Challenges of the MSE sector in the digital economy in Poland and Ukraine: comparative and statistical analysis

Abstract

PurposeThe authors aimed to examine how the level of digitalization in Poland and Ukraine affects the contribution of small and medium-sized enterprises (SMEs) to the countries’ gross domestic product (GDP).Design/methodology/approachThe study involved a comparative analysis and statistical modeling of the impact of key economic factors on the contribution of SMEs to Poland’s and Ukraine’s GDP in the 2010–2020 period. The authors used principles of the theory of economic growth and calculated the coefficient of digital competitiveness as a composite indicator consisting of a number of global indices.FindingsThe study revealed significant differences between both countries, which can be attributed to a higher level of digitalization in Polish SMEs. The authors used the Polish experience to recommend how to reform Ukraine’s digital economy in postwar recovery.Originality/valueThe contribution of SMEs to Poland’s GDP is higher than that of Ukraine’s because of the higher entrepreneurship rate in the Polish micro and small enterprises (MSEs) sector. The authors found that a unit change in the integrated coefficient of digital competitiveness is related to the greatest change in the contribution of SMEs to the country’s GDP when the other factors in the model equation remain fixed.