Results Of The Survey Of 800 Small And Medium-Sized Enterprises In Poland

Online, September 8, 2010 (Newswire.com) - PCs replaced every 4.5 years

There are currently 1.4m computers (desktop and portable) in the sector of small and medium businesses in Poland. On average, small and medium enterprises in Poland have 15 computers, of which 73% (roughly one million units) are desktops. The number of units depends not only on the number of employees in a company, but also on its income, the degree of the influence of a foreign investor, and the number of departments in a company. In terms of size, there are 42 computers on average in medium sized businesses, and just nine in small firms. The statistics are based on the survey of 800 SMEs carried out by PMR, a market research company.

Between 2005 and 2010, the average number of computers for every company employing 50 to 249 staff grew by ten units, that is by 31%.

Currently, there are no large differences or dissimilarities among small and medium sized enterprises in Poland in terms of replacement cycle, which is about four and a half years on average. The frequency with which computers are replaced is proportional to income. In firms with earnings no higher than PLN 2m, computers are replaced less frequently (by a year) than in those with revenues of more than PLN 50m, where new computers are purchased every 4 years. Also, companies with many departments tend to replace their equipment somewhat more often than businesses with just one department. On the other hand, the fact that a company is local or foreign does not influence the length of replacement cycle.

It is worth noting that medium sized businesses currently replace their computer hardware or software somewhat less frequently than half a decade ago, although the change is not large. The replacement cycle has extended over the past 5 years by around half a year. This may be due to the higher quality equipment available to the companies. "Moreover, firms do not usually feel the need to upgrade to new operating systems released by Microsoft (Vista/Windows 7). Many more enterprises have previously decided to migrate to Windows XP system, which prompted a wave of equipment replacement. In 2009, the economic slowdown also had its impact on the spending - either reducing, or completely suspending outlays on IT equipment in some enterprises" - comments Pawel Olszynka, PMR IT market analyst and one of the report authors.

One third of SMEs do not use IT services

Survey also reveals that close to a third of Small And Medium-Sized Enterprises in Poland do not use any IT services, with the exception of those provided by their IT staff. This is especially true in the case of small enterprises (31%, compared with 18% of medium sized firms). The frequency of using IT services is also correlated with the scale of revenues. In the highest earning group (over PLN 50m), nearly 100% of firms used IT services in 2009, but only about two thirds of companies with income of up to PLN 2m declared having used such services. Foreign businesses are also more likely to use IT services. However, the number of departments does not have any impact on the results.

4% of SMEs use EU funding

Despite gradual changes for the better, a low percentage of small and medium firms in Poland still use EU funding to improve their competitiveness and innovation. According to PMR, the percentage of small firms where IT projects are subsidized by the European Union in Poland is minimal, and reaches just 2%. Medium enterprises have harnessed EU funds somewhat more frequently (one in eleven, or 9%, companies).

Harnessing EU funds increases proportionally to income: as many as 14% of companies from the highest earning group (over PLN 50m) used subsidies in 2009. SMEs with many departments have used subsidising much more frequently than companies with just one department. Fifteen per cent of small, and 21% of medium sized businesses declare plans to use funding from the European Union to finance their IT ventures.

Methodology remarks about the survey
In the survey PMR used a random, stratified sample of firms with 10 or more employees from the seven industries listed above. The sample has been sourced from REGON (National Business Registry Number) records, kept by GUS (Central Statistical Office of Poland). Moreover, the research did not include business entities operating within public administration, education, uniformed services, health care and associations.
In total, 798 full-value interviews have been carried out. Our respondents in the surveyed companies were employees most competent in the subject of IT. Very frequently, they were not hired as IT specialists, as in many - especially small - businesses such positions do not exist. A large portion of interviewees occupied highest posts in a firm (financial directors, directors, deputies).
The results of our research are representative of the population of Polish enterprises employing between 10 and 249 staff, and operating in one of the following industries:
- retail and wholesale trade or commerce
- mass production (production of foods, beverages, chemical raw materials etc.), also referred to as process manufacturing in the report
- discrete manufacturing (production of machines, equipment, fabricated metal products, furniture etc)
- transport
- HoReCa - hotels, restaurants, bars and cafes
- utilities (CHPs, wastewater treatment, water supply etc.)
- finance services
- other services (including construction, real estate, as well as IT and telecommunications).

Results of the survey are also representative of small (10-49 staff) and medium enterprises (50-249 staff).

Based on information contained in the PMR report entitled "Software applications, ICT services and infrastructure for small and medium-sized enterprises in Poland 2010".