The relationship between small and large companies in Poland is still burdened by an imbalance of power. A study by the National Debt Register shows that as many as 72 per cent of micro, small and medium-sized enterprises believe that large entities exploit their advantages. For many SMEs, extended payment terms are a key problem – indicated by 60 per cent of respondents. Significantly, 44 per cent of companies admit that, for fear of risk, it is better to avoid cooperation with corporations altogether.
This approach comes at a cost. Avoiding relationships with the big players means missed opportunities for SMEs – both for stable orders and for scaling the business. However, the fears of small companies are not unfounded. Almost 4 in 10 respondents admit that negative experiences of working with large contractors have become a reality.
However, the survey indicates that there are ways to minimise risks and create a more collaborative relationship. The most frequently mentioned are precise contracts and their legal analysis (37 per cent of indications), transparent communication and regular discussions about the quality of cooperation (30 per cent), as well as the use of advance payments or factoring to secure liquidity.
Companies also advise verifying counterparties in business information offices (28 per cent) and diversifying the client portfolio to avoid overdependence on one large entity (27 per cent). This is a pragmatic approach: a large partner can be a source of stable revenue, but over-dependence on one contract increases vulnerability to crises.
According to entrepreneurs, the balance could be improved by systemic solutions – e.g. industry contract standards or restrictions on the use of assignment bans. The latter safeguard, readily used by large companies, prevents SMEs from benefiting from factoring and thus limits their ability to maintain liquidity.
The problem of asymmetry is not exclusive to Poland. According to European Commission analyses, extended payment terms are one of the main factors in SME bankruptcy in the EU. Therefore, work has been going on for years to introduce uniform payment rules that would strengthen the position of smaller companies.
The paradox is that, although cooperation with large counterparties is feared, in the long term it is precisely this that can open the way for small companies to larger markets and innovative projects. The key question remains how many SME entrepreneurs will abandon this path because of concerns – and how many will thus close the door to growth.
