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Reasons why Polish tech Companies struggle

5 reasons why Polish tech-startups struggle in the global market


In the last few decades, Poland has seen immense economical growth. With extremely talented and motivated entrepreneurs, Polish startups have flourished. With its pool of tech talent and with its strategic location, Poland has become fertile soil for its innovation and technological advancements. However, many articles fail to explain the other side of the story. While many Polish tech companies are thriving, many are also failing at a very fast rate. 

Some of the insights shared by Polish entrepreneurs will leave you in disbelief and dismay to know the real reasons for the downfall.

Problem with Polish Startups:

  1. Slow Market Penetration – Slow skimming strategy works, when there is a lack of competition. However, in a highly competitive market, where the competition is very fierce, slow market penetration can impair the growth of any startup. Many E-commerce tech and marketing automation platforms that are competing with each other, are examples of this slow market penetration.

Insufficient Investment is also one reason why Polish startups especially the Saas companies are not able to compete in the global market scenario.

2. Poor customer support – One of the biggest challenges faced by Polish Saas startups is poor customer support. Inadequate English Language skills, or simply not being able to understand the customer’s demand on the other side makes that customer frustrated and switch to the competition. Many review sections suggest that the customer was totally unhappy and the negative feedback was not about the product but the inability or lack of guidance on using the particular feature of the product in the first place, which made the user frustrated and switch to the competition. Many customers are also left unanswered, and the complaints are not carefully dealt with, which unfortunately leaves the customer unsatisfied and feeling cheated

3. High Attrition Rate – Poland is attracting a lot of foreign talent due to its affordability and low cost of living compared to its neighbor. Apart from the stable economy in recent times, Poland is facing the same issue of labor shortage just like other EU countries. 

The younger generation is finding better and better opportunities and when they do, they do not hesitate to move from one job to the other. This leaves a gap for the expertise and many companies have employees but not experts. Job hopping is in a way a serious global issue and should be dealt with concern. If you want to know more about what is attrition rate read here.

Companies try to do everything they can to retain the employees, however, this causes the overhead costs to rise. Outsourcing is one great option to keep your overhead costs low. One can also subscribe to virtual tech employees on a monthly subscription, a great option to keep increasing productivity and lower the operations costs. More information on this can be found here

4. A Polish Mindset: Polish Entrepreneurs lack guidance. Many Polish startups are giving tough competition to global companies, however, many ideas fail to reach the masses. One of the reasons why this happens is the Polish Mindset. For many Polish companies, export means transporting goods to neighboring Germany. Many Polish Entrepreneurs have confessed that we need to break the mental barriers and understand that we live in a globalized world. The feeling of lack, fear, and taking calculative risks hampers the growth of the businesses, and eventually doesn’t matter how good the original idea is, it fails to reach the right audience and satisfy them.

5. Inadequate English Communication – Poland is enjoying its new phase of migration where more and more people speak English on its streets. However, It is difficult to find English-speaking employees. The new generation in Poland is bridging this gap, however, it’s still not enough. Many Polish Employees who have very high skills are unfortunately not able to express themselves, which leaves them baffled as they think their talent is not appreciated. Many Entrepreneurs, have stories where they lost their chance because they couldn’t express themselves in English. 

If you are an Entrepreneur and want to read more articles about Poland startups participate in the survey here.


Source - Team Megatech Sourcing

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