July, 2019 / Volume 23, Issue 7
www.business-review.eu
FIRMS MUST REINVENT THEIR BUSINESS MODELS FOR THE FUTURE
18
COMPANY OWNERS POOLING MONEY FOR STARTUP INVESTMENTS
20
THE COACHING INDUSTRY – GROWING FAST AND SPECIALIZED
28
WHEN IN ROMANIA: TOP TIPS FOR TRAVELERS
36
DARK CLOUDS OVER THE ROMANIAN ENERGY SECTOR
Photo: Dreamstime
www.business-review.eu Business Review | July 2019
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Editor-in-Chief •
6 Millenial mores prompt developers to focus on ”business communities”
COVER STORY
8 Dark clouds over the
It’s business time!
I
Romanian energy sector
COUNTRY FOCUS
n times of profound changes in the global business environment, companies worldwide need to adapt their strategies to the new context and come up with a fresher perspective. In
other words, agility, adaptability and flexibility are some of the key
14 French investors get
characteristics that they need when (re)designing their strategies,
strategic for Romanian economy
as pundits say. The drivers behind these changes often have to do
17 The local business
with intensifying competition, increasing consumer sophistication and the speed of technological advancements.
environment is getting ready for the future
An important question, as Szabolcs Nemes, managing director of Roland Berger, told Business Review in an interview about the main trends in management, is: how can mature companies bring
ENTREPRENEURSHIP
back the energy of their startup days and accelerate their growth?
20 Local business owners
This is a tipping point when companies need to adjust their corpo-
pooling money for startup investments
rate business approach into an entrepreneurial one, making them more flexible and more prepared for the challenges to come in the years ahead. Entrepreneurial spirit has certainly flourished in recent years
24 Startup push: local industries that need a shot of innovation in the arm
in Romania, with many interesting moves made by local entrepre-
CITY
neurs coming onto the radar of larger investors. Meanwhile, from the financial perspective, Romanian business owners are beginning to create their own investment funds to target domestic startups, with starting capital running into the tens of millions of euros. While local investors can fill a funding gap for early-stage companies, their familiarity with the way business is done in Romania might provide an advantage over traditional international players in the venture capital and private equity markets. So, it’s business
41 One of a kind: Vertigo brings high-quality anniversary show to Sibiu
42 Food for thought: young chefs shake up old classics
45 Sounds good: Electric Castle
time, and let’s leverage all the opportunities the local market can
opens up to hearing-impaired visitors
offer!
46 Calendar
EDITORS-IN-CHIEF: Anda Sebesi, Sorin Melenciuc JOURNALISTS: Anca Alexe, Paul Barbu, Aurel Dragan, Romanita Oprea, Oana Vasiliu CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGER: Mara Dragoiu EVENTS & MARKETING MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | July 2019
4 NEWS
WHO’S NEWS
Slovakia, Romania, Hungary, Turkey, and Peru all jumped
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
significantly between the 2014 and 2019 studies, climbing from 12-24 places on the Index, and positioning themselves as the “rising stars” of countrymaking. “Meanwhile, Romania is home to eight World Heritage sites, including the Voronet Monastery, one of the country’s most popular attractions,” the report says. Now on its eighth edition,
Robert Redeleanu will be UPC’s new CEO for Eastern Europe starting in July. He joined Liberty Global in 2013 as the CEO of UPC Romania and has since expanded his responsibilities to oversee UPC Hungary, Romania and Poland. With this appointment, he will be leading the company’s operations across Eastern Europe until the expected closure of Liberty Global’s transaction with Vodafone, at which point he will lead the UPC businesses in Poland and Slovakia.
Ilinka Kajgana will be the new chief risk officer at BCR from January 2020. She has been in charge of Erste Bank Austria’s strategic risk management department since 2017, and will replace Michael Beitz, who is retiring after more than 30 years at Erste Group. Born in Croatia, Kajgana holds a PhD in Physics from the Vienna University of Technology and started her career at the General Hospital in Vienna, where she did research in the field of cardio-thoracic surgery.
page 5
Saschiz fortified church in Transylvania is a UNESCO World Heritage site
Romania’s nation brand ranked 42nd in the world
the FutureBrand Country Index examined what transforms a country from a spot on a map to a place that survey respondents ultimately want to invest in, live in, visit, and buy goods and services from. Countries have traditionally been mea-
By Sorin Melenciuc
sured and ranked by measures
Romania’s nation brand has
Turkey (40), Slovakia (35), and
of might – GDP, population
been ranked 42nd out of 75
Greece (34) all placing above it.
size, even a sovereign’s nuclear
countries around the world,
Last year, Romania was named
arsenal.
up 20 places since 2014. The
the 45th best nation brand in the
country came above Poland
world, above New Zealand and
an optimized national play-
(44), Chile (43) and Brazil
Portugal, and the best nation
book of shared beliefs, rooted
(47), mainly due to its cultural
brand in its region, in the UK-
in purpose and experience, to
heritage, in the FutureBrand
based Brand Finance’s “Nation
shift global perception with the
Country Index 2019. How-
Brands 2018”. The best nation
explicit goal of boosting tour-
ever, in Europe, Romania
brands in the world this year are
ism, investment, and consumer
was ranked below most other
Japan, Norway and Switzerland,
choice for a country’s goods
nations, with Hungary (38),
according to FutureBrand.
and services, say officials.
Country-making represents
Robots ‘could take over 20 million manufacturing jobs worldwide by 2030’ By Anca Alexe Over 20 million people – about
sector, according to a new report
8.5 percent of the global manu-
by Oxford Economics, entitled
facturing workforce – could lose
“How robots change the world”.
their jobs to robots by 2030, with
However, the study also finds
one industrial robot eliminat-
that the spread of industrial
ing an average of 1.6 jobs in the
robotics will lead to increased
Robots are starting to become cheaper than human workers in some areas
www.business-review.eu Business Review | July 2019
NEWS 5
Ride-hailing app Yango launches in Bucharest Mihaela Bitu has been appointed CEO of ING Bank Romania. Bitu first joined the bank shortly after its entry onto the Romanian market 25 years ago, and has multi-disciplinary experience in the banking sector, both on the Romanian and international markets. She is currently the head of wholesale banking and deputy general manager. Since May 2018, Bitu has also been a member of the directory board of the Romanian Banks’ Association.
By Anca Alexe Yango, a digital e-hailing app currently operating in 16 countries across Europe, the Middle East and Africa, has been launched in Bucharest. Romania is the fifth EU country where the service has been made available, after Estonia, Latvia, Lithuania and Finland. Yango is part of the Russian Yandex Group, one of the largest IT companies in Europe, also known as “the Google of Russia”.
Romania is the fifth EU country where the service is available
The company says that the new service offers affordable
make it possible to significantly
and other important issues.
rides and quality services.
reduce net travel costs so that
In addition to very affordable
Rides ordered through the app
users pay less for a ride while
prices, Yango excels in technol-
start at the discounted price of
drivers can earn more.
ogy – our main competitive
RON 5, which includes the car
“Recently, the urban transport
advantage. Our company
reservation, a 3 km distance
market in Romania has signifi-
has developed a number of
and a duration of 7 minutes.
cantly lowered quality standards
advanced technologies that
for customer experience. As
automatically check the car
go uses its own mapping, tar-
a first step before the official
and the way it is driven, which
geting and navigation system,
launch, our team held a series
we plan to bring to Romania as
as well as intelligent command
of training sessions for partner
soon as possible,” says Andrei
distribution based on machine
drivers, where they were trained
Voicu, Yango regional director
learning technologies. These
on service specifications, how to
for Romania and the Republic
features, the company claims,
communicate with passengers
of Moldova.
Unlike its competitors, Yan-
Martin Schulz has been appointed CEO at Mercedes-Benz Romania, 20 years after he first joined the company, replacing Philipp Hagenburger, who is now part of the Daimler South East Asia team. In recent years, he has been in charge of sales & marketing activities in Vietnam and Thailand, and since 2016 he has served as head of product & marketing at Mercedes-Benz Korea.
productivity and growth, creating new jobs to replace some of those lost. Robots are starting to become cheaper than human workers in some areas – the average unit price of a robot dropped by 11 percent between 2011 and 2016, according to the report. At the same time, they can now do more sophisticated tasks in more varied environments. The economic effect of a 30 percent rise in the current robot installation rate by 2030 would be a 5.3 percent increase in global GDP.
Sara Del Fabbro is the new CEO of IKEA South East Europe. She will manage the Swedish furniture retailer’s business in Romania, Croatia, Serbia, Slovenia and Ukraine. She has been working for IKEA for 20 years, starting in Bologna and becoming deputy store manager at the company’s store in Torino. Two years later, she took over the Milan San Giuliano store. In 2017 she became the deputy CEO of IKEA Italy.
www.business-review.eu Business Review | July 2019
6 REAL ESTATE
Millennial mores prompt developers to focus on ‘business communities’ The rise of the millennial generation has become a challenge for many businesses, but office developers across the globe, including in Romania, see business opportunities from the realization that adapting to the new lifestyles could be a win-win strategy. By Sorin Melenciuc opened so far, a strong community of about 3,300 employees has grown from 20 multinational companies that enjoy many benefits in Iulius Mall, part of the project: immediate access to more than 350 stores, food court, themed restaurants and cafes, a fitness center and a wide range of services such as medical clinics, launderettes, bank offices, insurance brokers, travel agencies, spa and massage salons, body remodeling, hairdressing salons etc,” Iulius representatives point out.
SAVING TIME ON BUREAUCRACY Romania is well known for the excessive bureaucracy that erodes people’s spare time. Proximity to the first kindergarten and primary school in Timisoara will be another benefit for those working in the office buildings of Iulius Town Timisoara
A
For developers, adapting to local realities and saving time on bureaucratic procedures may prove to be a key aspect in attracting
ccording to experts, millennials want
opportunities during the week and at the
the interest of millennials. “They can solve
employers to grant them autonomy
weekend.
administrative issues in a short time as many
and flexibility in their work schedule,
These young workers enjoy meeting
public institutions have relocated their public
and they like workspaces with places dedi-
friends and colleagues after work, in cafes
relations centers to the mall. The offices of
cated to socialization and interaction between
and restaurants, for fun and socializing. “Our
the Inspection and Driving License Exam
teams.
office buildings, developed under the United
Bureau, Driving License Office, Car Registra-
Business Center (UBC) brand, are integrated
tion Bureau, Posta Romana (Romanian Postal
analyzed by office developers, which are
into projects that meet all the main aspects
Company) and Tax Department are located
now designing projects adapted to younger
of a community’s life: business, shopping,
in the same area, on Iulius Mall’s first floor.
employees. “The mixed projects developed
malls, relaxation and entertainment, the pres-
There is also an office of Timis County’s Com-
by Iulius group, such as Palas Iasi and Iulius
ence of parks, cafes, restaurants and various
munity Public Service for the Issuance and
Town Timisoara, which include extensive
dedicated venues. All these facilities meet
Registration of Passports,” say Iulius Town
business communities, have the advantage
active people’s goals by minimizing the effort
Timisoara representatives.
of integrating various functions and facilities
and time needed to accomplish the multitude
that are very useful for employees in office
of daily activities,” say Iulius group officials.
These new lifestyles have been carefully
buildings, including for millennials,” Iulius Town representatives told Business Review.
Millennials are also known for being
EDUCATION & HEALTH Another key issue for many employees in
receptive and involved in social projects,
Romania is education infrastructure, as
eco projects and sports competitions, and
highly educated people are very interested in
SOCIALIZING PLACES, A KEY ASPECT
they enjoy having facilities and services in
ensuring a good education for their offspring.
Millennials are more connected with technol-
the immediate vicinity that help them save
“Another benefit for those working in UBC
ogy and social sites than older employees. At
time. “For example, in Iulius Town Timiso-
Timisoara buildings will be proximity to
the same time, they like to have socializing
ara, through the three class A office buildings
the first kindergarten and primary school in
www.business-review.eu Business Review | July May2019 2016
COVER REALSTORY ESTATE14 7
Timisoara based on the British model, with
over 10,000 trees), greening, blood dona-
say Iulius Town developers. “We also provide
offers courses exclusively taught in English,”
tion, fundraising and charity. In addition, it
our employees with parking facilities and we
say project representatives. Access to quality
regularly holds sports competitions, inter-
are constantly looking to extend them. For
medical services is also a strong incentive for
company video or board games, Valentine’s
example, more than 4,000 parking spaces will
young employees who typically pay more at-
Day Cooking Workshops, cross-company cake
be available in Iulius Town Timisoara, after
tention to their health than previous genera-
baking, etc.
we built a parking lot and another underground parking lot besides the underground
tions. “With the completion of the fourth office
EASY ACCESS
parking lot under the Iulius Mall,” they added. In many cases, developers in Romania are
building, from next year employees will have
Compared with the past, employees now
access to the largest medical hub in the west
carefully look at both the work environment
also investing in infrastructure moderniza-
of the country. Developed on an area of 3,000
and workplace inside the office, as well as the
tion to ease access and traffic. Iulius Town
sqm, it will provide diagnostic and treatment
location where the workplace is and what it
developers are building a tunnel that passes
services for many medical specialties, mainly
offers in terms of services, HR experts say.
under their project and connects two major
treating the diseases associated with the
Developers have therefore begun to focus on
crossroads in Timisoara. The cost of this in-
modern world, which impact on development
integrating office buildings into mixed proj-
vestment will be borne by project developers,
and quality of life. The specialties that will
ects where employees can access facilities
and the tunnel donated to the municipality.
be available will include: physical therapy,
and services that are useful both during and
acupuncture, cardiology, obstetrics-gynecol-
after work. In Romania’s secondary cities like
PREPARING FOR TELEWORKING
ogy and infertility treatment, aesthetics and
Timisoara or Iasi, location is considered one
Remote working is still a rare option in Roma-
dermatology, body remodeling, dentistry,
of the most important criteria when choos-
nia, but studies conducted by experts in more
neurology and microsurgery,” Iulius represen-
ing an office space. That’s why developers
advanced economies show that employees
tatives outline.
are looking for ultra-central locations with
are more productive and attached to their
good access to the city and suburban road
company if they interact with the rest of the
ACTIVE SPARE TIME
infrastructure, and good connectivity to the
team on a regular basis. However, the growing
As regards the millennial generation’s desire
public transport network and cycle lanes. As
number of people working remotely and new technologies have led companies to adapt and make changes in office space management. They have designed large areas and devoted regular sums to social spaces or unconventional work areas. Other firms that offer their employees the option of working from elsewhere rent offices in coworking spaces. This gives employees flexibility in choosing where to work, but also the chance to interact with other professionals or team members. At the same time, developers are concerned about facilitating employees’ access to green spaces, where they can relax in breaks and after work. “At both Palas Iasi and Iulius Town Timisoara, we have established generous parks and green spaces as an area where people can relax, but also have the opportunity to attend
to be involved in social projects, eco proj-
a consequence, companies spend more than
theme fairs we organize, outdoor concerts or
ects and sporting competitions, Iulius has
they did in the past on office space. “Our
other events,” say Iulius representatives. On
sought to develop and focus on a community
office buildings have a great advantage by
August 30, Iulius and Atterbury Europe will
through its projects. It supports partner com-
being located in the city center, both in Iasi
open the first stage of Iulius Town Timisoara
panies in their work projects, but also offers a
and Timisoara. Our mixed projects are easily
(previously called Openville), the largest real
rich calendar of events and actions, on varied
accessible both by public transport and on
estate investment in the region, worth more
themes, according to their concerns, passions
foot, or alternative means of transport. For
than EUR 220 million. This will be the first
and rhythm of life. For them, but also for their
example, in the office buildings in Timisoara,
mixed project in western Romania and the
families, it organizes social campaigns such as
we included special parking lots, showers and
most important real estate project to be inau-
afforestation (so far the company has planted
changing rooms for those who cycle to work,”
gurated this year on the local market.
