EY Entrepreneurship Barometer Study: 71% of companies adopt Artificial Intelligence, while 75% fear economic risks in Romania

• Romanian entrepreneurs are highly concerned about geopolitical instability (90%) and inflationary pressures (83%)
• Managing labor costs while offering competitive compensation (42%) remains a top challenge for Romanian organizations
• A significant 60% of Romanian organizations are not likely to sell part of their company in the next 12 months and only 20% of Romanian family businesses have a formal succession plan

Romania is at a crucial moment for entrepreneurship, with significant opportunities for innovation and development, but also major challenges that must be managed strategically, according to the EY Entrepreneurship Barometer study. 

Bogdan Ion, EY Romania & Moldova Country Managing Partner | EY CESA Chief Operating Officer: As we navigate a challenging economic landscape, marked by geopolitical instability and rising inflation, it’s crucial for Romanian businesses to adapt swiftly. Our study shows that 90% of companies are concerned about geopolitical risks, while 83% are grappling with inflation. This underscores the need for robust risk management strategies and a proactive approach to navigating these uncertainties. Given that businesses find local regulations complex and resource-intensive – with 33% of companies considering them a major obstacle to development, advocating for streamlined regulatory processes is essential. By engaging with policymakers to simplify compliance requirements and focusing on innovation, companies can position themselves for sustainable growth despite the challenges ahead.

Innovation is a major priority for companies in Romania, with approximately 60% of them investing in process and strategic marketing innovation, compared to their counterparts in Central, Eastern, and Southeastern Europe (CESA), where only 46% focus on process innovation and 38% on strategic and marketing innovation. This reflects an active and dynamic entrepreneurial environment, where the use of artificial intelligence (AI) is significant, with 71% of firms increasing the usage of these technologies in the past 12 months, compared to 61% among CESA entrepreneurs. Additionally, 67% are improving their websites, and 63% are implementing CRM systems, highlighting the transition towards digitalization and automation.

Investments in process automation are planned by 58% of companies, and 71% are focusing on updating IT systems. However, entrepreneurs are cautious, with 75% perceiving economic risks and market uncertainties as significant obstacles for their investment plans. 

In the labor market, the outlook is optimistic, with 46% of companies forecasting full-time hires. However, 69% face difficulties in finding qualified candidates. Managing labor costs and ensuring competitive compensation are major challenges, underscoring the importance of a positive organizational culture for employee retention.

Geopolitical instability and inflation are major concerns for Romanian entrepreneurs, with 90% expressing worries about geopolitical instability and 83% about inflation, prompting the need for robust risk management and cost control strategies to maintain financial stability and profitability in an increasingly challenging economic environment.

With 77% of businesses worried about higher labor costs, effective workforce management strategies are essential for attracting and retaining talent. Additionally, organizations must optimize operations and explore energy efficiency measures to mitigate rising expenses and enhance overall financial performance.

60% of organizations in Romania do not intend to sell a part of their company, indicating internal stability. However, 48% of entrepreneurs plan to exit their ownership structure of the company within 1-4 years, demonstrating an active trend in succession planning. This suggests an awareness of the importance of long-term planning and business continuity.

Romanian businesses are increasingly investing in AI, with 23% of companies allocating up to $25,000 for implementing these technologies, and 73% expect significant improvements in operational efficiency. However, 37% of firms face challenges in training employees to use these technological tools, highlighting the need for adequate training programs.

The entrepreneurial ecosystem in Romania is often perceived as unfavorable, with 63% of entrepreneurs considering current conditions inadequate. Access to financing is seen as a major barrier to business development (35%), and complex regulations are perceived as a burden, with 25% finding them resource-intensive and 33% viewing them as restrictive, affecting innovation and growth. 

In the family business sector, only 20% have a formal succession plan, highlighting a critical need for strategic planning. Additionally, family conflict management affects 32% of these businesses, illustrating the complexity of issues managed in such structures.

Economically, Romania encourages entrepreneurship through various subsidies and support programs, despite a moderate ranking regarding the ease of doing business. Net foreign investment shares in GDP remain low, while the estimated number of active start-ups in the country is around 11,000.

Organizations in Romania need to develop proactive succession strategies to ensure continuity and adaptability in the face of change. Additionally, simplifying processes is necessary to support innovation, considering the lack of clear regulations and the challenges related to data privacy. At the same time, creating a positive work environment and investing in employee training for the use of emerging technologies are vital for the future of companies. This holistic approach will contribute to increasing competitiveness and the sustainable development of organizations.

About the data

The survey was launched in the first quarter of 2025 across the EY CESA region, which includes Central, Eastern, and Southeastern Europe, as well as Central Asia. In Romania, a total of 48 respondents participated, while at the CESA level, the survey gathered responses from 1,032 participants.

Most Romanian entrepreneurs who participated in our study lead small businesses. Specifically, 63% reported annual revenues of less than US$10 million in the last fiscal year, and 60% operate with teams of 1 to 49 employees. Notably, 52% of respondents identified their companies as family-owned. 
 
The countries that participated in the survey and are included in the CESA region: Romania, Hungary, Poland, Greece, Serbia, Czech Republic, Slovakia, Croatia, Turkey, Cyprus, Bulgaria, Slovenia, Malta, Baltics