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25izing personal identity, - who you are in your job? Organizational culture in its turn, presents the social identity, the group of people I associate myself with. The correlation within the social exchanged theory is in the social role accepted by the employee, and it is organizational identity.
Every organization predicts beneficial matrix such as profitability, growth, innovation, quality, and customer satisfaction for its development. The engagement of employees towards this goal proportionately linked with healthy mutual relationship with the leaders, managers and coworkers. Job involvement is connected with employees' emotions and even sensations more than specific job tasks. Both employee individual level of growth and organizational level of growth are considered as key aspects to sustain a healthy organization. Specific culture types are directly related to involvement levels so it is extremely important for organizations to be conscious of that. Corporate values that convey a deep concern for employees as individuals and reinforce the meaning and purpose of the organization are considered critical for organizational success. Employee job involvement may be a viable method to put values into practice.
Organizational culture and job involvement correlation is obvious, and the future research objective is to find out the bridging areas of these concepts, and the level of influence on each other. It means, how organizational culture does influence the job involvement,
and vice versa how does job involvement contribute to organizational culture. The second linkage is more interesting and challenging; as organizational culture type and promoted values surely define the positive or negative job involvement and makes the clear identification with the culture type related beliefs and orientations. Vice versa influence of job involvement itself is not clear, and the extent to which job involvement can exist itself without the organization.
References
1. Albert S., Whetten D.A. Organizational Identity, In: B.M. Staw and L.L. Cummings, Eds., Research in Organizational Behavior, JAI Press, Greenwich, 1985, pp. 263-295
2. Hatch, M.J., Schultz, M. The Dynamics of Organizational Identity. In: Human Relations 55, 2002, pp. 989-10181, DOI:10.1177/0018726702055008181
3. Cooley Ch.H. Human Nature and Social Order. New York, 1964
4. Prus Robert. Symbolic interaction and ethnographic research. Intersubjectivity and the Study of human lived experience. State University of New York press, Albany, 1996
5. Alvesson, M. On the Popularity of Organizational Culture. Acta Sociologica Vol. 33, No. 1, 31-49, 1990
6. Kloskowska, A. Socjologia kultury. Warszawa,
2007
THE IMPORTANCE OF LEASING IN FINANCING ENTERPRISES IN POLAND
Kuchcinski A.
PhD in economics, assistant professor University of Social Sciences in Lodz
ABSTRACT
Leasing is one of the alternative sources of financing for companies. Its advantages make it increasingly used by business entities. The aim of the article is to present the significant significance of leasing, its advantages and disadvantages and to answer the research question: what is the significance of leasing among enterprises in Poland? To answer this question, the author analysed literature and source data related to the leasing market in Poland. Keywords: sources of financing, finance management, entrepreneurship, leasing.
Introduction
An essential element of creating the development of any enterprise is capital. The problem with obtaining appropriate funds often results not from the lack of possibility to obtain them, but from the lack of knowledge of persons managing a given organisation. Many entrepreneurs consider bank loans to be the only source of business financing. However, thanks to the dynamic development of financial markets there are many alternative sources of financing for enterprises [1, p.103].
A specific form of business financing is leasing. This is currently an important form of investment, especially in those companies that are in short supply of capital, and the use of credit is for various reasons difficult or even uneconomic. An increasing number of entrepreneurs in Poland will use the services of leasing companies. Over the last twenty years, the leasing market in Poland has undergone enormous transformations. Leasing from a purely textbook concept has become a well-known service financing one in three movables in Poland. [2, p.182].
The aim of this article is to analyze and evaluate the level of use of leasing among enterprises in Poland.
Beginning of the leasing
The term "leasing" comes from the English word "lease". The definition of the dictionary states that leasing is: a specific form of renting and leasing of durable capital goods, enabling manufacturers to use equipment in return for rent [3, p.295].
It can be concluded that leasing is a kind of economic activity which consists in lending its goods for use for consideration in order to recover the capital for the manufacture or purchase of those goods together with income [4, p.1].
The origins of leasing date back to the times of old civilizations, when the money and commodity economy started to develop in Mesopotamia, Egypt, Phoenicia or Greece, among others. The first contracts consisted of temporary handing over of things to someone's use after payment of a fee, while at the same time there was often a promise to sell them to the user. These were the first quite primitive lease or rental transactions that took place up to five thousand years ago. On the other hand, the direct founder of the form of modern leasing as well as of modern lease and tenancy contracts is considered to be the Roman lease of things in the second
century BC. It was an agreement which stated the lessor's obligation to give up the agreed amount for a fixed period of time to the lessee for the agreed movable or immovable property in order to use it or use it for his own needs and then collect material benefits [5, p.25].
