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The 4th Meeting of the EGTC Approval Authorities 16-17 April 2015, Budapest

GOVERNMENT STRATEGY FOR THE DEVELOPMENT OF THE SME SECTOR AND IMPROVING THE BUSINESS ENVIRONEMENT IN ROMANIA HORIZON 2020. The 4th Meeting of the EGTC Approval Authorities 16-17 April 2015, Budapest. STRATEGIC DEVELOPMENT FRAMEWORK.

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The 4th Meeting of the EGTC Approval Authorities 16-17 April 2015, Budapest

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  1. GOVERNMENT STRATEGY FOR THE DEVELOPMENT OF THE SME SECTOR AND IMPROVING THE BUSINESS ENVIRONEMENT IN ROMANIA HORIZON 2020 The 4th Meeting of the EGTC Approval Authorities 16-17 April 2015, Budapest

  2. STRATEGIC DEVELOPMENT FRAMEWORK Romania today, EU member state, has a huge potential for economic and social development in the long term, especially at local level, where entrepreneurs and SMEs will be encouraged and stimulated to exploit, in a profitable and judiciously way for the Romanian society, the current and foreseeable future business opportunities. At the same time, there will be supported by adequate public interventions, the entreprenorial initiatives oriented towards foreign markets ("Act locally, think globally '), mainly located in the vicinity of Romania. HORIZON 2020

  3. STRATEGIC DEVELOPMENT FRAMEWORK HORIZON 2020 Statement of public policy on strategic vision and Government mission The Romanian Government is placing the active businesses in the center of its economic policy of sustainable development of the country in the period of 2014 - 2020, has adopted a series of strategic measures, allocates major public resources and undertakes, through authorized institutions, consistent, systematic and coordinated actions for: • encouraging entrepreneurship and the creation of new economic enterprises; • stimulation of small and medium sized entreprises, current and of predictable perspective, to boost competitiveness domestically and internationally.

  4. STRATEGIC DEVELOPMENT FRAMEWORK HORIZON 2020 The aim of the strategy The strategy sets the Romanian Government's policy for the next seven years with respect to: • supporting extensive and intensive growth of the SME sector, focusing on increasing the number of active SMEs in local and foreign markets of interest; • increasing the density of SMEs, especially in areas where it is below the European average in order to reduce the current regional disparities. The scope This strategy applies to small and medium sized enterprises as defined in accordance with Law no. 346/2004, regarding the establishment and development of small and medium sized enterprises, including subsequent amendments and additions.

  5. STRATEGIC DEVELOPMENT FRAMEWORK HORIZON 2020 General information relevant to the current situation of SMEs The Romanian economy is supported by the activity of SMEs and large companies. Despite representing 99.7% of the total number of enterprises, the SMEs influence on the economic development of the country is much lower (by approx. 55-56% of GDP). SMEs-99,7% IMM- 99,7%

  6. STRATEGIC DEVELOPMENT FRAMEWORK HORIZON 2020 The specific problems of SMEs in Romania At the macroeconomic level, we identified four specific current issues of domestic SMEs: • critical mass of SMEs - too few active enterprises in the economy; • dimension of the business/company - too few medium-sized enterprises; • sectorial structure - too many companies working in service and trade, especially in relation to the services for enterprises; • new business' resilience - two-thirds of new businesses go out of business in the first year of life.

  7. STRATEGIC DEVELOPMENT FRAMEWORK HORIZON 2020 Critical factors for the domestic Smes activity At the microeconomic level, we identified the following needs foreconomic activity and prospects of development of local SMEs: a) proper management of the company's cash flow; b) adequate capitalization of the business according to thestage of development of the enterprise and foreseeable prospects of its development; c) upgrading the company (including the RD&I) and enhancing the attraction and retention of individual creative talent within the organization; d) reducing the entry barriers for new businesses and concerned barriers to exit the market, of companies found not to be viable (the very negative financial results thereof); e) strengthening the networks of entrepreneurs and dissemination of relevant market information among them; f) the internationalisation of the company's business.

