related to internationalisation of high-tech companies. The key purpose of her paper is to present the pace of internationalisation of enterprises under two main theoretical approaches (traditional and accelerated internationalisation) and its empirical verification. That article covers a review of related literature and the findings on 263 internationalised manufacturing companies operating in high technology industries in Poland.

The article entitled “Quality Management Standards for Learning Services Providers – Critical Analysis” examines the usefulness of two quality management systems (MSUES and ISO 29990) for learning service providers. Its authors (Sławomir Wawak, Roman Batko and Piotr Rogala) relate the results of a survey conducted among managers of training companies. The survey has revealed that quality management systems can contribute to market success. The authors discuss the survey results and point out that quality management in training companies as a tool for providing quality training is a rare topic.

Katarzyna Rostek and Agnieszka Skala present an analysis of Polish startups. They conducted a study aimed at identifying and depicting the main characteristics of startups, which allowed their categorisation. In order to achieve their objectives, a startup database was compiled and a survey was carried out in collaboration with the Startup Poland foundation.

The paper by Andrzej Kozina addresses entrepreneurs’ negotiating competences. The author underlines that embarking on all business ventures requires the establishment and maintenance of good relationships with business partners, effective communication and entering into efficient contracts with them through joint decision-making and mutual exchange of tangible and intangible assets, making many arrangements on scopes, dates and methods of implementation, and collaborative conflict resolution. A number of negotiations must therefore be conducted. Accordingly, the author aims to characterise the negotiating competences that an entrepreneur should have in order to carry out the aforementioned activities. The article discusses entrepreneurs’ negotiating competences divided into two groups, namely universal and situational, and proposes an original concept of evaluation of such competences.

Justyna Zygmunt recounts the patterns and determinants of the development of enterprises in peripheral regions. Her goal is to identify the essential growth determinants in such regions. The text concludes that entrepreneurial attitudes, notably of young generation, must be supported in order to boost growth and development.

This Issue ends with Paulina Kubera’s article on regulatory determinants of entrepreneurship. The author points out that regulatory impact assessment (RIA) is a tool for assessing whether applicable regulations fulfil their purpose. This is a systemic approach to the assessment of positive and negative effects of applicable regulations. Her article aims to indicate how RIA can be used to build a better entrepreneurial ecosystem in Poland.

We hope that this thematically diverse set of articles will not only contribute to a better understanding of entrepreneurship but will also inspire new discussions and research topics.


Beata Glinka and Marta Postuła

Zawartość numeru

Entrepreneurship and Competitiveness in the EU Member States, with Special Regard to the Visegrad Countries (19 pages)

Autor: Anita Pelle, Marcell Zoltán Végh
Słowa kluczowe ang.: competition, competitiveness, entrepreneurship, European Union, Visegrad countries
PP. 13 - 32
DOI: 10.7172/1644-9584.65.1
Our research primarily aims at studying the competition and competitiveness in the EU internal market, both at the level of the EU and its member states. As the main tool of our analysis, we create three indicators based on the dataset and methodology of the World Economic Forum (WEF). These indicators are to measure the competitiveness of 1) the state, 2) the enterprise sector and 3) the institution of the market in the EU member states. In order to assess entrepreneurship, we apply the GEDI index. Then we compare our findings along the two dimensions. EU member states obviously form two groups along all indicators: the core and the periphery are clearly visible. The Visegrad countries all belong to the periphery but their relative positions within the group are worth studying. Enterprise sector competitiveness calculated according to the WEF methodology and entrepreneurial spirit calculated through the GEDI index show a very strong linear correlation.

Capital – Opportunity and Danger for the Company (16 pages)

Autor: Marta Postuła
Słowa kluczowe ang.: capital, company, interest rate, effectives, cost optimization
PP. 33 - 49
DOI: 10.7172/1644-9584.65.2
The aim of the article is to assess the effectiveness of selected external sources of financing of enterprises in Poland and the influence of these decisions on the efficiency of their utilization both for the development of the enterprise as well as for the whole economy. In conclusion, the study carried out showed that, taking into account all the factors such as interest rates and the commitment period, credit, though not the cheapest solution, is the solution most accessible to the entrepreneur.

Fiscal Barriers to Entrepreneurship Development in Poland (18 pages)

Autor: Adam Samborski
Słowa kluczowe ang.: entrepreneurship, entrepreneur, taxes, social insurance, health insurance, fiscal barriers
PP. 50 - 68
DOI: 10.7172/1644-9584.65.3
The aim of the study is to identify the fiscal barriers to entrepreneurship development in Poland. The objective is also to develop solutions to reduce these barriers. Considerations are limited to individuals engaged in business on their own behalf. These individuals personally perform an economic activity and it is the only source of income for them. As Kirzner recognizes, entrepreneurship is a conscious use of opportunities in the world of imbalance. Fiscal barriers are defined as barriers that arise from tax law and social and health insurance law. According to the author, income tax and VAT do not constitute barriers to the development of small enterprises in Poland. However, contributions to social and health insurance are a very heavy burden for small entrepreneurs. In the opinion of the author, this burden undoubtedly inhibits the development of entrepreneurship and leads businesses to operate in the informal sector of the economy. The author proposed that the social security and health insurance burden should be linked to the income obtained by the entrepreneur. The contribution rate should constitute a certain percentage of the revenue gained.

