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The concept of entrepreneurs and entrepreneurship has been largely debated in the developed countries of the world being the lifeblood of economic growth and innovation. Entrepreneurs are often seen as visionaries, willing to take risks and push boundaries to bring their ideas to fruition. Their impact on the economy is multifaceted and profound.
In Romania, the concept of entrepreneurship, as it is understood in the Western context, is a relatively recent phenomenon. The country’s gradual embrace of global perspectives following the 1989 revolution marked the beginning of a new era. However, the tumultuous decade that followed slowed the nation’s transition towards a fully-fledged capitalist democracy. It wasn’t until the dust settled from the upheavals of the 1990s that the concept of entrepreneurship began to take root in Romania in the form that is widely recognized today. Since Romania joined EU (European Union) and NATO (North Atlantic Treaty Organization) the number of foreign and domestic businesses increased every year and the entrepreneur phenomena flourished.
In Romania, the tech sector has emerged as one of the most successful and rapidly growing industries, demonstrating substantial increases in both employment and business ventures. Commonly referred to as the IT sector, this industry has experienced remarkable expansion, significantly propelled by the innovative and entrepreneurial spirit of Romanian business leaders. The dynamic growth within this sector not only underscores the country's burgeoning talent pool but also highlights Romania's potential as a key player in the global tech landscape.
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Chapter 1
The beginning of the entrepreneurial journey
The entrepreneurial landscape in Romania is characterized by a young demographic, with a significant portion of business founders embarking on their ventures at an early stage in their lives. According to survey data, half of the respondents initiated their entrepreneurial journey before reaching the age of 25, suggesting a propensity among Romanian entrepreneurs to dive into the world of business with the enthusiasm and adaptability that often accompany youth.
The entrepreneurial journey often commences with a bold leap into the unknown, a trait exemplified by the youthful vigor of Romanian entrepreneurs. As previously noted, half of the entrepreneurs surveyed embarked on their business endeavors before the age of 25, with a notable 11% demonstrating an even more adventurous spirit by initiating their first venture while under the age of 18.
The people you start with matter a lot, that’s one of the lessons from the beginning of the business and it matters later too. Their technical skills are not the only things that are important, it really matters to resonate on a values level.
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Chapter 2
The impact of the academic background on Entrepreneurs
Romania has witnessed a surge in entrepreneurial activity, with the number of entrepreneurs experiencing a robust double digit increase in numbers. The entrepreneurial phenomenon, while not confined by geographic boundaries, exhibits a pronounced preference among Romanian entrepreneurs for establishing businesses in specific urban centers. According to the survey findings and corroborated with data provided by the National Trade Register Office, Bucharest and Cluj emerge as the preferred cities for entrepreneurial endeavors.
The growth in the number of entrepreneurs in Bucharest and Cluj since 2010 may be partially attributed to the fact that both cities are recognized as major academic hubs. The survey results indicate that the Romanian Tech entrepreneurial community is highly educated, with 90% of respondents holding a BA, MA, PhD, or MBA diploma.
A minority of 10% of Tech entrepreneurs have completed their formal education at the high school level, opting not to pursue further academic qualifications. Yet, this decision has not prevented them from achieving significant commercial triumphs. An impressive 40% of these entrepreneurs have cultivated businesses that generate revenues over 500,000 EUR.
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Chapter 3
The experience of the Romanian Tech Entrepreneurs
Entrepreneurship often runs in the veins of those who have witnessed the spirit of enterprise within their family or among their close associates with 53% of responding entrepreneurs saying that entrepreneurship is a characteristic among their families / friends. The decision to embark on a business venture can be profoundly influenced by observing the successes, challenges, and resilience of family members or friends who have charted their own challenges or entrepreneurial paths. Embarking on the entrepreneurial journey can present significant challenges, particularly for young entrepreneurs. The solitary nature of developing a new product or service can be a formidable task, often perceived as an overwhelming obstacle.
In the Romanian Tech entrepreneurial landscape, as depicted by the survey data, reveals a compelling trend: a significant 80% of entrepreneurs who participated in the survey indicated that their ventures were initiated with at least two founders at the helm. On one end of the spectrum, 15% of respondents acknowledged having a robust founding team of four or more individuals, while on the other end, a notable 20% embarked on their business journey as the sole founder.
This diversity in the composition of founding teams brings to the forefront a pivotal question: should an entrepreneur navigate the path of business as a collaborative team player or as an independent lone wolf? The answer to this question may hold profound implications for the strategy and success of entrepreneurial endeavors. The survey sheds light on the composition of founding teams in relation to the financial success of their ventures. Among businesses that have achieved a revenue threshold exceeding 500,000 EUR, a mere 23% were established by a sole founder. In stark contrast, a substantial 77% of successful ventures were the result of collaborative efforts involving multiple founders.
Definitely a team player. An entrepreneur must, first of all, be a team leader and know what he has to get involved in, but also know what he can delegate, what he can build with other people. Most successful start-ups must be done in a team and you must have a complementary team with complementary skills, it must necessarily be teamwork.
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Chapter 4
Direction and purpose of the Romanian Tech Entrepreneur
For an extended period of time, Romanian entrepreneurs encountered significant challenges in securing capital and expanding their client base. The growing competition at the national level, fueled by an influx of both local and especially international companies with deeper pockets and greater experience, presented a formidable barrier. In the emerging stages of Romanian entrepreneurship, accessing European and international markets was a particularly daunting task. Nevertheless, the landscape shifted significantly following Romania’s accession to the European Union (EU) and the North Atlantic Treaty Organization (NATO). These pivotal developments have catalyzed a strategic shift among Romanian business owners, with the majority now actively seeking opportunities beyond the nation’s frontiers to enhance their businesses’ potential and diversify their clientele.
According to the survey data more than half of the Romanian Tech Entrepreneurs look outside the national borders for clients. The survey data is backed by interviews with Romanian Tech entrepreneurs that mentioned that from the moment they started the business they saw it as an international venture.
In the Romanian entrepreneurial landscape, the age at the start of one’s entrepreneurial journey appears to influence market targeting preferences. Data indicates that 58% of Romanian entrepreneurs who embarked on their business endeavors after the age of 25 are inclined to pursue the global market. This contrasts with a slightly lower propensity of 49% among those who began their entrepreneurial careers before reaching 25. Curiously, the younger cohort, those who started under the age of 25, demonstrate a greater tendency to focus on the regional European market, with 31% targeting this area compared to 28% of their older counterparts.
It was clearly thought of as an international business from the beginning. We thought from the beginning about the very large companies, it does not mean that we do not look at the local market at all, we have clients from the local market, but all our focus goes to the very large clients, who can be from anywhere in the world, because they are from USA, Europe, China, Australia.
Find out more about the profile of the Romanian tech entrepreneur.
Summary
Romania's Tech entrepreneurial landscape is marked by a young range of founders, with half starting before reaching 25 years old. Success is driven by perseverance, teamwork, and innovation, transcending age and academic credentials. Key sectors include Fintech and Enterprise Software, reflecting a strategic focus on scalable, disruptive industries. Romanian entrepreneurs' commitment to resilience and market impact shows their ability to build sustainable, marketable ventures.