  8. STRATEGIC DEVELOPMENT FRAMEWORK DA 5 DA 2 DA 4 HORIZON 2020 SMEs access to adequate funding Supporting and promoting entrepreneurship DA 1 Innovative SMEs DIRECTIONS OF ACTION DA 3 Public administration’s reaction to the SMEs needs Market access and SMEs internationalization

  9. MEASURES AND GOVERNMENT ACTIONS HORIZON 2020 SUPPORTING AND PROMOTING ENTREPRENEURSHIP 1. Supporting start-ups, focusing on sectors with creative potential and in rural areas 2. Support the development of entrepreneurship education at all levels of education and stimulating social entrepreneurship 3.Entrepreneurial support programs (tutoring / mentoring, assistance / counseling, role models, etc.), including vulnerable social groups / disadvantaged (eg. women entrepreneurs, youth, legal immigrants, unemployed, people leaving the welfare system, persons with disabilities, etc.) 4.Facilitate the establishment of modern business support structures and improvement of existing ones (eg. business incubators / accelerators and centers / hubs, technology parks / software and industrial clusters / centers of excellence, design centers, local production centers services, business consulting, etc.) 5.Online platform for guidance and counseling 6.Promoting ethical behavior in business andsupporting honest entrepreneurs who want to start a business 7.Organizing events and media campaigns 8.Platforms for start-ups and SMEs 9.Implementation of the "simulated enterprise" and „company of exercise" programs DA 1 DA 2 DA 3 DA 4 DA 5

  10. MEASURES AND GOVERNMENT ACTIONS HORIZON 2020 SMEs ACCESS TO ADEQUATE FINANCE 10. Support the development, operationalization and development of mechanisms and instruments for SMEs finance (including financial intermediaries and investment vehicles), which also involve private investors 11. Support the creation and development of networks of private investors 12. Development of EU-funded projects in public-private partenership 13. Venture capital vehicle, for start-up companies funding 14. Programs involving private funders 15. Increasing accessibility of micro-credit funds for SMEs, belonging to disadvantaged social groups (women, youth, persons with disabilities, etc.) DA 1 DA 2 DA 3 DA 4 DA 5

  11. MEASURES AND GOVERNMENT ACTIONS HORIZON 2020 INNOVATIVE SMEs 16. Encouraging technology transfer 17. Development of professional and management skills of the managers of private companies 18. Development of the business consulting services for SMEs 19. Development of a national innovation support system 20. Encouragement of economic and technical cooperation of SMEs with large enterprises, especially in technological innovation and trade 21. Supporting the capitalization of the competitive advantages of SMEs with growth potential and promoting the benefits of obtaining extensive intellectual / industrial / commercial property rights 22. Supporting the implementation / certification of the management systems and voluntary certification of products and / or obtaining Ecolabel for products and services 23. Supporting SMEs to connect to R&D networks DA 1 DA 2 DA 3 DA 4 DA 5

  12. MEASURES AND GOVERNMENT ACTIONS HORIZON 2020 DA 1 DA 2 DA 3 DA 4 DA 5 ACCESS TO MARKETS AND THE INTERNATIONALIZATION OF SME’s 24. Supporting the development of electronic commerce and other online business forms 25. Supporting the establishment and development of business networks - business incubators, business accelerators 26. Strengthening SMEs capabilities for participation in national and international trade 27. Promote the use of information and communications technology within SMEs

  13. MEASURES AND GOVERNMENT ACTIONS HORIZON 2020 DA 1 DA 2 DA 3 DA 4 DA 5 REACTIVITY OF THE PUBLIC ADMINISTRATION TO THE SME’s NEEDS 28. Stimulating the associative structures to increase the negociation strength of SME’s • Information on the SMEs legislation • Improving the quality and the efficiency of public services for setting up and conducting businesses - One Stop Shop • Identifying and reduction/simplifying the administrative barriers facing business • Improving the regulatory framework for SME activities

  14. THANK YOU FOR YOUR ATTENTION! ERIKA PAPPCounselor for European AffairsMinistry of Energy, SMEs and Business Environment – Romaniaerika_papp@imm.gov.roPhone: +40 21 20 25 386

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