Small businesses often struggle with budget constraints that make it difficult to invest in employee skills development. The National Training Fund (KFS - Krajowy Fundusz Szkoleniowy) offers training subsidies, which is an attractive option for such enterprises. Using these funds allows companies to improve team qualifications, increase market competitiveness, and better adapt to dynamic industry changes. Find out why it is worth taking advantage of KFS training subsidies and how it can contribute to the success of your company.
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- What benefits does KFS bring to small businesses?
- Do micro-enterprises have a chance of obtaining KFS funding?
- How can KFS help develop the competencies of small business employees?
- What training is most valuable for micro-enterprises?
- Is the KFS application process complicated for small businesses?
- How can KFS impact the competitiveness of micro-enterprises?
- What are the funding limits for small businesses under KFS?
- Can sole proprietorships use KFS?
- How can small businesses effectively use KFS funds?
- Which micro-enterprise industries have the best chances for KFS funding?
- Are there special KFS priorities for small businesses?
- How can KFS help in the digitalization of micro-enterprises?
- What skills are worth developing in small businesses thanks to KFS?
- Can KFS support innovation in micro-enterprises?
- How to combine KFS training with the daily operations of a small business?
What benefits does KFS bring to small businesses?
Under Article 126 of Poland’s Labour Market and Employment Services Act of 20 March 2025 (Journal of Laws 2025, item 620) (api.sejm.gov.pl), entities with no employees or employing no more than 9 people (full-time equivalent) on the day of application can receive up to 90% of continuing education costs from the National Training Fund. Other employers can receive up to 70%. For the smallest companies this means an own contribution of at least 10%, which allows them to systematically improve team competencies with little strain on their own budget.
Employees who receive development opportunities often show greater attachment to their employer and higher job satisfaction, which matters especially in a small team.
KFS funding enables small businesses to access high-quality training that would normally be beyond their financial reach. Training programs led by experienced experts allow for the rapid implementation of modern solutions and business practices, which translates into increased company competitiveness.
An important benefit is also the ability to build a long-term competency development strategy. Small businesses can plan employee development paths, taking into account both current needs and future market challenges. Systematic training allows for the gradual building of competitive advantage based on team knowledge and skills.
KFS can also support the digital transformation of micro-enterprises. Funding may cover training in new technologies, process automation, and the use of artificial intelligence in business, provided the application meets the district head’s criteria, including alignment with the KFS spending priorities for the given year and with local labour market needs.
Do micro-enterprises have a chance of obtaining KFS funding?
Yes. It is the smallest entities that can count on the highest rate: up to 90% of training costs (Article 126(2)). Regardless of company size, funding per participant may not exceed 200% of the average salary in the given calendar year.
An entity can apply if it has paid Labour Fund contributions for at least 6 months before submitting the application or is exempt from this obligation by law (Article 125(8)). Excluded are, among others, entities with tax or social security arrears, in liquidation or bankruptcy (Article 125(9)). District Labour Offices provide information about calls for applications, and micro-entrepreneurs can get help in selecting appropriate training and identifying development needs.
The Act does not provide a separate pool or a simplified procedure for micro-enterprises: applications from all entities are assessed against the same criteria of Article 125(13).
How can KFS help develop the competencies of small business employees?
KFS offers broad support in developing the competencies of micro-enterprise employees. The closed list of eligible costs (Article 125(11)) covers training, exams confirming acquired knowledge and skills, postgraduate studies, medical and psychological examinations required to take up training, and accident insurance (NNW) related to the training. This diversity of educational forms allows for precise matching of development activities to the company’s needs.
Support in the area of digital competencies is particularly important. Small businesses can apply for funding for training in specialized software, internet marketing, or e-commerce management. This can also include cybersecurity courses, which are becoming increasingly critical for business operations.
KFS can also fund the development of soft skills, which are crucial for the effectiveness of small teams. Employees can participate in training on communication, time management, or customer service. These competencies are particularly important in micro-enterprises, where each employee often performs many different functions.
The program also enables the acquisition of professional qualifications confirmed by industry certifications: the cost of the exam is an eligible cost. This is particularly valuable for small specialized companies whose competitiveness depends on employees having the appropriate credentials and certifications.
What training is most valuable for micro-enterprises?
The most valuable training for micro-enterprises is training that directly translates into increased operational efficiency and competitive advantage. In first place is training in digitalization and business process automation.
The second key area is specialized training related to a specific industry or profession. These can be technical courses, professional certifications, or product training.
Customer service and sales training also adds significant value. In small businesses, where every customer contact is of strategic importance, professional employee preparation helps retain customers. Training programs should cover both traditional customer service and communication in digital channels.
