EXECUTIVE SUMMARY

No similar study has been conducted

extent finance and markets do. Economic

so far regarding the Romanian

macro-research findings show that a solid

entrepreneurial ecosystem and the

entrepreneurship ecosystem employs

momentum is given by the growing

trusted leadership, financial and

interest for supporting social and

non-financial support to entrepreneurship,

economic entrepreneurship at European

prospective international markets,

and national levels for the period 2014-2020

capitalization of human resources and a

(International Expert Workshop Joint

strong culture of entrepreneurship.

Research Center-IPTS, July 2014). This study

investigates the degree to which Romania

The interplays between all these domains

offers an environment conducive to

determine people to take risk of becoming

entrepreneurship.

entrepreneurs and make regions and

countries competitive on the global markets.

We address here the defining conditions

of entrepreneurship in Romania and
gather evidence and knowledge in order
to inform policy-makers on how to better
support the entrepreneurship
development. Specifically, these kind of
inquiries are referred to, world wide, as
entrepreneurship ecosystem analysis,
because it emphasizes the relationships
between various factors which help or hold
back the economic development, like
leadership, human capital, or culture which
influence entrepreneurship to the same

Selected Research Findings of the Relevant Country Level Data

Strengths:

Weaknesses:

Human capital
Science, Technology, Engineering
and Mathematics (STEM) graduates
High school and college graduates rates.

Business community dissatisfaction with

the quality of education.
Low capacity to attract and retain talent
Low quality of management and
entrepreneurial education

Finance
A large variety of institutions and
organizations offering access to financial
capital: like banks, microcredit institutions,
VC funds, business angels, private equity,
crowdfunding, European funds.

Barriers to access finance capital like high

costs of debt financing and
collateral guarantees. Small amount of
money invested by PE and VC. Unequal
distribution of funds across country
regions with the highest density in
Bucharest.

Support
High speed connectivity
4G Mobile networks.

Low satisfaction towards utility services

and transport services
Low diversity in expertise outside the
private sector, like NGO.

Culture
High social status associated with
entrepreneurs. Large percentage of adults
intending to start a business (entrepreneurial
intentions) Media attention given to
entrepreneurship.

Tendency towards employment rather

than self- employment (entrepreneurship)
due to lack of opportunities to finance a
business. Low proclivity for risk.
Small number of opportunity-driven
entrepreneurs.

Policy
New instruments to support SMEs, according
to the principles included in the European
Small Business Act.

Low level of trust in public institutions.

Markets
Proportion of total sales that are exported
directly or indirectly.
Foreign and domestic market size.

Data missing for diaspora networks and

early customers.

The Romanian Entrepreneurial Ecosystem Index

Is the environment conducive to

P2. Consultancy - source (if any) of

entrepreneurship? Do entrepreneurs feel

consultancy / advice for starting own

inspired, tend to access consultancy,

business

mentor others and further invest or do they

rather grow isolated from the environment?

P3. Working Experience - years of work

experience before starting own business

To answer these questions we first created

an index based on five pillars, and then we

P4. Mentorship - mentorship provided to

conducted a survey among entrepreneurs.

other potential entrepreneurs

The structure of our index was adapted

from a study performed by Endeavour, a

P5. Investment - investment in new

non-profit organization with extensive

businesses.

experience in promoting entrepreneurship

as a source of long-term growth, around

The value of the Romanian Entrepreneurial

the world.

Ecosystem Index is 4.5 on a scale from 0 to

10, and has its maximum at 8. It suggests

Endeavour methodology alllows us to grasp

that the Romanian Entrepreneurial

the maturity of the ecosystem by assessing

Ecosystem is very weakly developed.

to what extend the entrepreneurs are

The networks established among

inspired, financially and non-financially

entrepreneurs are not strong enough to

supported, mentored by others and also to

lead to a self-sustaining environment.

what extend they trust and find incentives

to invest in other businesses.
P1. Inspiration - source (if any) of
inspiration for starting own business

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Policy Recommendations
Targeted policies to encourage people with

Targeted policies for education in

more than 5 years of work experience to

entrepreneurship in academic

enter entrepreneurship.

environments. Our research findings show

Our research findings show that people

that there is a tendency towards a

with more than 5 years of working

decreasing impact of the entrepreneurs

experience are more likely to have a long

with academic working years experience

term, growth-focused vision for their

on the entrepreneurship ecosystem.

business and the right scale-up mindset

(Isenberg, 2013), and to strengthen the

A clear distinction between economic and

entrepreneurial ecosystem by investments.

social entrepreneurship is needed to be

made in the policy measures.

Targeted policies to encourage well

Policy support for economic

educated people (holding a Masters degree

entrepreneurship should focus on the

or higher) who have at least 5 years

entrepreneurs needs for creating value,

working experience to engage in

voiced by the entrepreneurs themselves

entrepreneurship.

and to not manifest excessive bureaucracy

Through their presence, the ecosystem

which is inconsistent with entrepreneurship

would be infused with potential high

spirit and its development.

impact entrepreneurs, who have the ability

to activate and set in motion the

Targeted policy for the development of

ecosystem to become self-sustaining.

social entrepreneurship should start with

clarifying the legal framework and state aid,

Targeted policies to encourage more

like MINIMIS aid which targets social

women to enter earlier the ettntrepreneur-

entrepreneurship.

ial ecosystem. Our research findings show

that women tend to start a business in their

Targeted support for the development of

40s and 50s and that they highly impact the

high quality education in management and

entrepreneurship ecosystem. Comparative

entrepreneurship programmes.

to men, women entrepreneurs tend more

Low-performance of national educational

to encourage others to become

programmes in economy and management

entrepreneurs and to invest in new

is shown, when compared to international

businesses.

ones.

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