The Private Equity Market in Poland and in Central and Eastern Europe: Selected Aspects (16 pages)

Autor: Joanna Małecka, Teresa Łuczka
Słowa kluczowe ang.: capital market, private equity, source of financing, Central and Eastern Europe, Poland
PP. 69 - 85
DOI: 10.7172/1644-9584.65.4
The political transformation that took place in Poland only 25 years ago allowed a re-launch and development of the most important capital market institution – the stock exchange. Today, the Warsaw Stock Exchange is the largest in Central and Eastern Europe, being among top European trading floors in terms of the number of new listings. Investors choose Poland to invest their capital both because it is the biggest economy in this region and precisely because of its developed capital market and stable and modern banking sector as well as visible activities of institutions supporting entrepreneurship. Marked growth rates of macroeconomic indicators and economic stability so far have directly influenced Poland’s attractiveness, encouraging investors to operate in the private equity market as well. Poland and countries of Central and Eastern Europe are emerging markets that are still catching up with Western Europe. The results presented in the article are based on source data from annual reports and publications that have been produced and made available by capital market institutions and from the authors’ own research on Polish entrepreneurship. The scope and volume of private equity financing in Central and Eastern Europe and in Poland are characterized by means of analyses, charts and comparisons, highlighting the importance and leading role of Poland as a country that is the first choice for private equity investors in this region.

Public Entrepreneurship and Its Role in Public Value Creation (10 pages)

Autor: Marek Ćwiklicki
Słowa kluczowe ang.: public entrepreneurship, public value, framework
PP. 86 - 96
DOI: 10.7172/1644-9584.65.5
The research objective of the paper is to present the role of public entrepreneurship in the creation of public value. The author maps its relationships and discusses a framework matching main actors (public managers, citizens) and links existing between them (actions undertaken by public managers). At the end of the paper, the author formulates objections raised after a critical analysis of the framework’s parts and articulates methodological guidelines for investigating the role of public entrepreneurship in the creation of public value in different organizational types settings.

The Ethnic Entrepreneurship as a Multidimensional Process in the Context of System Approach (12 pages)

Autor: Leszek Kwieciński, Patrycja Matusz-Protasiewicz
Słowa kluczowe ang.: ethnic entrepreneurship, system approach, identity, integration
PP. 97 - 109
DOI: 10.7172/1644-9584.65.6
The presence of migrants in the economically developed countries’ marketplaces has been growing in the last decades. It seems to be very inaccurate to do research in economics and social science without taking migrants’ participation in the labour market into consideration. Migrants not only participate in the labour market as employees but also they act as entrepreneurs. The nature of migrant entrepreneurship has been changing. Nowadays, migrants are starting businesses in sectors different from traditional retail or hotel and catering industries. Interestingly, the second generation of migrants born in the destination countries are following different businesses trajectories than their parents did, using the social capital and links between sending and receiving markets. Migrants are starting to act as new important actors in the economies of developed countries. Taking into account the existing research in this area, we propose a systematic approach to ethnic entrepreneurship, which is the main purpose of this article. Our system approach related to social sciences is understood as the recognition of macro- and medium-ranged dimensions of the system approach, and it presents ethnic entrepreneurship at three levels of analysis: input, system, output.

Women Entrepreneurs: A Study of Indonesian Female Evidence and Perception for Becoming Entrepreneurs (18 pages)

Autor: Sandra Sunanto, Agus Gunawan, Theresia Gunawan, Meine Pieter van Dijk
Słowa kluczowe ang.: women entrepreneurship, small and medium-sized enterprises, global entrepreneurship monitor, risk, local economy
PP. 110 - 128
DOI: 10.7172/1644-9584.65.7
This study delineates the picture of the nature of women entrepreneurs in Indonesia. This study is important for policy makers and scholars because it offers classical and contemporary evidence of women entrepreneurs which contributes significantly to the success of Small and Medium-sized Enterprises (SMEs) in Indonesia. This research sheds light on the issues of women’s entrepreneurial activities and perceptions: their willingness to take the risk of entrepreneur, participation in enhancing local economy, self-efficacy, perceived opportunity, role model and fear of failure. Besides providing interesting facts about the perspectives of women entrepreneurs, this study also helps us to gain insight into the potential of women entrepreneurs in Indonesia. The dataset from Global Entrepreneurship Monitoring (GEM) Indonesia has been employed to outline a number of societal issues. Data were collected from 5,620 respondents from each province and also from rural and urban areas in Indonesia. To give a better view of women’s entrepreneurial circumstances, the data were explored using the descriptive analysis method equipped with pictures and facts. The results of the study will allow policy makers to understand how the Indonesian women entrepreneurs are functioning. Policy makers at the national and local levels are suggested to notice the situation of women entrepreneurs by making an injunction related to empowering women in small and medium-sized enterprises.