Project management and personal effectiveness training cannot be overlooked. In micro-enterprises, where teams are small, the ability to organize work efficiently and manage time translates directly into company results.
Training in sustainable development and energy efficiency is also becoming increasingly important. Micro-enterprises implementing ecological solutions not only reduce operating costs but also increase their attractiveness to environmentally conscious customers.
Remember that KFS does not fund training that is mandatory by law (e.g. occupational health and safety training) or training already financed from other public funds (Article 125(12)).
Is the KFS application process complicated for small businesses?
The procedure is the same for all applicants. The basic conditions are having paid Labour Fund contributions for at least 6 months before applying (or being exempt by law) and having no arrears in, among others, taxes and social security contributions (Article 125(8)-(9)). Funds can cover employees and employers, natural persons running a business, and people working under civil-law contracts (Article 125(10)).
The application is submitted exclusively electronically, via an individual account, to the District Labour Office competent for the registered office or place of business (Article 126(4)). Application deadlines, required attachments, and the assessment method are set out in the call for applications of the given office, and the detailed procedure in the regulation on KFS. It is worth using the consultations offered by the office before submitting the application.
How can KFS impact the competitiveness of micro-enterprises?
Using KFS funds can significantly strengthen a small company’s competitive position, because it allows investing in team competencies with a limited own contribution.
The ability to implement modern technologies and business processes has a particularly important impact on competitiveness. Thanks to KFS-funded training, small businesses can adapt faster to market and technological changes.
Funding also enables building unique team competencies. Small businesses can specialize in niche market areas where specialized employee qualifications are crucial, for example industry certifications required by corporate clients.
Another important aspect is the impact of training on customer service quality. Professionally trained employees handle complaints better and build customer satisfaction. In small businesses, where reputation and personal relationships with customers are key, this translates directly into revenue stability and development opportunities.
KFS can also support innovation in micro-enterprises. Companies can train employees in new production methods, service delivery, or management.
What are the funding limits for small businesses under KFS?
Under Article 126 of Poland’s Labour Market and Employment Services Act of 20 March 2025 (Journal of Laws 2025, item 620), three types of limits apply:
- rate: up to 90% of costs for entities with no employees or employing no more than 9 people (full-time equivalent); up to 70% for others,
- limit per participant: no more than 200% of the average salary in the given calendar year,
- annual limit per applicant: 4 times the average salary (up to 9 people), 8 times (more than 9 up to 49 people), 12 times (more than 49 up to 249 people), 14 times (more than 249 people) — in full-time equivalents.
Within these limits, micro-enterprises can finance various forms of education from the list in Article 125(11), combining, for example, specialized training with language courses or postgraduate studies.
Can sole proprietorships use KFS?
Yes. The Act does not require having employees: the highest rate (up to 90%) explicitly applies also to entities with no employees (Article 126(2)), and the funds can cover the training of a natural person running a business (Article 125(10)). The condition is having paid Labour Fund contributions for at least 6 months before applying or being exempt by law (Article 125(8)).
The own contribution is at least 10% of the costs, and funding per participant may not exceed 200% of the average salary in the given year. The annual limit for such an applicant is 4 times the average salary.
A key aspect is the ability to combine different forms of education. Business owners can simultaneously develop management and specialist competencies, which is particularly important for small entities, where one person often performs many functions.
If the entrepreneur took part in the training themselves, after completing it they may not suspend or cease the business for 3 months unless this is due to bankruptcy (Article 127(1)(2)). The application processing time is set by the call for applications and implementing regulations, so check it with your District Labour Office.
How can small businesses effectively use KFS funds?
Effective use of KFS funds requires a strategic approach to competency development. Small businesses should start with a thorough analysis of training needs, taking into account both current operational challenges and long-term development goals.
A key element is choosing appropriate forms of education. Micro-enterprises achieve good results by combining theoretical training with practical workshops. The training provider must be selected in a competitive and transparent manner and must be listed in the Development Services Database (BUR) maintained by PARP (Article 128). Services may not be purchased from entities with personal or capital links (Article 129).
Proper planning of the training schedule is also important. Small businesses should take into account the seasonality of their operations and employee availability. A good practice is to schedule intensive training during periods of lower operational load. However, training may not start before the agreement with the office is signed (Article 125(12)).
Which micro-enterprise industries have the best chances for KFS funding?
The Act does not favour any industry. The district head assesses applications according to three criteria (Article 125(13)): alignment with the KFS spending priorities for the given year, alignment with local or regional labour market needs, and the ratio of the training price to market prices.
