CONFIDEX Index: Confidence of Romanian managers and entrepreneurs at highest levels in four years
CONFIDEX Index: Confidence of Romanian managers and entrepreneurs at highest levels in four years
Measuring the confidence of Romanian managers and entrepreneurs in the local economy for over 4 years, the results of the 10th edition of the CONFIDEX study highlight the optimism, resilience, and adaptability of the Romanian business environment.
According to the CONFIDEX study from the first semester of this year, the proportion of managers who declare themselves optimistic about the state of the Romanian economy has risen to 34%, compared to 26% in the previous semester. However, 38% of them remain cautious.
The figures are an indicator of the resilience, flexibility, and adaptability of the Romanian business environment to the abrupt changes in market conditions they have faced in recent years, starting with the COVID-19 pandemic, followed by rising energy prices, the outbreak of the war in Ukraine, fiscal changes, and the wave of inflation that has not yet ended.
“From year to year, the resilience and confidence of Romanian entrepreneurs in their own and the Romanian economy’s development capacity increase. As such, even in the context of the multiple crises that the economy has gone through, the dominant state is cautious, but there is still an increase in the level of optimism regarding the Romanian economy. This is due, on the one hand, to positive signals at the macroeconomic level, such as falling inflation and GDP growth, and on the other hand, to the mindset of the business environment that has not stopped its engines, has not failed, but has sought solutions and new opportunities to remain relevant in the market,” said Andrei Cionca, CEO & co-founder of Impetum Group.
According to the CONFIDEX study data, companies in the services sector are the most optimistic (confidence index of 57.1), followed by IT (53.7), and construction and commerce (both sectors with an index value of 52.6). On the opposite end, with a more cautious approach, are businesses in agriculture (48.5), energy (49.8), and industry (51.3).
In this context, the latest CONFIDEX study reveals that 80% of managers have a good or very good opinion of investors, with the very good opinion rising from 31% of entrepreneurs in H2 2023 to 39% currently.
“This increase in positive perception can be influenced, on the one hand, by the fact that managers have observed more stock exchange listings and examples of successful exits. On the other hand, the change in mindset can also contribute: managers realize that to maintain and develop, support is needed, whether financial or through the exposure that an investment fund can offer the business, compared to a bank loan that only brings financial capital,” Andrei Cionca explained.
More than four months after the implementation of new fiscal measures, entrepreneurs have a clearer picture of their actual impact. The majority of Romanian business people participating in the study declare that they feel their impact. 87% of entrepreneurs in the services sector declare themselves affected, to some extent, by the change in microenterprise taxation.
Equally numerous are the managers who experience difficulties due to the removal of the tax exemption for incomes over RON 10,000. Also, 82% of the interviewed managers state that taxing a minimum of 1% of the turnover of large businesses has affected companies.
In the current market context, the main priorities of local managers are increasing sales (48% of them), employee retention (26%), improving customer relations (26%), access to financing (22%), and digitalization and automation (21%).
The main opportunities considered by business people in Romania are easier access to international markets (12% of current study participants, compared to 11% in the H2 2023 study), increased market demand (12%, down from 18%), and digitalization and technology (12%, double from 6% in the previous study). Additionally, product diversification, accessing European funds or subsidies, and labor force are other important opportunities towards which Romanian entrepreneurs are heading.
(Photo source: Impetum Group)