8 COVER STORY
www.business-review.eu Business Review | July 2019
DA OV EN
www.business-review.eu Business Review | July 2019
COVER STORY 9
ARK CLOUDS VER THE ROMANIAN NERGY SECTOR Romania’s energy sector was for years considered to be a pillar of the entire region, as it supplied electricity to vulnerable countries and covered much of its gas consumption from internal resources. But these times are gone, as dark clouds gather over the country’s energy industry. This year, Romania turned into a power importer due to the lack of investments, poor management and regulation changes, while gas imports from Russia have soared. This situation puts pressure on authorities and experts alike to find proper solutions in the next period in order to revive the local energy sector. By Sorin Melenciuc
www.business-review.eu Business Review | July 2019
10 COVER STORY
Wired: local electricity sector switches to turbulent mode Romania was long an electricity exporter in the region as its Communist-built power supply industry was large and diversified. But the situation has changed dramatically this year due to lack of investment, poor management and regulatory changes, say pundits.
“
By Sorin Melenciuc
Electricity is
The regulatory and
really just orga-
tax framework. We
nized lightning,”
must quickly drop the
the American come-
obligation to trade
dian George Carlin
energy produced by
once said. The key
new capabilities on
word in this sentence
the stock exchange
is “organized”, many
futures market. This
energy experts would
regulation creates
add.
major problems with
In order to get
the financing of new
lightening, you need
investments,” said
an electricity supply,
Razvan Nicolescu,
transmission and dis-
a former energy minis-
tribution industries.
ter and now energy
And Romania has all
consultant at Deloitte.
these segments but lacks the essential:
FROM EXPORTER TO IMPORTER
good organization. Compared with
Last year, Romania
other Western Euro-
was still an electric-
pean countries, like France, which kept some monopoly groups – with powerful unions –
ity exporter, but the amount of exports was much lower than in previous years.
at the top of its energy systems, Romania has split its electricity sys-
But in the first quarter of this year the country became a net im-
tem into three separate ones: supply, transmission and distribution.
porter, left reliant on large imports to provide the power needed by
By the EU books, experts would argue, again. But energy systems are
its businesses and households.
not so simple – and you don’t need an expert to tell you that. Electricity systems need expensive investment but they also need constant maintenance. It seems to be a technical matter but it is also a daily life matter: without light and electrical outlets, life is now almost inconceivable.
According to official data, Romania imported 1,125.5 million kWh over January-March 2019 and exported only 862.6 million kWh, putting the country’s electricity balance into the red. Electricity exports more than halved (down by 53 percent) in the first three months of this year, while imports rose by 78.5 percent.
For decades, Romania managed quite well to provide its house-
This reliance on imports was due to a slump in power output,
holds and businesses – and even its neighboring countries – with a
which was down by 10.8 percent compared with January-March
reliable power supply. The last blackout in Romania occurred in 1977,
2018, associated with a slight decline in consumption, of 1.6 percent,
just after the country was rocked by a major earthquake. So what
during the same period. But the situation remains tense as Romania
has changed compared to the past decades? Romania still has good
continues to rely on imports to cover its electricity needs.
technicians and engineers, who should be able to keep the system
Transelectrica data seen by BR show that even on a calm day like
on track, shouldn’t they? Well, it’s not sure. “Romania has bigger
June 26, at 9.30 PM, Romania imported electricity due to weak wind
problems with ensuring its real power production capacities. Causes?
power output. Some experts warn that the country risks higher im-
www.business-review.eu Business Review | July 2019
COVER STORY 11
ports, higher prices and even “a disastrous blackout” if the govern-
pushed imports to record levels. Under normal conditions, the coal
ment doesn’t take urgent measures.
power plants cover around 40 percent of consumption over the year.
RENEWABLE BUT VOLATILE
designed a plan to combine in a single company Hidroelectrica, a
Despite these statistics, Romania is among the European Union
highly profitable hydroelectricity producer, and some of the coal
countries that manage to cover over 20 percent of consumption from
plants – an idea dismissed by most local experts.
In order to save the inefficient coal plants, the government has
renewable sources, due to large investment in projects made during the last decade. But these sources are not enough to cover the coun-
TAX GAMES: WINNERS AND LOSERS
try’s needs. In 2017, the share of renewable energy in Romania was
The most stable and profitable energy producers in Romania, Hidro-
26.6 percent, over the EU average of 19.5 percent.
electrica and Nucleaelectrica – which produce the cheapest electric-
Only four member states cover more than half of their con-
ity in the system – have been hit this year by emergency ordinance
sumption from renewable sources: Sweden (69.1 percent), Finland
114/2018, which imposed a special tax of 2 percent on turnover and
(54.8 percent), Latvia (54.6 percent) and Estonia (51.6 percent). By
capped the profit margin at 5 percent for energy supplied to house-
contrast, the power production system in Romania needs major
holds. Both companies need investments worth billions of euros in
investment and maintenance works – and both have been rare in
order to guarantee their long-term electricity output.
recent years. On average, around 10 percent of the consumption was covered
“The ordinance was requested by those who profit from it. As we have a mix of energy, we also have a mix of interests. The winners
by wind turbines in the last few years, but the share increased this
are those who have a regulated market and guaranteed income.
year due to lower production in other type of power facilities like
They are the big winners because they keep their market frozen,” ar-
coal-based power plants. The total power of the local wind turbines
gues Niculae Havrilet, an adviser to the energy minister and former
is 3,029 MW, but production from this type of power source is very
head of the Romanian energy regulator (ANRE).
volatile in a country located far from the planet’s oceans and prevailing winds. In eastern Romania, close to the Black Sea coast – where most of
AFFORDABLE, BUT FAST-RISING PRICES Despite the mismanagement of the local energy sector, Romanian
the local wind turbines are installed – wind is not constant, which
households still pay low prices for electricity. According to the latest
means that wind power could fall from peak to nothing in a couple
official data, from 2017, local homes paid the fifth lowest electricity
of hours. However, some experts say that doubling the production
bills among the 28 European Union member states.
capacity of wind power could solve some of the problems Romania
Average household electricity prices in 2017 were lowest in Bul-
is now facing. According to local experts, 8,000 MW of production
garia (10 euro cents per kWh), Lithuania (11 cents per kWh), Hungary
is missing in Romania from the total of 24,000 MW production in
(11.5 cents), Croatia (12.4 cents) and Romania (12.4 cents), according
theory.
to Eurostat.
The energy minister has threatened electricity suppliers that they
But the situation is about to change. This year, Romania’s elec-
could have their licenses revoked if they don’t supply enough elec-
tricity prices hit a record high of over EUR 130/ Mwh in some periods
tricity, despite the fact that most electricity producers in Romania
– and these prices have an impact on local businesses.
are state-owned. The main problem in production is generated by coal power
In the first four months of this year, Romanian firms significantly reduced their electricity consumption, possibly owing to higher
plants that have low electricity supply due to a mix of factors such as
prices in the market due to output disturbances and rising costly
poor management, lack of investment, social problems and regula-
imports.
tory difficulties. The two main Romanian coal power plants, CE
Official data show that local companies cut their consumption
Hunedoara and CE Oltenia, supplied only 18 percent of the national
of electrical energy by 5 percent in January-April 2019, to 14.4 TWh,
production on January 17, 2019, when consumption peaked, and
while total national consumption declined by 1 percent to 18.9 TWh.
www.business-review.eu Business Review | July 2019
12 COVER STORY
Romanian gas market: the return of the Russians For years, Romania was considered one of the least dependent countries on Russian gas imports, as it had its own resources covering most of its domestic demand. But commentators say things are about to change this year, mainly due to new regulations.
A
By Sorin Melenciuc
fter 2013, Romania’s
REGULATORY UPHEAVAL
gas imports
from Russia rapidly
Running out of
declined, reaching
revenue sources, the
a decades-low of
government imposed
163,000 tep in 2015.
special taxes of 2
But imports rose again
percent of turnover
in 2016.
on energy firms at the
In 2017, imports of
beginning of this year,
natural gas from
and capped the retail
Russia declined by 19
and corporate gas
percent to 962,000
price at RON 68/Mwh.
tep, from 1.19 million
These measures
tep in 2016, but the
were introduced
trend changed direc-
through the controver-
tion again last year.
sial emergency ordi-
In 2018, the indica-
nance 114/2018, which
tor soared by 26.8
players say caused
percent to 1.2 million
major upheaval in the
tonnes of oil equiva-
energy market.
lent (toe), the highest
“When the govern-
level since 2012, in
ment representative
sharp contrast with
presented us with the
the trend seen during
draft ordinance, my
the previous years.
first reaction was: my
Romania’s sole source of imported gas is Russian giant Gazprom,
God, you’re selling us to the Russians! Because this was like a door
through two intermediary companies. The reversal in 2018 may
wide open to Russian gas,” a source from the energy market told BR.
indicate a rising reliance on Russian gas – and put at risk one of Ro-
In effect, the two major gas producers in Romania – Romgaz and
mania’s biggest assets. In 2016, Romania ranked 26th among the 28
OMV Petrom – are being forced to sell gas at capped prices and pay
European Union member states in terms of energy dependency, with
extra taxes, while there is no regulation governing imported gas –
energy imports covering only 22.3 percent of national consumption.
meaning that such a measure hits local producers and favors gas
The energy dependency of the EU stood at 53.6 percent in 2016.
imports from Russia.
According to official EU data, Estonia (with a dependency rate
And the effect was soon evident: in January, Romania increased
of 6.8 percent) was the least dependent member state on imported
its reliance on Russian gas, as imports from Gazprom jumped, and at
energy, ahead of Denmark (13.9 percent), Romania (22.3 percent),
much higher prices, official data show.
Poland (30.3 percent), Sweden (31.9 percent) and the Czech Republic
According to the Romanian energy regulator (ANRE), gas imports
(32.8 percent). Romania’s energy imports consist mostly of oil and
from Russia rose by 55 percent in the first month of the year com-
gas.
pared to January 2018, to 4.2 million MWh, while the average price
www.business-review.eu Business Review | July 2019
COVER STORY 13
shot up by 37 percent to RON 124.1 per MWh. Romania’s reliance
Today, the picture looks completely different: experts say these new
on Russian gas imports climbed this year as 23 percent of total gas
resources have been put at risk by the new fiscal hurdles introduced
consumption was covered by Gazprom, compared to 18.6 percent in
by the government. Last year, Romania’s main ruling party, the PSD,
January 2018. This increase is mainly due to higher local consump-
proposed an amendment in Parliament that would increase the
tion and to steadily decreasing local gas production. Pundits say the
taxes paid by local gas producers, a move that favors imports from
main driver behind the decision to cap domestic gas prices was po-
Russia, according to experts.
litical. In Romania, gas prices are considered a social protection tool,
Under this proposal, the supplementary tax paid by domestic
and are used without discrimination: the poor and the rich alike are
producers for the natural gas extracted in Romania will be calculated
“protected” through low prices even if many don’t need to be.
according to the trading prices of the hub from CEGH Vienna. But
The measure is also a consequence of the fact that the Romanian
the hardest measure was imposed through the infamous emergency
government has never managed to identify the energy-vulnerable consumers in order to subsidize only those who need protection from high prices. “With emergency ordinance 114, we erased five years in terms of energy price liberalization; we returned to 2014,” an energy expert told BR.
RISING PRICES FOR BUSINESSES But another effect was a significant price hike on the market. Lower prices for households had to be offset through higher prices for businesses in order to balance the books, experts say. In May, the average price of domestic gas was RON 101 per
ordinance 114/2018, approved just before Christmas. OMV Petrom, Romania’s biggest oil & gas group, warned that the measure would
MWh on the local commodities exchange BRM, an all-time high for
hurt the local energy sector, in terms of energy supply, employment
Romanian gas. The local gas price for businesses is now higher in
and investments.
Romania than in Austria, the reference market for the region, and
The group also said that it would not yet be making a decision
the reason is emergency ordinance 114/2018. This took much of the
regarding a possible investment in gas production in the Black Sea’s
Romanian gas out of the market; most of the gas is sold at a low price
Neptun Deep perimeter, due to the current “legislative environ-
to households, and the remaining gas became more expensive – the
ment”, referring to the ordinance.
part sold to businesses. For local gas producers, the emergency ordi-
“The current legislative environment does not offer the neces-
nance has had another vicious effect. “We have received so many signals that exploration and exploitation programs have been reduced by at least 30-50 percent, depending on the owner, and there is also a tendency to diminish the value of these projects. This will undoubtedly lead to a fall in domestic gas production owing to the closure of gas deposits that will no longer be economically viable due to the suspension of funding received by small producers,” Saniya Melnicenco, head of the local ROPEPCA association, told reporters. Official EU data suggest that Romania has registered a decline in output this year. During the first quarter of 2019, gas output in the
sary conditions for an investment decision worth a few billion. We
EU was below the 2014-2018 range, reinforcing the decreasing trend
remain willing to see development around the Black Sea deposits
of domestic production in the bloc. In Romania, natural gas produc-
and will continue our dialogue with authorities to understand the
tion decreased by 3 percent (0.1 bcm).
way forward,” a company report reads. Neptun Deep is considered
But the EU data also indicate a sharp fall in storage filling rates. At
the largest gas reserve in Romania’s exclusive zone at the Black Sea
March 31, 2019, storage levels were between only 5 and 15 percent in
and the main hope to make Romania a gas exporter in the region.
Sweden, Romania and Latvia, the lowest levels in the EU, according
In April, OMV and ExxonMobil teams working on gas explora-
to the quarterly report on the European gas market released by DG
tion and exploitation in the Black Sea were temporarily dismantled
Energy.
due to the legislative uncertainty in Romania. In the same month, Christina Verchere, CEO of OMV Petrom, said that the key require-
POSTPONED OFFSHORE GAS PROJECTS
ments for the company’s Black Sea offshore development are not yet
Last year, Romania was widely expected to have become a major
in place. However, company Black Sea Oil & Gas announced that it
producer and exporter of natural gas within the next five years, due
would invest another USD 400 million to extract gas from the Black
to its offshore reserves in the Black Sea exclusive economic zone.
Sea.
www.business-review.eu Business Review | July 2019
14 COUNTRY FOCUS
French investors get strategic for Romanian economy Despite its significant investment potential, Romania still lacks road infrastructure that could boost and support foreign investors in their efforts to develop their businesses on the local market.
