The paper presents the results of an empiric research conducted between April and June 2010 and offers a broad view of the management developed in the Romanian SME's, of their performances during the last year and of the methods used by the entrepreneurs and managers to measure the performances of their firm. Also, the paper underlines the characteristics of the management practiced in the firms with superior performances, resulting in a tight bond between the degree of professionalism of the management and the degree of profitability of the firm.entrepreneurial management, Romania.

Oana Mihaela BARA

English

Research Papers in Economics

Review of International Comparative Management                              Special Number 1/2011  25 
 
 
CHARACTERISTICS AND PERFORMANCES  
OF ENTREPRENEURIAL MANAGEMENT IN ROMANIA 
 
 
Oana Mihaela BARA 
National Council for Small and Medium Sized Private Enterprises in Romania 
 
 
 
 
The research was conducted in the period April-June 2010 on a sample of 
214 entrepreneurs and managers with the purpose to underline the characteristics 
and performances of the entrepreneurial management in Romania and has shown 
the following significant aspects: 
o  31,51%  of  the  respondents  declared  that  they  attended  courses  of 
management, while 68,49% of them do not have such a specialization; 
o  In 45,12% of the total investigated firms plans and annual policies are 
being conducted, in 13,41% of SME’s are elaborated strategies for 3-5 years and in 
41,46% of the firms planning activities are not being conducted; 
o  In  most  firms  (59,04%)  it  was  settled  as  an  objective  the  moderate 
expansion  of  the  business,  in  20,48%  of  the  firms  the  major  purpose  is  the 
maintenance of the business at the current dimensions, in 10,84% of the firms it is 
desired the rapid expansion of the business; 6,02% of the respondents indicated as 
an objective the reduction of the dimensions of the firm; 
o  The most frequent strategic options mentioned by the analyzed SME’s 
are: training of the personnel (81,08%); new markets penetration (59,46%); cost 
reduction (54,05%); creation of strategic partnerships (51,35%); amplification of 
the  marketing  activity  (48,65%);  diversifying  the  production  (31,08%);activity 
informatization  (24,32%);  growth  in  the  volume  of  investments(21,62%); 
restructuration and modernization of organizational management(20,27%);  
o  From the point of view of the formalization of the organization, almost 
half of the respondents, 49,30%, indicated a mixed type of organization; 16,90% of 
managers  indicated  a  totally  formal  organization;  the  same  percent  (16,90%) 
declared that within their firm there  is an organization  which is preponderantly 
ABSTRACT 
The paper presents the results of an empiric research conducted between April 
and June 2010 and offers a broad view of the management developed in the Romanian 
SME's,  of  their  performances  during the  last  year  and  of  the  methods  used  by  the 
entrepreneurs and managers to measure the performances of their firm. Also, the paper 
underlines the characteristics of the management practiced in the firms with superior 
performances, resulting in a tight bond between the degree of professionalism of the 
management and the degree of profitability of the firm.          Special Number 1/2011                          Review of International Comparative Management  26 
formal,  and  in  14,08%  of  the  SME’s  involved  in  the  study  the  organization  is 
preponderantly informal; 
o  The  analysis  of  the  ways  the  organizational  structure  used  with 
preponderance in the companies are presented/reflected, we observe that the firms 
use in the greatest measure the job description forms (72,97%), which are followed 
by  the  organizational  and  functioning  regulation  (60,81%)  and  the  organization 
chart  (47,30%); 
o  82,97%% of the managers interviewed prefer the positive motivation; 
o  58,90% of the respondents prefer to use the economic motivation, while 
41,10% are interested in the satisfaction of the moral and spiritual aspirations and 
expectations; 
o  In  the  majority  of  enterprises  the  experience  is  valued  (68,92%  of 
firms), the competence in the field of activity is valued in 62,16% of cases, the 
degree of involvement in the firm is valued in 56,76% and the abilities to work in a 
team are valued in 51,35% of cases; 
o  From  the  point  of  view  of  the  type  of  management  used  in  the 
respondent firms, the  most frequent  is the  management through  objectives, this 
type of management being preferred by 48,65% of the persons interviewed; 
o  The analysis of the methods and specific management techniques used 
by the interviewed managers we observe the following: 66,22% of these use the 
meeting; 45,95% appeal to delegation; 31,08% use methods of stimulation of the 
creativity of the personnel; 10,81% use the method of diagnose and 5,41% use the 
board panel; 
o  64,39% of the  decisions taken  in a  month  within a  firm are current 
decisions, 23,48% are tactical decision and 12,13% are strategic decisions; 
o  59,29% of the decisions are taken at the superior management level, 
26,11% at the medium managerial level and only 14,60% are taken at the inferior 
level; 
o  From  the  point  of  view  of  the  financing  means  for  the  economic 
activities adopted by the interviewed managers over the last year, the results show 
the following: 87,84% used the self-financing; 33,78% financed their companies 
through bank credits; 31,08% resorted to a credit provider; 27,03% acquired certain 
goods through leasing; 9,46% opted for not paying the bills to the suppliers or not 
paying  the  charges  to  the  state  budget  and  8,11%  financed  their  activity  by 
charging advance payments from the customers; 
o  56,76% of the respondent firms resort to consultancy on legal aspects; 
32,43%  resort  to  consultancy  in  the  accountancy;17,57%  of  the  interviewed 
managers  used  the  consultancy  with  the  purpose  to  access  grants;  14,86%  use 
