Mechanisms of EU funds distribution and SMEs activity in structural funds absorption in region of Lódz

Abstract

Small and medium-sized enterprises faces a number of obstacles in their technological development, innovativeness and competitiveness growth – the ones that place them less favorable market position as compared to big enterprises. Because of the socio-economic role played by SME’s sector the European Union – on the basis on treaty derogations – creates legal and financial instruments supporting small and medium-sized firms. Polish SMEs already in the pre-accession period were actively using various support instruments offered by community policies. After 1st of May 2004 these possibilities has been greatly extended. Small and medium-sized enterprises in Lodz Region demonstrate relatively high level of activity in the absorption of EU funds vis à vis other regions’ statistics. This activity is however conditioned by numerous factors. Some of them is linked to the very structure of accessible programmes (priorities and objectives), while some of them belong to external and internal barriers to funds accessibility. The article concentrates on the analysis of both instruments supporting SME’s development in the Lódz Region and the obstacles hindering utilisation of existing forms of support.