EY: In Romania, seven out of ten entrepreneurs finance business from their own funds

A share of 69 per cent of the entrepreneurs in Romania, at the beginning of the road, use their own resources to start a business, according to the study EY The barometer of the start-up business in Romania.

2016-04-13 16:14:07

69 per cent of the participants in the study indicated their own resources, including loans for personal needs and the salary taken from a different work place than the start-up as being the main source of financing. The next two places are taken by European funds and non-reimbursable offered by the Romanian state, family and friends representing only the fourth most important source for the local startups.

Most entrepreneurs at the beginning of the road dedicate 10 hours to the business every day, which shows the fact they work by 21 per cent more than full time employees in Romania. According to the same study,38 per cent of the entrepreneurs have a monthly income under 500 Euro and 11 per cent surpass the level of 2,000 Euro per month. In Romania the average net income for November 2015 was 432 Euro.

The continuation of the fiscal relaxation process is important for 46 per cent of the entrepreneurs, 26 per cent of the interviewees wish fiscal relaxation to focus on startups, while 20 per cent consider that general fiscal relaxation at the level of the companies would have the biggest impact on supporting entrepreneurs.

In the top of measures to follow by the authorities to support the entrepreneurial initiative is the reduction of bureaucracy (14%), the creation of several financing programmes for startups from European Funds or non-reimbursable funds on the part of the Romanian state as well as the creation of institutions which should really support the start ups through consultancy, working places, business incubator managed and financed by the state, a functional e-office and the digitalisation of the institutions.