Financial and non-financial SME internationalisation support instruments – the experience of Poland

Michał Polański –Director of Entrepreneurship Support Department

Aleksandra Wadowska –Head of International Projects Unit

Polish Agency for Enterprise Development

• Export amounts to 55,6% of Polish GDP (44,5% - products, 11,1% services);• In 2020 Polish export amounted to EUR 290 137 mln EUR and Polish import

amounted to 254 870 mln EUR (Eurostat incl. services);• Negative consequences of Covid-19 pandemic were relatively mild: export

decreased by 1,9% (0,4% in goods, 7,3% in services) and imports by 5,8% (5,3% in goods, 8,6% in services) as compared with 2019;

• In 2020 the main Polish export destinations were: Germany (28,9 %, +1,2%), Czech Republic (5,8 %), Great Britain (5,7 %), France (5,6 %) and Italy (4,3%);

• The main import destinations were: Germany (21,8%), China (14,5%), Italy(5%), Russia (4,5%) and France (3,4%);

• Poland exports mainly: machinery, mechanical and electrical devices and theirparts, vehicles, planes and ships, common metals, food products and chemicalproducts.

• Share of services in export amounts to 20% and in imports to 13,9%

• In 2020, exports of goods and services accounted for 55.6% of Polish GDP. Compared to 1995, this indicator increased by 32.7 p. Exports of goods accounted for 44.5% of GDP, and services for 11.1%

Internationalisation of the Polish economyfacts & numbers

Key factors in Poland’s internationalisation

1. European Union membership since 2004;

2. Diversified structure of the Polish export;

3. Availability of low-cost but skilled labour force;

4. Favourable PLN/EURO exchange rate

5. Important role of the foreign multinationals in the

proces of internationalisation:

• international companies’ service centres(business processing, IT, and R&D),

• Poland as regional centre of logistics services,• location next to Germany (successful integration

with European GVC chains)

6. Main challenges: • Poland is specialised in low and medium tech exports;• The share of SMEs participating in direct exports is still relatively low

PARP’s role in the ecosystem

Internationalisation support

Banking & Insurance

Bank Gospodarstwa Krajowego Financial instruments for export support:

• bank guarantees,• letters of credit (discount, confirmation, post-financing),• redemption of receivables from export contracts,• loan for the buyer's bank,• loan for the buyer,• export pre-financing

Financing foreign investments of Polish companies

Export Credit Insurance Corporation (KUKE)

• Trade insurance and trade financing, i.e. factoring• Export Market Map – comprehenvise guide of nearly

200 export markets

Trade & Investment - Polish Investment & Trade Agency

• Investment consulting: preparation of information packages, developing informationon investment incentives, preparation a list of investment properties on offer, real estate audits;

• Export consulting: analysys of export potential, developing a strategy of expansion on selected markets, organisation of B2B meetings and trade missions, verification of business partners;

• Polish Tech Bridges – expansion of Polish innovative small and medium enterprises• Promotion of Poland at the World Exhibition EXPO Dubai 2020• Network of Foreign Trade Offices

Main areas of PARP support for entrepreneurs

• Start ups (including foreign startups)

• Training and skills improvement

• Investment in innovations

• Services for entrepreneurs

• Internationalisation

For whom?

Persons planning to start economicactivity

Start-ups

SMEs

Clusters

Internationalisation and export support instruments in PARP

Financial:• Promotion of Polish Product Brands – Go to Brand and

Go to Brand EXPO• Internationalisation of SMEs (Eastern Poland)• Internationalisation of Key National Clusters• Support for IP protection on the Overseas Markets• Grants for Eurogrants

Non-financial:• Enterprise Europe Network • Training & advisory services• Polish national stands at International Exhibitions

and international trade fairs• Promotion of IT/ICT and Medical Devices Sectors• Bilateral events organised within the framework of

Norwegian Financial Mechanism• UK-Polish Tech Challenge

• Biotechnology and pharmaceuticals• Construction• Automotive and aviation parts• IT/ICT• Yachts and recreational boats• Cosmetics

• Food products• Fashion• Pro-health services• Medical devices• Machinery and devices• Furniture

What sectors are supported?

12 prospective sectors selected by the Ministry of EconomicDevelopment, Labour and Technology:

Value of support

For whom?

