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The average daily number of newly created companies has considerably lowered in the context of Covid-19
The number of companies set up at national level has dropped considerabley since the beginning of the emergency state established in Romania, so that during the week of 23-27 March were created 670 new companies, more than five times fewer than in the first week of the month, 2-8 March, when 3,514 new companies were set up, according t an analysis of Termene.ro, the platform which offer information updated in real time about the financial and judicial data of the companies.
‘Thus, if in the first week since the starting point of Covid-19 crisis (16-22 March 2020) were set up 1,480 new companies were set up, the weekly average dropped during the period 23-27 March when there were only 670 companies set up, five times less than a normal week. To compare, there were 3,344 new companies in 9-15 March and 3,514 new companies in 2-8 March’ the analysis shows by using the data of the National Office for Commerce Registrar (ONRC).
By comparison, during the same period of last year, the number of companies newly created was kept around a weekly average of approximately 3,400 companies, which confirms the steep drop of the two weeks when Romania had an economic blockage generated by the spreading of Covid-19, the authors of the analysis say.
‘The effects produced by the spreading of the virus Covid-19, a context where generated the emergency state and an unpredictable situation is felt on the initiatives of the entrepreneurs as well. We notice a drop in the number of newly created companies once the country got into the emergency state. We want to find again the statistics figures which we had before as regards the setting up of new companies, and the government has a significant role by reestablishing the trust, but we should not forget: numerous companies of success were created on an international level, as well as in Romania, in the context of economic uncertainties’ Adrian Dragomis, cofounder of Termene.ro said.
In 2019, between 2 and 8 March there were set up 3,408 new companies, while between 9 and 15 2019 – 3,389 new companies, and between 16-22 March 2019 – 3,581 new companies and during the period of 23-27 March 2019 – 3,747 new companies.
‘The drop in the number of newly set up companies is sudden and probably the rhythm will go on: if on 16 and 17 March 2020 there were recorded 500 companies daily, their number dropped on Wednesday 18 March, at 200 and on Thursday 19 March - 140 companies, while on Friday 0 107. In the second week since the decree, the average was kept around 125 newly created companies daily’ the analysis says.
În ceea ce prive?te jude?ele/ora?ele cu cele mai multe firme create în luna martie, acestea sunt Bucure?ti (1782), Cluj (525), Timi? (456), Ilfov (449), Ia?i (377), Constan?a (351), Bra?ov (305), Bihor (284), Prahova (250) ?i Mure? (221).
Termene.ro reiterates that over 280,000 companies in Romania are at present in a situation with high risk of insolvency, while this risk is big for over 30,000 companies. Similarly, at present, 40% of the companies continued their activity, 37% reduced it and 23% stopped the operations due to the pandemics of Covid-19.
Termene.ro is a company set up in 2014 which allows the companies to identify opportunities for business and evaluate correctly the risks for prosperous business. Over 50,000 companies have daily access to the platform which offers updated information in real time about the financial data and the judicial data of the companies in Romania.