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| The role of SMEs in economic development |
| (2012-03-15) |
| Last updated: 2012-03-16 13:20 EET |
Some of the administrative and fiscal burden for small and medium-sized companies in Romania has been relieved in recent years to a certain degree, but not yet sufficiently. The number of fees and duties has been reduced from 491 at the beginning of 2009 to 237 at present through merger or elimination. Also, the period needed to set up a company has been reduced to 3 days, while the accounting law has been simplified.
These measures are meant to support entrepreneurs, who have been hardest hit by the austerity measures taken by the government. However, the Ungureanu cabinet wants to do more to create an attractive, favourable and predictable business environment. This announcement was made by Prime Minister Mihai Razvan Ungureanu at the first Forum for Small and Medium Sized Companies in Romania, underway in Bucharest.
Starting from the assumption that a healthy society needs a solid middle class, Ungureanu said real economic growth is not generated in Romania by a small number of big companies, but by a large number of small and medium-sized entrepreneurs. This is why the government is considering measures to support the latter by reducing fees and duties, which, according to Ungureanu, are a burden at the moment:
Mihai Razvan Ungureanu: “We are considering diminishing the administrative and fiscal burden as soon as possible. To stimulate creativity and innovation, we will focus on what are considered emerging sectors, namely the creative and innovative fields.”
Business people say, however, they are waiting for more concrete solutions. They point out that the added value produced by the Romanian companies was clearly higher than that of the multinational companies and that they now want tax cuts, the creation of a bank of industry and laws to help them develop. The small and medium-sized entrepreneurs also call for more transparent access to public tenders.
The Liberal MP Eugen Nicolaescu, a member of the opposition, believes the measures envisaged by the government are justified considering that it was the current government who introduced the minimum quarterly tax in 2009. The Liberals say this measure pushed 200,000 small companies into bankruptcy and caused many job losses. Eugen Nicolaescu:
Eugen Nicolaescu: “The government should reduce the number of fees and duties, eliminate politically-motivated audits of companies who are not friends with the government and no longer require companies to file the same declaration a hundred times. This is something we have been waiting to happen for many years.”
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