‘Digital transformation in small businesses is progressing dynamically, but unevenly’, stated Patrycja Sass-Staniszewska, president of the Chamber of Digital Economy (e-Chamber), during the debate ‘Micro-businesses in the era of e-commerce: how nanosegmentation and institutional support are shaping the future of small business in Poland’, held in the Rzeczpospolita Lounge at the 34th Economic Forum in Karpacz.

While domestic micro-businesses are performing very well in online channels, they are not faring as well in implementing artificial intelligence-based solutions or investing in analytics, an area where the country remains below the EU average. ‘From the perspective of e-commerce, we can see that 73% of small and medium-sized companies that have invested in additional elements of digitisation have an advantage in sales and in their approach to consumers’, added the president of the e-Chamber.

A report by the Ministry of Development and Technology on digitisation in micro-enterprises shows that although 9% of small businesses wish to undergo digital transformation, their owners do not know where to obtain the necessary knowledge and funds. The Chamber of Digital Economy is seeking to change this. For the past ten years, it has conducted workshops on developing online sales, taught marketing strategies, introduced available technological solutions, and connected business owners from different countries to enable them to sell in new markets. It also cooperates with the Ministry of Development and Technology and the Ministry of Digital Affairs to increase the digital competence of companies.

According to Patrycja Sass-Staniszewska, domestic companies possess great potential, are open-minded, and employ competent staff. However, without funding, it will be difficult for them to implement innovations, as access to capital is challenging.

The president of the e-Chamber also highlighted the need to simplify procedures, an area where the government administration has work to do. This requires both deregulation on the one hand and regulatory stability on the other.

‘The law on digital issues is changing too quickly, with one change following another, both at EU level and in terms of implementation. Small businesses cannot afford to deal with endless implementation, legislative and tax issues. Let's create rational laws that will support business’, appealed Patrycja Sass-Staniszewska.

Tomasz Sińczak, president of the Consumer Forum Foundation, pointed out that digitisation extends beyond simply operating online. It also involves robotisation and the installation of specialised equipment and machines that take over certain employee tasks, which in e-commerce includes sorting goods, labelling, and preparing them for shipment.

‘Thanks to these changes, the sales process is more efficient. Innovative solutions enable better and faster customer service. Added to this is a guarantee of quality service. Digitisation reduces the risk of errors related to, for example, reading product codes or repackaging’, said Tomasz Sińczak.

New channels, new opportunities

In addition to process digitisation, a new approach to promotional channels is emerging, with small businesses increasingly active on social media platforms like TikTok. Although business owners are eager to use these new channels, some express concern about the associated costs.

‘It should be noted that promotional or communication presence on TikTok does not necessarily involve large expenses’, emphasised Łukasz Gabler, public policy and government relations manager, TikTok CEE.

Moreover, many small and medium-sized businesses begin by operating primarily within the realm of organic, free communication.

‘We recently conducted a survey among micro-entrepreneurs. One in three confirmed that their presence on TikTok allowed them to reach a new group of customers. However, this is not just about sales, marketing or advertising. Many companies point to the benefit of gaining consumer insight. Here, you can learn about customers' opinions on specific products or services. Thanks to this information, 30 per cent of the entrepreneurs we surveyed decided to take their offer abroad. They were better prepared to respond to consumer expectations in external markets’, said Łukasz Gabler.

TikTok's content recommendation system is based on the interests of its users.

‘This offers great opportunities. Entrepreneurs can join general groups, but also those that are interested in a specific issue’, explained the TikTok representative. He cited the community gathered around BookTok as an example, where users create and share video reviews of books. Such a group is valuable not only to the publishing business but also to related industries like bookbinding, which is currently enjoying a revival.

Competition on the rise

Also taking part in the discussion on the digitisation of small businesses was Krzysztof Traczyk, director of the Ombudsman's Office for Small and Medium-sized Enterprises. This institution is responsible for protecting the interests of smaller businesses whose rights have been violated by public authorities.

‘When we talk to government officials, we often hear their argument that information for companies has been posted online’, said Krzysztof Traczyk. ‘However, the owner of a greengrocer's shop, for example, gets up in the morning, goes to the market, opens his business and works all day; he doesn't visit the websites of individual ministries searching for information relevant to his operations. To meet the needs of these companies, we publish all information pertinent to micro, small and medium-sized entrepreneurs in one place, every day’. He added, ‘The office's assistance is free of charge’.

Polish manufacturers face numerous costs related to establishing and maintaining a shop and obtaining the necessary certificates. In addition to these expenses, they must also handle customer data protection, which is why government assistance is needed to protect local businesses.

‘The Ministry of Finance and the National Revenue Administration already took certain regulatory measures in this regard last July’, said Traczyk.

Support from big players

The growing presence of Polish companies on foreign markets, driven by the development of e-commerce, challenges sellers to comply with local legal regulations. Wojciech Arszewski, PR Director for Central and Eastern Europe, the Middle East and Africa at UPS Poland, emphasised that within the European Union, the matter is simpler, as there are no customs duties and regulations across the Community are similar.

Outside the EU market, however, customs barriers arise, making it necessary for sellers to understand the requirements imposed by the destination country before shipping. In this situation, companies can count on support from UPS.

‘It's not just about how much we pay in customs duties, but also what documents or certificates must be attached to the shipment’, said Wojciech Arszewski. ‘Our company has systems that contain all this information. (...) We provide customs clearance and all services electronically’, he added.

However, the help of a larger player is also useful for trade within the European Union.

‘If a small business wants to enter a new market, it can use our electronic tools. It does not have to create its own shipping or monitoring systems, as this can be done through our solutions. This also covers issues such as returns. A customer must, for example, be able to return a parcel from Spain, and our electronic systems make this possible’, explained Wojciech Arszewski.

Small businesses can be leaders in innovation, with numerous examples of this on the market. ‘An innovative approach to presenting companies and creating their stories is already visible. This is a huge step forward, which also allows for the building of lasting bonds between consumers and companies’, said Łukasz Gabler.

Patrycja Sass-Staniszewska summarised that it is not business that creates the consumer, but the consumer that creates business. Companies must therefore focus on the needs of their customers, who are digitally well-educated, know the capabilities of global players, and are consequently setting the bar ever higher for domestic companies.

For this reason, businesses must undergo a digital transformation. While it is not an easy process, when carried out professionally, it leads to success, not just on a national scale.