Entrepreneurs fail because they do not check contractors

Entrepreneurs fail because they do not check contractors

The SMEO and ERIF studies of the Economic Information Office on small and medium-sized enterprises indicate that entrepreneurs make mistakes in financial management and then collapse.

Currently, 64% of business owners manage their finances on their own, one in three entrepreneurs uses an external accounting company and less than one in ten employs an employee to do so. On the other hand, when the crisis comes, 34% of entrepreneurs contribute private funds to the company and 20% borrow money from friends. Moreover, every 5th company is late in payments to contractors or takes a loan.

Entrepreneurs very rarely decide on the services of lawyers, debt collectors or factoring. In the opinion of Michał Pawlik, the President of the SMEO company, it shows how challenging it is for entrepreneurs to get used to advanced methods of securing cash.

More and more entrepreneurs complain about untimely payment for invoices issued, and in the last 2 years 63% of companies have not received payment. 27% of entrepreneurs did not receive any payment at all, and 36% received partial payment.

An analysis of the National Debt Register shows that PLN 220 from each thousand of the invoices was not paid, despite the expiry of the payment deadline. Polish entrepreneurs are not able to counteract crises, and every fourth of them does not verify whether a new business partner exists.

On the other hand, more and more micro-businesses are being established in Poland. Today there are 1 million 940 thousand of them and they constitute as much as 96% of all enterprises. According to experts, after a year of activity every third of them will disappear, and the rest will be in a poor financial situation. The reason for this situation is low awareness of how to manage finances.

Source: www.money.pl/gospodarka/upadaja-bo-nie-potrafia-liczyc-co-czwarty-przedsiebiorca-nie-sprawdza-kontrahenta-6333438733411969a.html

 

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