Photo: Dreamstime
By Anda Sebesi
Along with large French groups, many other French SMEs are active in Romania
www.business-review.eu July 2019 Business Review | May 2016
A
COUNTRY COVER FOCUS STORY 15 14
ccording to the most recent market
It was followed by the wholesale and retail
and Romanian capital, whose combined
data, released by Bank of France,
trade and repair of motor vehicles and mo-
turnover is EUR 17 billion, and which together
France ranks fifth in terms of total
torcycles (358 companies) and professional,
have more than 125,000 employees (not all
scientific and technical activities (242 firms).
the CCIFER members are French companies).
investments in Romania, with EUR 4.7 billion
These three sectors represent 51 percent
“The French community is quite dynamic –
addition, economic relations between France
of all the French companies included in the
existing investors continue to develop their
and Romania have been in recent years and
study conducted by ICAP. Manufacturing
footprint and new ones are interested and
still are on an upward trend in terms of com-
and wholesale and retail trade are the sectors
ready to access new sectors,” she adds.
mercial exchanges, posting an increase of 4.4
that posted the highest number of employees
percent in 2017, to EUR 7.8 billion. Last but
(over 72,000) and account for 89 percent of
BRD GROUPE SOCIETE GENERALE
not least, France has a strong economic pres-
the total turnover. Last but not least, accord-
BRD Group recorded a net profit of RON 301
ence on the Romanian market, with about
ing to financial data from 2018, quoted by
million in the first quarter of 2019, down 27
2,300 companies with French majority stakes
ICAP, only four sectors are not profitable:
percent from the same period last year, as a
being active here, according to a CCIFER
electricity, gas steam and air conditioning
result of the decrease in the cost of positive
study based on data from National Trade Reg-
supply; construction; arts, entertainment and
risk and an increase in regulatory costs. “In
ister Office (ONRC). Along with large French
recreation; and other service activities.
the first quarter of the year, BRD continued
in 2017, or 6.2 percent of the total FDI. In
groups with a long tradition in Romania in
“Despite the economic and political insta-
to grow lending on both retail and corporate
sectors like automotive, financial services,
bility, the trend in Romania in the past year
segments, and increased transaction volumes
large distribution, urban services, cosmetics
has been of economic growth, and we expect
while improving its operational performance.
and agriculture, many other French SMEs are
the growth to continue in 2019 as well. The
In the future, we will continue to build on our
active on the local market.
economic growth of 4.1 percent was sup-
strong franchise, actively financing the proj-
A study conducted by ICAP based on
ported by an increase in domestic demand
ects and activities of all economic actors, and
financial data from December 2018 shows
and by Romanian exports, which reached
prioritizing improving customer experience
that more than 3,300 active companies with
EUR 67.7 billion, an increase of 8.1 percent.
by enhancing digital innovation and further
a direct French shareholding of more than
For sustainable growth, we think public
streamlining processes,” said Francois Bloch,
10 percent were registered in Romania in
investment should be a factor, in order to
general manager of BRD Groupe Societe
June this year (whether individuals or legal
stimulate local and also attract foreign private
Generale. Last but not least, last November
entities). The study also found that 1,865
investment. Furthermore, local companies
in London, the lender was named “Best
(EUR 1.1 million), Renault Comercial Rou-
should be encouraged to go international
Bank in Romania” by The Banker magazine.
manie (EUR 879 million) and Sanofi Romania
and reach new markets with added-value
Ability to adapt to the business environment,
(EUR 259 million). The researchers also found
products and services,” says Adriana Record,
profitability, competitiveness, the quality
that 54 percent of the firms with a French
executive director of the French Chamber of
of strategic partnerships with clients and an
shareholding of more than 10 percent are reg-
Commerce (CCIFER). According to her, the
innovative commercial offer were among the
istered in Macro-region 3 (which includes the
CCIFER has the mission to stimulate col-
criteria for this award.
following counties: Arges, Calarasi, Dambo-
laboration between its members across the
vita, Giurgiu, Ialomita, Prahova, Teleorman,
country, with openness to other business
capitalized on the mix between our products,
Ilfov and Bucharest). The manufacturing sec-
communities, working in a network through
a careful policy of risk management and a
tor accounted for about 19 percent of the total
Coalitia pentru Dezvoltarea Romaniei (CDR)
sustained effort to improve customer care.
number of companies (349) and 47 percent
Task Forces. This year, CCIFER has reached
This allowed us to obtain very good financial
of the total number of employees (45,872).
over 550 members, companies with French
and commercial results,” added Bloch.
companies that have declared their financial data, posted a combined EUR 15.5 billion in turnover and had more than 98,000 employees in December 2018. In addition, 119 firms reported a turnover of above EUR 10 million last year. Some 982 companies (53 percent) recorded profit, another 713 (38 percent) posted a loss, while the remaining 9 percent declared 0 as their result. According to ICAP, in December 2018 Automobile Dacia was ranked first in terms of turnover (EUR 5.3 billion), followed by Carrefour Romania (EUR 1.6 billion), Auchan
“In 2017 and the first half of 2018 we
www.business-review.eu Business Review | July 2019
16 COUNTRY FOCUS
AUTOMOBILE DACIA At the beginning of this year, Romanian carmaker Automobile Dacia, a subsidiary of France’s Renault Group, announced that it had started a major expansion program at its factory in Mioveni, which will generate an increase of its production capacity to over 400,000 units per year by the end of 2020. The investment is estimated at EUR 100 million for the next two years. In addition, as part of this program, the company will hike its number of employees by 300 while its automation degree will reach about 20 percent
launched Bringo, an integrated platform that
cling and recovery, optimization of energy
in 2020. Along the same lines, the company
includes an app for customers, one for sup-
consumption to conserve energy, reduce
registered record profit last year of EUR 162
pliers and a system that coordinates every-
carbon and fight climate change). Based on
million, up 40 percent compared to 2017. The
thing behind the two apps. “Bringo managed
digital technology, smart solutions have
group posted a total turnover of EUR 5.3 bil-
to go, in just two years, from an innovative
been designed to improve information and
lion in 2018, a 5 percent gain on the previous
startup on the Romanian market, to the only
convenience for users and to optimize the
year. The results include only the Romanian
delivery service available in 18 cities around
environmental and economic performance of
businesses, excluding its Morocco factory
the country. We ended 2018 with over 400
the company’s services. Consequently, Apa Nova has now positioned itself as a natural player in smart city solutions and the sustainable city of the future.
SAINT GOBAIN Last year, the Saint-Gobain Group in Romania Photo: Dreamstime
announced that it had restarted the production of fiber glass mineral wool at its Isover factory in Ploiesti, following an investment of EUR 5 mln. The production line was reopened last August following major investwhich produces cars under the Dacia brand.
percent more orders and more than 2.5 mil-
ments in technological upgrades, two years
The Mioveni factory produces mostly the
lion products delivered, and for the current
after it was temporarily suspended.
Duster and Sandero models and has about
year we want to expand the service to as
15,000 employees.
many cities as possible and deliver more and
many other indirect ones in related services.
more orders,” Alex Matei, IT director at Car-
Saint-Gobain Isover will provide products
refour Romania, told BR earlier this year.
and solutions from the plant in Ploiesti for
CARREFOUR
The move created 50 new direct jobs and
both the national market and other markets
Retailer Carrefour, the operator of Europe’s largest hypermarket chain, obtained 2018
APA NOVA
in the region, such as Moldova, Bulgaria,
revenues that were 6 percent higher than in
For the last two years, Apa Nova has been go-
Hungary, Serbia, Croatia, Bosnia, Macedonia,
the previous year, reaching a record value of
ing through a modernization process which it
Kosovo and Albania. “The Isover plant in
almost EUR 1.9 billion, according to profit.
says has had visible results on the quality of
Ploiesti is a strategic asset for Saint-Gobain,
ro. Carrefour’s local store network grew by
its services. The company supports sustain-
being one of the few mineral wool factories
almost 40 branches last year, reaching a total
able development through investments in a
that produces both glass wool and mineral
of 360, of which 35 are hypermarkets, 261 are
more efficient water and sewage network, a
basalt wool. The decision to reopen the fiber
supermarkets, 51 are proximity stores and 13
continuous business reengineering process,
glass mineral wool production line is part
cash & carry stores. Plus, this year, Carrefour
the digitalization of its internal operations,
of the wider strategy of the Saint-Gobain
Romania launched the largest integrated
the sewage treatment at Glina, a continuous
Group in Romania, prompted by the positive
program for supporting Romanian farmers
reduction of paper usage and a customer-
trend on last year’s construction market and
wanting to adopt a bio-agriculture business
oriented approach. At international level
the desire to strengthen our commitment to
model. The program represents a long-term
the group has put sustainable development
the local and regional market,” said Ovidiu
commitment and is open to any Romanian
issues at the forefront of its strategy (water
Pascutiu, general manager of Saint-Gobain
farmer who intends to be certified as an
service management and protection of water
Construction Products Romania – Rigips and
organic producer. Back in 2016 Carrefour
resources, promoting treatment, recy-
Isover.
www.business-review.eu Business Review | July May2019 2016
COUNTRY COVER FOCUS STORY 17 14
The local business environment is getting ready for the future Adriana Record, executive director of the French Chamber of Commerce (CCIFER), tells Business Review how French investors perceive the local business environment and outlines the main initiatives the CCIFER has undertaken to improve the Romanian business climate. By Anda Sebesi
What are the main challenges for French investors that have businesses here? The challenges facing French investors in Romania are very similar to the challenges facing any other investors in the region: workforce shortages, adaptation of the existing workforce to the challenges and changes in the labor market and also training future employees in line with the faster and more complex technological changes. In addition to this, there is also the legislative and normative instability. Nevertheless, Romania is an attractive destination for foreign investors, and French entrepreneurs. The past year has seen an increase in trade exchanges, with trade between France and Romania growing by 8.2 percent in 2018 to EUR 8.5 billion, which made France the sixth biggest supplier and the third largest customer for Romania.
What are some of the initiatives undertaken by the CCIFER to improve the local business climate? The CCIFER is a business community founded on French savoir-faire, a leader committed to the sustainable development of individuals, companies and Romania. Our strength comes from the synergies that our
How has the business environment evolved in the last year from the CCIFER’s perspective?
are part of the CCIFER network and, for them,
community generates year after year, within
the past year has been full of opportunities.
a business network with tradition, that shares
The business environment in Romania is
the same values. CCIFER is a leading member
Romania is the second biggest market in
evolving, Romania is no longer a low-cost
of Coalitia pentru Dezvoltarea Romaniei
the European Union and one of the most
country and the focus in every industry has
(CDR). As a business community, it shares the
dynamic European economies. These facts
been to find the best strategies in order to
five CDR priorities: business predictability,
contribute to shaping the country’s business
take advantage of this new reality. Romania
reducing labor market imbalances, simplify-
environment, strategically situated at the
has many other competitional advantages
ing interaction with the state, improving
intersection of three major markets: the EU,
besides the cost of the workforce, which is
public infrastructure and strengthening the
the CIS countries and the Middle East, being
increasing. Among them I would mention
EU anchoring of Romania. We encourage and
crossed by pan-European transport lines
its openness to the technological revolu-
maintain a close collaboration with regional
and with a gateway to the Black Sea through
tion, know-how and agility when it comes to
business clubs and honorary consuls, Busi-
Constanta Port.
technology and digitization. In Romania, the
ness France and the Embassy of France, in
business environment is getting ready for the
partnership with the Chamber of Commerce
future.
and Industry of Romania.
Among the 2,300 companies with French capital present in Romania, more than 550
www.business-review.eu Business Review | July 2019
18 MANAGEMENT
Companies must reinvent their business models for the future Szabolcs Nemes, managing director of Roland Berger, tells Business Review about the main trends in management and business strategy in 2019 and highlights the drivers behind the major changes in management over the past decade. By Anda Sebesi (re)designing their strategies.
only the entrepreneurial will survive.
The drivers behind these changes often have to do with intensifying competi-
How many of these trends are present on the local market too?
tion, increasing consumer
All of them. Agility, adaptability and flex-
sophistication or the speed of
ibility are of greater relevance than ever,
technological advancements.
especially given the often very unpredictable
Also, in the past few years
environment Romanian companies face.
companies have been more
Furthermore, in Romania, we also see a more
inclined to conduct proper
prominent orientation to data-driven deci-
strategy definition exercises
sion-making – today data, be it on markets
with more comprehensive
or consumers, is more easily available than
outcomes as opposed to hav-
before and our clients appreciate our support
ing and following some high-
in analyzing it and turning it into pillars for
level directions or simply
strategic changes – we navigate complexity
“muddling through”.
together.
What are the main trends in management worldwide in 2019?
How different is a strategy designed today compared with one from five or ten years ago?
Agility, adaptability and
Ten years ago we were supporting clients in
flexibility remain important
designing strategies focused on turnaround,
requirements in 2019, too.
on helping them address the aftermath of
There are lots of ongoing
the economic crisis and on getting them back
conversations about the
on a healthy growth path. Five years ago the
latest management trends.
focus had already shifted towards growth
I would like to draw your
and expansion-related topics, whereas today
How have companies’ management strategies changed in the past few years and what were the main drivers behind this shift?
attention to only one, which we at Roland
companies take a much bolder stance towards
Berger call “re-entrepreneuring” as it refers to
leveraging disruption and innovation-related
how mature companies can bring back the en-
opportunities and pursuing, in general, more
ergy of their startup days and accelerate their
ambitious medium- and long-term growth
Companies can no longer rely on the courses
growth. Traditionally, mature companies’ role
targets.
of action charted in their traditional long-term
was to preserve their advantages, not take on
strategic plans and need to be prepared to
new risks. However, in this era of fast-paced
past ten years, also in Romania, we have
adjust course much more frequently. Agility,
change, a defensive game is often no longer
multiple examples of companies from vari-
adaptability and flexibility are some of the key
an option. The era of aging gracefully is over,
ous industries realizing the shortcomings of
characteristics that they are looking for when
regardless of the industry, we believe, and
traditional, more static, methods and opting
In terms of the actual approach, over the
www.business-review.eu Business Review | July 2019
MANAGEMENT 19
for dynamic strategy definition approaches,
I expect the impact of digitalization to be
based on scenario planning or war-gaming for
massive. Firstly, digitalization is removing
How do you think a business strategy will look ten years from now?
example, as means to better cope with what
or lowering market entry barriers, giving rise
In the future the impact of megatrends will
was emerging as a VUCA (volatile, uncertain,
to new business models that both threaten
only accelerate, causing further industry
complex and ambiguous) environment. To-
established companies and create new op-
disruption and the need to reinvent business
day the dynamic nature of these approaches
portunities that can be tapped into.
models. In a world characterized by uncer-
is taken to the next level – they are enriched,
Secondly, it is fundamentally changing
tainty and “unknown unknowns”, strategy is
for example, with more holistic 360 stake-
consumer behavior, putting the consumer in
likely to become even more important. The
holder assessments, future visioning, and not
the driver’s seat, and companies will need to
complexity of the world around us will only
only simulating but also testing out certain
anticipate, adapt and come up with answers
increase, and the greater the complexity, the
strategic directions as part of the strategy
to that. Thirdly, digitalization and technology
greater the need to reduce it and to properly
definition, before actual implementation.
enable evolutions of the operational models
navigate it.
and structures of companies that are neces-
This is where strategy, good strategy, can
What generated this major change in business strategy?
sary for successfully executing the strategy.
help. I expect the core components of strat-
Just one example here: we already see
egy to remain the same and to be essential
The growing volatility and uncertainty in the
how modern technologies provide, in many
in the future, too. For example, conducting
strategic environment faced by companies
cases, real-time insight into changing market
sound strategic analysis rooted in data and
have been the main triggers. Blurring industry
demands and in the following years in many
based on facts will continue to be invaluable.
boundaries, shifting economic fundamentals,
cases this can further evolve towards instant
That being said, the requirements for adapt-
the emergence of new types of competitors,
feedback to be used to swiftly adjust the
ability and agility of strategy will become
changing role of assets, evolving customer
course of a strategy.
more stringent and the need for flexibility
and employee needs, and advances in
Fourthly, it is irreversibly changing the
and the frequency of updating it based on
technology are all underpinning this environ-
nature of human work – certain human work
significant external evolutions only greater.
ment.
streams will be altogether eliminated or
Furthermore, as the technologies around ar-
replaced, while critical thinking, creativity
tificial intelligence mature, these will become
and strategic decision making will become
more important as potential building blocks
highly important skills for the employee of
of strategy and ultimately as tools for crafting
the (near) future.
superior strategies.
