Main Menu

Newsletter

Newsletter Archive

CCE-R Partners

osec Business Network Switzerland Chamber of Commerce Switzerland Central - Europe (SEC) SwissCham

How to setup and enterprise in Romania Date: 2009-03-19

How to set up an enterprise in Romania: opportunities and practice

For quite a while, Romania has been a “fashionable” country, since the delocalisation becomes more and more a key word for many economic fields, especially for those that largely rely on the work force.
If one forgets about clichés and the bad general image associated to Romania abroad, caused by abandoned children and wandering dogs, one discovers a country with a Latin culture, not very far away from us, either geographically or culturally and, above all, with an extraordinary economic potential. Nevertheless, the business environment is not always as easy as one could imagine at a first glance.

Swiss presence in Romania
Switzerland has a long history in Romania. A quite large part of Romanian vineyards, of a very good quality, but still unknown, were planted by Swiss wine-growers who emigrated more than a century ago, but returned home since. The Swiss Association in Romania, reborn in 1995, has a history of more than 150 years and owned, in the past, a shooting stand for its members.
Closer to us, the Swiss economic presence is highlighted by trade operations and especially by large investments.
We estimate that, beyond official figures, Switzerland would be the 6th foreign investor in Romania, with an amount gently reaching a billion Swiss francs. This, as compared to the size of our country, is a rather material amount.
Even more surprising is the fact that these Swiss investments are not due to multinational companies, not that numerous in Switzerland, but the outcome of SME’s and individual investors that are well represented next to Holcim, Nestlé and others.
 
Strengths and weaknesses of the Romanian market
Romania has an interesting potential given by its 22 million consumers, who need goods of primary use as well as goods of long run use or infrastructure. But the purchasing power remains incredibly low with an average net monthly salary lower than 200 Swiss francs.
The Romanian market is then interesting both for its local potential (see the recent and rapid development of the large distribution – Carrefour, Cora and others) and for its exporting companies in many fields (textiles, wood-furniture, glass work,software).
One of the greatest advantages of the Romanian market remains the quality of its work force for being numerous, cheap, educated (often highly educated), eager to learn and with solid knowledge in some areas (mathematics and IT, aeronautics, linguistics abilities).
The quality standards used or practiced are not necessarily those to which Swiss people are accustomed. This is why a vigilant control and a good management are more than necessary.
Also, the economic environment is not one of the most comfortable ones, as it includes many state structures inherited from the past, with badly paid and incompetent civil servants and a plethoric bureaucracy. The legal and judicial environment is not very clear and is often changing, with authorization and control requirements reminding more of the ancient times than of the modern ones.
This environment is progressing however in the light of the future accession to the European Union. Regardless of the effective accession date, this fact will definitely generate more favourable conditions for the economic activities.
In this way, one of the positive aspects to be mentioned is the introduction of the Labour Code last year, and especially of a new Fiscal Code this year, that was adopted after discussions with economic agents and, in particular, with foreign investors.These are indeed good signs for the future of investments.
 
The Swiss entrepreneur
Although Swiss people proved their entrepreneurship during centuries, maybe they could not be always as adventurous as Italians, Greeks or Turks are on new markets such as Romania.
We have very high expectations, and this is not always the case of our foreign partners, who do not have necessarily the same standards of quality, probity and ethics. Swiss people prove often to be candid, even naive.
In every project, and especially in Romania, it is not enough to be certain about the idea, the know-how and the financing. It is also extremely important to consider the environment, the partners, the collaborators and the time frame, all of them being highly sensitive elements for an enterprise with limited resources.
 
Conclusions
Romania is and remains an excellent opportunity to invest for an enterprise eager to develop itself. However, this will need deep persistence and high energy and it is better to think any project on a long run than on short term.
There are success stories: Angst, Heidi, Ringier and Edipresse, LaDorna, Romsys, and many others. One will not mention here the failures, but they exist also.
Many expatriates came toRomania 10 years ago and remained here with no intention to leave soon. Out ofthem, Swiss are numerous, I being one of them.
One could compare investments in Romania with mountains trekking: even if the weather forecast is favourable and the sun shines in the morning of departure, it is better to take along a pullover and provisions in your back-bag, and always have good shoes
 
S. R. Gonvers, Managing Partner Audiconsult Srl (April 15, 2004)

Future Events

Business Club with Repower Romania 2012-02-29
Repower Romania HQ, Bucharest
British and Swiss Informal gathering 2012-02-16
Bo Concept Show Room, Feeria Baneasa
Business Game with Horváth & Partners Management Consulting 2012-02-15
Bucharest, JW Marriott Grand Hotel Offices
See all events

Advertising