About 74% of family businesses in Romania said they registered growth in the last financial year, according to the latest edition of the PwC’s Family Business Survey.

However, local entrepreneurs are more cautious about the future than their global counterparts, and are concerned mostly about the economic environment and the sharpening competition. Some 62% of Romanian respondents expect a constant growth of their business in the next five years, while only 13% aim for a rapid and aggressive growth, PwC has found.

The constant need to innovate, market instability, attracting and retaining talented employees, increased competition and globalization are mentioned as the most important challenges for local family businesses. Romanian family business have the highest score for understanding the commercial potential of the digital environment, 80% of the respondents saying they understand the tangible benefits of moving to digital.

The latest PwC survey questioned 2,378 family business executives in more than 40 countries worldwide, including Romania. Overall, this year’s survey indicates that – despite a tough economic environment, with pressures around skills shortages, innovation and governance – family firms remain dynamic and resilient. Family businesses account for 70 - 90% of GDP globally, and are a barometer of the health of the economy, according to PwC.

The results of the survey show that the need to professionalize the business is gaining ground as a key concern for family firms, driven by an almost perfect storm of competitive pressure, rising costs and global megatrends. It scarcely registered in 2012, but this year 40% of respondents agree this is a key challenge over the next five years. And it must be accompanied by an equally rigorous approach to professionalizing the family.

“It’s clear that there are new challenges; the economy is a colder and harder place for the family firm, competition is more intense, price pressure is growing, and the speed of change continues to accelerate. However, entrepreneurial and family businesses have proven resilient and adaptable, being the basis of a healthy economic growth. Still, there is a strong “family factor” whose impact on the company seems to be ignored by most of the respondents”, said Alexandru Medelean, leader of PwC Romania’s integrated services team for entrepreneurs and family businesses.

The full report is available here.

Andrei Chirileasa, andrei@romania-insider.com