The Impact of the COVID-19 Pandemic on the Economic and Financial Situation of the Micro and Small Enterprises from the Construction and Development Industry in Poland
Purpose: The main purpose of the article was to assess the impact of the COVID-19 pandemic on the financial situation of micro and small enterprises in the construction and development industry in Poland. Design/Methodology/Approach: The research was conducted in February 2021 by means of a survey on a group of 100 randomly selected, representative samples of micro and small entrepreneurs from the construction and development industry in Poland. The survey questionnaire was developed in the form of 15 record and substantive single or multiple choice questions. Another method that was used for the research was the review and analysis of bibliographic resources. Findings: The conducted research shows that as a result of the COVID-19 pandemic, the economic and financial situation of micro and small enterprises in Poland has deteriorated. However, this was not only due to a reduction in demand. A large part of the problems resulted from the disruption of material logistics chains, which contributed to problems with access to professional equipment (fixed assets) and financial chains, which was reflected in the growing concerns of entrepreneurs about the timely inflow of receivables from recipients. Practical Implications: The pandemic, affecting almost all economic entities, destabilizes their functioning and raises concerns about the future. Support in a more difficult situation granted to entrepreneurs by the government may significantly burden the state budget, and the resignation from investments may hinder economic growth. A significant drop in demand for construction services and concerns about an increase in the prices of materials and wages and salaries may lead to a price fight between entities. Due to the difficulty in predicting the long-term effects of the pandemic, it seems necessary to apply for economic protection outside traditional crisis management systems. Originality/Value: With the use of an original, authors' survey conducted on a representative research sample, current issues were raised, concerning not only Poland, but also the whole world.