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Number of dissolved companies in first four months of 2019, record-level in last 10 years (analysis)

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More than 55,900 companies were dissolved in the first four months of this year, the largest number of companies in the last 10 years, according to a special analysis sent to AGERPRES on Thursday. 

According to the National Office of Trade Registry (ONRC), quoted in the document, 55,942 companies were dissolved in the first four months of this year at national level, up 94.3 percent over the same period of the previous year. 

"It is the largest number of dissolved companies in the first four months of 2009 and until now. If the trend continues, 2019 could bring a record number of dissolved firms that could exceed the threshold of 100,000 firms," the experts at the Sierra Quadrant estimate. 

According to the quoted analysis, at the end of April, as far as dissolved companies are concerned by economic area, retail and wholesale traders were the most numerous, with 17,349 companies, followed by agriculture, forestry and fishing with 10,838 companies, construction (5462), manufacturing (4457 ), professional, scientific and technical activities (4223) and information and communications (2086). 

The highest number of dissolutions was recorded in the agriculture (182 percent), followed by the mining and quarrying industry (137 percent), trade (130 percent) and construction (125 percent). 

Ovidiu Neacsu, associate coordinator of the Sierra Quadrant, believes that the Romanian business environment is undergoing a "general clean-up" with positive effects in the medium and long term. 

"Romania needs entrepreneurs and welcomes the growth of the number of companies in recent years. But beyond the initiative, projects, business plans, the optimism that characterizes especially the young entrepreneurs, the Romanian economy needs professionals, responsible business people to develop predictable businesses, grounded in the economic realities. We still have too many poorly capitalized firms, without any horizon, without business plans, in which the entrepreneur's instinct comes first, where economic decisions are too little substantiated from an economic standpoint, with direct consequences, which quickly lead to insolvency, bankruptcy, and ultimately to the dissolution of the business," Neacsu said. 

Sierra Quadrant is one of the top 10 companies in the country, specializing in difficult and complex management and liquidation works, characterized by great estate. In its 10 years of activity, the company has completed over 650 bankruptcy and liquidation procedures.


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