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Proposal of Innovation in Entrepreneurism

Entrepreneurship is a powerful driver of economic growth and job creation, it creates new companies and jobs,
opens up new markets, and nurtures new skills and capabilities.
Entrepreneurship refers to people's choices and actions in the initiation, acquisition or operation of a business
or involvement in strategic decision making within the firm.The genius of entrepreneurship is the process of
thought, creation and development of economic activity by blending risk-taking, creativity and innovation with good
administration of a new companyor of an existing one. Most economic, psychological and sociological research
points out thatentrepreneurship are a process and not a static phenomenon.
Romanian entrepreneurship is still under construction, even if in Europe it has a long tradition and an
increasing evolution. First-born in USA, the entrepreneurship represents today the key of economic development all
over the word and an important exit from the economic crisis. This study intends to summaries the main aspects
regarding Romanian entrepreneurship in the context of European business environment development and the world
macroeconomic framework. With a great potential of development, Romanian entrepreneurship is still blocked up
by juridical, institutional and psychological reasons. The opportunities offered by the status of EU member state,
should represent for Romanian entrepreneurship a charted way to success because of simplification, standardization
and stabilization of European regulations.
Almost 80 percent of the Romanian young people under 30, with a university degree, have a positive attitude to
working on their own.
On average, all over Europe, 69 percent of the attitude to entrepreneurship is positive. Romanians are up to the
European average in point of their attitude to entrepreneurship: 66 percent. In Romania a third (34 percent) of the
interviewed people think they are capable of laying the foundations of their own business, the European average
being 38 percent.
The positive attitude to entrepreneurship is mainly obvious with people under 30, 79 percent, with Romanians
having a university degree, 74 percent, with Romanians having secondary education, 63 percent, as well as with
people having children, 71 percent, and having no children, 62 percent. As it has happened in most countries where
the survey was conducted, Romanian men, 68 percent, offer a higher rate of accepting independent activities than
women, 63 percent.
To Romanians the main factors motivating them to start their own business are: the "prospect of a second income,"
55 percent, the "independence from the employer," 30 percent, and "self-fulfilment/possibility to materialize his or
her own ideas,' 23 percent. To most Europeans that were interviewed the independence from the employer comes
first, 45 percent, self-fulfilment comes second, 38 percent, and the prospect of a second income comes third, 33
percent. Therefore, the Romanians appreciate above average the prospect of the second income, 55 percent, the

European average being 33 percent, and are attracted more by the financial aspects of carrying out independent
activities than by the freedom of being their own boss, as perceived by most Europeans.

Strengths of the Romanian entrepreunsrism


1) Because of the low-level of service market development, in Romania there are a lot of
young people with business ideas.
2) Flexibility is the main characteristic of Romanian entrepreneurship.
3) Customer loyalty is higher at SMEs level, comparatively with bigger enterprises.
4) Entrepreneurship means freedom and independence and young people are more attracted by
these qualities than working in a corporatist structure.
Opportunities in Romania
1) Lack of efficiency of different sector of economic activity allows SMEs development.
2) For small firms, characterized by flexibility, there are untapped business niches.
3) There is a higher potential of external benchmarking in the case of small business.

The best solution for young peoplewith innovative business ideas to have access both to mentoring and funding for
start-up is provided by the Association of Romanian Business Accelerator. The association foster the project StartUp Romania which aims to create 50,000 by 2020.In Romania, in the IT sector,business angels are already a widely
source of funding, with an equitycontribution between 10 - 200,000Euros. In EU there are about 30,000business
angels and 350 networks andgroups organized by these investors.

Beside these 2 primary fnding sources there are some alternatives less developed in Romania. One is crowdfunding,
an evolved form offundraising that occurs only online andoffer rewards to investors, with thesupport of thousands of
people fromdifferent parts of the world.Generally, projects in Romania aresupported by only a few dozen
people,rarely exceeding a hundred. This is dueto lack of visibility of crowdfundingplatforms and weak
entrepreneurial culture in Romania where people arenot willing to invest because of mistrust.
The challenges for youngen trepreneurs I ts thaheir businesses have some common characteristics: there are
innovative business (sometimesunconventional) both by the businessidea and the new products or servicesoffered.

Before selling these products,entrepreneurs must prepare the marketand educate consumers about a newway of
consuming. All business-relatedactivities are carried out taking intoaccount the environment, with a strong
ecological component. The productsand services are eco-friendly or supportthe environment in a certain way. These
businesses belong to the sphere ofsocial entrepreneurship by theentrepreneurs intentions to educate individuals not
to waste resources, sothe whole could benefit from thisbehaviour on long term.One of the young entrepreneurs state
that is a huge challenge "too vercome the obstacles imposed by the bureaucracy in obtaining legal identity.
Entrepreneurship along with innovation plays an important role inincreasing the economiccompetitiveness and job
creation on a global scale. Innovative businesses with chances of success are often started byyoung entrepreneurs.
They are morewilling to take risks, they are creativeand well informed. Starting a businessis a viable option for a
career and aserious personal achievement andpersonal wellbeing. The purpose of thispaper was to investigate the
relationship between entrepreneurial phenomenon among young people in Romania and the business
environment..After the considerable effort of business launching, young entrepreneurs find new obstacles in the
business environment, and thus new fears appear, new risks are taken because making mistakes can lead to
bankruptcy. With no entrepreneurial experience, and sometimes even no employee experience, young entrepreneurs
still need support from state institutions, business environment, academic community and society in general to
succeed. So, this way is created a triangleof needs of young entrepreneurs:financial resources - knowledge
-relationships. Financial resources areneeded to support the activity.Knowledge refers to information fromthe
business environment, specialistsassistance from state institutions,specialized courses offered by the
academic community (training courses) The relationship systemrefers to meetings and collaborationsbetween young
entrepreneurs and mature entrepreneurs or other young people to exchange ideas and supporteach other, to develop
their skills, thus compensating for the lack of businessexperience.Based on these results we havemade some general
recommendations to support young entrepreneurs in developing and strengthening theirinnovative business.In this
context it is obvious that the Govern should adopt a number oflegislative and fiscal changes to
supportentrepreneurship among young peoplein Romania. In a stable and attractivefiscal environment, young people
with innovative business ideas do not thin that doing business abroad is more convenient. It is necessary to improve
the access to financing by the adoption of the Law on stimulating individual investors (business angels) so that
theycould be interested in investing in areasother than IT. Also, to diversify fundingsources it is necessary the
designingand strongly promoting crowd funding platforms. Another recommendationinvolves no taxes on
entrepreneurial activity in the first 3 years of business,so that these amounts could bereinvested in the business
support.Information support of youngentrepreneurs can manifest concretely in:
Create local consulting centres(business, legal, tax consulting) free foryoung entrepreneurs.
Provide and systematize information related to finance access, consultancy (legal, tax), mentoring etc.
on sites of local institutions and the Department for SME, BusinessEnvironment and Tourism, in a coherent and
effective way.

State and local institutions should facilitate the linkage between young entrepreneurs and entities (research
institutes, business incubators, clusters)