It’s not enough to measure the number of active companies each year, but see whether they are competitive

Judging by the indicators for the Romanian SMEs, although they hire as many people as the EU average, the added value of these companies within the economy is below the EU average, indicative of a low productivity of the work force.

Although the turnover of SMEs in Romania represented, in 2012, 58% of the total value of the Romanian companies’ income, the profit only stands for 32% of the total value, which indicates a low profitability of local SMEs. An explanation could be the bog rate of companies that have commerce as their field of activity (42% of SMEs, according to SBA Fact sheet, presented by the European Commission).

For more information, please see the Romanian version of the article, here.