Entrepreneurs Confronting the COVID-19 Pandemic Crisis: from Powerlessness in the Face of the Government’s Policies to Protests

Abstract

The Covid-19 pandemic triggered a crisis affecting many spheres of socio-economic life. Both the authorities and entrepreneurs found themselves in a new and unusual situation. The lockdown introduced in the Polish economy in March 2020 has changed drastically environment and conditions for entrepreneurs and companies in Poland. The article touches on the problem of changes in the system of formal and informal institutions during that period. An attempt was made to answer the question: to what extent was the institutional state order compatible with the spontaneous order during that period, did the paths of entrepreneurs and the government meet and an agreement was reached in the name of setting a common policy direction to support the economy in the difficult period of the pandemic, or did the paths of these parties diverge? The research hypothesis requiring verification was that the institutional crisis in Poland deepened during the Covid-19 pandemic, as reflected in the slow erosion of the principles of institutional governance. The analysis shows that the progressing institutional weakness of the state during the period under review deepened the crisis of institutions. Its symptom was the gradual disappearance of social dialogue and arbitrary decisions taken by the government. The rules of law did not take into account the needs of entrepreneurs. Over time, the trust in the government and the law has declined. In a response to the prolonged lockdown in many sectors of the Polish economy, some desperate entrepreneurs took steps to circumvent the law, and there were active protests of entrepreneurs against the government’s decisions. The government might defend its authority only with ineffective repressions applied to entrepreneurs.