For what?

Micro, small and medium-sized entreprises from 12 selected sectors:biotechnology and pharmaceuticals, construction, automotive and aviationparts, IT/ICT, yachts and recreational boats, cosmetics, machinery and devices, furniture, food products, fashion, pro-health services,medicaldevices

Co-financing up to 85%Maximum value of support for one project: EUR 101 000

Co-financing of participation in promotional activities (trade fairs, trademissions, conferences) and costs of consultancy services related to enteringforeign markets

Go to Brand

2016-2020: 5392 applications submitted2356 contracts signed (EUR~186 million)

Value of support

For whom?

For what?

Micro, small and medium-sized entreprises

Co-financing up to 85%Maximum value of support for one project: EUR 101 000

Co-financing of participation in promotional activities (trade fairs, trademissions, conferences) connected to the EXPO 2020 and costs of consultancy services related to entering Persian Gulf markets : Saudi Arabia, Bahrain, Quwait, Oman, Qatar, United Arab Emirates

Go to Brand EXPO

In 2020: 122 applications submitted (+432 in 2021)41 contracts signed (EUR ~2,1 milion)

Internationalisation of SME (Eastern Poland)

Value of support

For whom?

For what?

Micro, small and medium-sized entreprises operating in the 5 voivodshipsof Eastern Poland (Warmińsko-Mazurskie, Podlaskie, Świętokrzyskie, Lubelskie or Podkarpackie

Co-financing up to 85%Maximum value of support for one project: EUR 178 000

Advisory services associated with the development and preparation of a new business model; services directly related to the implementation of the new business model, including, costs of advertising materials, training, translations, tests; participation in international fairs, exhibitions or business missions; acquisition of fixed assets (excluding real estate) or intangible assets due to the preparation for internationalization of activities.

2016-2020 : 1081 applications submitted389 contracts signed (EUR ~ 30,6 million)

Value of support

For whom?

For what?

Coordinators of National Key Clusters (NKC)Enterprises being members of National Key Clusters

Co-financing up to 50% for the coordinator, 50-80% for the members of NKC),max. value of support for one project: EUR 1,8 million

NKC Coordinators: administrative costs; expert services (market research, audits, evaluation studies, services for the design), establishment, maintenance and development of ICT tools; marketing; management of cluster resources, organization of training programs, workshops and conferences.For cluster members: advisory services and training regarding activities in foreign markets, participation in economic missions and fairs as an exhibitor,access to foreign R&D infrastructure, promotion of brands and products.

Internationalisation of National Key Clusters

2016-2020 : 58 applications submitted38 contracts signed (EUR ~36 million)

Enterprise Europe Network

600 partners (i.e. chambers of commerce,

regional agencies, technology tansfer

centres)

3000 expertsin more than60 countries

Support for business and technology cooperation

Free of charge

services

The Enterprise Europe Network helps businesses innovate andgrow on an international scale. It is the world’s largest support network for small and medium-sized enterprises (SMEs) with international ambitions.

PARP’s activities in the Enterprise Europe Network

Information and advisory services

• Polish and EU law

• Business activity abroad

• Sources of financing for the SME sector

• Sources of European information

Matching of business and technology partners – b2b activities

• Organisation of company missions and matchmaking events (also on-line)

• International database of cooperation profiles: Partnership OpportunitiesDatabase

Seminars / Educational movies

Publishing activity

• Euro Info Bulletin

Training & advisory services

• 2018-2019: 31 events onsite (conferences and seminars) for 1358 entrepreneurs;

• 2020-2021: 22 webinars for more than 7300 participants;

• More than 720 000 views* of training materials (564 short movies, animations and reports) on law, marketing, e-commerce and management;

• International Public Procurement for PolishEntrepreneurs (information, counselling and networking);

• E-learning: PARP Academy. Domains of training : finance, management, law, personal skills, marketing (including e-commerce). More export-oriented courses coming soon!

