‘Why Romanian SMEs don’t scale-up? Insights on the Growth and Development of the Romanian SMEs’ is the name of a recent thesis drafted by business consultant Daniel A. Bujorean under the supervision of university professor Patrice Piccardi from Burgundy School of Business, Dijon, France.
Although the research is not based on a national representative sample, it reveals valuable insights and some of the reasons behind the poor performance in Internationalisation, Innovation and low competences of the Romanian SMEs and also provides an overview on business growth sources and barriers against business development as perceived by entrepreneurs and key personnel on the local Romanian market.
It appears that the Romanian executives (Entrepreneurs, CEOs & CMOs) are stuck in the classical paradigm of developing the business in the same existing market and focusing on the competition. Most of them clearly identified the political & legislative factors along side competition to be the main reasons of their failure to develop. Although they blame the political and the competition they do understand the need for new competences, capabilities and process optimisation. Despite this, no executive considered this to be an investment priority for them according to the survey.
Out of responses only 30% of the executives understand the need for a written marketing plan and 28% admitted they do not have a written marketing plan but only 5% agree with the statement that they do not need a marketing plan at the moment. It appears that the majority of Romanian executives are basically throwing away their resources on ad-hoc initiatives with no control over the return of their investment. This percentage it may be the biggest competence gap that Romanian SMEs have as to their European counterparts.