Polish Startup – The Preferred Business Model
The Startup Poland Foundation’s survey reveals that Polish startups predominantly adopt business-to-business (B2B) models, with 33% targeting large companies and 24% focusing on small businesses. Only 16% of startups employ a business-to-consumer (B2C) model, and 12% operate in a marketplace model. The survey also explores the target customer groups, highlighting that 58% aim at small and medium-sized businesses, 22% at freelance professionals, and 39% at institutional clients. Additionally, 43% engage in B2C activities, while 18% follow a B2C2C model, and 16% target non-profit organizations (B2B2G). The preferred business models in the Polish startup sector have remained relatively stable over recent years.
The Founder’s Profile
The Startup Poland Foundation’s survey on the profiles of founders in Polish startups reveals that the majority of founders (almost 90%) are slightly older or middle-aged, challenging the common perception of startups as being associated with younger individuals. The largest group (38%) of founders established their startups between the ages of 26 and 35, followed by the 36-45 age group. The younger generation (18-25) constitutes 18% of the participants. The survey indicates that prior work experience is common among founders, with 58% having run their own business before, 52% having worked in a smaller private company, and 49% in a corporation. About 16% have an academic background, and 15% have experience in state-owned companies or local government. Additionally, 51% of the respondents are running their first startup, while 30% have previously founded startups but are currently focused on a single venture.
Polish founders generally have a higher level of education, with the majority holding master’s degrees (59%), followed by 10% with bachelor’s degrees, and 12% with engineering degrees. Additionally, 5% have doctorates, and 1% hold professorships. Nearly half of the founders (49%) have a background in science and technology, while 22% studied humanities or social sciences, and 21% economics. The ideal startup founder, according to surveyed founders, should prioritize leadership qualities (60%), while 28% believe business acumen is most important, and 12% value “geek” qualities, emphasizing a deep understanding of the technology the startup works on.
The characteristics of a good leader according to dr Anna Ogar, the CEO of Insignes Labs
To successfully grow a business on a global scale, a founder should build their company on an inspiring idea with the potential for positive global impact. This often involves innovative technology addressing worldwide problems. Long-term vision, coupled with a well-thought-out business strategy, is crucial. Passion and motivation are key, especially in the early stages. Technical and managerial skills are equally important, and effective leadership transforms ideas into concrete products or services. Collaboration with talented individuals, international networking, and creative marketing are essential for scaling. Adaptability, resilience to stress, and the ability to learn from failure contribute to success. Integrity, stability, and focus are qualities of great leaders fostering consistency and wise decision-making, both in business and personal life.
Staff competences and wellbeing – what makes a perfect team?
The strength of a company is acknowledged to lie in its team, particularly in startups. Although the global slowdown in the startup market and reduced investor interest in technology companies have impacted the industry, Polish startups are still actively recruiting IT employees. A 2021 survey identified the most sought-after professional competences, highlighting a significant demand for programmers (59%), engineers specializing in machine learning algorithms (24%), and sales managers (20%). The shortage of professionals across various fields, not limited to IT, continues to pose a significant challenge for Polish startups.
The latest survey by the Startup Poland Foundation reveals that Polish startups typically consist of small teams, with over one-third employing between 4 and 10 people (34%). Approximately 20% have teams of a maximum of three people, likely indicating early-stage startups funded by founders’ savings. Larger teams, ranging from 11 to over 51 employees, make up a smaller percentage. Gender diversity in startup teams remains a challenge, with a majority of employees being men. While 39% of startups have women comprising 25-50% of their teams, 11% have no women employees. Achieving gender parity remains a broader issue in the global startup ecosystem.
The ideal startup team is considered diverse, combining high qualifications, innovation, development focus, and a balance between costs and a startup’s specific approach. Enthusiasm and belief in growth are crucial, with Employee Stock Option Plans (ESOPs) identified as a key advantage for startups in attracting and retaining talent.
Investing in the human resources
To retain their teams and prevent employee attrition to competitors, startups are advised to focus on personal development. Various training options tailored for startups are readily available. A survey by GoodHabitz in 2021 indicates that 64% of Polish employees wish to enhance their competences, with language skills being the most desired by 31% of respondents. As Polish startups hire more foreigners, there is a growing demand for learning the Polish language to facilitate better integration. In the ‘Polish Startups 2021’ report, training and skill improvement in startups were examined. Marketing (39%) and sales (33%) were the most popular areas for employee training, followed by programming (28%), project management (25%), and work organization (22%). Additionally, 17% of startups provided training in programming, machine learning, and AI algorithms.
Polish startups recognize the importance of training in various competencies for company management and growth. Training areas include global business scaling, finance and accounting, customer service, pitching, logistics management, supply chain and distribution management, HR, risk assessment, emotional intelligence, leadership, communication, time management, and stress management. Additionally, startups emphasize employee well-being, with 58% prioritizing work-life balance and 74% allowing remote or hybrid working, reflecting the continued impact of the pandemic on work arrangements.
One-third of startups organize team-building trips annually, while 21% offer additional medical packages and 16% provide fitness passes as employee benefits. Less common offerings include health monitoring apps (5%) and participation in charity runs (5%), with 13% of companies not providing any such activities for employees. The survey suggests that startups are not exceptional in employee well-being initiatives, and individualized benefits beyond typical offerings may become crucial in attracting talent as funding sources decrease.
