A new study, Profile of the Romanian Tech Entrepreneur, published by EY Romania in partnership with Endeavor Romania, provides an interesting snapshot of Romania’s technology entrepreneurship landscape. The report sheds light on the demographic profiles, challenges, and successes of Romanian tech entrepreneurs, highlighting their impact on both national and international economies.
Demographics and key traits of Romanian entrepreneurs:
- Age of entry: 50% of Romanian tech entrepreneurs start their businesses before the age of 25, with 11% beginning even before turning 18.
- Education: A highly educated cohort, 90% of entrepreneurs have at least a bachelor’s degree, with 45% specializing in technical fields and 29% in finance or economics.
- Collaborative efforts: Collaboration drives success, as 80% of startups are founded by teams rather than individuals.
Starting local, going global
A standout finding is that 53% of Romanian tech entrepreneurs focus on international markets, reflecting their ambition to scale globally. These entrepreneurs are characterized by resilience, strategic foresight, and innovation, crucial traits for thriving in competitive markets.
Bogdan Ion, Country Managing Partner of EY Romania and COO for EY Central and Southeast Europe and Central Asia, emphasized the entrepreneurial spirit driving the sector:
“Romanian tech entrepreneurs exhibit perseverance, resilience, and a self-taught determination, all of which enable them to overcome obstacles and seize global opportunities. Their youth, education, and collaborative mindset are essential to fostering growth and innovation.”
Romania’s major tech hubs, Bucharest and Cluj-Napoca, have seen significant growth in entrepreneurial activity:
- Bucharest has experienced a 35.9% increase in tech initiatives since 2014.
- Cluj-Napoca leads with a remarkable 66.5% growth, benefiting from a robust academic and economic ecosystem.
No challenge, no gain
Despite notable progress, entrepreneurs face challenges, particularly in securing external investment:
- Funding sources: Most rely on personal funds (42%), while angel investors (19%) and investment funds (15%) provide additional support.
- Reluctance to share control: 95% of respondents prefer private control over their businesses, which can limit access to significant external capital.
- Family and social connections: play a crucial role in fostering entrepreneurship, with 53% of respondents influenced by close networks.
Mihnea Craciun, Managing Director of Endeavor Romania, highlighted the sector’s resilience:
“This report showcases the courage of Romanian entrepreneurs, who have transformed challenges into opportunities. Their success is a testament to innovation, collaboration, and the robust support networks that empower them to excel.”
Romanian tech entrepreneurs measure success through company growth, revenue generation, and market validation. They prioritize building skilled teams and developing innovative, market-ready products. Strategic planning and industry experience (held by 71% of entrepreneurs) underpin their ability to navigate market dynamics.
This promising entrepreneurial ecosystem reflects Romania’s potential to be a significant player in the global tech scene, supported by ambition, adaptability, and a commitment to innovation.
