Study:Over 60% of Romanian entrepreneurs see business environment as unfavourable

  Romanian entrepreneurs are concerned about inflationary pressures and economic uncertainties, which affect confidence in the future of their businesses and lead them to be more cautious in terms of investments, according to the Entrepreneurship Barometer in Central and Eastern Europe study which was released on Friday.The research, conducted by EY in the spring of 2025, provides a detailed analysis of the perceptions and challenges which the entrepreneurs in Romania are confronted with. It highlights that, despite an active entrepreneurial spirit and intentions to innovate, 63 percent of Romanian entrepreneurs see the business environment as unfavourable. This perception reflects a series of significant obstacles affecting business development in the country.One of the biggest obstacles identified in the report is economic instability. Romanian entrepreneurs are confronted with a series of uncertainties, including inflationary pressures and geopolitical instability. These conditions undermine confidence in the future of their businesses and lead entrepreneurs to be more cautious regarding investments.Moreover, 69 percent of entrepreneurs face difficulties in recruiting qualified personnel. This problem is compounded by discrepancies between labour market requirements and the skills provided by the education system, making it difficult to find candidates with the necessary abilities to support business growth.Excessive bureaucracy is another factor limiting entrepreneurs' ability to innovate and grow. According to the report, 33 percent of Romanian entrepreneurs believe that complex regulations negatively affect innovation and growth, which underscores the need to simplify the legal framework to support business development. Additionally, 56 percent of Romanian entrepreneurs consider bureaucracy and regulatory complexity a major barrier to the country's entrepreneurial environment.The study also shows that Romanian entrepreneurs face challenges regarding their main sources of financing. Many prefer to reinvest profits and own funds (54 percent) rather than seek external financing sources.Despite these challenges, Romanian entrepreneurs plan to invest in innovation. Two-thirds (60 percent) of entrepreneurs in Romania intend to invest in process innovation, as well as strategic and marketing innovation. A positive aspect is that Romanian entrepreneurs are investing significantly in digital technologies, proving a focus on digitalisation and automation, essential for the long-term success of businesses.Artificial intelligence (AI) is seeing the strongest increase in use both regionally (61 percent) and in Romania. Seventy-one percent of Romanian entrepreneurs surveyed reported that they have intensified their use of AI in recent months, confirming the technology's status as a key investment priority.The "Entrepreneurship Barometer in Central and Eastern Europe" report underscores that, although the Romanian entrepreneurs are confronted with significant challenges, there are also development opportunities. An active entrepreneurial spirit and intentions to innovate are positive factors that can contribute to the country's economic growth."In order to ensure a prosperous future for Romania's entrepreneurship, it is essential to develop effective risk management strategies, simplify regulations and support innovation. Better coordination between the education and business sectors, along with investments in workforce development and new technologies, are crucial for securing a sustainable entrepreneurial future in Romania," EY experts say.The survey was launched in the first quarter of 2025 across the EY CESA region, which includes Central, Eastern and South-Eastern Europe, as well as Central Asia. In Romania, a total of 48 respondents participated, while across the CESA region (Romania, Hungary, Poland, Greece, Serbia, Czech Republic, Slovakia, Croatia, Türkiye, Cyprus, Bulgaria, Slovenia, Malta, the Baltic States) the survey collected responses from 1,032 participants.Most Romanian entrepreneurs participating in the study run small businesses. Specifically, 63 percent reported annual revenues of less than 10 million dollars in the last fiscal year, and 60 percent operate with teams of 1 to 49 employees. Fifty-two percent of respondents identified their companies as family businesses.EY Romania chose to compare Romania with Poland, Bulgaria and Hungary, neighbouring markets with relatively similar economic structures, cultures and institutional challenges. The CESA average provides a general benchmark that helps distinguish local particularities from regional trends.EY is one of the largest professional services firms globally, with 406,209 employees in over 700 offices across 150 countries and revenues of approximately 53.2 billion dollars in the fiscal year ending 30 June 2025. Present in Romania since 1992, EY delivers integrated audit, tax, legal, strategy and transaction advisory services through more than 1,000 employees in Romania and the Republic of Moldova, serving multinational and local companies. It has offices in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau.