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The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment

Author

Listed:
  • Dan Armeanu

    (Bucharest University of Economic Studies,)

  • Nicolae Istudor

    (Bucharest University of Economic Studies,)

  • Leonard Lache

    (Bucharest University of Economic Studies,)

Abstract

Given the negative effects of the economic crisis on the Romanian economy, entrepreneurship represents one of the main pillars of economic recovery and the authorities need to act in support of private entrepreneurship initiative. Even though entrepreneurship does not equate to the small and medium-sized enterprises, there is strong support in literature regarding the importance of SMEs in national economies due to the authorities` potential of intervention and their contribution to gross value added. The fluctuating evolution of the Romanian business environment has led to a high volatility of its contribution to GDP, which is especially true in the case of SMEs due to their lack of technology and capital and difficult access to financing, as well as limited know-how compared to the large companies that control the Romanian market. Successful entrepreneurial initiative leads to sustainable businesses and ensures a smooth transition from business ideas to the creation of value added, thus supporting economic growth and the narrowing of macroeconomic gaps which have been generated during the economic recession. As a distinctive and dynamic component of Romanian entrepreneurship, the SME segment has a significant contribution to GDP. This study aims at assessing the contribution of entrepreneurship, through its SME segment, to Romania`s GDP in the main economic sectors and, at the same time, the estimation of output gap at sectoral level, thus filling a gap in entrepreneurship-related domestic literature.

Suggested Citation

  • Dan Armeanu & Nicolae Istudor & Leonard Lache, 2015. "The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 195-195, February.
    • Handle: RePEc:aes:amfeco:v:38:y:2015:i:17:p:195
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    References listed on IDEAS

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    Cited by:

    1. Busu, Mihail & Caraiani, Petre & Hadad, Shahrazad & Incze, Cynthia Bianka & Vargas, Madalina Vanesa, 2021. "The performance of publicly funded startups in Romania," Economic Systems, Elsevier, vol. 45(3).
    2. Elena DRUICĂ & Zizi GOSCHIN & Ana-Maria GRIGORE, 2017. "Regional interplay of factors informing SMES’ density in Romania. A panel data analysis," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 79-95, June.
    3. Nicolae Mariana & Ion Irina & Nicolae Elena, 2016. "Regional differences in entrepreneurial perceptions and implications for the Romanian competitiveness policy," Management & Marketing, Sciendo, vol. 11(1), pages 394-409, April.
    4. Elena Druica & Ana-Maria Grigore, 2017. "Fixed effects models to assess the effectiveness of entrepreneurial diversification strategy in SMEs," Romanian Statistical Review, Romanian Statistical Review, vol. 65(1), pages 39-55, March.
    5. Zizi Goschin & Elena Druică & Călin Vâlsan, 2020. "Shaped by location? A spatial panel analysis of Romanian family businesses," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 893-911, October.
    6. Zizi Goschin, 2020. "What makes new firms resilient? A spatial analysis for Romania," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 913-930, October.
    7. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    8. Ondřej Dvouletý & Alisa Gordievskaya & David Anthony Procházka, 2018. "Investigating the relationship between entrepreneurship and regional development: case of developing countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-9, December.
    9. Brouthers, Lance & Văduva, Sebastian & Tiron-Tudor, Adriana & Burtic, Daniel, 2023. "The Transformation of the Romanian Economy Through Privatization and Internationalization," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 28(2), pages 265-292.
    10. Raluca Ignat & Marius Constantin, 2020. "Multidimensional Facets of Entrepreneurial Resilience during the COVID-19 Crisis through the Lens of the Wealthiest Romanian Counties," Sustainability, MDPI, vol. 12(23), pages 1-29, December.
    11. Salem Ahmed Alabdali & Salvatore Flavio Pileggi & Dilek Cetindamar, 2023. "Influential Factors, Enablers, and Barriers to Adopting Smart Technology in Rural Regions: A Literature Review," Sustainability, MDPI, vol. 15(10), pages 1-38, May.
    12. Muhammad Haseeb & Marcin Lis & Ilham Haouas & Leonardus WW Mihardjo, 2019. "The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia," Sustainability, MDPI, vol. 11(17), pages 1-20, August.

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    More about this item

    Keywords

    entrepreneurship; business environment; small and medium-sized enterprises;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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