Wojciech did not leave for Germany or England. Nor did he intend to spend his customers’ money in warm countries. As he says, his microenterprise, which he founded in 2000, bled to death. The reason he gives was the crisis in the furniture industry and the complete lack of assistance for small businesses during the recession. He does not make excuses. He knows that he disappointed many people. He understands that people are angry with him. His customers will receive a letter from a law firm assuring them that he will repay the advances he collected.
A Small Success in the Shadow of a Major Crisis
For Wojtek’s furniture company, 2008 was a golden period. He moved to Garncarska Street, where he rented two large premises: a shop and a carpentry workshop. He hired eight people. The employees, he says, received high wages. They completed 14 kitchens and nine wardrobes. Sales representatives praised his company for its efficient operation. A base of regular customers was being built. The owner focused on an individual approach to customers and high-quality services and materials.
Wojciech had, of course, heard about the recession in the furniture industry. Large companies were struggling. The problems of furniture giants favored the development of small companies because they were not affected by the decline in orders from customers in the European Union. Nor had the collapse of the residential construction market affected them yet. But the forecasts were bad. Banks refused to provide financing. After the large companies, small businesses were expected to go bankrupt.
Lean Years
The following year, despite favorable economic conditions, was bad. The owner says he began by laying off employees. Two in the spring, followed by another two a few months later. In this way, he got rid of half the team. In 2009, the Poznań-based Swarzędz declared bankruptcy. Poor management was cited, but the industry was stagnant. The market was driven by owners of new apartments. And new apartments had stopped being built. The average Pole, meanwhile, replaced furniture rarely—once every 15–20 years.
Wojciech says he tried to save the business and considered taking out a loan. But he had no chance. Banks considered the furniture industry the riskiest of all. They refused to lend to him. He is not sure whether the loan would have given the company a chance to survive. Today, he also wonders what kind of manager he was, whether he managed people well and where he made a mistake.
When Things Fall Apart, Everything Does
At the end of winter 2010, a customer, dissatisfied with the delays and desperate, burst into the shop. The company owner says the man took household appliances from the shop. They may have been intended as security for the unfinished kitchen. Wojciech admits that order delays lasted as long as several months. Customers were furious. He himself worked practically without a break. He reported the customer’s removal of the ovens as theft. He recovered the equipment. He says he finished the kitchen for that customer, but has still not received payment. Two other people acted in the same way. They refused to pay because of the delay in fulfilling the contract. Wojciech calculated his losses at PLN 13,000.
In the spring, his personal life collapsed. He says he would sooner have expected a visit from the pope in Bolesławiec than family problems. And it was those problems that paralyzed his efforts. He says he did not know how to take the next step amid the ruins. It was a shock to him. A bad adviser also appeared. Wojciech believes that all the advice turned against him. It was not until July that he realized he could count only on himself. Once again, he worked nights, as he says, beyond his strength. Pride prevented him from asking for loans. Whenever he had to ask for money, even from his closest relatives, he was miserable for several days.
Think Small First
“Think small first” was the slogan of European Parliament members who, when creating legislation, declared assistance for microenterprises during the crisis. Wojtek says he tried to make use of such assistance. He contacted a company in Jelenia Góra that helps obtain EU grants. After knocking on every door, he believes this assistance is nonsense. They help, but only those who have no arrears with either ZUS or the Tax Office and who have creditworthiness. Why provide help, he asks bitterly, in a situation where one has financial liquidity?!
Of nearly 20 unfulfilled contracts, he promises to complete three. He intends to repay the rest. With the help of a law firm, he sent a letter to his creditors. In it, he assures them that he will return their advances. He continues to work. Asked why he did not answer calls from customers frightened by his disappearance, he replies: “I let these people down. Everything came crashing down on me. I did not know how to live or what to say. I was acting blindly. The customers have every right to be angry. I am not trying to whitewash myself. I want to assure them that I will fulfill my obligations.”
(information by Grażyna Hanaf)