Female leadership in Romania and its impact on business success:
25% of companies are owned by women, and over 36% of leaders are women

Last year, Forvis Mazars launched the study – What is their X factor? The three ingredients of success (or failure) for startups in 2024, which looks into the factors that contribute to the success or failure of startups. Based on data from over 1,700 startups worldwide, the study offers valuable insights to guide future entrepreneurs and leaders, including those in Romania.

The report highlights three key factors that determine the success or failure of startups. First, strong leadership and a well-aligned team are crucial, as diversity in skills, perspectives, and experiences improves problem-solving and execution. A shared vision ensures smoother operations and reduces risks such as poor planning. Second, funding must be strategic – securing the right amount at the right time, with clear objectives, and from partners who provide more than just capital.

This includes offering consulting hours, mentorship, access to valuable networks, and support in building reputation and credibility. Premature or excessive funding can dilute control and derail a startup’s goals. Finally, startups succeed when they tackle real challenges with scalable and impactful solutions. By blending profitability with social or environmental benefits, they establish themselves as innovative drivers of positive change.

Startups need to go beyond buzzwords and focus on creating sustainable solutions
The Romanian startup landscape aligns with the definition provided in the Forvis Mazars report, focusing on emerging, innovative, and scalable businesses that challenge traditional norms. While many Romanian startups operate in technology-driven sectors, they are also expanding their impact into areas like education, healthcare, and sustainability. This demonstrates the need to adapt global concepts such as scalability and agility to the unique conditions of the local market.

The report emphasises that startups must go beyond being mere buzzwords and concentrate on creating sustainable and innovative solutions. In Romania, this involves tackling local challenges such as underdeveloped infrastructure, limited funding opportunities, and the migration of skilled talent to more developed markets.

Funding remains a critical factor for startup growth
Romanian startups face similar challenges to those outlined in the report when it comes to securing funding. While many entrepreneurs associate success with securing large investments, the report highlights the risks of premature funding. For Romanian entrepreneurs, it’s crucial to find the right investors – those who understand local challenges and bring strategic expertise.

The lessons highlighted in the report – securing the right funding at the right time, for the right reasons, and with the right partners – are equally relevant for Romania. Startups in sectors like IT, renewable energy, and education often seek funding to grow, but many lack the networks or strategic support necessary to attract ‘smart money’.

The startup ecosystem in Romania mirrors the diversity and complexity outlined in the report. While the country has a vibrant tech scene supported by a large pool of IT professionals, challenges remain, including legislative barriers, limited funding, and a lack of international exposure.

“The technology sector in Central and Eastern Europe continues to be a key driver of M&A transactions, generating around 216 deals worth approximately €2.3bn, representing 17% of total transactions. Nearly two-thirds of these were inbound transactions led by bidders from outside the CEE region, confirming the market’s attractiveness to international investors. Romania remains a strategic player in the region, securing the 4th position for the number of successful M&A transaction services. These figures underscore the importance of a strategic approach to attracting investment and fostering innovation. To stay competitive, Romania must build a stronger funding ecosystem, attract visionary investors, and maintain a stable legislative framework that supports the sustainable growth of startups.”, mentioned Răzvan Butucaru, Partner, Financial Services & Advisory Leader, Forvis Mazars in Romania.

As far as opportunities are concerned, the focus on cross-border collaboration and the removal of geographical barriers – highlighted in the report – aligns with Romania’s goal of deeper integration into European and global ecosystems. Programmes that support international partnerships and attract foreign investment can help Romanian startups grow and compete on a global scale.

Romania has currently over 13 startup accelerators, organised by both private and public entities. Among them, ADRVest Accel stands out as the most well-known business acceleration programme, implemented by the West Regional Development Agency and the Institute Excellence in Entrepreneurship (IdEA). The ecosystem is also supported by various professional associations and meetup initiatives that help entrepreneurs at different stages of business development.

Romania stands out for its significant female presence in leadership roles, both in startups and multinational companies

According to a study conducted in 2023 by the Organisation of Women Entrepreneurs, one in four companies in Romania is owned by women, with an average net profit rate nearly double that of companies with 100% male ownership. At the same time, data from the National Trade Register Office shows that over 36% of leadership positions are held by women, which means more than 617,000 women leaders. The European Union has established an important directive to promote gender equality, mandating that by June 2026, publicly listed companies must ensure that 40% of non-executive director positions are held by women or achieve a total female representation of 33%. Romania is making significant progress in this regard, and the growing number of women in leadership positions demonstrates a continued commitment to gender equality in both the entrepreneurial and corporate sectors.

At the national level, in Galați and Tulcea, the proportion of women in leadership positions exceeds 40%, reflecting significant involvement in the local business environment. However, the number of newly established businesses has decreased by approximately 15% compared to the same period last year, falling from 146,297 companies to 124,898.

“For female entrepreneurship to continue to grow and become a significant force in Romania’s startup ecosystem, it is essential to develop initiatives that support women in the early stages of their entrepreneurial journey. Mentorship programs and accelerators dedicated to women can significantly contribute to creating a supportive environment, where women are encouraged to overcome their fears and the limitations imposed by social norms or preconceived notions.”, mentioned Bianca Vlad, Tax Partner, Forvis Mazars in Romania.