Entrepreneurship and Creation of New Business: Perceptions, Behaviours and Attitudes of Students of a Portuguese Higher Education Institution (21 pages)

Autor: Maria Isabel Barreiro Ribeiro, António José Gonçalves Fernandes, Paula Sofia Alves Cabo, Alda Maria Vieira Matos
Słowa kluczowe ang.: higher education, entrepreneurship, business creation, Portugal
PP. 129 - 150
DOI: 10.7172/1644-9584.65.8
Entrepreneurship encompasses the creation of new businesses and the development of new business opportunities in existing organizations. This work intends to understand the perceptions and attitudes of Portuguese students from a public institution of higher education regarding the creation of new businesses. A survey was conducted in 2014 and 2015 using an accidental sample of 336 students. The data were analyzed using SPSS 22.0. The respondents believe that entrepreneurship contributes to the creation and growth of employment, that an entrepreneur is someone who has a radically new idea for creating a new business, and 46% of them could imagine themselves creating their own business. For these students, the probability of being able to create a successful business is, on average, 47%, and the right age to do it is 28 years old. Around 49% of the respondents are interested in creating a new business from an idea, mostly because it allows personal independence. Furthermore, despite being very optimistic as regards the start-up survival rate, students show little proactivity. Indeed, the majority of the respondents consider that business creation would be encouraged if the teaching institution provided ideas for students willing to create new businesses.

Images of Entrepreneurs – Research Results (12 pages)

Autor: Michał Chmielecki, Łukasz Sułkowski
Słowa kluczowe ang.: metaphors, entrepreneurship, metaphors of entrepreneurs, images of entrepreneurs
PP. 151 - 163
DOI: 10.7172/1644-9584.65.9
This paper starts with an introduction to and exploration of entrepreneurship. It further explains the theoretical basis of metaphors used in understanding entrepreneurship with entrepreneurs as the phenomena. This paper takes a new approach to examining the definitions of entrepreneurs, distinguishing between entrepreneurs and non-entrepreneurs. This research gives us insight into understanding the phenomena of entrepreneurship, through the lens of images of entrepreneurs that exist among both entrepreneurs and non-entrepreneurs. An exploratory analysis of entrepreneurial metaphors and concepts is conducted to achieve this goal. In a qualitative analysis of entrepreneurial concepts, respondents defined the word ‘entrepreneur’ with suggested conceptual equivalents. In an analysis of metaphors, respondents explained why they see entrepreneurs through such lenses. The sample consisted of 124 respondents.

Traditional Versus Rapid Internationalization of High-Tech firms. Results of Investigation (11 pages)

Autor: Nelly Daszkiewicz
Słowa kluczowe ang.: internationalization of firms, born globals, high-techs
PP. 164 - 175
DOI: 10.7172/1644-9584.65.10
The discussion on the role and importance of time in the process of internationalization of firms belongs to the mainstream of research in the field of internationalization. In the literature, the phenomenon of early and rapid internationalization was noticed in the early 1980s; however, the intensive development of the research into this phenomenon began a decade later and continues today. For several years in Poland, the share of early internationalized firms has been growing. These firms start their international activities almost from their inception. The main objective of the article is to present the pace of the internationalization process of firms from the perspective of two major theoretical approaches and its empirical verification. The article includes the literature review as well as the results of a survey conducted among 263 high-tech production firms from Poland. In the summary of the article, future directions of research are pointed out.

Quality Management Standard for Learning Service Providers – Critical Analysis (15 pages)

Autor: Sławomir Wawak, Roman Batko, Piotr Rogala
Słowa kluczowe ang.: training company, quality management, management standards, research results
PP. 176 - 191
DOI: 10.7172/1644-9584.65.11
The paper discusses the usefulness of two dedicated quality management systems for learning service providers. The systems have been described in the international standard ISO 29990 and Polish national standards MSUES (Małopolska Standards for Education and Training Services). The results are based on a survey of managers who have implemented one of those systems in their training companies. It was found that the implementation of the discussed systems could contribute to success on the training market. The quality of training services is viewed as an important factor in personal improvement. Most of the studies on that subject omit the key cause of high-quality training, which is quality management in the training company. This paper attempts to bridge that gap.

