Financing opportunities for SME in Romania

Corduneanu, Carmen and Iovu, Laura Raisa (2007): Financing opportunities for SME in Romania. Published in: Proceedings of the 6th International Syposium of the Romanian Regional Science Association , Vol. 3, No. 1 (9 June 2007): pp. 25-31.

Abstract

The challenges caused by regionalization and globalization of markets demand the compliance of SME to the competitive environment, by consolidating their market position and benefit from the economical opportunities. Romanian SME could become an economical growth vector only if the real capacity to adapt to a global competition and knowledge based economy is proved. Presently, the small level of competitiveness is due to the lack of necessary capital for supporting investment projects, but also to the constraints of financial sources. Unlike larger companies, small enterprises are not able to finance themselves through the capital market. SME continue to limit their financing sources by using their own benefits, bank credits, leasing and only few consider the choice of factoring, for fastening the payment of their liabilities. Maintenance and consolidation on the European market requires a steadily growth of competitiveness and an increase in the level of profitableness of current activities. Implementation of investment strategies depends on the access to the new financial sources offered by the structural funds.

• Item Type: MPRA Paper
• Language: English
• Keywords: SME, financing resources, European single market
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General

References

1. European Comission- 2003 Observatory of European SMEs- „SME and Access to finance”

2. Klapper F.Leonora, Allende Sarria Virginia – „Small and Medium-Size Entreprise Financing in Eastern Europe”, The World Bank, Development research Group, December, 2002

3. 2007-2013 Reference National Strategic Frame, april 2006

4. www.mimmc.ro

5. www.fngcimm.ro

6. www.cnipmr.ro