The fastest development of leasing has been in modern Europe, namely in the United Kingdom, where until the end of the 18th century various buildings and land were the subject of such transactions [6, p.21]. In medieval and modern England, things and movable property related to property (livestock and deadwood) were generally leased on a long-term basis. Through this transaction, which was similar to perpetual usufruct and lease in continental Europe, "the ownership of a property object was granted with the right to use it and to benefit from it for a long period of time, e.g. the lifetime of the person concerned. Many movable items, such as horses, were given for short-term use on the basis of transactions similar to those in continental Europe [7, p. 11].
Long-term lease contracts for movable goods acquired much greater importance in the mid-19th century, which were perceived as a method of financing emerging railway investments and the prototype of lease - purchase and sale in staggered installments with the necessary reservation of the seller's right of ownership of the sold item until the total amount is paid by the buyer. Special leasing institutions purchased significant numbers of locomotives and wagons from the manufacturers in order to pass them on for long-term leasing to railway undertakings. At the end of the nineteenth century, leasing was mainly used to monopolise the market for manufacturers of cigarettes, footwear or other consumer goods. During the Second World War, leasing for movable assets became one of the main methods for the state to credit the investments of producers, which were covered by government orders.
The breakthrough in leasing contracts was in 1952, when H. Schoenfeld opened in San Francisco, the first independent company to deal with leasing activities - United States Leasing Corporation. Since then, there has been a broad development of leasing almost all over the world. In the 1960s, institutions that dealt with this form of financing began to be established in Europe, i.e. Austria, Belgium, Germany, Great Britain, Italy and Asian Japan. The experience of these countries was then used by the rest of the world by concluding leases [6, p.21].
The phenomenon of modern leasing is considered a relatively new form of trade in goods as well as a method of financing and crediting investments. Currently, leasing in the field of economics and law is understood as a form of transaction consisting in the handing over of goods by one party to the other party for use, taking into account a fee and - in principle - subject to return of the goods [5, p.10-11].
Development of leasing in Poland
In Poland, leasing is still quite a young phenomenon in the economy, much younger than in the USA. In Poland, financing started to be commonly used only in the 90s. Previously, such contracts were very rarely concluded and they operated on the basis of the principle which was then in force in Poland, i.e. freedom of contract. It was precisely enshrined in Article 353 of the Civil Code [7]. In accordance with this principle, parties entering into a lease agreement may establish a legal relationship at their own discretion. However, the objectives and content may not oppose the laws or rules of social coexistence.
The general interest in this method has been shown after the entry into force of the Act of 23 December 1988 on business activity [8].- At that time, all kinds of political changes took place, which moved the dormant economic progress in Poland.
At that time, many new companies started to emerge, which needed funds and investment goods. Leasing was an ideal solution because the financier had a much lower risk of failure than at the time of taking a loan. Companies deciding to conclude a lease agreement could take advantage of a number of various convenient tax acts, which made the agreement more attractive.
At the turn of 1990/1991, the first leasing companies appeared in Poland, thanks to which leasing became the basic subject of operation of many domestic companies. Private capital groups were motivated by the statutory income tax exemption for a period of three years, however, this right was only available to those companies with foreign capital and these were the so-called "tax holidays" [9, p.6].
The whole nineties are a stable development of leasing in Poland. Then, in the period around 2000, leasing started to be defined in the Civil Code - the name "lease agreement" appeared for the first time in Polish law, tax acts and accounting acts. This period also saw the financial crisis in Poland. The economic situation in Poland affected the leasing market, as a result of which many leasing companies declared bankruptcy. These circumstances led the Polish Bank Association to order significant increases in the terms and conditions and criteria for refinancing leasing operations through banks operating in Poland, including the necessity to create reserves up to the level of granted loans, which significantly worsened the financial results in the generally available balance sheets of banking institutions. This resulted in a decrease in the value of leased assets in use.
Advantages and disadvantages of leasing
Like any source of financing, leasing has its advantages and disadvantages. Table 1 presents the most important of them.
Table 1
Advantages and disadvantages ^ of leasing [6, p. 57-59]._
ADVANTAGES DISADVANTAGES
USER
1. Not committing a large part of the financial resources; it is possible to finance 100% of the investment. 2. Adjusting the fees to the possibilities of the company. 3. Possibility of using things at a convenient time. 4. Tax benefits - the possibility of including certain components of fees in tax deductible costs. 5. Conclusion of the agreement is a relatively quick and uncomplicated transaction. 6. Possibility of adjusting the content of the agreement to individual needs and preferences, as well as the financial situation of the lessee. 7. The lease agreement does not limit the ability to take out a loan. 8. possibility of access to modern technologies. 9. Possibility of quick response to market needs. 10. Influence on improvement of financial liquidity. 11. Possibility of repaying leasing instalments from current funds obtained from exploitation of the leased object. 1. Leased assets are not the property of the lessee; therefore, they cannot, for example, be the subject of loan collateral. 2. The cost of the lease is generally higher than the purchase cost of the object. 3. The financial consequences of breaching the agreement. 4. Larger scope of rights on the part of the fi- nancing party. 5. Price and material risk, the obligation to pay a fee also in the case of inability to use the investment good in the situation of its loss or damage, and the need to restore the previous state. 6. Risk due to possible debt (unpaid liabilities) to the budget or bankruptcy of the leasing company; the object of the lease may be collected by a bailiff. 7. Difficult claims against the supplier (manufacturer) of the leased equipment due to its defects.
