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Study: Revenue of Romanian companies increased 6.5 times and profits 10 times, in last 15 years
The total revenues of Romanian companies have increased 6.5 times in the last 15 years, from 400 billion RON in 2008 to over 2,600 billion RON in 2023, according to the "Entrepreneur Profile 2024" study conducted for ING Bank Romania by Datable and Impact Hub Bucharest, with the support of Startarium.
The biggest increase, over 60%, was observed in the period 2021-2023.
On the contrary, the growth rate of the total net profit of Romanian companies was higher than that of the income growth. Thus, the net profit of the companies reached 223 billion RON in 2023, 10 times higher than the value recorded at the end of 2008.
ING Bank Romania celebrates 30 years of local activity in 2024, and the study "Entrepreneur Profile 2024" offers a detailed x-ray of the entrepreneurial climate in Romania. The research is based, for the first time, on the analysis of data at the territorial level, in order to provide as clear a picture as possible of the evolution of the entrepreneurial environment, especially in the second half of the last three decades, it is shown in a press release from the bank.
"The "Entrepreneur Profile" study confirms the remarkable progress recorded in this period both at the macro and microeconomic level, especially in the years following the accession to the European Union. At the same time, the problem of the polarization of economic development remains evident, which must be addressed in the coming years. We recently launched the 30 x 30 report, 30 years of ING, in which we show that Romania's economy has the potential to double in the next decade, and our country could enter the top 10. economies from the European Union," said Mihaela Bitu, CEO, ING Bank Romania, quoted in the press release.
In the last 15 years, the net profit in the urban environment increased by 57%, significantly faster than in the rural environment, where the increase was only 39%. This gap highlights the difficulty of the rural environment in transforming revenues into net profit, having higher operating costs and lower efficiency than in urban areas, the quoted source claims.
Bucharest continues to concentrate the largest share of net profit, 37% of the total profits obtained by businesses in Romania. However, this share has decreased in recent years, in 2014, for example, being 45%.
Regarding the revenues of the last 15 years, the average annual increase was 148 billion RON. Urban centers accounted for more than 60% of the companies' total revenues. Along with Bucharest and Ilfov, Arges, Cluj and Timis counties stand out.
"The Entrepreneur Profile 2024 report shows that, despite the challenges, Romanian entrepreneurs demonstrate remarkable resilience and significant growth potential. International expansion, increasing the customer base and adopting advanced technologies are considered essential priorities. To achieve these goals, it is necessary an improvement of the entrepreneurial ecosystem, through better access to financing, continuous educational support and policies favorable to business development," said Vlad Craioveanu, CEO & Co-founder, Impact Hub Bucharest.