The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment

Given the negative effects of the economic crisis on the Romanian economy, entrepreneurship represents one of the main pillars of economic recovery and the authorities need to act in support of private entrepreneurship initiative. Even though entrepreneurship does not equate to the small and medium-...

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Main Authors: Dan Armeanu, Nicolae Istudor, Leonard Lache
Format: Article
Language:English
Published: Editura ASE 2015-02-01
Series:Amfiteatru Economic
Subjects:
Online Access:http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2380
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author Dan Armeanu
Nicolae Istudor
Leonard Lache
author_facet Dan Armeanu
Nicolae Istudor
Leonard Lache
author_sort Dan Armeanu
collection DOAJ
description Given the negative effects of the economic crisis on the Romanian economy, entrepreneurship represents one of the main pillars of economic recovery and the authorities need to act in support of private entrepreneurship initiative. Even though entrepreneurship does not equate to the small and medium-sized enterprises, there is strong support in literature regarding the importance of SMEs in national economies due to the authorities` potential of intervention and their contribution to gross value added. The fluctuating evolution of the Romanian business environment has led to a high volatility of its contribution to GDP, which is especially true in the case of SMEs due to their lack of technology and capital and difficult access to financing, as well as limited know-how compared to the large companies that control the Romanian market. Successful entrepreneurial initiative leads to sustainable businesses and ensures a smooth transition from business ideas to the creation of value added, thus supporting economic growth and the narrowing of macroeconomic gaps which have been generated during the economic recession. As a distinctive and dynamic component of Romanian entrepreneurship, the SME segment has a significant contribution to GDP. This study aims at assessing the contribution of entrepreneurship, through its SME segment, to Romania`s GDP in the main economic sectors and, at the same time, the estimation of output gap at sectoral level, thus filling a gap in entrepreneurship-related domestic literature.
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spelling doaj-art-015aa5029f104bda9c04513ffd7074cf2025-08-20T03:16:35ZengEditura ASEAmfiteatru Economic1582-91462247-91042015-02-011738195211The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business EnvironmentDan Armeanu0Nicolae Istudor 1Leonard Lache 2The Bucharest University of Economic Studies, RomaniaThe Bucharest University of Economic Studies, RomaniaThe Bucharest University of Economic Studies, RomaniaGiven the negative effects of the economic crisis on the Romanian economy, entrepreneurship represents one of the main pillars of economic recovery and the authorities need to act in support of private entrepreneurship initiative. Even though entrepreneurship does not equate to the small and medium-sized enterprises, there is strong support in literature regarding the importance of SMEs in national economies due to the authorities` potential of intervention and their contribution to gross value added. The fluctuating evolution of the Romanian business environment has led to a high volatility of its contribution to GDP, which is especially true in the case of SMEs due to their lack of technology and capital and difficult access to financing, as well as limited know-how compared to the large companies that control the Romanian market. Successful entrepreneurial initiative leads to sustainable businesses and ensures a smooth transition from business ideas to the creation of value added, thus supporting economic growth and the narrowing of macroeconomic gaps which have been generated during the economic recession. As a distinctive and dynamic component of Romanian entrepreneurship, the SME segment has a significant contribution to GDP. This study aims at assessing the contribution of entrepreneurship, through its SME segment, to Romania`s GDP in the main economic sectors and, at the same time, the estimation of output gap at sectoral level, thus filling a gap in entrepreneurship-related domestic literature.http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2380entrepreneurshipbusiness environmentsmall and medium-sized enterprisesreal GDPpotential GDPoutput gapproduction function
spellingShingle Dan Armeanu
Nicolae Istudor
Leonard Lache
The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
Amfiteatru Economic
entrepreneurship
business environment
small and medium-sized enterprises
real GDP
potential GDP
output gap
production function
title The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
title_full The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
title_fullStr The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
title_full_unstemmed The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
title_short The Role of SMEs in Assessing the Contribution of Entrepreneurship to GDP in the Romanian Business Environment
title_sort role of smes in assessing the contribution of entrepreneurship to gdp in the romanian business environment
topic entrepreneurship
business environment
small and medium-sized enterprises
real GDP
potential GDP
output gap
production function
url http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=2380
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