EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Press release
19 Nov 2024
EY and Endeavor Study: 53% of Romanian tech entrepreneurs' initiatives target the global market
EY Romania and Endeavor are launching today the study "Profile of the Romanian Tech Entrepreneur", which provides an overview of the entrepreneurial environment in Romania's technology sector. The study highlights demographic trends, challenges, and successes of Romanian tech entrepreneurs, emphasizing their contribution to both the national and global economy.
In Romania, entrepreneurship is a rapidly growing phenomenon, reflecting the resilience and evolution of the local business environment. Our study shows that 53% of technology entrepreneurs are directing their initiatives towards international markets, demonstrating adaptability, strategic planning, and a global vision. The profile of the Romanian entrepreneur, as distinguished in this study, is characterized by perseverance, resilience, as well as a self-taught spirit and determination, essential traits that help them overcome difficulties and create new opportunities. Additionally, they are young, highly educated, and complementary team players. In collaboration with Endeavor, a global organization that supports entrepreneurs in scaling their businesses and having a positive impact on local and global economies, we conducted this research to highlight the vital contribution of entrepreneurs to economic growth and business environment innovation.
Bogdan Ion
EY Romania & Moldova Country Managing Partner | EY CESA Chief Operating Officer
This report tells a story of the courage and perseverance of Romanian entrepreneurs who have managed to turn obstacles into opportunities. Beyond the data, we discover a community of leaders who have built their businesses on a foundation of innovation and collaboration, and their success is proof that, despite economic challenges, Romanian entrepreneurs continue to pursue their vision, supported by a strong network of mentors and strategic partners.
According to the study, Bucharest and Cluj-Napoca are the cities that support tech entrepreneurship in Romania. Since 2014, Bucharest has seen a 35.9% increase in the number of entrepreneurial initiatives, while Cluj-Napoca has experienced a remarkable 66.5% growth. These cities benefit from strong economic ecosystems and renowned academic institutions, creating conducive environments for innovation and business development.
Half of Romanian tech entrepreneurs start their businesses before the age of 25, and a notable 11% start even before turning 18. The level of education is high among these entrepreneurs, with 90% having at least a bachelor's degree. The predominant fields of study are technical disciplines (45%) and finance or economics (29%).
Romanian tech entrepreneurs demonstrate resilience and adaptability, often targeting international markets, with 53% of their initiatives oriented globally. This international orientation underscores the ambition to scale and innovate beyond national borders. Many entrepreneurs accumulate valuable work experience and complete their education before launching their businesses, providing them with essential skills and a comprehensive understanding of market dynamics. Additionally, they prefer collaborative initiatives, with data showing higher success rates for businesses founded by multiple individuals (80%) compared to solo initiatives (20%). The collaborative approach enhances business performance by diversifying skills, sharing responsibilities, and improving teamwork.
Challenges and strategic trends
Despite their successes, Romanian tech entrepreneurs face significant challenges, particularly in obtaining external investments. An overwhelming 95% prefer to maintain private control over their businesses, which can limit growth potential due to reluctance to accept external funding. Additionally, entrepreneurship appears to be influenced by family and close social circles, with 53% of respondents reporting a familial or social connection to entrepreneurship.
Securing funding is a significant challenge, with most entrepreneurs relying on personal funds (42%) for initial capital, followed by angel investors (19%) and investment funds (15%). Industry experience proves crucial for success, with 71% of entrepreneurs leveraging previous knowledge to run their businesses.
Success for Romanian tech entrepreneurs is multifaceted, typically measured by company growth, revenue generation, and market validation. Their desire to expand and generate profit is fueled by a commitment to building competent teams and developing market-ready products. This journey, characterized by ambition, strategic planning, and resilience, illustrates a promising and innovative entrepreneurial ecosystem in Romania.
About the study
The objective of our study was to establish the defining attributes of Romanian entrepreneurs operating in the technology sector. Using a hybrid research approach that incorporated both quantitative and qualitative methods, our primary goal was to discern the traits and experiences that encapsulate the essence of a successful entrepreneur. Through this empirical analysis, we aimed to construct a comprehensive profile that captures the distinctive qualities of entrepreneurial success.
The sample size used for the quantitative component of the study consisted of 126 business leaders from the Romanian tech entrepreneurial community, who received the online questionnaire created in Qualtrics XM. The quantitative segment of our research was structured to identify particular aspects of these entrepreneurs, including company size, age, company revenues from the previous year, the distinctive nature of their business services and products, the markets they target for sales, the founders' previous experience, academic qualifications, and their definition of success.
For the qualitative aspect of our research, we used purposive sampling, a deliberate process of selecting participants, which involved conducting semi-structured interviews with entrepreneurs from the tech sector. These individuals control entrepreneurial initiatives at various stages of the business lifecycle, providing a diversified perspective on the nuances of development within tech enterprises.