BOGDAN ION

 | 

ERNST & YOUNG SRL

  |  2016-08-04

Trust in the Economic Environment Is Crucial for the Future Evolution of Businesses

Businesses in the EU will soon have to adjust to a new trading reality, facing uncertainty, at least in the medium term, about the tax rules and regulations that apply to them.

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BOGDAN ION

BOGDAN ION

COUNTRY MANAGING PARTNER at ERNST & YOUNG SRL

Q: In 2016, we are witnessing a new economic cycle, in the expansion phase, as your own research show through the measure of the confidence indicator. What is the role of the entrepreneurs in this economic growth, compared to other expansions?


Bogdan Ion: In our business as advisors for the largest companies in Romania, we know that trust in the economic environment is crucial for the future evolution of businesses. For the first time this year, our Romanian Entrepreneurship Barometer has shown that Romanian entrepreneurs perceive positive evolutions on all 5 pillars that support the development of local entrepreneurship. And this is great news for the entire business environment.

 

Moreover, 66% of entrepreneurs think that Romania will make a friendly environment for business development in less than 10 years, while 38% believe this will happen in less than five years. As active supporters of the development of entrepreneurship in Romania, this inflection moment is what we have been expecting for some time.

 

Such signals enhance our trust in the future and the direction towards which Romanian entrepreneurship is heading. For sure, Romania is more entrepreneurial today than it was four years ago. Following the present local and global trends, I think Romania will be hard to recognize in 2020, regarding the dynamism with which Romanians will build their own businesses.

 

Q: What does the confidence of the business environment, as determined by EY Romania, tell about the future of the economy?

 

Bogdan Ion: According to our latest business sentiment survey, 93% of business leaders in Romania are confident in the growth of their companies this year, while only 5% expect a turnover decrease and 2% expect it to stagnate. Of those who bet on growth, 41% expect an important positive evolution (over 10% growth), marking however a slight decrease compared to 48% at the beginning of 2015.


Estimations regarding the profit growth are also positive – 32% of companies expect a profitability growth of over 10% in 2016. This trend will be supported largely by investment, considering that 81% of respondents say they will increase investments in 2016, compared to 76% that planned to do this at the beginning of 2015. Investments will focus on growing the efficiency, expanding on new market segments and expanding on new markets.

 

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TOP TRADE, TEXTILES AND LEATHER COMPANIES (2015)
Scoring Methodology by ERNST&YOUNG


 
#
COMPANY NAME
MCR TOTAL SCORING
 
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