consultants in the marketing area and 10,81% use consultants on human resources 
issues; 
o  95,95% of firms have computers; 95,95% of the managers use the e-
mail as a means of communication while 93,24% use the Internet; 
o  26,87% of the interviewed entrepreneurs and managers consider that in 
2010 their performances where a little weaker that in the previous year, 23,37% Review of International Comparative Management                              Special Number 1/2011  27 
consider that 2010 was better from the point of view of the company performances 
and 20,90% registered much weaker performances; 
o  A  quite  important  percent  from  the  entrepreneurs  and  managers 
interviewed (49,21%) consider that the turnover was lower in 2010 in comparison 
to 2009; 
o  More  than  a  half  of  the  entrepreneurs  and  managers  interviewed 
(53,33%) stated that the registered profit was weaker; 
o  48,65% of the companies consider that the values of the loss in 2010 
are the same with the previous year; 
o  The total amount of investments in the Romanian companies in 2010 is 
lower  than  the  same  period  of  the  previous  year,  41,38%  of  the  respondents 
declaring that the values were lower; 
o  Quite  high  proportions  (73,58%)  of  the  economic  actors  questioned 
registered similar values with the ones in the previous year for the funds allocated 
to the environment; 
o  If we consider the evolution in the number of employees in 2010 in 
comparison to 2009, we observe that this indicator stayed constant in over a half of 
the companies submitted to the enquiry; 
o  44,26%  of  the  respondents  consider  that  in  the  current  year  they 
launched more products/services in comparison to 2009; 
o  When  we  consider  the  degree  of  fulfilment  of  the  previous  year’s 
objectives, 35,71% of the enterprises questioned consider that they fulfilled their 
objectives in a proportion of over 75%; 
o  The  entrepreneurs/managers  interviewed  indicated  that  in  the  last  3 
years they have adopted the following measures to improve de conditions of their 
employees: the introduction of a flexible working programme (63,51% of firms), 
the improvement of the ventilation system (39,19%), the endowment of the offices 
with ergonomic furniture (29,73%), creating a kitchen for the personnel (27,03%), 
creating a bathroom (24,32%), acquiring high performance protection equipment 
(22,97%), phonic isolation (12,16%); 
o  The annual production of 56,33% of the companies is designed for the 
local market, which is followed by the national market (31,55% of the investigated 
firms); 
o  87,84% of the managers interviewed use as a means to appreciate the 
performances the evolution of the turnover, 82,43% - the profit reached, 54,05% - 
the degree of objective fulfilment, 33,78% - the total amount of the investments, 
32,43% - the degree of innovation of the services and products, 31,08% - the total 
amount of debts; 
From the analysis of the answers of the managers and entrepreneurs whose 
firms obtained superior performances, we observe the following: 
  The  weight  of  managers  with  studies  in  the  field  of  management  is 
much higher comparatively to the average of the sample, fact which shows a direct 
connection  between  the  performances  of  the  firm  and  the  degree  of 
professionalization of the management;          Special Number 1/2011                          Review of International Comparative Management  28 
  The planning/prediction activities are more frequent comparatively to 
the average of the sample in the firms with superior performances; 
  The  managers  of  the  firms  which  are  more  performant  resort  more 
frequently to the moderate expansion of the business (75,86%), while the reduction 
of the dimensions of the business, the selling of the business or its closing are not 
options for them;  
  The  managers  of  the  firms  with  higher  performances  resorted  more 
frequently, in comparison with the average, for the reduction of costs (58,62%), the 
amplification of the marketing activity (51,72%), creation of strategic partnerships 
(55,17%)  and  the  restructuration  and  modernization  of  the  organizational 
management (37,93%); 
  The firms with a much performant management have a higher degree of 
organizational formalization; 
  There is a higher use of organization charts (62,07%), organizational 
and functioning regulations (68,97%) and of the job description forms in the firms 
with  superior  performances,  which  shows  a  growth  in  the  performances  of  the 
firms in accordance  with the growth  of the professionalism  of the  management 
inside them; 
  In  the  SME’s  with  superior  performances  it  is  practiced  in  a  higher 
proportion comparatively to the average of the sample the management based on 
objectives (51,72%); 
  Within the firms with superior performances the weight of the strategic 
and tactical decision is higher comparatively to the average of the sample; 
  The firms with superior performances resorted more often to external 
consultancy, comparatively to the less performant firms; 
  The  firms  which  had  superior  performances  resorted  more  often  to 
using the computer, the e-mail, the Internet, the company website, on line selling 
and acquisition, intranet.  
 
The empiric research presented in this paper offer a broad imagine of the 
management practiced in the Romanian SME’s, of the performances they had over 
the last year and of the means used by the entrepreneurs and managers to measure 
the  performances  of  the  firm  they  manage.  Also,  the  paper  underlines  the 
characteristics  of  the  management  practiced  in  the  firms  with  superior 
performances,  emerging  in  a  tight  connection  between  the  degree  of 
professionalism of the management and the degree of profitability of the firm. 
 

Characteristics and Performances of Entrepreneurial Management in Romania

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Characteristics and Performances of Entrepreneurial Management in Romania

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