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SMEs, key to successful economic growth

The state should find solutions to curb red tape and controls to foster business, BNR Governor Mugur ISARESCU says.

Small and medium-sized enterprises (SMEs) play an essential role in Romania's development and economic growth, creating jobs and being very versatile in respect to changing market conditions, the Governor of the National Bank of Romania (BNR), Mugur ISARESCU, explained during a specialised seminar, on the 9th of February 2011.

The state authorities can take a number of measures to stimulate the SMEs such as reduce bureaucracy and controls, as well as improve the business climate, ISARESCU also stated. "Bureaucracy kills entrepreneurship and draws back business initiative. It applies to all companies, but, in the particular case of the SMEs, it is crucial. (...) Bureaucracy can cost an SME a few percentage points of its turnover every week", he also said.

Continuing his idea about excess bureaucracy, the BNR Governor also stated that the authorities should also help SMEs by renouncing a good share of the excessive checks, some of them being administrative ones, as they totally fail to reduce illegal economy. "Another very important point the authorities could check is the improvement of the business climate starting with sorting out the confusion being generally made between business and jobbery (...) In the past 20 years, many have actually strengthened this confusion. Too many fraudsters have grown under the name of businesspeople", the central bank Governor added.

He also said that the SMEs turnover in 2009 represented over 60 percent of the total turnover of all companies operating in Romania.


Published on 10.02.2011

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