Economy. The foreign capital chooses Lubuskie

The private sector of the Lubuskie region is characterized by fragmentation. It creates the possibility to be employed in various economy branches, which makes it more resilient to changes in economic situation. Micro enterprises, up to 10 employees, are dominant. The number of small enterprises, from 10 to 50 employees, is on the increase. The main weakness of small firms is their low level of innovation.

Business activity of natural persons dominates. In the year 2008, they amounted to 80% of private parties. Four branches of enterprises are the most numerous as follows: commerce and repair are dominant though they lose in importance. Real estate is the second sector and the number of such enterprises doubled in the last 10 years. The third sector is transport, storage and communication. The last one is civil engineering.

There is over 100 000 business entities registered in the region which places it on the sixth place in Poland for business entities per capita. In the year 2007, the GDP of the enterprises in Lubuskie reached 87% of the national average, placing Lubuskie in the middle of the roster and if Warsaw was not taken into account it would be equal to nation average. Considering the size and potential of the region it is a good result, equal to a half more populous northern neighbour, the zachodniopomorskie region.

The last ten years saw a steady increase of foreign investor’s interest in Lubuskie. The number of companies with foreign capital reaches 38% of the total and with the nation average of 24%, it puts Lubuskie in a leading place in the country. Over a half of the 1,5 bln PLN of foreign capital invested in 2007 came from companies with German capital.

The research carried out by the Polish Agency for Foreign Investment (“Poland as a Place for German Investments”) shows that several factors contributed to the decision of investing in Poland: 62% – good market, 26% – low labour costs, 14% – special qualifications of employees, 13% – taxation, 7% – place of production. Considering the fact that the respondents are the dominant investor in the region, it can be said that these arguments show the advantages of the region. Bearing in mind its perfect localization and quickly developing infrastructure, it seems obvious that those are the reasons for so many foreign investments in Lubuskie.

In the year 2008, LCD modules and coal were among the most often imported products. The leading export products of the Lubuskie region were: wiring harness and electrical wiring, toilet paper and paper towels, car parts and accessories, furniture, woodwork and LCD TV sets (thanks to TPV in Gorzów Wielkopolski and Funai in Nowa Sól).