How big do you think the impact of digitalization on management processes and business strategies will be in the years to come?
www.business-review.eu Business Review | July 2019
20 STARTUPS
Local business owners pooling money for startup investments Romanian business owners are beginning to create their own investment funds to target domestic startups, with starting capital running into the tens of millions of euros. While local investors can fill a funding gap for early-stage companies, their familiarity with the way business is done in Romania might provide an advantage over traditional international players in the venture capital and private equity markets, say commentators. By Ovidiu Posirca with the new funds created by Romanians, suggested Claudiu Vrinceanu, an enabler and connector in the Romanian startup ecosystem. Jennifer Austin, founding partner at Risky Business, a startup investor, says that when she came to Romania five and a half years ago, “most people told me Romanians would never invest in startups.” “Local investors are critical to an ecosystem, since they are engaged for the long term and have a strong incentive to maintain a healthy ecosystem and nurture early-stage companies. This was the exact thesis behind Risky Business, and I’m happy it is proving true not just for Cluj,” Austin told BR.
Photo: Dreamstime
HOW COMPETITIVE ARE ROMANIAN INVESTMENT FUNDS? The structure of these new domestic investment funds is different, depending on their initial starting capital. Some are working as private equity, others are simply funds in Collaboration with international funding players is required in the case of the newly minted domestic investment funds
S
which all shareholders pool an equal amount of capital. It’s still unclear in these funds if the founders are putting in their own money or
eeing established Romanian entre-
cal companies, especially for startups. The
funds from their large companies, a situa-
preneurs jointly making investments
recent emergence of local funds will help
tion in which we might talk about corporate
in startups, a risky endeavor in any
finance companies other than the leaders of
venture capital.
economy, is an emerging trend in the local
each industry,” Dinu Bumbacea, consulting
economy, which has experienced capitalism
partner-in-charge at professional services
investments in startups remain high, even
and free markets for 30 years. This is viewed
firm Deloitte Romania, told BR.
though the returns could prove to be very at-
as another step in the development of the
Aside from providing money, these invest-
Nonetheless, the risks associated with
tractive. With these funds only being set up in
overall entrepreneurial ecosystem, which
ment funds can also help entrepreneurs
the past few years, it will take a while before
welcomes any fresh source of capital.
understand better the financial and business
we can make a first assessment of the invest-
aspects of their growing firms.
ment results.
“Until recently, most investment funds were international or regional, but they have ticket sizes which are too large for most lo-
There are around 1,000 startups and scaleup firms in Romania that can get in touch
“If we take a closer look at the Romanian market, five years ago, there were virtually no
www.business-review.eu Business Review | July May2019 2016
COVER STORY LEGAL 21 14
OPINION Mihai Ioachimescu-Voinea, associate at Savescu & Associatii
The equal treatment paradox in CETA ‘form of investment’ and, therefore, an extension of the investor. This is the key link that allowed the Court to switch towards comparing the situation of a foreign investor with that of an EU investor, and conclude that the two situations are different. Comparing the situation between two EU incorporated companies however, should have led the Court to a different result. It is worth noting that the Court stated in case Felixstowe[6] that ‘the status of being a European Union company is based, under Article 54 TFEU, on the location of the corporate seat and the legal order where the company is incorporated, not on the nationality of its shareholders’. Therefore, we can safely say that based on this two different approaches, the locally established enterprises as an extension of In Opinion 1/17 [1] the Court of Justice of the
paid to that locally established enterprise’.[3] So
foreign investors will be able to benefit from
European Union (the Court, CJEU, ECJ) followed
the discrimination denounced by Belgium was
the advantages and privileges they have
the view of AG Bot, holding that the situation
with respect to the possibility of some of the EU
under CETA, without them being considered
of an EU investor investing within EU cannot
incorporated companies, that are controlled or
discriminatory, while at the same time, the
be compared with that of a Canadian investor
owned by a foreign investor, to benefit according
locally established enterprises may not be
[2]
that invests in the EU. Therefore, the Court took the view that the difference in treatment resulting from CETA Agreement (EU-Canada Comprehensive Economic and Trade Agreement), in which a Canadian investor can rely on both EU domestic courts system and CETA Tribunals, while EU investors can only rely on the national courts system is not discriminatory under Art. 20 of the Charter of Fundamental Rights (hereinafter CFR). However, one should carefully examine
to Article 8.39.2(a) of the CETA, from the damages
discriminated against, because they are
the argument brought by Belgium in respect
paid by EU as a result of a CETA Tribunal`s award,
considered to be EU legal entities according
to the principle of equality. In its request,
while other EU incorporated companies, which
to Felixstowe interpretation.[7]
Belgium contended that ‘where a Canadian in-
are domestically controlled or owned, do not
vestor brings proceedings before the CETA Tri-
have such possibility.
bunal on behalf of a ‘locally established enter-
What AG Bot argued in his Opinion[4], and the
prise’, that is, an enterprise established within
Court later on held valid[5], is that that the locally
the European Union and owned or controlled
established enterprise and the foreign investor
directly or indirectly by that investor, the dam-
should be treated as one and the same, whereas
ages awarded by that Tribunal will have to be
the locally established enterprise represents a
[1] Opinion 1/17 of the Court, ECLI:EU:C:2019:341, paras. 180, 181. [2] Opinion 1/17 of AG Bot, ECLI:EU:C:2019:72, paras. 203,204. [3] Opinion 1/17 of the Court, ECLI:EU:C:2019:341, para. 53. [4] Opinion 1/17 of AG Bot, ECLI:EU:C:2019:72, paras. 193, 194. [5] Opinion 1/17 of the Court, ECLI:EU:C:2019:341, paras. 182, 183. [6] C-80/12, Felixstowe Dock and Railway Company and Others, ECLI:EU:C:2014:200, para. 40. [7] A Parallel Universe: Advocate General Bot in Opinion 1/17, H. Schepel. Available here, last accessed 05.06.2019)
www.business-review.eu Business Review | July 2019
22 STARTUPS
local funds targeting startups or SMEs; today
the first investments from Romania and at
portant that 0-Day Capital is ‘up and running’
we already have a number of them, focused
some points moves somewhere else for capi-
and is committed to assisting with developing
on different areas. During this period, we
tal; what’s important is to start here and have
innovative ideas into successful businesses,”
have been witnessing an ecosystem that is
its roots here,” Postolache told BR.
says Nestor.
growing both through the number of funds,
One of the success stories of a startup with
The investment club co-founded by Nestor
accelerators and projects recognizing and
Romanian origins is that of UiPath. The pio-
explores innovative startups in IT software
promoting entrepreneurship, and through
neer of the robotic process automation (RPA)
development, artificial intelligence, robot-
the increase in the financial education of the
industry was founded in Romania, raised
ics and biotech. 0-Day Capital will also help
young class of entrepreneurs,” Ion Nestor, co-
funds abroad, and recently hit a EUR 7 billion
entrepreneurs with other business aspects
managing partner at law firm NNDKP, told BR.
valuation.
related to technical
Nestor is one of the founding investors
Austin of Risky
support, marketing &
of 0-Day Capital, an investment club with
Business adds that
communication, legal
a starting capital of EUR 1.2 million. There
Romanians need to
& tax advice.
are 12 local entrepreneurs in the founding
be willing to collabo-
investment team, each with a ticket of EUR
rate with internation-
to turn the entre-
100,000. The fund, which was launched this
al funds and be able
preneur’s product
year, focuses exclusively on technology.
to build relationships
into an income-gen-
“The final target is
with them. “This is
erating business as
sen Horowitz, a venture capital firm in Silicon
the only way they
soon as their project
Valley, which has made early investments in
can be competitive,”
reaches the tested
dozens of tech startups including Facebook
she says.
product level,” says
Scott Kupor, managing partner at Andrees-
and Lyft, estimates that roughly half of the
“Local entre-
Nestor.
money invested in startups generate losses.
preneurs already
Another quarter could generate money that
have experience in
could cover the initial investment or provide a
fighting the system
two-fold return on the invested capital.
coming from Romania so they can pro-
brothers, have created their own fund with a
Meanwhile, the owners of DIY chain Dedeman, the Paval
vide real value add for their investments,”
starting capital of EUR 50 million called Equil-
ference between success and failure means
Marton Medveczky, investment associate at
iant Capital. The fund will target small and
you’ve got 10 to 20 percent left of your invest-
Flashpoint Venture Capital, a fund targeting
medium-sized companies. The brothers have
ments that basically need to generate 90
companies in Central and Eastern Europe,
also invested in a separate fund that aims to
percent of your returns so you have to find a
told BR.
recover distressed Romanian companies, and
“The way this business works is the dif-
have made investments in the office segment.
Facebook or a Google, or a Twitter or Airbnb where you can earn
“We don’t invest in startups; we invest in scaleups. So we look for companies that are
your money,” said
DIFFERENT INVESTMENT PHILOSOPHIES
Kupor in an interview
Supporting the
business. There are niches in the market
published in June on
younger generation,
where with EUR 20-30 million you are the
the firm’s YouTube
not just with finan-
market leader, even though in scale you are
channel.
cial capital, but also
not a big company,” Laurentiu Ciocirlan, man-
10-20-50-100 times
still small in absolute terms, but big in their
In the case of the
with experience and
aging partner at Equiliant Capital, said during
newly minted domes-
business knowledge,
a BR event held in June.
tic investment funds,
is one of the aims
collaboration with
of the increasing
ated by Romanian investors looking to help
international funding
number of funds
the next generation of entrepreneurs. Their
players is required to
created or funded by
committed capital and investment strategies
make them competi-
Romanian business
might differ, operating partially as private
tive.
owners, suggested
equity or corporate venture capital with a
Andrei Postolache, managing partner at TBNR, a startup accelerator founded in Iasi
Nestor of 0-Day Capital. “Overall, what we are experiencing today
These are just two examples of funds cre-
longer-term view, while also providing some of the support found in startup accelerators.
by a local community of investors, says that
is a clear mark of maturity and visible proof
Ultimately, this will provide more funding op-
domestic players could provide critical fund-
that the local entrepreneurial ecosystem is
tions for entrepreneurs and know-how from
ing in the first stages of a startup.
beginning to thrive. I am confident that this
people that have created some of the business
trend will continue. This is why it is so im-
champions in the Romanian private sector.
“There is no problem if a startup receives
www.business-review.eu Business Review | July 2019
24 STARTUPS
Startup push: local industries that need a shot of innovation in the arm Sectors of the Romanian economy that are undergoing a digital transformation are a good fit for entrepreneurs that could come with fresh ideas or approaches, say commentators. Across Europe, transportation, construction and real estate saw among the least private equity investment in 2018 as the number of startups has remained rather low. By Ovidiu Posirca on the number of startups in a certain field, but I would rather look at the type of need that can be answered by a solution created by a startup, which can be easily implemented or integrated. Fields such as e-government, education, healthcare, and financial services are among those that are planning to or are already going through significant transformations, mainly as a result of the digital world we live in, so they could benefit from innovative ideas and approaches,” Dinu Bumbacea, consulting partner-in-charge at Deloitte Romania, the professional services firm, told BR.
SECTORS IN NEED OF STARTUP INNOVATION Industries in which new tech solutions can be implemented can provide fertile ground for new startups. Claudiu Vrinceanu, an enabler in the
Photo: Dreamstime
Romanian startup ecosystem, suggests
Tech sector is on the investors’ radar
S
ome EUR 80.6 billion of private
billion in 2018. The biggest investment sum
equity investments were made in the
(EUR 6.2 billion) went into industry, followed
European market last year, according
by commerce and services on EUR 4.5 billion
that there is big potential in the following
to figures from Invest Europe. This record
and construction with EUR 3.6 billion, ac-
verticals, which haven’t been fully exploited
subbnts in startups are limited, but most of
cording to the National Institute of Statistics
by Romanian entrepreneurs: enterprise SaaS,
the announced funding rounds were made
(INS).
fintech, security, healthcare and HR tech.
for firms in the tech sector. Across the whole
“I think we have an abundance of startups
Innovation is needed across the board,
economy, net investments stood at EUR 17.9
in probably any field. I wouldn’t assess based
in all sectors of the economy, but startups
www.business-review.eu Business Review | July May2019 2016
COVER STARTUPS STORY 25 14
strike big in areas with exponential potential,
trending the past six months,” Austin told
healthcare received 28 percent. The con-
where an idea or a product can change an
BR. She says that her fund is more interested
sumer goods and services industry had a 9
industry, a lifestyle or create a new market,
in teams with relevant industry experience
percent share of the funding pie. Startups in
says Andrei Postolache, managing partner of
and connections that are “trying to solve a
these fields were also the largest recipients of
rather boring, but persistent problem than
buyout investments, which grew 10 percent
people running around shouting AI, block-
to EUR 58.8 billion last year.
TBNR, a startup accelerator. “This is why the biggest number of startups is in the tech field and especially in software, because the marginal production cost is zero and the distribution is practically instant,” Postolache told BR. One field with fewer companies is industrial software and hardware, adds Marton Medveczky, investment associate at Flashpoint Venture Capital, a fund targeting companies in Central and Eastern Europe. “I think talent always surrounds existing companies so the areas where the country is
chain, fintech, or whatever the latest ’hot less strong will potentially mean that there is
trend’ is.”
less industry knowledge and fewer startups popping up,” Medveczky told BR. Seeing value beyond the fashionable trends in the market is another strategy pur-
In the same year, the sums raised by the private equity industry exceeded EUR 97 billion, which was split between 581 funds.
