Article

Self-employment in Poland

16.09.2024

Self-employment in Poland is becoming more and more popular, and according to the OECD’s data, in 2023  one in five working people were self-employed. In recent years, the number of people running a sole proprietorship has been steadily increasing, which is a response to the changing needs of the labour market and the professional preferences of Poles.

Self-employment, i.e. running a sole proprietorship, is playing an increasingly important role in the Polish labour market. According to the latest data from the Central Statistical Office, this phenomenon involved 3.2 million Poles in 2023, which is about 20 percent of the total number of  those employed. This is a clear increase compared to previous years, when the number of self-employed was 2.8 million (2017).

Growth in the number of self-employed – trends and statistics

Since 2017, the number of self-employed  has been steadily increasing. In 2022, there were already 3.1 million, while in 2023 this number increased to 3.2 million. For comparison, the number of employees in 2023 was 11.9 million. This dynamic development in  self-employment indicates that more and more Poles appreciate the flexibility offered by self-employment, although in many cases it is also a way to stay on the labour market.

Graduates and self-employment

According to the Graduate Economic Tracking System (ELA), self-employment is particularly popular among graduates of certain areas of study.

The highest percentage of self-employed among university graduates is observed in the medical faculties. As many as 75 percent of graduates of medicine and dentistry from 2014-2022  have started their own business. In the medical faculty, this indicator was 35 percent, in emergency medical services – 40 percent, and among physiotherapists – 30 percent.

The data indicates that doctors and others  working in the medical field choose to work on a contract basis as it enables them to work in several places.  Self-employment is a key element to be able to do this.

Self-employment in IT and other sectors

Self-employment is equally popular among IT graduates. As many as 35 percent of IT graduates from 2014-2022 decided to start their own business.

A similar trend can be seen in other professions, such as veterinary medicine (33 percent), interior design (34 percent) and law (27 percent). Self-employment is also popular among cosmetologists (27 percent) and psychologists (26 percent).

On the other hand, a smaller percentage of self-employed graduates is found in such fields as administration (7 percent), pedagogy (7 percent) or finance and accounting (11 percent). These professions are characterized by a more traditional approach to employment, where full-time work dominates over self-employment.

Factors influencing the decision to become self-employed

One of the key factors influencing the choice of self-employment is the need for professional flexibility. Running your own business allows you to manage your working time independently, which is especially important for people who want to combine their professional duties with their private life. Self-employment also allows you to take on various offers at the same time, which opens up opportunities to work with many contractors and work on different projects.

In some cases, self-employment is becoming a necessity, as employers are increasingly choosing this form of cooperation, transferring the responsibility for bookkeeping and paying  employee contributions . In Poland, the popularity of self-employment is also due to the savings that companies can achieve by avoiding the costs associated with employment contracts. From an employee’s point of view, self-employment may be the only way to stay in the labour market, especially in professions such as IT or healthcare, where contracts are now the norm.

Prospects for the development of self-employment in Poland

Given the increase in the number of self-employed in recent years, it can be assumed that this trend will continue. The flexibility offered by self-employment is attractive to many people, especially in the context of a changing market. However, the difficulties associated with running one’s own business, such as financial instability or the need to do their own bookkeeping, may limit the growth rate of self-employment in some sectors.

Source: The Polish Economic Institute, Tygodnik Gospodarczy, 35/2024