Polish companies are afraid of fraudsters. Billions of zlotys in losses due to “lack of trust”

The Polish economy may lose the opportunity to fully utilize the planned investments worth approximately PLN 1 trillion in energy, infrastructure and armaments if enterprises do not increase the level of cooperation and trust – according to the report of the National Debt Register.

The study “Social capital and trust in Polish business” shows that over half of companies (54.4%) abandon some transactions not because they are unprofitable, but because of lack of trust in contractors. The total value of opportunities lost in this way was estimated at PLN 974 billion per year – almost four times more than a decade ago, when it was PLN 281 billion.

At the same time, 84.8 percent entrepreneurs believe that in business relations one should constantly be careful not to be cheated. Nearly half of companies cooperate only with proven partners, limiting openness to new business relationships.

As Adam Łącki, president of KRD, quoted in the report, points out, a decrease in the percentage of companies abandoning transactions due to distrust (from 47 to 32 percent over 10 years) does not mean that the situation is improving. Rather, companies learned to manage risk through extensive procedures, safeguards and guarantees, which, however, did not reduce economic losses.

The problem becomes particularly important in the context of government plans to increase the participation of Polish companies – including SMEs – in the implementation of large investments. Meanwhile, 68 percent entrepreneurs believe that partners act honestly only when interests coincide, and over 60 percent assumes that the contractor will take advantage of the legal loophole if he has the opportunity.

The trust deficit particularly affects small and medium-sized companies. According to the report, 46.2 percent SMEs were asked for additional safeguards solely due to lack of recognition, despite no signals of unreliability. This phenomenon has been described as the 'fairness paradox', which makes it difficult for new entrants to enter supply chains.

The authors of the report indicate three key areas requiring action. The first is improving access to information about contractors – 63.5%. SME companies would like to have such data in one place. The second is greater investment predictability, enabling the building of long-term business relationships. Third – changing the business culture and reducing distrust, especially among the most experienced entrepreneurs.

Experts emphasize that without trust, it will be difficult to create consortiums, develop supply chains and effectively use the national potential in the implementation of strategic investments.

The National Debt Register (KRD) is a database that collects information on the debts of individuals and companies. (PAP)

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