RECORD YEAR FOR VENTURE CAPITAL
Central and Eastern Europe (CEE), includ-
In 2018, the total venture capital investment
ing Romania, received only 1 percent of the
amounted to EUR 8.2 billion, up 13 percent
EUR 80 billion in private equity investments made last year in Europe, according to industry statistics. By far, the biggest recipient was the UK & Ireland, with a 38 percent share. However, it’s unclear what will happen with the investment position of the UK this year, as the Brexit saga rumbles on. For entrepreneurs looking to secure funding, Laurentiu Ciocirlan, managing partner of Equiliant Capital, a EUR 50 million Romanian private equity fund, has some advice: “You must be honest and open and not go for the easy guys; you should keep in mind that the investor’s return is your return. There is a saying: when you build a house, don’t go cheap on the architect. It is the same for an
sued by Jennifer Austin, founding partner at
on the previous year, while the number of
investment fund; the company should have
Risky Business, a startup investor.
companies backed by VC money was up 12
a good advisor or consultant in order to be
percent to over 4,400, according to Invest
successful. The consultant is the one with
related to the founders’ backgrounds and ex-
Europe data. Almost half of the funding
the experience who can tell the owners of the
perience rather than whatever fad has been
targeted the ICT sector, while biotech and
company what they can and cannot do.”
“We’d like to see more startups emerging
www.business-review.eu Business Review | July 2019
26 BUSINESS
Florin Neby, Neby Fitness: ‘We analyze and know how long people allow for sport’ With more than 26 years of experience in sport, he trained as a gymnast, a field in which he won dozens of national and international medals. BR talked to Florin Neby, general manager of Neby Fitness, about the fitness club market, his road to entrepreneurship and his newly launched products. By Romanita Oprea
ABOUT Florin Neby, general manager, neby fitness At 19 years old he decided to leave artistic gymnastics behind him and continued his career in the Aerobic Gymnastics National team, going on to become European and World champion and Emeritus Master of Sports in Romania. After ending his sporting career, he took part in several projects, such as serving as member of the Aeros group, whose show was compared to Cirque du Soleil’s, performing all around the world and appearing in major magazines and newspapers, including the New York Times.
ed in keeping 80 percent of the team which gave us credibility in front of our clients and helped loyalize them.
What were the main challenges over the years and how did you surpass them? We face challenges every year. One is the days off given by the state and announced at the last minute that interfere in any campaign you want to roll out, so, no matter how attractive it is, people’s interest during the free days is lower than usual. Another challenge is that most people go to the gym in a seasonal rhythm. Any fitness club has a drop of 30 to 40 percent during the
In 2012 I started to develop my personal brand
When did you decide to launch Neby Fitness and why these particular two locations (Baneasa and now Domenii)?
– Florin Neby – and along with it to attract a
Prior to launching Neby Fitness Baneasa I
of 10-11 months a year, and that helps.
community of people. Something that little by
was a trainer in a network of clubs that was
little made me realize there was a market for a
subsequently bought. In mid-2014 I decided
Neby concept.
the time had come for me to stop depending
How are you positioned on the market and what is your differentiator?
When did you first feel you wanted to become an entrepreneur and why?
summer season. Still, we run awareness campaigns about the need to do sport a minimum
on the location / rules / logistics of others. So
We always analyze and know how much time
What qualities that you developed in your career as a multi-awarded sportsman have helped you along this journey?
I started to look for that particular location
people allow for sport. The average time is 45
that would define best what Neby Fitness
minutes for a training session. We know that
wanted to transmit and, after nine months of
time is really important for the people coming
I would say determination and organization
searching, we found it. I’ve always chosen the
to our fitness clubs and therefore we try to
skills. Both as a sportsman and as an entre-
location strategically. To be easily accessible,
make their time here as efficient as possible.
preneur you need them. Determination helps
with visibility, in a bustling area, with parking
Therefore, our services and activities are
you put your ideas into practice, even when
spaces and a special interior architecture.
adapted around those 45 minutes. We function under the fitness express principal.
the people around you say no to them. And we all know that while organization is hard to
How has your business grown?
achieve, it is necessary in order to start off on
We had an organic approach. We have always
How do you choose new locations?
the right foot both as an entrepreneur and a
been oriented towards the client, who is the
Depending on the concept that we want to
sportsman.
most important to us. Moreover, we succeed-
implement in the club, the flow of people in
www.business-review.eu Business Review | July May2019 2016
COVER BUSINESS STORY 27 14
that particular area and the club’s proximity
first training, adapted nutrition and coaching
tions, where we transform people passion-
to the target audience.
program in Romania, conceived in 2012 and
ate about fitness and movement into fitness
launched at the beginning of 2013, and which
trainers. With a diploma recognized nation-
What are your main business goals for 2019?
has as its main purpose the body remodel-
ally and internationally that allows them to
ing of those who take part in it. The program
practice further in this industry, it’s good to
We have developed a complementary busi-
is composed of training, nutrition, coaching
know that 90 percent of our graduates are
ness, an online shop of accessories and tech-
and motivation, but also long-term educa-
now active in the best fitness centers and a
nology in fitness, together with our partners
tion through Q&A sessions. It is divided into
small number of them are our collaborators
from LivingWell, in which we invested in the
groups with different intensity: Basic, UP,
as well.
first round EUR 100,000. We also launched
Advanced, Pro.
the platform fitmag.ro, which targets every-
Moreover, the program has a corporate
one passionate about movement and sports
version called BecomeFit Corporate for
and the future fitness studios.
companies that want to offer their em-
What would you say are the main problems faced by businesspeople who come to the gym and why?
ployees a complete and complex seminars
Most people coming to the gym don’t treat it
What was your turnover in 2018 and what do you estimate for 2019?
service, adapted nutrition and training at the
as a priority, but more like an option or a fad.
company’s location. We believe that Becom-
We’ve come a long way in the last few years,
In 2018 we had a turnover of around EUR
eFit Corporate is the most efficient method
but we still have a long road in front of us.
650,000 with 11 percent profit, but also with
of stimulating the employees to take part
While stress is this century’s main problem,
the EUR 100,000 investment in modernizing
actively in steering the company in the right
practicing sports is one of the few options
the clubs, in the logistics and the equip-
direction, supporting the development of a
that one has of anti-stress treatment without
ment. In 2019 we aim to raise the profitability
new community and providing stability at
negative effects. Sport can solve a lot of prob-
growth margin to at least 15 percent.
the workplace while raising work capacity
lems, from bad posture to better daily health.
through the employees’ wellbeing.
What are your most successful programs and why?
The second one is Neby Fitness Academy,
How would you characterize the market you are on?
We have two very special programs that have
a fitness school launched in 2018 which is
Effervescent, but still chaotic. It definitely has
priority. One is BecomeFit, which was the
receiving feedback way beyond our expecta-
huge potential for the next five years.
www.business-review.eu Business Review | July 2019
28 COACHING
The coaching industry – growing fast and specialized At international level, the coaching market continues to grow – the 2016 ICF study noted 53,300 coaches globally, a 12 percent increase from 2012, and valued the industry at an estimated USD 2.4 billion and growing. Moreover, according to PwC, the coaching industry was the second fastest growing sector in the world. By Romanita Oprea
Alina Tabusca, Coach4Marketing
Adela Iepure, professional certified coach
(ICF) defines coaching as “partnering
T
were 53,300 coaches, up from 47,500 part-
tion include: improvements in productivity,
with clients in a thought-provoking
time and full-time coaches worldwide. About
quality, organizational strength, customer
and creative process that inspires them to
92 percent of them are active. Of these, 33
service, and shareholder value. Moreover,
maximize their personal and professional
percent operate in the United States – a total
when coaching produces better alignment
potential.” Coaching is a distinct service and
of 17,500 coaches. “I expect the market value
between personal and organizational values
differs greatly from therapy, consulting, men-
to reach USD 1.34 billion by 2022 – or a 6.7
and goals, the results often include increased
toring, or training. The ICF describes itself as
percent average yearly growth rate from 2016
job satisfaction and organizational commit-
the leading global organization dedicated to
to 2022. The biggest challenge facing coaches
ment and improved performance.
advancing the coaching profession by setting
today is that untrained and incompetent
high standards, providing independent certi-
coaches are damaging the reputation of the
the International Coach Federation Romania,
fication and building a worldwide network of
industry. The coaching field is unregulated.
meaning 150 professionals have chosen to
trained coaching professionals. As the world’s
No license is required. Currently, there are
train themselves and learn the skills of the
largest organization of professionally trained
more than 500 training and ‘certification’
coaching profession. They are well trained in
coaches, it offers the only globally recognized,
programs worldwide, and many of them will
the 11 core competencies and the code of eth-
independent credentialing program for coach
certify you if you simply pay them a fee,”
ics. But what is the industry’s level?
practitioners. ICF credentials are awarded to
John LaRosa told marketresearch.com.
he International Coaching Federation
professional coaches who have met stringent
According to the federation, in 2011 there
Commentators say the potential benefits
mitment. Potential benefits for the organiza-
Locally, there are 150 current members of
According to Adela Iepure, professional certified coach (PCC), trainer and facilitator,
educational and experience requirements and
of coaching for employees include: better
if one were to compare the demands of multi-
have demonstrated a thorough understand-
decisions, clearer goals and roles, increased
national companies for training and coaching
ing of the coaching competencies that set the
self-awareness, more ideas and options, bet-
services today with those five or ten years
standards in the profession, says the organi-
ter relationships, better teamwork, reduced
ago, one would see more explicit requests
zation.
conflict, and renewed organizational com-
for coaching. “In terms of coaching schools,
www.business-review.eu Business Review | July 2019
COACHING 29
you can clearly see a more robust offer on our
happening as some managers have already
skills for middle managers and executives,
market: every year new coaching schools are
had the courage to invest in team coaching
explicit individual coaching services, espe-
coming up and new and more sophisticated
next to individual coaching, and are willing
cially for managers in career transition or key
programs are offered. If five to ten years ago
to make efforts to get a truly collaborative,
people dealing with complex changes or chal-
you could choose from two or three options
supportive and effective work environment.
lenging projects, or team coaching requests to
locally, now you have a very rich offer of for-
“I personally see this as a cultural shift in the
improve internal efficiency, self-organization
mal professional development in the coaching
leading style in Romania. I also often observe
and stakeholder management. “International
field,” said Iepure. Moreover, she has also
that coaching is presented as a ‘repair’ tool.
coaches are usually more frequently request-
noticed a trend among those attending coach-
This may be why people are afraid to be
ed for CEOs and other top executives. Often
ing schools: while a few years ago participants
sent to a coach. Companies need to learn to
expats are already working with coaches
were largely looking to change careers and be-
integrate coaching as a growing and develop-
when they join Romanian teams and they
come coaches, now a lot are attending formal
ment tool more than anything else. Coaching
prefer to stick with those partnerships. But
coaching training not to change profession,
is great for anybody
but to add meta skills to their existing profes-
looking for ideas,
sion (e.g. lawyers, music business profession-
resources, perspec-
als, HR professionals, project managers, sales
tives, clarity and/or
managers, etc).
more. We all need
Meanwhile, Alina Tabusca, marketing
these at different
coach & consultant at Coach4Marketing,
times, not only when
emphasizes two different aspects: coaching in
we are in trouble,”
Romania as a service offered for the local mar-
said Reese.
ket and coaching in Romania as an international coaching provider. “A market can grow horizontally, by overall service coverage, and
SPECIALIZED SERVICES
vertically, by addressing specific niches or
But are firms in Ro-
service types. Horizontally, I consider coach-
mania opening up to
ing to still be in a penetration phase, although
these services? What
most of the big competitors are still fighting
type of coaching is
over the same market segment. Business
most sought after
coaching relates to the business market and
and why? As coach-
mainly the businesspeople emerging from
ing continues to
it, and I can see that more and more entre-
grow as a profession,
preneurs, intrapreneurs and managers rise
the expectations of
nowadays to take their companies or teams to
clients grow too. “They demand results from
we now have very good Romanian coaching
the next level,” said Tabusca.
coaching. They will not tolerate coaches –
professionals with sound backgrounds that
But turning to local coaches serving
internal or external – that do not get results,
are serving these layers of top executives as
international markets, the Coach4Market-
that use jargon, that do not have a clear path
well,” added Iepure.
ing representative considers this a different
to results, that are what we call ‘lightweight’.
discussion. This is an emerging market, with
Companies present in Romania are very open
popular type of coaching in Romania is
very few coaches practicing outside the coun-
to receiving professional coaching services,
probably individual coaching, which follows
try. However, she believes that as the average
sometimes called leadership, executive, man-
a training program, often around leading
age of coaches has decreased in recent years,
agement, high-potential, career, development
people. “Companies are frequently linking
this type of service will grow. More and more
plan, team or corporate coaching. Companies
coaching to implementing certain behav-
managers decide to go from coaching their
seem to love to make up new terms, and I
iors or models (communication, meetings,
teams to coaching at a larger scale, and these
am sure I have left out some possibilities,”
managing teams, time, etc.). There is still a
are managers that are used to working in
said Daiana Stoicescu, master certified coach
huge need to take coaching as a development
a multicultural and international environ-
(MCCT), coach supervisor and a registered
tool in its true meaning. This means to create
ment, taught to think and strategize globally.
ICF mentor coach. She is also the president
the coaching space and time for the person to
“A great addition is the increase of online
and member of the board of directors of the
deeply look for his or her own solution and
content consumption, which is an indicator of
ICF Romania Chapter.
resources, and devise a personal strategy,”
openness to grow,” commented Tabusca. At the same time, Mihaela Reese, leadership executive coach, thinks that a shift is
In her turn, Iepure says that most requests are coming to her from multinational companies. They want either training in coaching
Elsewhere, Reese believes that the most
commented Reese. “The most frequent service is business coaching. This is partly because the top
www.business-review.eu Business Review | July 2019
30 COACHING
relevant training, experience or skills. “So to
other key criterion are values like yours. It’s
separate the professionals from the masses,
hard to work with somebody that you do not
you can start your search by homing in on
trust. And if you do not trust them, you might
coaches that have chosen to pursue – and
be tempted to prove them wrong more than to
earned – a credential from the ICF. In lieu of
apply what you learn,” commented Tabusca.
government regulations, the ICF has estab-
by Daiana Stoicescu
Coaching solves specific problems. Common challenges:
sionals in the field and can one talk about
introduced a robust evaluation process for
an inflation of coaches or not? While the ICF
awarding credentials, which saves you time
Romania currently includes four master certi-
in searching for a coach that has the relevant
fied coaches, 21 professional certified coaches
training, experience, and skills,” explained
and 55 associate certified coaches, Iepure be-
Stoicescu.
lieves that we do not yet have coach inflation.
Moreover, all ICF-credentialed coaches are
“There is a lot of space for working and creat-
expected to adhere to the ICF Code of Ethics,
ing a market: the entrepreneurial zone, public
which includes commitments to professional
sector, education. Romanian culture needs an
conduct, continuing professional develop-
infusion of the coaching mindset: autonomy,
ment, maintaining client confidentiality and
accountability and efficiency are still in high
so on. Should an ICF-credentialed coach
demand and the more professionals we have
breach any part of the Code of Ethics, a
to infuse this mindset the more we can create
complaint may be filed with the ICF, which is
change that is sustainable,” added Iepure.
a reassuring recourse from a client standpoint in case anything goes awry.
