Entrepreneurship

Small and medium-sized enterprises (SMEs) dominate the business scene worldwide, accounting for 95% of the total number of companies. Moreover, the studies in this field underline the importance of SMEs for job creation and economic development. In addition, SMEs increase competition in the market, which results in lower prices, improved product quality, as well as encouraging the implementation of new technologies for a continuous and constant improvement of products / services and the availability of the products, of the market and of new services.

If, at EU level, according to a study carried out by the European Commission, SMEs are the same as the global numbers (95% – including Romania) in Romania the companies that have revenues of over 1 million euros represent only 4% of the total active companies, but they represent the core business environment in Romania because they concentrate 84% of total local business revenues, 61% of total jobs and 74% of fixed assets.

An important thing to note – of the 4% – over half are foreign capital = corporations. Of the over 526,000 companies almost 190,000 have no activity, and of the 336,000, somewhere at 27,700 have over one million euros, as a share representing only 4% of the total active companies.
Small and medium-sized enterprises represent over 49% of the turnover of all Romanian companies, amounting to RON 1.263 billion annually, according to a ZF analysis based on data for 2019 provided by the Romanian Trade Register. But the fact that the more than 526,000 registered SMEs fail to do bigger business than the nearly 1,800 large companies shows how dependent the economy is on a small number of companies and how little oxygen the new „wave” of companies receives.

Ovidiu Nicolescu – representative of the National Council of SMEs (CNIPMMR) stated on 07/26/2019 that: „Romania is the only country in the European Union where self-financing is the main way of financing an SMEs, in proportion of 69.54%, loans being used by only a quarter of small and medium-sized enterprises, respectively 25.88%. This means that we are not developing. Self-financing, as a rule, cannot produce substantial progress. It helps you to stay or not to go bankrupt. Looking at the interest of any loan in the other countries and if we compare them with the ones from Romania it is clear that there is a lot of space (lending) where it must be done consistently, skillfully, based on dialogue because without strong credit we cannot performer. „
In addition to the financial „obstacles” to finding a job, the corrupt system or the bureaucracy, many analysts talk about the fact that many entrepreneurs remain „trapped” in areas that are no longer up to date and do not make a profit, they rely on the expertise of the employees who only have the experience of the respective work place. The fact that they does not invest in specialized courses or training of the employees and many of them go by instinct and do not resort to specialized business consultancy the level of adaptability and agility is very low.
In addition, a recent study by Advice for Small Businesses, the European Bank for Reconstruction and Development (EBRD) which supports the development of SMEs, reveals that small businesses want to establish viable business strategies, but they access a specialist or a consultant in very scarce occasions in order to achieve this goal. Thus, the EBRD estimates a 55% increase in the productivity of an SME by implementing business consulting projects in: strategy, information systems, marketing, energy efficiency or operations. And Monasi Courses and Consulting is at your disposal.