*in 2018-2021

110 000 + registrationsfor courses

32

free on-line

courses

55 400 +

registered

participants

45 800 +

issued certificates

www.akademia.parp.gov.pl

Polish national stands at International Exhibitionsand international trade fairs

EXPO: Saragossa 2008, Shanghai 2010, Milan 2015, Astana 2017Polish National Stands at CeBIT 2013-2014, Hannover Messe 2017, Medica 2017-2018, Arab Health 2019

Promotion of IT/ICT and Medical Devices Sectors

• Polish stands on major tech and medical events around the world;• Free of charge presentation of company’s promotional materials;• Business meetings zone• 2017-2019 – IT/ICT Programme: 19 stands at major tech events around the

world: United States, Israel, the United Arab Emirates, Japan, South Korea, Brazil, Germany, Spain, Portugal and Austria; more than 470 companiespromoted their offer

• Medical Devices Programme: implementation since 2020

Polish IT/ICT Promotion Programme - calendar

Date Event Location

2021

May 25, 2021 Itmatch – virtual cooperationday

onlinehttps://itmatch-virtual-it-ict-cooperation.b2match.io/

September 21-23, 2021 Money20/20 Amsterdam, Netherlands

October 17-21, 2021 GITEX Technology Week Dubai, UAE

November 1-4, 2021 Web Summit Lisbon, Portugal

November 8-12, 2021 Singapore FinTech Festival Singapore

2022

Q1 2022 SXSW Austin, USA

April, 25-29, 2022 Hannover Messe Hannover, Germany

Q2 2022 Japan IT Week Tokyo, Japan

Q2 2022 Money 20/20 Amsterdam, Netherlands

Q3 2022 Gamescom Cologne, Germany

Q4 2022 GITEX Technology Week Dubai, UAE

Polish Medical Devices Promotion Programme - calendar

Date Event Location

2021

April 21, 2021 Med2Meet - virtual healthcarecooperation day

online

June 21-24, 2021 ARAB HEALTH Dubai, UAE

November 15-18, 2021 MEDICA Düsseldorf, Germany

December 6-10, 2021 Zdravookhraneniye Moscow, Russia

2022

Q1 2022 ARAB HEALTH Dubai, UAE

Q2 2022 Expomed Istambul, Turkey

Q2 2022 FIME Miami Beach, USA

Q3 2022 Rehacare Düsseldorf, Germany

Q4 2022 MEDICA Düsseldorf, Germany

Polish national stand at GAMESCOM 2021

• Europe's leading trade fair for digital games culture, and second largest in the world;

• Polish national stand of 200 m²;

• Free of charge presentation of company’s promotional materials;

• Business meetings zone;

• Raport: The Game Industry of Poland (ebook in English)

• Date of event: 25-29.08.2021

Bilateral events organised within the framework of Norwegian Financial Mechanism

Project for companies operating in three thematic areas:• green technologies• innovations in the area of marine and inland waters• technologies improving the quality of life

Apart from financial support, activities aiming at strengthening of bilateral relations (seminars/webinars, b2b events):• In 2020 – 8 events (6 online) organised by PARP or co-

organised with Innovation Norway;• Webinar and B2B meetings on clusters – April 2021• In 2021 – 6 seminars and business mixers planned

(online or onsite);• Travel Grants scheme.

Polish-UK Tech challenge – pilot project

The UK-Polish TechChallenge is a joint initiative of the Polish Ministry of Economic Development, Labour and Technology, the British Embassy in Warsaw and the Polish Agency for Enterprise Development.

• The project aims to promote technological cooperation between SMEs and large companies from Poland and the UK;

• The pilot edition of the TechChallenge focused on fintech and cleantechsectors;

• Two webinars and business mixers:December 2020: 4 Polish corporations, 22 British SMEs from cleantechand fintech sectors, 24 meetings;March 2021: 2 British entities and 8 Polish SMEs from cleantech sector, 8 meetings.

Branding - Polish Economy Brand

• Part of a system project ‘Promoting Polish economy on the international markets” realized by the Ministry of EconomicDevelopment, Labour and Technology;

• Initiative aimed at building posivite image of the Polish products and entrepreneurs on foreign markets;

• The Polish Economy Brand was created to promote domestic products and Polishentrepreneurs abroad;

• Each Polish entrepreneur can use the logotypeof the Polish Economy Brand in promotionalmaterials and while organising promotionalactivities.

Address:

Polish Agency for Enterprise Development

Pańska 81/83 Street

00-834 Warsaw

Contact

tel.: +48 22 432 80 80

information: 801 332 202

e-mail: biuro@parp.gov.pl

www.parp.gov.pl