My team is not working well together We need a strategy We need a succession plan I received feedback that I need to correct I need to change the culture of my company I need more leadership presence I need to influence people I need to manage my time better I need to develop more leaders I am not getting along well with my manager I want more accountability from my people We need to improve our revenues and profits
managers come from international cultures, where coaching is a norm, and were open and
Does Romania have really good profes-
lished professional standards for coaches and
According to Reese, there is now a more professional cohort of coaches, and compa-
“The coach-client fit is very important
nies are starting to appreciate this. She regu-
for the effectiveness of the coaching engage-
larly sees the ICF standards being requested
ment. So at this point in the coach selection
by companies when they hire a coach, which
process, after reviewing the coaches’ web-
is also a sign that the market is maturing from
sites, you can do a gut-check to get a sense
both perspectives: demand and supply. “If
of who you feel you might resonate with and
companies are truly looking for coaches who
then reach out to those who make the cut for
respect internationally recognized standards,
an initial conversation. During the initial call
they know how to find them. There are not
(or meeting) check whether you feel you can
too many yet, so there should be no inflation
trust this person, whether you’ll be safe being
from this perspective for the years to come,”
completely honest and vulnerable with her
added Reese.
or him. If you can’t, you know the coaching
In turn, Tabusca pointed out that it is not
won’t be as transformative as it could be,”
always about the training you do, but the
added the ICF Romania president.
quality of your practice. And sometimes the
Meanwhile, Iepure says she would encour-
market standards will determine the qual-
even used to receiving this type of support.
age the person to look for professionals that
ity a coaching service has to rise to, which is
Another reason is that large companies have
were evaluated internationally and had a
where she hopes Romania will soon get to as
a development plan that includes top-down
credential (see above) and see two or three
a local market. “I believe coaching is boom-
growth in terms of culture and productivity,
people to choose from. Then she would en-
ing and sometimes people choose coaching
and business coaching is the best way to do
courage the potential client to reflect on their
because it sounds fun, not because they see
this. As a niche for this type of service, coach-
need and have a clear intention or objective
the depth and involvement of this field. But
ing for mom-entrepreneurs or marketing
for the coaching process.
this happens with every new job that is not
coaching are new but increasing in awareness
“Choosing a coach depends primarily on
fully regulated. I do believe, however, this is
the need you are trying to address, but also
a field that regulates itself. If you are a poor
the reason why you want a coach. But if we
coach, the competition will catch up sooner
should know that the field of professional
refer specifically to what you should look
rather than later. So I choose to see the full
coaching (with all of its subsets: executive
for in a coach, I would say relevant experi-
half of the glass. We have a lot of coaches to
coaching, leadership coaching, life coaching,
ence for what you want to work on. Having
choose from. This will give Romania a very
business coaching, etc) is not yet regulated
seen multiple working styles helps a coach in
good generation of coaches in the next year,
like law or medicine, which means anyone
adapting to yours and making a customized
as the current interest trims,” concluded the
can call her or himself a coach even without
plan that will help you reach your goal. An-
Coach4Marketing representative.
and demand,” said Tabusca. Prior to working with a coach, a person
www.business-review.eu Business Review | July 2019
ADVERTORIAL 31
Romania is the fastest-growing health & fitness markets in Europe “The last trends show that Romania and Health and Fitness Industry have the fastest speed in terms of growth. This is an opportunity for us and we will continue to invest in. It is part of World Class core strategy to continue expanding in order to make health & fitness services more accessible to Romanians, close to where they live and work. Our network expansion is strictly focused on strategic urban locations, and our sales and marketing approaches are closely interconnected with our mission: to inspire more Romanians to be more active more often to live a healthy lifestyle. Our unique market position in terms of physical network, programs and services, combined with our digital tools and presence creates strong member stickiness and satisfaction, and consequently also high retention rates. Our current plan foresees growing our network to more than 90 premium health and fitness centers by the end of 2023. Our main focus will continue to be Bucharest, followed by Cluj, Timisoara, Iasi, Constanta and Brasov”, said Kent Orrgren, CEO World Class. The study shows that the healthy lifestyle trend is an increasingly influential factor when it comes to personal time and leisure activities. 8 out of 10 people practicing sports mentioned that they exercised at least 2–3 times per week during the previous year. The main reasons Romanians practice sports are to preserve their health and prevent the occurrence of medical conditions (31 percent), and a desire to improve physical appearance (28 percent). According to the European Health & Fitness Market Report published
Of the respondents who practice sports in a fitness center, almost
by Deloitte and EuropeActive, the European Health & Fitness Market
60 percent do so 2–3 times a week. The most frequent types of activities
(EU28 countries plus Norway and Switzerland) reached 55.3 million
performed at the fitness center are group fitness classes (53 percent
memberships in 2018 compared to 44.7 million in 2014—an annual
of respondents go to at least one type of class, with the percentage
growth rate of 5.5 percent. On average, 1 in 10 Europeans had a fitness
increasing to 65 percent if we refer to women respondents only) and
membership in 2018.
exercising alone using equipment (35 percent). Around 8 percent go
Together with Daedalus Online, A.T. Kearney conducted an online market survey for World Class to understand the profile of the Ro-
swimming. Among the respondents who do not have a fitness membership,
manian health & fitness customer. The sample included respondents
three major reasons account for their decision: lack of time (more
(fitness-goers and non-goers) from key cities, aged 18–60 years old.
than 40 percent), lack of financial resources (around 20 percent), and
In terms of development perspectives for the Romanian health &
lack of access (no fitness club in their proximity—15 percent). Still, the
fitness market, there is an increased demand for premium health &
Romanian fitness market remains an aspirational one with 85 percent
fitness clubs, accompanied by higher willingness to pay. By 2023 it is
of respondents that don’t currently go to fitness centers declaring the
expected that an additional 250,000–300,000 new members will join the
willingness to buy a membership in the next 6 months.
fitness market (a 30–35 percent increase versus 2018). The market value
With 36 health & fitness clubs located in strategic location through-
in 2023 is projected at EUR 360–380 million (a 45–55 percent increase
out 7 of the most important Romanian metropolitan areas, World Class
versus 2018).
remains the largest health & fitness network, continuously expanding
On the Romanian health & fitness market there is only one domi-
to reach with the strongest team of health & fitness professionals
nant player, with 36 clubs, three more to be opened in 2019 and pres-
(over 400) and the most consistent corporate wellness program offer
ence in more than one city—World Class. With over 64,000 members
at national level. World Class development plans for the next 5 years
(about 7 percent market share in terms of members), World Class is
include reaching over 140.000 World Class members and over 90 clubs
active in the premium segment and market leader in terms of network,
in strategic and premium locations across Romania that have suitable
membership, and revenues.
catchment areas to ensure healthy performance of the clubs.
www.business-review.eu Business Review | July 2019
32 INTERVIEW
Romanian financial regulator ASF looking actively at risk and FinTech, planning to implement Cloud Computing integrated system The president of the Romanian Financial Supervisory Authority (ASF), Leonardo Badea, tells Business Review about the approach of both governments and private companies to cryptocurrencies and how AI will influence the labor market in the future. By Anca Ionescu
Are cryptocurrencies suitable as national currencies?
system. While Nouriel Roubini continues with
have been contemplating the possibility of is-
his passionate assertion that 99 percent of
suing digital currency. Sweden’s central bank,
According to some sources, the first open
cryptocurrencies are worth ZERO and that it is
Riksbank, is wrestling with this issue right
source bitcoin client was released on January
fintech, and not blockchain, that will innovate
now. Mobile payment apps have exploded in
9 2009. Today, more than ten years later and
the banking system, Fidelity, one of the larg-
popularity in Sweden, and cash use is declin-
after some huge ups and downs in the value
est mutual fund managers, had just launched
ing so quickly there that Riksbank researchers
and popularity of cryptocurrencies, it still
its crypto trading desks, and the Bill and Me-
think it may be just a few years before physi-
seems that economists and digital innova-
linda Gates Foundation has announced a part-
cal banknotes are no longer accepted by most
tors are divided on their role and on the role
nership with Ripple’s Interledger for mobile
retailers and households. The People’s Bank
of blockchain technology in the financial
payments. Recently, some major central banks
of China also appears to be aggressively devel-
www.business-review.eu Business Review | July 2019
INTERVIEW 33
oping a digital currency. Last year it launched
Are businesses ready to be disrupted?
it is less dramatic, slower and more positive
its Digital Currency Research Institute, and
The business sector, or at least some seg-
than was anticipated some years ago when
it has recently been recruiting cryptography
ments and members of the private economy,
discussions started in the global arena. We
experts to help it create a new form of money
will always be more willing to accept risk in
now understand the limitations that AI has, at
that is cheaper to handle and easier to trace
search of profit or lower costs. This has been
least for now, which make human labor still
than cash. As regulators, we are also very
especially true in the last couple of years
irreplaceable in many areas. For such reasons,
prudent about developments and products/
since competition increased significantly and
the use of AI and robotics is now perceived
instruments that are not yet fully understood,
cost reduction became a necessity in many
a little more positively than it was five years
especially regarding their implications on the
areas of the economy. Today banks, insur-
ago.
financial system and stability. For this reason
ance companies, stock market intermediar-
“Due to” the increasing role of AI in the
my opinion is positive but reserved.
ies and asset managers are forced to explore
future (please note that I am not using the
ways to cut costs or face being pushed out of
word “because”) we might see an increase
Are governments willing to be disrupted?
the market in a few years, by competition. So
in efficiency and productivity (which, by
Governments and especially financial market
they are already adopting new technologies,
the way, has been seriously slowing or even
supervisors, including us, are torn between
not necessarily cryptocurrencies. And we
lagging behind, at a European and global
trying to be on top of financial innovation, fa-
have numerous examples. So I suspect some
level, for some years) without the most feared
cilitating market developments and the need
companies are more willing to try major steps
negative implications on the labor force and
to safeguard financial stability at all costs.
in this direction and to risk disruption.
the level of individual income. It could be that people will be able to work fewer hours
This has not just been happening for the last
but be more efficient, have more time for
the last 50 years (for example, the originate-
What will the economy look like when AI replaces labor?
to-distribute models, mortgage-based securi-
This is a somewhat different topic, broader
development, do work that is more motivat-
ties, SPVs etc). Now, after so many learned
than the previous questions. The implica-
ing (using their creativity) and less annoying
lessons, I think that governments and super-
tions of embracing and using AI for the
(like repetitive tasks). Unfortunately we still
visors are at least a little bit more conservative
economy and society will be much broader
need to find ways to avoid the impact of AI on
than they were before the crisis and unwilling
and more significant. As for cryptocurrencies,
individual rights (for example, privacy) and to
to be disrupted.
we can already see it happening. Fortunately,
avoid abuses.
ten years, it has been happening for at least
family, leisure, personal and professional
www.business-review.eu Business Review | July 2019
34 INVESTMENTS
Funding by strategic investors needs to find company open to partnership Business Review teamed up with Schoenherr last month to offer startup and scale-up communities legal and funding advice, as well as success stories from local entrepreneurs, helping players reach their business goals. By Aurel Dragan solutions and we are now focusing on our scaling business model, which means building a network of implementation partners to scale locally and globally,” said Marinescu.
READY FOR DUE DILIGENCE Attracting investors means having the company ready for due diligence, as Madalina Neagu, partner at Schoenherr Romania, says. “Start-ups may not put emphasis on having signed contracts in the early stages, they often carry out their business based on a handshake, but this should change when seeking to attract investors. The corporate governance will likely witness changes once Speakers from across the industry came together at BR’s Start-ups vs. Scale-ups Roundtable
S
an investor joins the business. Some investors prefer to take a seat on the board of directors, others favour the structure of a board of advi-
peakers from across the industry came
goes back to 2000 when the team led by An-
sors, and founders should expect a certain
together at BR’s Start-ups vs. Scale-ups
drei Damian (current main partner and chief
level of control along with the investment,”
Roundtable to talk about problems and
research officer at Lummetry.AI), was doing
says Neagu. It is not easy for the founder to adjust to all
solutions that both companies and investors
traditional software development. In 2015 the
can face. The event gave Romanian start-ups
company pivoted to exclusively data science.
these changes. Attracting an angel investor is
and scale-ups access to international know-
“In the past few years we’ve been building
just the first phase, and the following rounds
how and good practices, from legal experts,
our own AI solutions and in 2018 we re-
of financing will likely trigger additional
investment funds and successful start-uppers
branded our company as Lummetry.AI. So we
operational changes. Ideally, owners should
and scale-uppers.
are not acting like a typical start-up who was
be prepared to decrease their stake in their
founded a short while ago,” said Marinescu.
company, which is inherent to the upside of
Or, as Alex Glod, senior trainer and online instructor, who moderated the discussions,
“Luckily, we are in an effervescent
additional funding. Also, there is a need to build protection
said, “When people hear about investors they
domain. When you say you are doing AI
think only about profit, but the picture is a
everybody is eager to find out more and this
into the contract for the minority shareholder
lot bigger. So we are here to talk about more
opens doors. We had the chance to get a
and the exit scenario needs to be aligned with
important issues.”
business angel on board who felt more like a
both the founder’s interest and the inves-
partner than an investor. It is more important
tor’s interests. The exit routes should be well
AI FOR DEEP LEARNING TECHNOLOGY
to have someone like that on your side, and
anticipated in the transaction documents.
