As I mentioned in my last blog posting, the credit crunch had not had such a dramatic effect in Poland and some other Central European markets. However now there has been a reduction in market confidence in Poaland due to negative comments in the media, not due to a reduction in bank lending.
Polish banks are still willing and able to lend money to companies and individuals for property and commercial purposes, however people are not borrowing, due to what they read in the newspapers.
The effect has been that the Polish property market has almost stopped and many developers and builders now have unsold property on their books.
In both Poland and the Czech Republic the forecasts for the growth in GDP have reduced dramatically from around 4 to 5% to 1 to 2%. These forecasts are, of course, far better than forecasts for the economies of Western Europe.
In addition the drop in the value of Sterling means that UK exports have not been so competitive for many years. As a result, Central Europe currently presents great opportunities for UK exporters. I hope they take up the challenge!
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Author: Professor Nigel Adams
Nigel is a Professor & the first Director of the Buckingham Enterprise & Innovation Unit (http://www.beiu.co.uk) in the Vinson Building at the University of Buckingham
He also advises and mentors undergraduate students taking the innovative two year (8 terms) BSc in Business Enterprise in which they must start a real business as an integral part of their honours degree. Nigel also mentors postgraduate students..
BBE one of only a few similar honours degree programmes in the world which offer undergraduate students the opportunity to study for a degree in Business Enterprise, whilst also starting & developing a business. These types of degree are called Venture Creation Programmes (www.vcplist.com) , Within 4 months of starting the programme students must pitch for seed-corn capital from "Buckingham Angels".
Nigel also advises and Mentors other university students and staff and local people who want to start business or grow their businesses.
Between 2002 and 2011, Nigel was Managing Director of Nigel Adams & Company Ltd, providing business, management, international marketing, recruitment and other support and advice to the management of Western companies to help them establish business operations in Central & Eastern Europe & to improve their sales.
Nigel is an experienced international business adviser with more than 40 years experience in business, enterprise, management, marketing & counter-trade. He was based in Poland from 1993 until 2002, working on Polish state company restructuring projects as a British Government Know How Fund Management Adviser.
Nigel is a Fellow of the Chartered Institute of Marketing (CIM) and a Chartered Marketer.
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