More than 60% of Romanian entrepreneurs do not feel the economic growth announced by the Gov’t, survey says

The economic growth of 13%, above the anticipated level, recently announced by the Government, is not reflected in the reality of the business environment, say most Romanian entrepreneurs, according to a study conducted by CIEL Romania, one of most important software manufacturers for companies. Instead, almost all entrepreneurs say that costs have increased with suppliers. Also, many of them claim that instability and lack of predictability will persist in the Romanian business environment, given the current political context.

Approximately 62% of the Romanian entrepreneurs say they don’t feel the economic growth announced by the Romanian Government. The main reasons are that the utility prices and the prices in stores have increased significantly during this period, according to the CIEL Romania study. In addition, more than 26% of companies do not notice any real change compared to 2020, despite the optimistic figures officially announced, and the lack of predictability caused by the political environment creates uncertainty in the business environment.

Romanian entrepreneurs need more predictability, but, as we have seen for several years, the political environment creates rather an uncertainty in the business environment,” says Roxana Epure, Managing Partner of CIEL Romania. “To all these are added the pandemic restrictions, which affect the business. At the moment, the only source of predictability is the investment in digitization, in software solutions that provide accurate data and help to make correct and coherent decisions, without risk “, adds Roxana Epure.

The survey also reveals that over 71.4% of the entrepreneurs admit that the predictability level of the local business environment this year has decreased compared to 2020 and only 7.5% of them consider that the level is up.

The respondents consider the economic advance announced by the Government is not reflecting the reality in the market. For 91.8% of the entrepreneurs, the costs with the suppliers increased during this period. Moreover, only 9.5% of companies recorded increases in turnover.

Against a background of an uncertain market, as the data from the study show, Romanian entrepreneurs decided to give more importance to digitalization. The CIEL study shows that 45% of companies made investments in digitalization during the pandemic, and 37% plan new investments in the coming months.

“These software products are becoming essential, especially now, when the uncertain reality increases the feeling of insecurity. Romanian entrepreneurs are investing more and more in automation because such investments offer – in addition to cost reduction, customer loyalty and efficient working time – the highest degree of predictability in business. In the current context, the concrete figures from the financial reports generated by the software always help to make better decisions for your own business “, concludes Roxana Epure.

The amounts allocated for digitization were below 1,000 euros in 61.2% of cases, between 1,000 and 3,000 euros for 27.2% of the companies and over 3,000 euros for 11.6% of them.

The most purchased software products by entrepreneurs are those for medium-sized companies – such as management software, e-commerce, production and accounting – but also those for large companies – such as ERP systems, in many cases customized to the specific needs of companies.

Among the participants in the CIEL Romania study, 32% are service providers, 25% are active in trade, 15% in construction, 12% in IT, and the rest have businesses in the industry producing materials, food or clothing. About 14% have a turnover between 1 and 5 million euros, 2.7% exceed this threshold, and 83% of the responding entrepreneurs have a turnover below 1 million euros.

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business environmentCIELcompaniescostseconomic growthgovernmentmanufacturersRomanian entrepreneursstudysuppliers
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