Entrepreneurship is generally improving in Poland but there are plenty of hurdles along the way – more so than in the rest of the European Union, according to a recent report from the European Commission.

Almost half of Poland's non-entrepreneurs say they would prefer self-employment over a traditional career if given the choice, and more than a third believe it is feasible to become an entrepreneur.

Nevertheless, only a small number of those surveyed – 10 percent – actually have any intention to start one.

Still, the small and medium-sized enterprise (SME) sector holds strong potential for improving the country's labor market. According to the EC, approximately 85 percent of net new jobs in the EU between 2002 and 2010 were created by SMEs. In 2010 alone, 20.8 million SMEs provided employment for close to 87 million people in the European Union.

In Poland, the cost and length of time it takes to start a business are just some of the roadblocks that make it harder to do business in Poland. Compared to the EU average, “it currently takes twice as long and it is three times more expensive to start a company in Poland than in the EU,” the report says.

Property transfers which require approximately 152 days in Poland compared to 34 in the EU, is another significant hindrance said the report. It also cited Poland's burdensome tax administration system.

Polish entrepreneurs also fail to take advantage of e-commerce opportunities, with only 7 percent of Polish businesses – compared to 13 percent of SMEs in the EU on average – selling their goods and services online. Business activity is also too limited to the domestic market, with few Polish entrepreneurs active outside Poland's borders.

Innovation, largely lacking among Polish enterprises, has some support from the government, with new programs aimed at improving conditions. Legal changes, which came into effect in May 2011, now provide business owners incentive to implement new technology with an “innovation bonus” that is worth up to 70 percent of the costs incurred, the report pointed out.

Entrepreneurship is increasingly helping to improve employment prospects especially in the face of tougher economic times, making it all the more urgent for Poland to eliminate its obstacles.

“We see small enterprises delivering and confirming their role as main generators of new jobs,” said Antonio Tajani, vice president of the European Commission responsible for industry and entrepreneurship. “Their significant share in job creation highlights the greater than ever economic relevance of SMEs and the need to support them at all levels.”