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EY study: Romanian entrepreneur wants low costs and independence for loans
Romanian entrepreneurs consider that being independent in business decision making is more important that low costs when they choose a financing source for their business, according to the study “Entrepreneur perception of financing access” made by the consulting and audit company EY and presented at the Wall-street.ro conference “Entrepreneur looking for financing”. For 30% of Romanian entrepreneurs it is important to be able to decide on the future of their company, while 29% of business founders consider the cost of financing.
Next in line are indicators such as guarantees requested (important for 17% of entrepreneurs) and the simplest procedure in the case of 13% of entrepreneurs. On the other hand, 11% of Romanian business founders have no decisive criteria according to which they decide on a financing source.
For most entrepreneurs (36%) the business plan is the most important factor in obtaining financing. It is followed by the team and previous business experience (27%), guarantees (14%), financial history (14%) and the business idea (9%). 39% of respondents consider IT is the sector which can easily obtain financing, most likely because of pitching events, business angels type investors and various centers devoted to this sector in the Romanian market.“Mention should be made that agriculture ranks second with 21% of answers. Green energy is third, as expected,” say EY officials in the study.
Romanian entrepreneurs think that fields like services, production or education rank next in obtaining financing.
The EY study is based on questionnaires applied between August 22 and September 18,2013.
The report analyses answers of 107 entrepreneurs in the local business segment. 59% of respondents are 40 and younger, while their companies have 74% of incomes under 1 million euro.
The conference “Entrepreneur looking for financing” was organized by Wall-Street.ro with the support of EY, Enterprise Investors and Erste Asset Management.