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Regional Determinants of Small Business Survival during the Crisis in Romania

Author

Listed:
  • Anca Dachin

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Alexandru Rusei

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The economic crisis in Romania has increased the business vulnerability since 2009. The recessionary gap and the high uncertainty of the economic environment have determined many companies to leave the market. The regional differences in the entrepreneurial performance suggest that the regional dimension should be included in the firm demography analysis. Most studies refer to the favorable conditions which stimulate the entry of new firms. However, during the crisis, for many small businesses the main problem has been the survival. The paper focuses on the analysis of adjustment processes within the SME´s sector in terms of changes in number of enterprises and turnover. The regional differences in the three-year survival rate (2008-2011) show the structural particularities of the economic activity. The paper aims at identifying the empirical relationship between economic determinants and entrepreneurial performance at regional NUTS2 level in Romania.

Suggested Citation

  • Anca Dachin & Alexandru Rusei, 2013. "Regional Determinants of Small Business Survival during the Crisis in Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 200-208, August.
    • Handle: RePEc:dug:actaec:y:2013:i:1:p:200-208
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