Cosmin Mihai Marinescu is the managing
not an investor who just wants control of the
Among the exit choices, an IPO may also
partner and leads business strategy and
company, detailed reports and to impose his
be a feasible scenario, in which case careful
development at Lummetry.AI, a company that
vision. The successful way to do it is founders
consideration should be given to the regula-
uses artificial intelligence for deep learning
executing their vision with the support of the
tory requirements. “Looking at the market
technology in order to build solutions to real
angel’s networking and expertise. We already
developments, we’re witnessing an increase
business problems. The company’s history
have local and global customers for our AI
in the number of business angels and venture
www.business-review.eu Business Review | July May2019 2016
INVESTMENTS COVER STORY 35 14
capital funds looking to provide early-stage
is to look at similar companies. When I was
CHASING UNICORN STATUS
funding, which should allow entrepreneurs
in the capital market, we looked at Poland
Chasing unicorn status is one of the advan-
more choices in attracting the right invest-
to see how our market would develop in the
tages of IT companies, as Cristian Logofatu,
ment partner,” says Neagu.
following years. It is also good to tell the in-
co-founder and CFO of Bittnet, says. “If you
vestor about the transactions that have been
are in the tech business, you have the advan-
IPO FOR EXIT
made with similar businesses – this way, the
tage that investors are chasing ‘unicorns’. It
The overall strategy is important to discuss,
investor has a pretty good idea of the market
is important to explain why your company is
as well as the exit, in order to establish long-
context and the scale. If you can give similar
able to deliver that status, even though the
term plans and identify potential conflict
examples from the region, in Poland or Hun-
probability is 0.0001 percent or something,”
areas, Thomas Kulnigg, partner and head of
gary, it would be a lot easier for the investor to
says Logofatu. “In the first few years, when
technology and digitalization at Schoenherr
understand what they can achieve,” says Cio-
you don’t have to show turnover or profit, it
out to be very expensive for the founder of he
cirlan. The more specialized a company is, the
is very easy to present yourself. But after that
start-up,” he cautions.
better it is for an investor as they look to work
you must have the numbers when you try to
with entrepreneurs, and it is best when com-
find investors. Usually, the revenues grow
TOP TIP: LOOK FOR EXAMPLES IN THE REGION
panies are prepared to do that. “If you want
constantly, but expenses grow in steps or
to grow slowly, the bank is your best partner,
leaps. And there is a gap that must be covered
Equiliant Capital, the fund set up by the
but if you want to develop more quicklyd we
by outside financing. In some areas, tech
Dedeman owners, does not invest in start-
are there to support this acceleration moment
not included, Romania is 20 years behind
ups, but in scale-ups, as Laurentiu Ciocirlan,
in the life of the company,” says the managing
developed countries, which is a good thing
managing partner at Equiliant Capital, says.
partners of Equiliant.
because you have a printed roadmap for your
Attorneys at Law, says. “Venture capitalists will typically seek an exit via M&A or IPO, whereas strategic investors may not be interested in an exit at all. Also, founders should disclose known issues and risk, such as legal, HR and tax, to avoid liability risks for them,” says Kulnigg. It is no surprise that founders are usually afraid to lose control over their company. “But while this is a legitimate interest, they should also ask themselves: do you want to be king or do you want to be rich – because an investor, in particular a financial/professional investor that invests other people’s money, will require a certain level of control over the company. So you have to give away some control of the company, if you want to raise funds,” says Kulnigg. “Founders have to understand that funding comes at a certain cost – also in relation to their advisors. Saving advisor fees can turn
“So we look for companies that are still small
“There is no real recipe to how to find an
business for the coming years,” says Logo-
in absolute terms, but big in their business.
investor. You must be honest and open and
There are niches in the market where with
not go for the easy guys; you should keep in
EUR 20-30 million you are the market leader,
mind that the investor’s return is your return.
because it needed new funding. “We thought
even though in scale you are not a big com-
There is a saying: when you build a house,
in 2014 that the economy would continue
pany,” says Ciocirlan.
don’t go cheap on the architect. It is the same
growing so we wanted to accelerate the com-
for an investment fund; the company should
pany’s growth. On AeRO at BVB you can float
they want to do, where they want to take the
have a good advisor or consultant in order to
a small company, and we had a few million
business. It is important for the founder to
be successful. The consultant is the one with
RON in revenues and profit. We thought that
do their homework and make the investors
the experience who can tell the owners of the
the stock market would give us continuous
excited about their business,” says Ciocirlan.
company what they can and cannot do,” says
access to patient capital, which we got in
Ciocirlan.
small steps,” says Logofatu.
“We are always asking founders what
“A suggestion for those looking for funding
fatu. Bittnet chose to list on the stock exchange
www.business-review.eu Business Review | July 2019
36 TOURISM
When in Romania: top tips for travelers As the holiday season approaches, BR takes you on a whistle-stop tour of some of Romania’s highlights, from its rustic reaches to the crowded capital. Whether you’re fresh off the plane or have lived here all your life, there’s plenty to see, do, eat and drink in this colorful country. By Paul Barbu
Bran Castle - the fortress that inspired Bram Stoker to write about Dracula
TRANSYLVANIA, FROM DRACULA TO DACIANSJ For many foreigners, Romania is practically
of Bears, the Biseat Bridge, and the Crystal Cave,” says Corboianu. He has a special focus on the traditions of
synonymous with Transylvania, the roman-
the Romanian people. Through his proj-
tic region popularized by Bram Stoker in his
ect Proud of Romania, tourists will go this
famous novel Dracula.
summer to Bistrita Nasaud County, where
Costin Corboianu’s company, Travel Va-
they will spend three days visiting the most
cante, offers Romanian and foreign tourists a
important attractions, including the memo-
series of tours in Transylvania, from the east
rial houses of major Romanian writers, the
(Bistrita Nasaud, Mures) to the west (Timis
Guards’ Museum, and Colibita Lake, while
and Bihor).
meeting authentic folk craftsmen of the
“We have tours lasting between five and seven days, in which we reach the most
region. Everything will end with a tasting of palinca and the famous Lechinta wine.
important landmarks of this area, and here we are talking about castles, natural reserves
FORTIFIED CHURCHES
and also popular cities such as Cluj-Napoca,
The remaining fortified Saxon churches in
unique church in the Romanic style, built by
Oradea, Arad, Sighisoara and Brasov. For tour-
the region number about 250, seven of which
the Saxons.
ists we also have trails that include a number
are UNESCO World Heritage Sites. But even
of lesser known natural reserves, such as the
excluding these jewels, there are extraor-
brought to the Hungarian kings, they were
caves in the Apuseni Mountains, the Cave
dinary churches to visit, such as Herina, a
settled at the crossroads separating the Hun-
“It is known that when Saxons were
www.business-review.eu July 2019 Business Review | May 2016
COVER TOURISM STORY 37 14
Barsana Monastery in Maramures
The house in Sighisoara where Vlad Tepes, also known as Dracula was born
Romania called The Most Beautiful Roma-
Fortresses, and the well-known monaster-
nian Villages, where tourists can see the ten
ies Agapia, Varatec, Bistrita (Neamt County),
most beautiful villages in Romania. Apart
Moldovita, Sucevita, Voronet, and Humor
from Cirnea, which was the first Romanian
(Suceava County).
touristic village, there are also Rimetea, Bot-
“For the monastery tour we recommend
iza, Cazanesti or Ciocanesti, where we made
staying in the Fundu Moldovei area (Suceava
an entire circuit for tourists who wanted to
County), in Cerbului Domain, the Gura Hu-
garian kingdom from Moldova and Tara Ro-
discover the rural Romania. In the summer
morului Area, and Inima Bucovinei Boarding
maneasca. We also have a separate program
months, we plan to visit Dabaca fortress, the
House. It is possible to follow mountain and
for the fortresses and fortified churches in
mining town Baia Sprie, Blue Lagoon (a lake
ecotourism trails in the Ceahlau National Park,
Transylvania, so we will go to Prejmer, Valea
formed in a sand quarry) and Tara Oasului, a
and we recommend staying in Brates, Tarcau
Viilor, Biertan, Calnic, and Darjiul, the only
region where all traditions are kept alive. And
(Neamt County), Rodna Mountains, and the
Szekler church included among UNESCO’s
on the subject of nature reserves, in the Sebes
Calimani Mountains,” said Maria Stoian,
World Heritage Sites. We usually see six Sze-
area we have Rapa Rosie and Crisul Gorge,”
president of the National Association of Ro-
kler and Saxon churches. The church at Darjiu
Corboianu added.
manian Rural Ecological and Cultural Tourism (ANTREC).
is very little known, but it is a real jewel that I recommend visiting,” Corboianu advises. Depending on the duration of the trip or tour specifics, prices start from RON 250 per
MISSION: MOLDOVA In Moldova, experts say tourists should not
FOLLOWING THE WINE ROAD
miss: Bicaz Gorges, Neamt and Suceava
The Ministries of Tourism in Romania and
person and reach some RON 1,200 per tour. If you’re after culinary experiences, Romania has unique areas. But you cannot talk about food without mentioning wine, and in Transylvania there are two such areas, Jidvei, where wine was brought by the Saxons, and the Recas area where it was brought by the Banat Swabians. In Transylvania, where fattier food is more popular, there is no borsch, but soup. Over 70 percent of traditional dishes are cooked with milk or sour cream and, of course, no table is complete without a bottle of palinka (fruit brandy).
VILLAGE LIFE “We have a very interesting offering that brings together all the historical areas of
Inside Rasnov fortress, situated at the border between Tara Romaneasca and Transylvania
www.business-review.eu Business Review | July 2019
38 TOURISM
The bisons nature reserve in Neamt County
The entrance to Agapia Village
the Republic of Moldova have established a
modation at the Viorica agrotourist board-
hospitality in Moldavia. Do not miss popular
partnership promoting the “Stefan cel Mare
ing house, which is especially popular with
portraits, local folklore dances, and visits to
Route”. This includes tourist attractions and
foreign tourists.
the historical, cultural and natural sites of the
destinations related to the history of the Mol-
“We also recommend visits to the Lamp
area.
davian ruler as well as vineyards, 24 historical
Museum in Campulung Moldovenesc, the
In Botosani, on December 31, the com-
and cultural sites in Romania and about ten
Workshop of the Craftsman Ionela Lungu
mune of Vorona hosts the Winter Dining and
in the Republic of Moldova, including: Putna
from Neamt Fortress, Ion Creanga’s House in
Customs Festival, where tourists flock to
Monastery, Neamt Fortress and Iasi Palace of
Humulesti, Bojdeuca lui Creanga (the house
discover the traditions of Botosani. The event
Culture.
where the writer lived between 1872 and
includes a parade of mascots, the promotion
1889) in Iasi, and Eminescu’s Linden Tree,”
of winter gastronomy, and traditional music.
“For wine routes, for example, the best time to visit is in autumn when tourists can
added Stoian. Prices start at RON 150 / room
take part in picking grapes, see how the wine
/ night, including breakfast, depending on
is made, pick fruit from orchards and other
season, activities etc.
similar activities. Summer is best for hiking in
HANU ANCUTEI, THE OUTLAWS’ GATHERING PLACE The inn called Hanu Ancutei, which boasts
nature in the mountains, and winter is loaded
TOP FESTIVALS FOR FOREIGN TOURISTS
three centuries of tradition, looks like time
with traditions and customs, especially
Every autumn, in Oituz, Bacau County,
stood still. Rooms have a medieval look that
around the winter holidays. The same goes
ANTREC organizes the gourmet Pies Festival,
is surpassed only by the atmosphere created
for spring when Easter is popular with tour-
as well as the promotion of traditions and
by the musicians playing centuries-old songs.
ists, especially since we are in the homeland
historical settlements in the Oituz step and
And the food is highly reputed: locals say that
of the painted egg,” the ANTREC chief said.
AN EGG-CELLENT ATTRACTION ANTREC Romania has promoted the area of Ciocanesti, Suceava County, for over 25 years. The Trout Festival is held this area, around the feast of St. Mary, an occasion on which the area is celebrated on the Bistrita Aurii shore. Ciocanesti stands out as a true open-air museum, where the houses are “painted” like Easter eggs and boast decorations specific to Bucuvina. In Ciocanesti tourists can also visit a museum of painted eggs, see exhibited dowry boxes, trout farms, and follow hiking trails in the Suhard massif. To make the most of Ciocanesti, ANTREC recommends accom-
A table in Hanu Ancutei
www.business-review.eu Business Review | July 2019
40 TOURISM
if you don’t love Moldova for anything else you will love it for the food.
nians) must be “tasted” at least once in life. Those who prefer to stay close to civiliza-
takes more than an hour. This is inhuman from a tourist point of view. We have several
tion can choose the “wild” atmosphere of the
apartments for rent in the center of Bucha-
is placed in the middle of your table, amid
Romanian seaside, where, from Mamaia to
rest, at University Square, and from there we
distinctly tasting dishes. On one side you will
Vama Veche, the fun doesn’t stop all summer.
organize city walking tours because generally
receive cheese, sour cream, bacon and a fried
The white nights in Mamaia are surpassed
if you want to do it by car it is very difficult,”
egg. On a wooden platter an array of meats
only by the rock and folk of Vama Veche,
said Dan Anghelescu, owner of La Piovra
will wait patiently to be tasted, all washed
where the beach is home to adventurous
Turista.
down with a cold glass of local wine. Or, if you
youngsters who sleep off the excesses of
An unsalted polenta like a smiling sun
His firm runs trips around Bucharest,
think you can take it, try a few small glasses of tuica – but don’t blame us if you quickly get merry! A room costs no more than EUR 30, and if you want to dine like a king with a table full of Moldavian goodies it will likely set you back less than EUR 50. Periodically, Hanu Ancutei, in Tupilati, Neamt, organizes Romanian evenings, being a cultural and tourist landmark of the Neamt lands. The owner won the Golden Margarita Award for Gourmet Diversity and Culinary Experiences. Also in Neamt, tourists can visit the Targu Neculai Ethnographic House-Museum, where an exhibition of hundreds of masks of various shapes and colors will delight tourists.
DOBROGEA: THE DANUBE DELTA AND THE SEASIDE
the night before to the gentle lapping of the
the bestselling of which is Two Castles, One
waves. The wine cellars in Dobrogea are also a
Day, on which tourists leave in the morning,
must-do for oenophiles.
visit Peles and Bran castles and pass through Brasov before returning to Bucharest. The
Nature lovers should head for the Danube
BUSTLING BUCHAREST, THE GATEWAY TO ROMANIA
12-hour trip with an English-speaking guide
vealed. Rare or unique animal species in the world make their homes in one of the largest
Bucharest is getting harder to visit because it
Tourists who do not speak English can use
deltas on the continent. Tourists can take a
has become very crowded. “With very small
videophones with the same explanations in
ride in a local’s cart along the sandy paths of
groups, we can go on foot, but it is indescrib-
German, Spanish, Italian and French.
the Letea Forest. Lipovenian traditions (spe-
ably busy: cars, bikes, scooters. A simple
cific to Russian ethnic groups called lipove-
transfer from the airport to the city center
Delta, where a true ecosystem will be re-
includes transport and entrance to the sights.
“We offer traditional dinners at Hanul lui Manuc, Caru cu bere, and Teresa Doamnei. We have set menus ranging from EUR 30 to 55,” Anghelescu told BR. He added that the problem with Bucharest is that it is a last-minute destination, and the average duration of a stay is 1.9 days. In general, it is a departure or arrival port, so there is still work to do, as it’s very difficult to build good quality services over 1.9 days. For last-minute prices, services cannot be of the highest quality. However, the capital has over 600 tourist attractions, of which, unfortunately, only ten are promoted. According to Oana Danaila, director of the Bucharest Municipal Tourist Company, the city lacks information centers and foreign travelers do not stay for more
Waiting for the sunrise at Neversea Festival
than two or three days because they do not know what to visit.
www.business-review.eu Business Review | July 2019
FESTIVAL 41
One of a kind: Vertigo brings high-quality anniversary show to Sibiu Vertigo Dance Company is staging a special performance to mark its 25th anniversary, entitled One. One & One. The dance show is renowned for its extravagant music, decor, costumes, and lights, and that’s before the real dance starts. The Israeli troupe is returning to Romania under the umbrella of the Sibiu International Theatre Festival. By Oana Vasiliu
T
his new original offering, by choreographer Noa Wertheim, revolves around an individual’s inner wish to
be whole whilst being constantly challenged by a fragmented reality within the personal, existential and spiritual realms of one’s being, say organizers. One. One & One reflects both the internal and external worlds whilst paying attention to the echo as reflected from different perspectives, as the piece develops the metaphorical relationship between far and near and self Photo: Paul Baila
and the other, they add. The show is also a sensory experience, with the performance taking place on a stage
Photo: Sebastian Marcovici
Photo: Paul Baila
Photo: Vlad Dumitru
Photo: Paul Baila
covered by soil.
www.business-review.eu Business Review | July 2019
42 FOOD EXPERIENCE
Food for thought: young chefs shake up old classics For some time now, forward-thinking chefs have been reinterpreting classic Romanian fare in original, one-of-a-kind dishes. It started slowly in the capital, but there are now restaurants serving “new Romanian cuisine” in Sibiu, Brasov, Cluj-Napoca and Targu Mures, to name but a few. BR donned its napkin to find out more.
