DETERMINANTS OF GROWTH AND DEVELOPMENT OF COMPANIES FROM ELECTRO ENGINEERING INDUSTRY
DOI:
https://doi.org/10.12775/JPM.2017.129Słowa kluczowe
enterprise, decision making, labour cost, growth of a company, development of a companyAbstrakt
Purpose: High employment costs caused by current legal-formal regulations in Poland are to be blamed by many entrepreneurs for the unsatisfactory dynamics of growth and development of their companies. They are also blamed for such short histories of the companies. Is that a right accusation? If yes then what impact would labour cost reduction have on growth and development of companies? This paper includes results of research on this issue.
Methodology: The opinion poll was conveyed with the use of questionnaires which were given to entrepreneurs, their employees and representatives of trade unions from enterprises which exist on the area of Warmia and Masuria Voivodship, who participated in seminars that are a part of program “The exchange of good practices in CSR in machinery industry in Poland and Bulgaria”. The program was organized by Bulgarian Branch Chamber of Machine Building and Foundation “Institute of Corporate Social Responsibility in Olsztyn”.
Findings: The results of the research show that labour cost reduction in enterprises would not lead to any significant changes in decision making nor it would result in activity that would enable growth and development of the company.
Originality/value: The importance of this paper is to verify the thesis claimed by many entrepreneurs, that labour costs imposed by the government are too high and they prevent growth and development of their enterprises. It has been shown that the thesis is not true, and that the entrepreneurs themselves are to be blamed for lack of growth and development of their enterprises, as it is caused by lack financial liquidity which results from belated payment of due amounts and obligations which also affects continuity of their businesses.
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