How foreign Investors behold Romania as a Business Environment
Located at a crossroads of Central, Eastern, and Southeastern Europe, Romania is the 12th-largest country in Europe and the 6th most populous member state of the European Union, having around 20 million inhabitants. Same as other Eastern-European countries, it had started a transition towards democracy and a market economy back in 1989, when the communist regime collapsed alongside the Soviet Union.
Since then, Romania had gone through profound cultural, economic, and financial challenges, shaped by the integration into the Western culture. Shifting towards capitalism and a market-based economy had created many opportunities for local businesses and individuals. As part of NATO and the EU, the country had become an attraction for foreign investors, leading to a strong and robust economic growth since the early 2000s. But why do foreign investors choose Romania?
Values of the Romanian culture
Like any former Communist nation, Romania had to face many hardships throughout its existence, which forced people to be accustomed to difficult conditions. “Work hard, play hard” is defining accurately how Romanians live their lives. Enthusiastic when it comes to uncommon tasks and stimulated by the novelty, they are highly appreciated by other cultures for their willingness to work as much as it’s needed and stay connected 24/7, even not during the working schedule.
The opening towards the Western culture had led to a huge number of Romanians accumulating English knowledge. Whether in school or during their spare time, people deal with English information, increasing their ability to interact with other cultures, and make business with them. At the same time, importing goods and services from the West had led to the integration of English terms in the day-to-day vocabulary. Computer menus, company names, or marketing, all still flooded with English terms, contributing to the development of an environment that’s welcoming towards foreign investors.
Responsiveness and punctuality are part of the Romanian culture and represent the foundation for building strong and long-term relationships. The combination of Latin spirit and influences from the East (Romania had been under the influence of the Ottoman Empire for centuries and under the influence of the Soviet Union between 1945 and 1989) make Romania one of the most fascinating cultures in Eastern Europe. Its ethnic and cultural diversity shows a country where people with different views can live with each other without major conflicts.
Complaints from foreign investors towards Romania
Despite all the positivity, Romania isn’t a perfect country. Living 45 years under a Communist regime had influenced heavily how people think and behave, leading to a slow transition towards capitalism in the early 90s. From a political point of view, Romania is still in a tough position, with leaders still unable to draft a comprehensive long-term economic plan for the country.
Also, bureaucracy is one of the main complaints from the part of foreign investors. Often, regulation will act against business developments and make it harder for domestic or foreign entrepreneurs to easily scale up their activity and thus create prosperity for the entire country. During the past few years, this issue had diminished, but it still puts Romania at a great disadvantage as opposed to other Eastern European nations.
To summarize, Romania is an interesting cultural mix that continues to be attractive to foreign investors. Although both positive and negative factors could be found, the country continues to be a popular place for investors looking for opportunities in emerging markets. With a high potential for growth, Romania is expected to remain attractive, as most Western countries are showing their limited ability to generate high growth over an extended period.
