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Just 17 pc of SMEs see a favorable business environment, says CNIPMMR President

Just 17 percent of small and medium-sized enterprises (SME) views the current economic environment as favorable to business, stated on Tuesday Ovidiu Nicolescu, president of the National Council of Small and Medium Sized Private Enterprises in Romania (CNIPMMR), on the occasion of the launching of the 'SMEs White Paper'.

According to presented research, the best business opportunities for SMEs throughout 2009 are sales growth on the domestic market, expansion on new markets abroad, assimilation of new products, conclusion of business partnerships, utilization of new technologies, grant getting and exports enhancement.

Usually SMEs are confronted with difficulties as the decline of interior market demand, excessive taxation, red tape, private companies bill payment delay, high loan costs, inflation, national currency lack of stability, difficult access to loans, corruption, rise of salary spending levels and imported products competition.

Elements with the biggest negative influence upon SMEs activity and performance, according to the study, refer to the uneven evolution of the legislative framework, insufficient predictability of the business environment, social climate and tensions, political changes in country's leadership and IMF and World Bank policy toward Romania.

Over Oct. 2008 - March 2009 more than half of the total of 615,000 SMEs cut their activity, 24 percent operate within the same parameters and 15 percent went bankrupt. Just 4 percent of the economic agents boosted their activity.] CNIPMMR presented study reveals that 58.4 percent of SMEs estimate that the crisis upper level will be attained this year.

As for financing, an increasing number of SMEs no longer go to the banks. As such, 60 percent of the respondent companies said that use own funds, 30 percent use leasing, 8.7 percent obtained non-repayable funds and 3 percent appealed to specialized financial institutions.

 

Sursa: http://www.agerpres.ro/

Tags: percent cnipmmr environment business

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