Photo courtesy of Fragmente
By Oana Vasiliu
Reinterpreting Romanian cuisine
INTERNATIONAL APPROVAL: GAULT & MILLAU GUIDE
more and more interested in quality gastro-
CHEF’S SPECIAL
nomic experiences and that there is an evolu-
While in 2018 the Chef of the Year was Alex
June saw the release of the second Romanian
tion of culinary concepts which Romanian
Petricean from Maize – from Farm to Table
edition of the international restaurant guide
restaurants and chefs provide.”
(currently cooking at Noua restaurant), the
Gault & Millau. The guide is focused on “nou-
The move was hailed as the first sign that
accolade this time goes to Alexandru Dumitru
velle cuisine”, stressing the freshness of the
Romanian cuisine is getting more and more
of Bistro Ateneu (formerly known from Atra
ingredients, the simplicity of their overlap-
creative, while using international standards
Doftana), who received 15.5 points out of 20
ping in a dish, innovation, and the way they
to evaluate local restaurants serves as an ac-
from the international guide. Great Chefs of
lend flavor to one another. Gault & Millau is
knowledgment of the national cuisine, as we
Tomorrow were named as Andrei Chelaru
the first internationally recognized restaurant
seek to analyze the current culinary universe
of Fragment (Cluj-Napoca), who is currently
guide to have entered the Romanian market.
in Romania. Furthermore, the 2019 edition of
doing an internship at Denmark’s Noma,
At the launch of the first edition in November
the guide listed 275 new restaurants with 15
said to be the most famous restaurant in the
2017, Côme de Chérisey, CEO of Gault & Mil-
new towns and cities introduced, versus just
world, Radu Ionescu of Kaiamo (Bucharest)
lau, said, “We have seen that Romanians are
154 eateries in the first edition.
and Roland Suciu from Baracca (Cluj-Napoca).
www.business-review.eu Business Review | July 2019
FOOD EXPERIENCE 43
Furthermore, Woman Chef of the Year is
New Nordic Cuisine. Nordic chefs have their
our stews, it might be a better idea to try the
Oana Coanta from Bistro de l’Arte (Brasov),
own manifesto: exclusive use of national and
opposite: use Western cooking techniques on
while Pastry Chef of the Year is Ana Consulea
even regional ingredients. Therefore, when
Romanian ingredients. What’s more Roma-
from Zexe Braserie (Bucharest). Those whose
they want to sour something, they don’t
nian than polenta?! And what’s so difficult
budgets stretch to it are well advised to try
use citrus fruits, even though lemons have
about baking polenta in an oven, much like a
their fare.
become a kind of universal ingredient. What
pizza?! In all its varia-tions! I’d call it ‘pizzalenta’.” Journalist Dragomir, a food historian who writes about local cuisine on www.gastroart. ro, told BR: “Modern Romanian cuisine has two major subcategories: one where the dish presented is the re-sult of modern cooking techniques and ingredients from local production, and a traditional, old-fashioned dish, similar to what we know from our childhood, cooked in a modern way but pre-served unal-
Photo courtesy of Fragmente
tered, with the original taste. You cannot cook carp on cabbage using sea bream and Brussels sprouts. (…) We have managed to develop new gastronomic of new gastronomic emotions like the new Nordic cuisine manifesto or the new Anatolian cuisine, but we are still far away. I’d love to learn from their mistakes and not make them. Tourists should expect savory products offered by a remarkable ter-
A TASTE OF NEW ROMANIA
stops us from souring food with unripe grape
roir and a taste that includes Eastern, Slavic
To judge by the menus of most local restau-
juice (known as ‘agurida’, the French ‘verjus’,
and Central European influences. An unusual
rants, Romanians are big fans of pizza, pasta,
which they used for centuries, but forgot in
but tried-and-tested combination that can
Macri quoted Cosmin Dragomir, writing
time)? Or, an even better suggestion, who still
provide an exciting experience for any type of
in Dilema Veche, who made fun of these very
sours food with mirabelle plums (‘corcoduse’)
papilla.”
rapidly introduced excesses: “‘Oltenia stew
juice? No one. This return to local ingredients
with shrimp’ or ‘shepherd’s squid’. If they
gives birth to unique recipes and reintroduces
ROMANIAN FOOD IN VOGUE
weren’t ridiculous, they’d be surrealist. (…)
value to today’s neglected prod-ucts. Last
The beginning of the year brought encourag-
A better idea would be inspiration from the
but not least, before we introduce shrimp to
ing news for Romanian cuisine: Vogue Paris
burgers, chicken and pork. So does the “RoPhoto courtesy of Gault&Millau
manian new cuisine” have a public? Business Review asked food journalist Vlad Macri to outline it. “Being still in its inception, it’s still very chaotic. The modernization of Romanian cuisine entails many initiatives, which often contradict each other. To begin with, over a decade ago, Romanian chefs realized they should reduce the volume of lipids, which is the main caloric source of our traditional dishes. Sarmale with 80 percent fatty pork meat has become “diet”, with lean beef becoming the most important part of that recipe. At the same time, a more minimalist approach to Romanian recipes was adopted: let’s stop throwing eight sarmale and a Mount Everest of polenta onto the plate, but just three sarmale and one or two spoonfuls of polen-ta. (…).”
www.business-review.eu Business Review | July 2019
Photo courtesy of Fragmente
44 FOOD EXPERIENCE
Starter served at Fragment in Cluj-Napoca
One of the side-projects of Sibiu European Gastronomic Region
magazine included Ibrik Kitchen in its Janu-
tastes and stories (currently available only in
year is half over and little has happened. But
ary list of “Nos 5 restaurants du moment à
the Romanian language) are worth mention-
things are looking up, as at the beginning of
Paris.” More international magazines followed
ing: Claudia Romana Rista (known for her
June, the County Hall announced that RON
suit. What’s the key to success in the world’s
cooking blog Fata care gătește cu flori) and
1.25 million had been allocated to the project,
fashion and gourmet capital? The Romanian-
young chef Mihai Toader and musician Bog-
giving several city halls from Sibiu county as
born owner Ecaterina Paraschiv explains in
dan Simion, who film the Fragmente vlog.
well as NGOs promoting traditions and local
an interview that it’s mici (specially cooked
In an attempt to unearth old recipes
food the funds to hold events to boost local
minced meat), sarmale (minced meat rolled
hidden in grandma’s country kitchen, Rista
in cabbage leaves), and papanasi (a dough-
looked in the Romanian villages where mi-
nut with jam and sour cream). Food blogger
nority communities still preserve some of the
hind the project have put in little effort so far.
Alexander Lobrano notes on his blog that the
best recipes. With the help of Profi supermar-
Recently, there was a buzz about the visual
place offers the “excellent ‘neo-nostalgic’
ket, she has already launched two cooking
identity of the event: a flower made from the
Romanian cooking of chefs Ovidio Malisevs-
books full of tasty stories: the collection is
famous Sibiu salami with a real butterfly on
chi and Bogdan Alexandrescu a.k.a. Dexter
available in the supermarket chain, evocative-
it and a girl dressed in a ham and salad dress
chef (check out his Instagram feed: https://
ly entitled Zestre culinară (Culinary Dowry).
were the talk of the country, and not in a good
www.instagram.com/dexterchef/). So instead
Also on the hunt for hidden recipes is
gastronomy. The general impression is that officials be-
way. But officials from the Sibiu European
I’ll only say that this dinner was not only
Toader, with the help of Simion, the young-
Gastronomic Region (basically all the public
the best non-French meal I’ve had in Paris
est cobza players in Romania. Their videos
institutions in Sibiu) declined to comment.
dur-ing the last twelve months, but one of the
encompass traditional music and slow food.
But the incompetence of the authorities
best ones full stop. In fact, this art-gallery-like
But there is more: you can actually taste the
of Sibiu county cannot detract from a com-
little restaurant on a side street in the Sentier
chef’s interpretation of the discovered reci-
munity of chefs cooking with local products,
came as a delightful surprise in almost every
pes, and the online video content presented
and promoting slow food without the help
way. And now when people ask me what
also appears at pop-up dinners in random
of the endorsement of the public authori-
‘foreign’ kitchens I recommend eating during
venues across Bucharest with Toader cooking
ties. In their restaurants, real effort goes into
a trip to Paris, Romanian will now join the
and Simion singing.
finding local producers who can provide constant ingredients for their menu – and this
usual Israeli, Moroccan, Tunisian, Laotian
is the biggest challenge, as they undertake
nia’s gourmet ambassador and doing such an
LEAVING A SOUR TASTE: SIBIU EUROPEAN GASTRONOMIC REGION 2019
incredible job.
It’s still an enigma what happened with
the menu every week. BR was particularly
something that should have been another
impressed by Syndicat Gourmet (chef Ioan
TRIPPIN’ FOR FOOD STORIES
boom for the Sibiu region. Instead, the Sibiu
Bebeselea), Hochmeister (chef Daniel Joa),
Documenting the history of Romanian cuisine
European Gastronomic Region 2019 event has
Kombinat Sibiu (chef Mihai Toader), and Pasaj
and its influences, two impressive sources of
been written off as a failure, given that the
(chef Andrei Luminea).
and Vietnamese.” Chapeau for being Roma-
the seemingly impossible task of changing
www.business-review.eu Business Review | July 2019
FESTIVAL 45
Sounds good: Electric Castle opens up to hearing-impaired visitors One of the best pieces of news emerging from the impressive schedule of festivals happening in Romania this summer is that Electric Castle has become the first music festival to be accessible to hearing-impaired people, giving them support to enjoy a fully-fledged experience of the event, from the gates to the main stage. By Oana Vasiliu describes the “density” of the sounds, outlining different bass rhythms at the highest frequencies. “It is a big step forward that we are taking in our relationship with people with disabilities and yet another way we want to convey that everyone is welcome to join the Electric Castle community. Until now, we have had this kind of audience with us only during the day when we created areas dedicated to activities and the arts. Now we can offer such visitors the full experience of what Electric Castle means and enjoy with them the power of music to unite, regardless of our identity,” says Andi Vanca, the festival’s director of communication. People with hearing impediments, like all visitors with disabilities, have enjoyed free ac-
A
Surely not to be missed event
ccording to Electric Castle officials,
cess from the first Electric Castle. The festival has dedicated areas for them and continues
From the entrance to the main stage
to invest, each year, to make the entire area a
more than 23,000 Romanians are
shows, the festival will provide assistance to
safe and accessible area for all types of audi-
living with some sort of hearing im-
any hearing-impaired attendee. The teams at
ences.
pediment, and restrictive access to cultural
the access gates will include a sign language
events is just one of the forms of discrimina-
interpreter, with sign language also being
WHAT NOT TO MISS
tion that they face each day. That’s why the
accessible at the info point area and the main
Highlights include conceptually innova-
organizers of Electric Castle Festival want to
stage. Amber Galloway Gallego, the world’s
tive stages, lighting, technology, and arts to
disprove the myth that a hearing-impaired
best known sign interpreter, will translate
help break down the boundaries between
person cannot appreciate music or connect to
all the songs of the artists performing on the
electronic music, reggae, pop, and rock, as
this type of art. “For the Romanian public, it
main stage. Gallego caused a stir in 2013 when
artists ignite the spectacular and unique
is time to remove the barrier between people
she made one of the first performances in her
surroundings for five days. Florence and the
with healthy hearing and those with a hear-
field at Kendrick Lamar’s concert at Lolla-
Machine, Thirty Seconds to Mars, and Bring
ing impairment, and Electric Castle hopes
palooza, sending a powerful message to the
Me The Horizon headline this year. Last year
that its example will be followed by as many
world about a new way for everyone to enjoy
over 212,000 people flocked to the festival.
musical events as possible,” say the organiz-
live music. She not only interprets song lyrics
The event takes place at Bontida Castle, Cluj
ers.
but has developed a language that visually
county, from July 17-22.
www.business-review.eu Business Review | July 2019
46 CITY
Cultural calendar Garana Jazz Festival July 11-14, Garana, Caras Severin county
By Oana Vasiliu
Castle redefines the way people interact with a music festival, breaking down the boundaries between electronic music and reggae, mainstream and subculture. The Castle of Bontida (Cluj county) will host Florence and the Machine, Limp Bizkit, Nils Frahm, Thirty Seconds to Mars, and Bring me the Horizon, among many others. Subscription costs RON 600.
Four days in the Semenic Mountains, 40 mountain bike paths, dozens of square kilometers of lakes, forests and open sky. And
Open Air Blues Festival July 18-21, Brezoi, Valcea county
ART Mania July 26-27, Sibiu
manian festival to have brought on the local market the concept of combining art with entertain-
jazz, of course. A lot of jazz, the
ment, is a platform dedicated to
best jazz of today from artists
promoting all forms of artistic
that you know or that you will
expression inspired by rock
discover this year, including
culture. Dream Theater, Opeth,
Jan Garbarek Group feat. Trilok
Architects, Alcest and many more
Gurtu, Jeff Berlin, Dennis Cham-
will take to the stage. Subscrip-
bers, John Surman, Luiza Zan,
tion costs RON 320, while a day
Giovanni Guidi, Thomas Morgan,
ARTmania Festival, the first Ro-
Bobby Previte, GrĂŠgory Privat, Renaud Garcia-Fons & Dorantes,
The Open Air Blues Festival in
Jacky Terrasson, Paolo Fresu &
Brezoi, Valcea county, will wel-
Lars Danielsson, Maciej Obara
come blues greats, from head-
and Per Mathisen. A one-day
liner Beth Hart to Oscar Benton,
ticket costs RON 85, while the full
Diana Rein and more. The road
subscription is RON 300.
there is charming. Then, the festival offers over 30 of the best
Electric Castle July 17-22, Bontida, Cluj county
blues, blues-rock, jazz, fusion and funk performances as well as four workshops supported by international guests, three dialogue workshops and over 20 jam sessions.
Rock the City July 22, Piata Constitutiei, Bucharest The Cure and the Editors need no introduction. And they are comBy mixing arts and technology
ing to Bucharest this summer to
with an eclectic musical line-up,
Rock the City. God is an astronaut
unique architectural concept and
and Firma will open for the two
the breathtaking scenery of an
musical legends. Tickets cost
amazing medieval castle, Electric
from RON 154.
ticket costs RON 260.