Micro-enterprises in Rural Areas

Abstract

Owing to the small number of drawn credits and moderate modest investment plans rural micro-enterprises have proved fairly resistant to disturbances caused by the crisis. Micro-firms play a very important role in the Polish economy. They generate 30.1% of GDP and employ 40.6% of all persons working in the sector of enterprises in Poland. Micro-firms account for 94.8% of the total number of enterprises. Although the financial condition of micro-firms is quite good in comparison with enterprises that employ a considerably larger number of workers they display signs of numerous weaknesses, which is particularly true of rural enterprises. Problems with overcoming barriers to the development of enterprises require a slightly different approach in rural areas because rural enterprises operate in far more difficult conditions than businesses established in large cities. The formation of the network Natura 2000 additionally complicates the development of entrepreneurship in rural areas. The situation calls for a wide-scale action to make clear and known the permitted scope of development of firms in protected areas and, probably, also for the establishment of a special fund that would allow to offer compensation to local authorities and entrepreneurs for the lost advantages.