Differentiating Criteria and Segmentation of Polish Startup Companies (16 pages)

Autor: Katarzyna Rostek, Agnieszka Skala
Słowa kluczowe ang.: startup, innovativeness, digital economy, segmentation analysis, differentiating factors
PP. 192 - 208
DOI: 10.7172/1644-9584.65.12
The results presented in the article are the first Polish analysis of start-ups, which are considered as a source of innovation and which are gaining in importance in the country’s economy. In order for the country to efficiently support this group, more insight into the most important features characterizing it, for instance location, used legal forms, employment and its forms, sources of financing and other resources, propensity to export or sources of innovation must be gained. Thus, the conducted study was aimed at identifying and characterizing the population of economic entities considered as Polish startups according to applied criteria. In order to do so, a database of those entities was created, an original research questionnaire was prepared and a nationwide survey was conducted in collaboration with the Startup Poland Foundation. Subsequently, a segmentation analysis was performed in order to isolate conspicuous classification groups and to identify important features in each group. The presented research results constitute the beginning of regular analyses in that scope.

Negotiation Competences of an Entrepreneur (16 pages)

Autor: Andrzej Kozina
Słowa kluczowe ang.: business negotiations, an entrepreneur as a negotiator, x the idea and features of negotiations within small and medium-sized companies, negotiation competences
PP. 209 - 225
DOI: 10.7172/1644-9584.65.13
The accomplishment of all kind of business ventures requires establishing and maintaining beneficial relationships with business partners, communicating efficiently and making effective deals through mutual decision making and exchanging tangible and non-tangible assets, making many arrangements concerning the scopes, deadlines or the methods of performing the activities as well as resolving conflicts in cooperation. Therefore, within economic activity in general, and in small and medium-sized companies in particular, it is needed to conduct numerous negotiations with many external partners and between the members of a particular organization. That entails the necessity of having proper negotiation competencies, i.e. knowledge and experience, abilities and skills as well as personal traits. Considering the above statements, the objective of the paper is to characterize negotiation competencies which an entrepreneur should possess in order to perform the above-listed activities. The introduction contains the clarification of key notions used in the text. Then the concept and features of negotiations within small and medium-sized companies are presented. Within the substantial part of the paper, the negotiation competencies of an entrepreneur are described, divided into two groups, i.e. universal and situational ones. Afterwards, an original concept of the evaluation of those competences is suggested. In the summation, apart from the paper synthesis, directions for further research are pointed out.

Enterprises’ Development in Peripheral Regions: Patterns and Determinants (10 pages)

Autor: Justyna Zygmunt
Słowa kluczowe ang.: peripheral region, enterprises, development, innovation
PP. 226 - 236
DOI: 10.7172/1644-9584.65.14
The goal of the paper is to identify the essential determinants of enterprises’ growth in a peripheral region, with regard to particular patterns of regional development. Literature studies have been conducted to recognize the patterns and determinants of the development in question. Characteristics of lagging regions have been provided in the first section, while another section contains a discussion on aspects related to enterprises’ growth in non-core regions. The main finding is associated with a crucial value of innovation, knowledge spillovers, as well as social and human capital as fundamental for enterprises facing scarcity of regional endogenous resources. Thus, necessary actions should be taken for promoting enterprises’ networking and internalization. Entrepreneurial attitudes, notably of the young generation, should be supported. The findings may be interesting for entrepreneurs and regional policymakers.

Evaluating the Impact of Regulation and Regulatory Policy – Towards Better Entrepreneurial Ecosystem. The Case of Poland (16 pages)

Autor: Paulina Kubera
Słowa kluczowe ang.: regulatory impact assessment, regulatory policy, government failure, entrepreneurship
PP. 237 - 253
DOI: 10.7172/1644-9584.65.15
The relationship between regulatory framework and entrepreneurial activity can be of a three-fold nature: law can foster entrepreneurship, hinder entrepreneurship or be neutral in this respect. One of the tools to underpin the capacity of public policy makers to ensure that regulation achieves its objective is the regulatory impact assessment (RIA). OECD defines RIA as ‘a systemic approach to critically assessing the positive and negative effects of proposed and existing regulations and non-regulatory alternatives’. The objective of this paper is to examine the potential contribution of the regulatory impact analysis to building a more effective entrepreneurial ecosystem by reducing so-called ‘government failure’, in particular in Polish circumstances. The concern is not for specific legal provisions but the policy-making process, in which RIA is integrated. For this purpose, it reviews the RIA policies and practice in Poland and other OECD countries as well as in the EU. The methods used entail a qualitative document analysis on policy documents, in particular: legislative acts, guidelines and working papers issued by national, OECD and EU authorities, as well as reports and statistics in this field, in particular: the OECD Indicators of Regulatory Policy and Governance (iREG) to make cross-country comparisons and identify challenges in the effective implementation of RIA.