In practice, the best chances therefore go to applications that fit well with the current priorities (national — no more than four — regional and local) and with the labour market needs of the given district. In recent years the priorities have often concerned digital competencies, so technology and IT companies, as well as manufacturers implementing automation, may find it easier to justify their application.
Before applying, check the current priorities and the call for applications at your District Labour Office, and clearly show in the application how the training relates to the chosen priority.
Are there special KFS priorities for small businesses?
The Act does not provide separate priorities or a scoring system favouring small businesses. Priorities are set by the minister responsible for labour (no more than four per year, Article 25(1)(1)(b)), the voivodeship self-government (no more than three regional ones) and the district (one local priority); all are of equal weight (Article 125(4)). Funds outside the priorities can be allocated only once priority applications have been processed (Article 125(5)).
The advantage of micro-enterprises comes from the Act itself: they can receive up to 90% of costs instead of 70%. The full list of priorities for a given year is published by the Voivodeship Labour Office (WUP), and calls for applications are announced by individual District Labour Offices.
How can KFS help in the digitalization of micro-enterprises?
The National Training Fund can support the digital transformation of small businesses by funding training related to implementing new technologies and automating business processes. Micro-enterprises can receive up to 90% of the costs of such training, which is a real opportunity to modernize their operations.
Programs covering the implementation of enterprise management systems, sales process automation, or e-commerce competencies are particularly valuable.
KFS can also fund cybersecurity competency development. Small businesses can train employees in data protection, safe use of digital tools, or preventing cyberattacks; smaller organizations often have limited resources to defend against such threats.
What skills are worth developing in small businesses thanks to KFS?
A priority development area is digital and technological competencies. This includes skills related to specialized software, data management, and the use of artificial intelligence in business processes.
The second key area is skills related to customer service and sales. In the era of digital transformation, competencies in omnichannel sales, online communication, and customer relationship management are particularly important.
The development of competencies related to project management and operational efficiency cannot be overlooked. Small businesses especially need employees who can organize work efficiently, manage time, and coordinate diverse tasks.
Can KFS support innovation in micro-enterprises?
KFS can be an effective tool for supporting innovation in small businesses by funding training in new technologies and management methodologies. Funding can cover both technical training and the development of innovation management competencies.
Programs combining different forms of innovation support are particularly valuable. Companies can train employees in design thinking, lean startup, or agile, while developing the technical competencies needed to implement new solutions.
Training in creative thinking, problem solving, or change management helps create an environment conducive to innovation in a small company.
The fund also enables financing training related to new business models and digital transformation. Micro-enterprises can gain knowledge about the latest market trends, technologies, and ways to monetize innovation.
How to combine KFS training with the daily operations of a small business?
Effectively combining training with ongoing operations requires strategic planning and a flexible approach to work organization. Many micro-enterprises use a hybrid model, combining classroom training with remote and asynchronous forms, which limits employee absence time.
A key element is proper distribution of training intensity over time. It is worth planning shorter but regular training sessions instead of long, one-off blocks.
It is also important to create a support system for employees combining learning with work. This may include flexible working hours, additional time for practical exercises, or internal mentoring.
It is also worth utilizing the possibilities of internal training and knowledge transfer within the team. Employees who have completed external training can share knowledge with colleagues during internal workshops or mentoring sessions. Such a model allows for maximizing the return on training investment and building a culture of learning within the organization.
Read Also
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Frequently Asked Questions
What is the maximum KFS funding for a micro-enterprise?
Entities with no employees or employing no more than 9 people (full-time equivalent) can receive up to 90% of continuing education costs, other employers up to 70% (Article 126 of Poland’s Labour Market and Employment Services Act of 20 March 2025 (Journal of Laws 2025, item 620)). Funding per participant may not exceed 200% of the average salary in the given year, and the annual limit for the smallest applicants is 4 times the average salary.
Can a sole proprietor use KFS?
Yes. Having employees is not a condition: the Act explicitly covers entities with no employees and natural persons running a business. However, the applicant must have paid Labour Fund contributions for at least 6 months before applying (or be exempt by law).
How long does the KFS application process take?
The application is submitted electronically, via an individual account, within the deadline announced by the District Labour Office. The processing time and required attachments are set out in the call for applications and the regulation on KFS. Training can start only after the agreement with the office is signed: KFS does not fund activities started earlier.
Which training has the best chance of KFS funding?
The district head assesses applications by alignment with the KFS spending priorities for the given year, with local or regional labour market needs, and by the ratio of price to market prices (Article 125(13)). The best chances therefore go to training that clearly fits a current priority and has a market price, so check the current priorities and the call for applications at your District Labour Office.