The conversation is led by Marcin Wandałowski, editor of the publication of the Civic Congress.
What improvement challenges are facing Poland and Pomerania today?
In order not to stand inactive or back, you request to develop. I think the people of Pomerania are aware of this, including Pomeranian entrepreneurs. While improvement should take place on respective parallel levels, e.g. economical or socio-cultural, it is worth considering what it means for companies. The simplest answer that will most likely come to head many of us is investing. But how can we invest to grow? How can we do this wisely by beginning fresh opportunities and horizons to the company? Entrepreneurs – frequently intuitively – know what it means and do so.
How crucial is it for companies present to be able to usage public support (self-government, government) for improvement instruments?
Since the systemic transformation for many years we have functioned in the dogma of the free marketplace above all else. We have heard a number of slogans: "Let the free marketplace regulate this", "to go to the free market", etc. Many people and institutions profoundly believed in this approach. Today, however, it turns out that the free marketplace is sometimes a slogan, and the reality is far different. The best example of this is governments that subsidise national businesses in a more or little transparent way, and even the full industries. This distorts free, fair competition at global level.
Even a fewer years ago, as a keen supporter of the free market, I would propose that entrepreneurs trust solely on the rules and economical mechanisms involved. However, now, looking at global protectionist trends, I would possibly propose not so much a complete abandonment of belief in marketplace mechanisms as a fewer adjustments in my assumptions. I would be in favour of creating, at regional, national and European level, tools and conditions that shield our companies from unfair business behaviours, specified as China and another countries utilizing methods that distort competition and free marketplace principles.
What precisely do you mean?
First of all, I mean the inequality of opportunities. This must be addressed and, as far as possible, countered. At least include them in the strategical plans of companies as any kind of risk. Entrepreneurs should do what they always do – take care of their companies, build and keep their competitiveness. This means, among another things, the ability to usage public improvement instruments.
I would besides urge carefully observing horizontal policies and their long-term objectives. Their cognition will reduce the hazard of making unmet investments, which, for example, after a fewer years will require modifications, due to the fact that alternatively of improving the situation of the company, they will have a negative impact on the company's competitiveness. Sustainable development, which takes into account the environmental and social dimension, is presently a trend in Europe. I know that this frequently involves costs that should be borne today. But these are changes that can importantly affect the competitiveness of companies in the close future. However, I think that Pomeranian entrepreneurs have this in mind.
For many years we have functioned in the dogma of the free marketplace above all else. present it is sometimes a slogan, and reality is far different. More and more governments are subsidising national businesses and even full industries in a more or little transparent way. This distorts free, fair competition on the market.
What is the function of regional improvement funds in stimulating changes in given voivodships?
As the Pomeranian improvement Fund, being a company of the Pomorskie Voivodship, we effort to prepare in the region an offer conducive to the implementation of the strategy of the voivodship. In addition, we are striving to increase our possible by engaging as a fund manager, i.e. an operator of EU funds in return instruments. Importantly, the funds borrowed under EU programmes return to the PFR, so that we can usage them repeatedly – now and in the future.
In my opinion, this is simply a simple but effective mechanics for building opportunities for financing investment projects at regional level.
In current realities, taking care of your company, building and maintaining its competitiveness is the same as utilizing public improvement instruments.
What kind of projects could they be?
It can be divided into 2 segments – the first is connected with strengthening tiny and medium-sized entrepreneurs by providing them with capital to finance improvement through investment projects, including innovative ones. We besides have an crucial area of energy transformation and resource efficiency. The second foundation is support for infrastructure projects carried out by municipalities, regional institutions, municipal companies, etc., which are crucial in the context of the region and the standard of surviving of its inhabitants.
I am referring to strategical projects from the point of view of the improvement of the voivodship, i.e. schools, hospitals, the cultural sector. These are not frequently projects carried out straight by entrepreneurs, but they form a blood cycle for the regional economical system.
What about support programmes specifically targeted at Pomeranian entrepreneurs?
