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According to the study, micro-enterprises in Romania are continuing their growth trajectory: in 2018, there were 524,900 active firms, a 2.5% increase over the previous year. These companies generated a total turnover of 129 billion RON and a profit of 27.5 billion RON (21% of turnover, with an average of 52,390 RON per company), while 72% of the consolidated turnover, amounting to 82.265 billion RON, was generated by companies with a turnover of up to 250,000 euros.
Although the total turnover of micro-enterprises saw a slight decline of 6%, from 139.1 billion RON in 2017 to 131 billion RON in 2018, the trend remains positive over the last 5 years. Companies less than 5 years old generated the largest share (24%) of turnover in 2018.
According to the classification of companies by turnover level, firms in the 50,000-250,000 euro range accounted for 47.5% of the sector's consolidated turnover, an increase of 2.5% compared to 2017, followed by the 250,000-500,000 euro category with 36.3%, and the smallest firms, under 50,000 euros, with a 16.2% share of the result.
62.8% of the turnover of micro-enterprises in Romania is generated by the top 5 sectors, with retail remaining in first place.
In terms of sectoral distribution, retail remains the largest sector, with a turnover of 25.8 billion RON in 2018. It is followed by wholesale trade with 15.4 billion RON and the construction industry with 13.6 billion RON in 2018. The top 5 also includes micro-enterprises in transportation and storage with 13.2 billion RON and those in the manufacturing industry with 13 billion RON.
Micro-enterprises active in the top 5 sectors generate a total of 62.8% of the turnover of micro-enterprises in Romania, totaling 81 billion RON, while all other sectors have a combined turnover of 48 billion RON, or 37.2% of the total.
Instant Factoring provided 1,930 financing deals to small businesses and micro-enterprises in Romania, totaling 4 million euros, after its first year of operation.
The workforce continues to decline, as predicted in the previous Instant Factoring analysis. The decrease is 12% compared to 2017 and nearly 20% compared to 2014, reaching 1 million employees in 2018. For 2019, we estimate the workforce will stabilize around the one-million-employee mark. Factors generating tension in the local labor market include the accelerated migration process, the mismatch between the education system and market demands, and the lack of measures to integrate inactive individuals.
The largest workforce is employed in the retail sector, with 143,700 employees (14.7%), followed by manufacturing (139,000, or 14.2%) and construction (122,000, or 12.5% of the total).
The workforce continues to decline, as predicted in the previous Instant Factoring analysis. The decrease is 12% compared to 2017 and nearly 20% compared to 2014, reaching 1 million employees in 2018. For 2019, we estimate the workforce will stabilize around the one-million-employee mark. Factors generating tension in the local labor market include the accelerated migration process, the mismatch between the education system and market demands, and the lack of measures to integrate inactive individuals.
The largest workforce is employed in the retail sector, with 143,700 employees (14.7%), followed by manufacturing (139,000, or 14.2%) and construction (122,000, or 12.5% of the total).
The workforce continues to decline, as predicted in the previous Instant Factoring analysis. The decrease is 12% compared to 2017 and nearly 20% compared to 2014, reaching 1 million employees in 2018. For 2019, we estimate the workforce will stabilize around the one-million-employee mark. Factors generating tension in the local labor market include the accelerated migration process, the mismatch between the education system and market demands, and the lack of measures to integrate inactive individuals.
The largest workforce is employed in the retail sector, with 143,700 employees (14.7%), followed by manufacturing (139,000, or 14.2%) and construction (122,000, or 12.5% of the total).
The 12% increase in the average cost per employee in 2018 compared to the previous year is considered more pronounced than the 9% productivity growth, representing a significant medium-term risk with a direct impact on local competitiveness.
"The micro-enterprise segment remains very important to us. We consider it one of the main sectors through which our economy can grow. It is worth noting that 43.2% of micro-enterprises have been in business for 10-20 years, which shows that entrepreneurs are striving to survive in the market, have already weathered an economic crisis, are still active, and deserve all the support they can get to develop their business," said Adina China-Birta, General Manager, Instant Factoring.
The capital also leads in terms of the number of employees, with over 173,000, or 17.7% of the total. It is followed by the counties of Cluj (5.5%), Constanța (4.6%), Timiș (4.3%), and Ilfov (3.8%). Active micro-enterprises registered in these counties had nearly 350,000 employees, accounting for almost 35.8% of the total.
According to company representatives, it is concerning that over 40% of active micro-enterprises had no employees in 2018. Of these, the majority, 102,500, also had zero turnover in 2018.
➡️ Read the full article on forbes.ro: https://www.forbes.ro/studiu-instant-factoring-peste-70-din-volumul-total-de-activitate-al-microintreprinderilor-din-romania-este-realizat-de-firmele-cu-o-cifra-de-afaceri-de-pana-250-000-euro-93421
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