The article discusses major factors affecting gross financial performance of enterprises in 1998. Both purely quantitative data, based on the analyses of unidentifiable unit data derived from F-01 form of the Central Statistical Office, and data obtained from NBP surveys were analyzed. According to the findings, gross financial performance worsened in the period in question due to dramatic losses accompanied by a slight increase in gross profit. The paper presents several reasons underlying such a situation, inter alia, structural problems, recession trends, and provisional results of rapid disinflation. An attempt was also made to identify groups of enterprises most vulnerable to the factors analyzed. The article concludes with the discussion of some consequences of profit decline in the sub-sector of enterprises.