Romania SME sector faces rising business closures and negative employment growth

Florin Jianu, president of IMM România, has reported a decline in entrepreneurial activity, noting that the number of companies exiting the economy is approximately 20% higher than those being established. Data from the first half of the year shows roughly 96,000 new businesses registered, while between 110,000 and 111,000 companies closed.

Jianu also highlighted a negative trend in employment within the small and medium-sized enterprise (SME) sector, stating that for the first time this year, more people have left companies than have been hired. He noted a rising unemployment rate and an increase in closed or suspended labor contracts.

To address these challenges, Jianu emphasized the need for long-term fiscal stability and a predictable tax environment rather than simple tax cuts. He also suggested re-evaluating programs like IMM Invest to address cash-flow shortages in the economy and called for a stable government capable of making decisive economic and social decisions to restore confidence.