FINANCER
1. Leasing expands the banks' capacity to operate. 2. The possibility of obtaining high profits in relation to loans, e.g. in the form of tax benefits. 3. The possibility of recovering the object of lease in case of breach of the agreement by the user. 4. Possibility of selling so called difficult (investment) goods. 5. Involvement of free funds on the basis of an alterna- tive deposit. 1. Danger of fraudulent use of leased property by fictitious companies. 2. The possibility of making it difficult to make the leased asset available to subsequent users in the event of "rapid technical aging". 3. There is still a risk of unfavourable qualification of the contract by the tax authorities.
As shown in Table 1, leasing is a good alternative for a user who wants to use fixed assets for ownership. The majority of the advantages lying on the side of the lessee include e.g. the possibility of adjusting the charges to the financial possibilities of the company, which is a great privilege for the user, or the fact that the lease has a positive impact on improving the financial liquidity of the company. There are also various disadvantages for the lessee, such as the risk from possible debt or difficulties in relation to the producer due to defects of the leased fixed asset. The lessor also has advantages from leasing, such as the possibility of obtaining high profits in relation to credits or the possibility of recovering the object of lease in case of breach of contract by the lessee. The lessor may also suffer many
inconveniences related to the lease, which include the risk related to the leasing by fictitious companies or the impossibility of making the object available to the next user due to the ageing of the fixed asset.
Importance of leasing in Poland
The leasing market in Poland is developing dynamically. Since 1995, an increase in the value of leased assets has been observed [10, p.69]. On the basis of PKO Leasing data, it can be seen that in the period 2008-2018 there is a systematic increase in interest in leasing in Poland. The data shows that in 2018 the total value of the active portfolio in the Polish leasing industry amounted to PLN 147 billion. Compared to 2008, this is almost a threefold increase. Detailed data is presented in Graph 1.
160 140 120 100 80 60 40 20
147
119
105
88
65
57
55
2008 2009
2010 2011 2012 2013
2014 2015
2016
2017
2018
Graph 1. Total value of active portfolio of the Polish leasing industry (billion PLN) [11, p.10].
Such good results are due, on the one hand, to the record level of financing of passenger and commercial vehicles up to 3.5 tonnes (light vehicles currently have a 48.4% market share) and, on the other hand, to the unflagging interest among entrepreneurs in financing machinery and other equipment (26.3% share) and heavy transport vehicles (23.7% share). Looking at particular areas of activity of Polish leasing companies, we
see that financing of real estate (1.1% market share) and other assets (0.5% share) is less important [12].
According to the European Commission's research (SAFE 2019), leasing has become in recent years a much more important source of financing for the SME sector than bank credit, as shown in Graph 2.
45% 40%
35%
2016 Leasing
2017 Bank credit
Graph 2. Importance of leasing and bank credit for SMEs in Poland [13].
0
Leasing is also important for the economic development of the country. Three basic channels of influence of leasing on the Polish economy can be identified. First of all, leasing stimulates investment, as it provides access to capital to entities that are not creditworthy or for various other reasons are not able to obtain funds from other sources. Investment, as one of the four pillars shaping GDP, is an important factor of economic growth. Leasing also has a positive impact on
innovation - it significantly facilitates access to advanced technological solutions, which are generally relatively expensive and, by their very nature, encourages continuous renewal and modernisation of the resources used. What is more, through its impact on the investment rate, leasing also contributes to the growth of employment - the increase in capital equipment re-
sulting from the increase in investment increases marginal labour productivity, which leads to an increase in demand for workers [14, p.35].
Summary
Currently, companies in Poland have a lot of possibilities to finance their activities. The choice which companies have is very wide. Naturally, not all forms of financing are suitable for every enterprise. When choosing the way of financing, companies must take into account many factors.
As the analyses indicate, leasing is becoming more and more popular, whose feature is that it allows the use of tangible assets without the need to acquire them for ownership [15, p.443]. The data concerning the Polish leasing market indicate that its value is growing year by year. Moreover, according to entrepreneurs, it is a more valued source of financing than bank credits
References
1. A. Rak, Wybrane zrodla finansowania dzialalnosci gospodarczej, [in:] Wspolczesne problemy ekonomii, ed. A. Krzysztofek, J. Rogalska, Krakow 2014.
