Medium-sized companies rate their situation best across the entire SME sector in Q2 this year – the EFL Barometer[1] reading for this group hit a record 67.7 points (+7.9 pp). However, it was micro-companies that recorded the largest increase in the value of the "EFL Barometer" sub-index compared with the previous quarter (+10 pp). The share of optimists among companies employing up to 9 workers rose across all surveyed areas. Among other things, twice as many micro-entrepreneurs as at the start of this year expect higher sales of their products and services (23% vs. 11%).The improvement in sentiment compared with Q1 this year is visible in every category of entity. What is more, in Q2 this year the "EFL Barometer" reading was above 60 points for the first time in the case of micro, small and medium-sized companies alike. However, it is worth noting the smallest entities, which against the whole SME sector can boast the highest quarter-on-quarter dynamics of the "EFL Barometer" value (+10 pp). – In the most recent readings, the group of companies employing up to 9 workers was the most pessimistic. Their forecasts, whether for planned investments or sales, were the worst in the entire SME sector. Now it is clearly better and micro-entrepreneurs in their assessments have moved closer to the forecasts of small companies. Still, the greatest optimism is to be found among the largest participants in the SME sector. Why? Larger companies often receive orders at the end of the year for the following year and find it easier to assess their situation. Among micro-companies this is rare, and that is why at the start of the year these entities take a more cautious approach to forecasts – says Radosław Kuczyński, president of EFL. Small companies come out of the shadows … While at the start of the year only every tenth micro-entrepreneur forecast growth in sales of their goods, in Q2 the share of optimists doubled – from 11% to 23%. A derivative of this is a much better assessment of financial liquidity in micro-companies – the share expecting improvement rose almost threefold – from 7.5% to 22%. The smallest entities are also optimistic when it comes to the level of investment. More than 35% of respondents expect it to grow in Q2 this year. As a result, demand for external financing increased – from 14.5% in Q1 this year to 20.1% in Q2 this year. … but medium-sized firms remain on top The "EFL Barometer" sub-index, which reflects the propensity of SME sector companies to grow, in Q2 2017 was again highest among medium-sized enterprises and amounted to 67.7 points. Micro and small companies assessed their situation slightly less favourably – the readings were 61.5 points and 61.8 points respectively. The improvement in sentiment in every category of the SME sector was most influenced by the large share of respondents anticipating higher investment. The greatest optimists are medium-sized companies, among which exactly half expect to invest more. Among small companies this share was 37.7%, and among micro-companies 35.4%. SME representatives also count on higher sales compared with the previous quarter. The largest group of optimists is found in the medium-sized companies segment (34.2%, +5 pp q/q). Record value of the main EFL Barometer index for Q2 The "EFL Barometer" result for Q2 2017 exceeded the 60-point threshold for the second time in the history of the survey (the first time in Q3 2015) and amounted to 63 points. At the same time, it is the highest value since the survey began, that is since Q1 2015. Compared with Q1 this year, the index value is as much as 5.9 points higher, and compared with the situation a year earlier, 5.2 points higher. Thus the situation from last year repeated itself, when between Q1 and Q2 2016 the Barometer reading rose. - Investment optimism among entrepreneurs in the SME sector has persisted since the start of the year and this may be a good omen for the Polish economy. Because last year all investments fell by nearly 8% compared with 2015, and their share in GDP reached



only 18%. This year we are counting on an improvement in these indicators – says the president of EFL.

[1] "The EFL Barometer" is a synthetic index informing about the propensity of SME sector companies to grow (i.e. development understood as companies setting themselves goals related to growth in sales and production, expansion into new markets and profit maximisation, which is connected with investment in fixed assets). The financial condition forecast for a given quarter

of SME companies provides a point of reference for inferring the assumed direction of changes that favour growth or inhibit companies' development. The survey is prepared by Ecorys on commission from Europejski Fundusz Leasingowy SA, and its results are published quarterly. Its participants are mic

ro, small and medium-sized companies from across Poland. A representative group of 600 micro, small and medium-sized companies took part in the survey. The current edition of the survey was carried out on 4-10 May 2017.

Europejski Fundusz Leasingowy SA was established in 1991 as one of the first leasing companies in Poland. Since 2001 EFL has been part of the Crédit Agricole Group, which guarantees the company financial stability and security and allows it to draw on the knowledge and experience of a financial institution with an international reach. EFL consistently expands the range of solutions for business. The company offers a broad package of products: leasing, loans, long-term rental, insurance and factoring. For 26 years it has cooperated with the most important manufacturers and suppliers of machinery, equipment, vehicles and other fixed assets. The company has been distinguished, among others, six times with the title: Customer-Friendly Company and five times as Financial Brand of the Year. Already more than 287,000 clients have chosen EFL as their business partner. More at: www.efl.pl