www.business-review.eu Business Review | November May 2016 2020
ENTREPRENEURSHIP COVER STORY 14 23
Opportunities in Romanian entrepreneurship after a pandemic year Even though more than half of Romanian companies are exposed to the crisis generated by the pandemic, we should be optimistic and see what opportunities there may be in the entrepreneurial ecosystem in the coming period. We highlight five reasons for optimism transposed into strong points that can stimulate Romanian entrepreneurship. By Claudiu Vrinceanu postgraduate students who want to launch a business in Romania can obtain funding of up to EUR 100,000 from European funds.
A MORE DIVERSIFIED STARTUP FUNDING SYSTEM The funding of Romanian startups has become more sustainable and diversified in recent years. The number of investors in Romanian startups and scaleups reached 97 in 2020. The pipeline of local and international ventures is no longer driven by a few small companies in e-commerce and marketplaces, but is rather showing a balanced mix Most early-stage startups are looking to join external incubators and accelerator programmes
of innovative ideas in FinTech, Biometrics, Blockchain, Robotic Process Automation and HR-related solutions. Bucharest is the main
IT TALENT POOL
group (which in the collective perception
hub in Romania, driven by its strong digital
Romania has long been known as home to
tend to not be associated with the idea of a
workforce and diversity.
a large pool of great developer talent – the
startup or with entrepreneurship, although
second largest in Central and Eastern Europe
they are actually successful businesses in the
vestors with only a few local funds being able
(CEE) – with more developers than countries
field of high technologies). Moreover, in the
to participate in Series A+ rounds. Besides
like the Czech Republic and Hungary. Data
context of the COVID-19 crisis, the number
the local funds investing in the ecosystem,
published by the National Institute of Statis-
of professionals with business experience
we are also seeing a growing number of inter-
tics (INS) indicated a number of 140,000 em-
who could become founders will increase
national players scouting the Romanian tech
ployees in the IT industry in Romania, most
as a result of turnarounds and restructuring
market for investment opportunities. Due to
of them located in Bucharest (46 percent),
processes.
the lack of locally-grown venture capital (VC)
Top funding is driven by international in-
funds, most early-stage startups are looking
Cluj (12 percent), Timisoara (9 percent), and
to join external incubators and accelerator
Iasi (6 percent).
HIGH INTENTION FOR YOUTH ENTREPRENEURSHIP
GROWING NUMBER OF ACCELERATORS
The appetite for entrepreneurship is growing
More than 20 accelerators are now operating
among young people in Romania, with half
MORE EU FINANCING PROGRAMMES
in Romania, involving more than 300 start-
of them saying that they want to be entrepre-
The number and value of EU programmes
ups. This also represents a strength for future
neurs according to an Insights study. Their
and sources of finance that can benefit Roma-
founders. According to studies conducted
chosen fields also mark an increased interest
nian SMEs is always growing, and they can
in Romania, successful entrepreneurs tend
in entrepreneurship and management, which
help narrow the innovation and techno-
to launch their startups after the age of 40.
rank first among young people’s preferences.
logy gaps that exist between firms in Roma-
Studies show that the success rate of startups
In this context, a success could come next
nia and other EU countries. In this sense,
founded by people under 30 is half that of
year from the Innotech Student funding pro-
over EUR 313 million are available for start-
startups founded by people in the 50-60 age
gramme, through which undergraduate and
ups and SMEs.
programmes.
