UniCredit Bank study: 45 pct of Romanian creative entrepreneurs plan to expand their business next year

According to the Barometer of Creative Minds, a study made by UniCredit Bank, together with Exact Cercetare si Consultanta, 45 percent of Romanian creative entrepreneurs plan to expand their business next year.

This was the first study in Romania aiming to make a radiography of entrepreneurship in creative industries.

“With the proper support, the creative entrepreneurship can become a growth engine for the Romanian economy. The Barometer of Creative Minds shows us which are the issues the entrepreneurs encounter, what are their needs, but also that they have a strong growth desire. UniCredit Bank would be glad that more business players and institutions in Romania would join us, ” said Anca Ungureanu, identity and communication director within UniCredit Bank.

Currently only 10 percent of the respondents believe the present economic context is favorable for them, 45 percent of the respondents consider the business expansion in the near future and 9 in 10 think the volatility of the legal framework can affect negatively their business development.

The main challenges encountered by entrepreneurs in their business development are the high taxes (70 percent), the economic conditions (57 percent) and the cash flow issues (46 percent). Also regarding the financing, the main issues are the slow procedures from the public finance programs (47 percent), the reluctance to loans (30 percent) and the lack of guarantees (26 percent), while the difficulty of procedure for financing access within public procedures is the most common issue.

„Creative business owners want to expand their locations, which also implies a higher number of employees, as well as to improve some tools to make the work process more efficient and increase their sales,” said Lacramioara Loghin, managing director Exact Cercetare si Consultanta.

Over 50 percent of the entrepreneurs say they need financing through European funds, while 1 in 2 creative businesses want online banking services. The study reveals that the most useful financial instruments are online/mobile banking and own equity. They are reluctant to bank loans, preferring the own equity.

“The entrepreneur-bank relationship is necessary, since the market entry moment until maturing stage. The bank relationship type is very important, where the bank can help the entrepreneurs. In the first stage we offer for example the leasing possibility, which implies lower costs. It’s important also that the bank loan to be taken at the right moment, as at the beginning the risk is high, which implies higher costs. We offer special programs for start-ups,” said Sorin Dragulin, ‎products & segments director at UniCredit Bank.

Regarding the human resources, the study shows that over 65 percent of the entrepreneurs intend to hire in the next year. Out of these, the majority wants to recruit full time employees and prefer young candidates from millennials’ generation (18-34 years). The most important recruiting criteria are the enthusiasm and the commitment, followed by the candidate’ personality and the match between the organizational culture and the candidate’ personality.