Expansion of Ukrainian companies in Poland. Are we a base on the way to conquering the European Union?

Luc Williams

The first stop on the way to the European Union markets

Poland occupies a special place on business map of Ukraine. The strong cultural similarities between both countries have helped make us a natural country base for Ukrainian enterprises. The presence of 1.5 million war refugees from across the eastern border, who quickly found a place in Poland, is also important labor marketfirst as employees, and recently also as employing entrepreneurs their compatriots. According to Polish business associations and economists, they are the ones who will open every tenth new business in our country in 2024.

Unique pastries not only for Ukrainians

Most of them initially offered food, drinks and services to their compatriots. Over time, they became popular on the open market, gaining a number of new customers. An example of such expansion is the chain of franchise bakeries owned by Andrio Halytsky Lviv Croissants. The first one was opened on March 5, 2015 in Lviv. The brand has been present for two years 12 stores in Polandand in October the company opened its first one sales point in the Czech Republic.

This is how the company implements strategy for building a geographically diversified business by expansion to the West and beyond Ukrainian diaspora. “While the Ukrainian refugee community in Europe is significant, relying solely on this customer base is not a sustainable long-term strategy,” Halytskyi told Reuters.

A franchise with international potential

The chain of bars refers to the traditional Ukrainian cherry liqueur Drunk Cherryowned by Andriy Khudo. Although before the war the company was perfect developed in Ukrainethe year 2022 strongly verified her plans for the future. Currently in Poland and nine in other Baltic and Eastern European countries There are 15 franchise locations mainly focused on local customers. Khudo also added in an interview with Reuters that the group plans to open locations in Germany, Switzerland and France in 2025 and the reopening of the premises in London. He added that bars attract new customers and are profitable.

Before the war, the Ukrainian restaurateur Olga Kopylova also did not plan to launch her own brand Czarnomorka to foreign markets. Now it has three premises in Poland, including one in Warsaw at the prestigious Nowy Świat Street and two streets each Bratislava and Vienna. The restaurant offers a large selection of fish and seafood, which are extremely popular in Ukraine.

Competition for cable networks

Ukrainian companies are also entering digital entertainment services market. Owned by Volodymyr Borovyk MEGOGO service has been operating in Poland and Romania since 2023, attracting local residents, mainly through family programs. The platform offers direct access to all the most important TV channels thanks to Smart TVs or after installing the appropriate one application. “A healthy Polish market not only motivates us, but also encourages other Ukrainian companies to enter this market with products tailored specifically to the needs of Polish consumers,” Borovyk said in an interview with Reuters.

Ukrainians and Poland’s GDP

Contrary to popular belief that support for Ukrainian refugees drains Polish budgetit’s exactly the opposite. Deloitte report in March 2024 showed that their work contributed to Poland’s GDP growth by 1.1 percent in 2023, and in the longer term theirs contribution to the Polish economy may be as high as 1.35%.

A springboard to EU markets

According to Andrzej Kubisiak, deputy director of the Polish Economic Institute, Ukrainians who work or set up companies in Poland, provide the economy with “additional economic stimulus for consumption” and increase the number of people ready to work. Dariusz Szymczeja, first vice-president of the Polish-Ukrainian Chamber of Commerce, speaks in a similar tone. In his opinion, Ukrainian businessmen “see Poland as a bridge or springboard to the European Union markets.” They learn how to operate Western marketsbecome familiar with standards, regulations and principles of operation in the European Unionhe added.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.