Study: Half Romania's entrepreneurs expect economy drop and slim chances of profit in 2012

Nearly half of Romanian entrepreneurs expect a drop in the Romanian economy in 2012, while 38 percent believe it will stagnate, found a study issued by the National Employers Union in Romania. Only 12 percent of Romanian entrepreneurs envisage economic revival for 2012.

Moreover, 31 percent of managers will take into account insolvency or activity restructuring in 2012, if the economy continues on its current path. The biggest problems small entrepreneurs face in Romania are the lack of infrastructure – 23 percent, red tape – 22 percent, corruption – 16 percent, taxation – 16 percent, and Government incompetence – 16 percent. Expectations on turnover point to a lower figure than in 2011 for 44 percent of entrepreneurs. 19 percent of the respondents said 2011 was better in this sense than 2010. Given all these considerations, managers interviewed for the study believe chances for making profit are slim. They will continue to invest in technology- 42 percent, human resources- 21 percent, services- 21 percent and advertising- 16 percent. There were around 448,000 companies with Romanian majority shareholders at the end of 2010. Their total turnover was of EUR 104 billion. editor@romania-insider.com (photo source: Photoxpress.com)