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Romania is half-way from Hungary and Poland in terms of companies with 1M euro turnover per 1M inhabitants (INACO)

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Romania is half-way from Hungary and Poland in terms of number of companies whose turnover goes over one million euros per one million inhabitants, says Ioana Arsenie, a member of the INACO (Initiative for Competitiveness) think-tank, an expert in strategic and financial consulting. 

According to Arsenie, despite the 8th constant economic growth year in Romania, we do have an obvious imbalance against our neighbours as regards the ability to develop Romanian companies that exceed one million euros threshold and develop in a sustainable way. Most of the businesses are experiencing a situation of being blocked, which is inability to develop and make profit. 

If the economic performance reported to the number of companies that exceed one million euros in turnover is analysed, Romania is half-way from Hungary and Poland. So, whilst Romania is only counting for 1,370 companies with over one million euros in turnover to one million inhabitants, Hungary has 2,722 such companies and Poland 2,670, at the level of 2017. 

The INACO expert draws attention that a sensitive element that could help in a correct positioning of an entrepreneur's offer is to acknowledge of their clients' profitability and moreover, how much the respective budget represents in their turnover and what raw margin they have left. 

'These are information one has no direct access to, but a good relation and knowledge of the industry and the client could bring some benchmarks in this respect. I find it important to pay attention to these things so to know about the elasticity of one's demand to a price-rise proposal. Moving further, one's strategy must include the risk management area, alternatives to the one-client, one-industry, one-market focus, respectively a. s. o.. In order to make a quick decision one needs measurements, financial and non-financial parameters comprised in a permanently updated, analysed Board Table,' she specifies. 

The INACO professionals community aims to increase competitiveness, for both the companies tending to the one million euros plus turnover leap, and the startups through the 'First steps in entrepreneurship' programme developed within the ICOTI - Initiative for the Youth Competitiveness branch.

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