2. A. Jablonska, Alternatywne mozliwosci finansowania malych i srednich przedsi^biorstw. Leasing, „Zeszyty Naukowe PWSZ w Plocku", t. XXIII, 2016.
3. W. Kopalinski, Slownik wyrazow obcych i zwrotow obcoj^zycznych z almanachem, Warszawa 1994.
4. J. Ostaszewski, T. Rozbicki, Leasing w prawie celnym, dewizowym i podatkowym, Warszawa 1993.
5. J. Poczobut, Umowa leasingu w prawie krajowym i miçdzynarodowym, Warszawa 1996.
6. J. Grzywacz, M. Burzacka-Majcher, Leasing w przedsiçbiorstwie, Warszawa 2007.
7. Ustawa z dnia 23 kwietnia 1964 r. Kodeks cywilny (Dz.U. 1964 Nr 16 poz. 93).
8. Ustawa z dnia 23 grudnia 1988 r. o dzialalnosci gospodarczej (Dz.U. 1988 nr 41 poz. 324).
9. A. Rutkowski, Polski Rynek Leasingowy -Rocznik, Warszawa 1996.
10. A. Kuchcinski, Fundusze pozyczkowe w finansowaniu dzialalnosci MSP, LódZ-Warszawa 2017.
11. Raport specjalny. Znaczenie rynku leasingu w gospodarce europejskiej, PKO Leasing, 2019.
12. http://leasing.org.pl/pl/aktualnosci/2019/21-8-proc-wzrost-polskiego-rynku-leasingu-w-2018r
13.
http://leasing.org.pl/files/uploaded/ZPL_Prezentacja_ Wyniki%20brazy%20leasingowej_2019r._2.pdf
14. 25 lat leasingu w Polsce Od finansowej innowacji do finansowania polskiej innowacyjnosci, Zwi^zek Polskiego Leasingu, 2019.
15. A. Sierpinska-Sawicz, E. Królikowska, Leasing jako zródlo finansowania mikro, malych i srednich podmiotów gospodarczych, „Ekonomiczne Problemy Uslug", nr 116, 2015.
ВЕРТИКАЛЬН1 ТА ГОРИЗОНТАЛЬШ ФОРМИ АКТИВВАЦП СТРУКТУРНИХ ЗРУШЕНЬ
РЕГЮНАЛЬНО! ЕКОНОМ1КИ
Шашина М.В.
кандидат економ1чних наук, доцент кафедри економжи i тдприемництва Нацюнальний mexHi4Huu утверситет Украши «Кшвський полiтеxнiчнuй iнстuтут iменi 1горя Скорського»
VERTICAL AND HORIZONTAL FORMS OF INTENSIFICATION OF STRUCTURAL CHANGES IN
THE REGIONAL ECONOMY
Shashyna M.
PhD of Economic sciences Associate professor of the Department of Economics and Business National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute "
АНОТАЦ1Я
1нтегращя та децентралiзацiя в Укра!ш сприяли змш mдходiв до реалiзацii регюнально! полггики, яка з 2014 року поступово трансформуеться з вертикально! в горизонтальну форму, активiзуючи розвиток ре-гiональноi' економжи. Накопичеш структурнi дисбаланси економiки потребують використання нових форм регiональноi политики, яш будуть спрямованi на зростання стратегiчних iнвестицiй, розвиток клас-терiв, iндустрiальних, технологiчних паркiв та високотехнолопчного виробництва. У статтiвисвiтлено ш-струменти вертикально! та горизонтально! форми активiзацii структурних зрушень. З'ясовано, що в Укра-mi реалiзовуеться горизонтальна форма структурних зрушень з деякими елементами жорстко! та м'яко! вертикально! форми регюнально! полiтики, що пiдтверджуеться такими тенденциями: трансформащя ш-ституцiонального середовища; лiбералiзацiя зовнiшньоi торгiвлi та штегращя Укра!ни до £С; розвиток шфраструктури; забезпечення професiйного розвитку державних службовщв мiсцевих державних адмшь страцiй та посадових осiб мiсцевого самоврядування; стимулювання розвитку пiдприемництва та покра-щення умов ведения бiзнесу; вiдбуваеться тдтримка у будь-якiй формi суб'ектiв господарювання за раху-нок ресурсiв держави чи мiсцевих ресурсiв. Такi тенденцп вiдповiдають тенденцiям кра!н £С. Горизонтальна форма регюнально! политики сприяе залученню неформальних iнститутiв, створенню умов сшвпращ регiональних суб'ектiв до процеав прийняття управлiнських рiшень, залученню стратепчних iнвестицiй,
