Study: Only 3% Of Total Romanian Companies Are The Engine Of Country’s Economy

The number of impact companies is on downward trend, from 23,384 in 2013 to 19,564 in 2015, the study shows. Although the 19,564 impact companies represent only 3% of total companies in Romania, they generate 68% of the turnover cumulated countrywide and employ 41% of Romania’s workforce. The number of employees within these 19,564 companies fell between 2013 and 2015, which led to the loss of approximately 19,000 jobs. Nearly 36% of impact companies boast profitability of 0% to 5%, a level way too small to sustain indebtedness levels of over 70%. Nevertheless, 39% of companies with such low profitability have an indebtedness of 70 to 100%.

The study shows that, for at least three years, we are witnessing a paradox of the Romanian economy: despite the highest growth rate in Europe, the field of insolvency remains very active and tumultuous. In 2016 alone, the total debts of the 314 companies under survey and gone into insolvent reached EUR2.4 billion, which equals nearly 1.5% of GDP.

According to the study, impact companies were divided into financeable (their number increased), restructurable (their number decreased) and insolvable (their number almost halved).

The study regarding impact companies in Romania covers the 2013 – 2015 interval. The companies were analysed based on year-end financial statements.

CITR boasts an experience of over 16 years and a portfolio of over 850 projects.

 

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