We are presently implementing 4 projects as beneficiaries: a improvement loan, a debt for projects related to renewable energy sources, a debt from the circular economy and a debt for energy efficiency, including the thermomodernisation of residential buildings, which will mostly be utilized for housing communities. We are at the selection phase of Financing Partners, who will offer loans to alleged final recipients, i.e. SMEs. The improvement debt is working. In total, we will dispose of about half a billion PLN.
Regardless of these projects, within the framework of EU funds which have already been "worked out" and have returned to the PFR, we besides launch financing for entrepreneurs in the form of a general improvement loan. We act as a wholesaler, i.e. we make funds available most frequently to debt funds or another financial institutions that further distribute them to SMEs. In the case of larger projects financed from 2 million PLN above, we besides act as a direct supplier of capital – in this context we offer at least a strategical debt for Pomerania, where we offer funds for projects applicable for the improvement of the voivodship1.
The common denominator of your projects is the word “loan”. Yet not so long ago – at least erstwhile it comes to EU support – the grant logic prevailed. Why is support presently preferred in return form?
This is straight due to a change in the attitude of the European Commission. Following the principles of this, not specified a fresh one, logic is so someway forced. But not always what is fixed top down is wrong. It seems apparent that today, at a much more advanced phase of improvement than 10 or 20 years ago, we request far little simple investments, specified as the replacement of a given machine, while more complex, more advanced projects, which can make crucial financial benefits, and thus be financed through feedback instruments.
By focusing on feedback instruments that can “work” repeatedly, we can build capital and any kind of instrumentarium that we will be able to usage both now and in the future, erstwhile the next EU perspectives will expire. I think entrepreneurs realize this perfectly and at the same time get utilized to it – the loans offered by us find their customers without problem.
By focusing on feedback instruments that can “work” repeatedly, we can build capital and any kind of instrumentarium that we will be able to usage both now and in the future, erstwhile the next EU perspectives will expire. I think entrepreneurs realize this perfectly and at the same time get utilized to it – the loans offered by us find their customers without problem.
In my opinion, changing the logic of support requires us to do any kind of intellectual work associated with the notion that the debt is worse than the grant. Feedback requires greater work from stakeholders. It besides provokes the optimisation of the actions that we want to take in a given undertaking, including a sound financial analysis. As the debt should be reimbursed after any time, this instrument forces entrepreneurs to decently verify and prepare the project. It is simply a good, responsible, mature and effective approach. However, in the PFR, we are aware that in any areas of the economy, specified as R & D, where the hazard is much greater and the kind of instruments venture capital inactive are not common in Poland and are "developed", grant support should inactive work.
Similar challenges in the intellectual sphere besides await local governments?
Definitely – the municipalities should besides adapt to the fact that the grant measures will be little and little and learn to usage return instruments. Local governments are mostly rather accustomed to grants – and it is not amazing to them, given the projects carried out over the last fewer years. However, the share of repayable financial instruments will increase in subsequent years. Sooner or later, all possible beneficiaries of EU projects will gotta learn and get utilized to this form of support.
Feedback requires greater work from stakeholders. It besides provokes the optimisation of the actions we want to take in a given undertaking. This instrument forces entrepreneurs to decently verify and prepare the project. It is simply a good, responsible, mature and effective approach.
But the European Commission has better and worse ideas. And while putting forward the function of returnable instruments is simply a forward-looking and long-term thinking, emerging ideas on the transformation of implementation architecture in the next financial period of the EU position are no longer. It is about signals about the planned changes in cohesion policy. To make it very simple, this comes down to giving up the function of regions as hosts of regional programmes. And speaking of building competitiveness, self-government, self-determination, work for the implementation of the regional improvement policy, it is incomprehensible to simultaneously destruct and take distant specified competence to the local governments of the voivodships and transfer it to the level higher (national level). It's kind of like a school to shift the full work for raising children, and they form their attitudes and grow up in values elevated primarily from the household home, or the smallest social cell. The same is actual in socio-economic areas where we inactive have a lot to make up for, specified as civilian society, entrepreneurship, affluence in solving local and regional problems. It can be said that these competences and attitudes form mainly tiny homelands, or regions. It is so worth seeking that the management of EU funds should besides be at the discretion of the regions in the next financial perspectives and should talk out and remind them.
1 For more information delight visit our website www.pfr.zpomorski.pl.
