Romania’s Entrepreneurial Boom: Insights from the 2024 Entrepreneur Profile Study

The entrepreneurial landscape in Romania has undergone a remarkable transformation over the past 15 years, as evidenced by the findings from the “Entrepreneur Profile 2024” study conducted for ING Bank Romania.

Growth in Business Revenues and Profits

The study reveals that Romanian companies have experienced substantial growth, with total revenues increasing 6.5 times since 2008, reaching over RON 2,600 billion in 2023. This growth trajectory is particularly notable in recent years, with a 60% revenue increase between 2021 and 2023.

Similarly, net profits have surged to RON 223 billion, marking a tenfold increase since the end of 2008. This trend underscores the resilience and adaptability of Romanian entrepreneurs in navigating economic challenges.

Urban vs. Rural Dynamics

The disparity between urban and rural business performance is a significant aspect of the study. Urban areas account for over 60% of total revenues, with Bucharest as the primary profit generator, contributing 37% of total profits. However, rural areas have also seen growth, with their share of companies rising to 32%. Despite this increase, rural businesses face higher operational costs and lower efficiency than their urban counterparts.

Longevity and Challenges of Businesses

The longevity of businesses in Romania presents a mixed picture. While over 80,000 companies were established in 1990, only about 20% remain active today. The average lifespan of a company is nearly 11 years, with more than half being at least 8 years old. This longevity reflects both the challenges new ventures face and the increasing experience of entrepreneurs.

Entrepreneurial Education and Support

The findings also highlight the importance of entrepreneurial education and support systems in fostering business growth. As noted in various studies, including the GEM Global Report and insights from INSEAD alumni, effective education equips entrepreneurs with the necessary skills and knowledge. In Romania, there is a growing recognition of the need for enhanced entrepreneurial education to better prepare individuals for starting and sustaining businesses.

Future Outlook

Looking ahead, Romanian entrepreneurs are optimistic about their prospects. The study indicates a strong commitment to innovation and expansion among businesses, with many aiming to diversify their offerings and enter new markets. This aligns with global trends where entrepreneurs seek autonomy and flexibility in their ventures.

Romania’s entrepreneurial ecosystem is characterized by significant growth, urban-rural disparities, challenges related to business longevity, and an evolving educational landscape. As entrepreneurs continue to adapt to changing economic conditions, their resilience and innovative spirit will be crucial for future success. The insights from this study reflect the current state of entrepreneurship in Romania and serve as a benchmark for ongoing development in this dynamic sector.