THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN THE FOOD INDUSTRY: THE CASE OF POLAND

Abstract

The aim of the article is to present the role of small and medium enterprises in the food industry sector in Poland. The Polish food industry includes over 16 thousand enterprises, which recorded a growth in results of their activities, in form of the sold product value, of 60% between 2005 and 2016 (to 48.6 billion Euro). The largest group of the enterprises in food industry are the entities that employ up to 9 people (64% in 2015). Their role in manufacture and employment decreases, similar to the share of small and medium enterprises that account for over a third of all enterprises. Each of the branches of food industry is dominated by micro-enterprises (58% to 83%) and together with small and medium enterprises they account for 94.6% (manufacture of dairy products) to 99.4% (manufacture of bakery and farinaceous products). Even with the small and medium enterprise (SME) segment (including micro) enterprises dominating the food industry their share in revenues is significantly lower. In most of the food industry branches the majority of employment is due to the SME sector, with the crucial role played by companies employing 50 to 249 people. The food industry in Poland also ensures the food security of the country. Local processing plants secure the continuity and fastness of deliveries, which is important when the characteristics of these products are considered. Local products improve the food’s security of local community by improving accessibility of fresh food. They also meet the customer expectations to access products of local manufacturers, based on their manufacturing tradition and experience. Small and medium enterprises can effectively penetrate market niches, increasing the diversity of products, frequently innovative ones. They are able to do that, among others, because of growing investment expenditures. JEL classification: Q13, L11

Keywords

• SME, food industry.