According to Global Entrepreneurship Monitor (GEM) report, an entrepreneur needs an average of almost USD 12,500 to start a business in Romania, more than in Poland, Sweden, Bulgaria, Croatia and Hungary, but less than in developed countries like Germany, Italy or Norway.
For example, the average cost to start a business in Germany is USD 22,200, while in Poland is approximately USD 11,500. Compared to Bulgaria, a resident invests USD 5,700 on average in a business and USD 11,000 in Croatia, according to the quoted report.
The high costs borne by entrepreneurs to start a business, most paid from their own pocket, represent one of the reasons for the low number of SMEs in Romania, category of companies representing the economy’s blast.
Romania has only 30 SMEs per 1,000 inhabitants, placing the country on the penultimate place in the European Union, according to a ZF analysis, while the EU average is at 54 such enterprises per one thousand inhabitants, according to the latest European Commission data.