By its nature, the SMEs sector is flexible having a great capacity to adapt to the changes occurring on the market. Due to this reason, for most European countries, the SMEs sector has been and still is very carefully treated. The Structure of the SMEs inSMEs, Bihor regional development, potential, perspectives

Ban Olimpia

English

Research Papers in Economics

34 
 
DEVELOPMENT PERSPECTIVES FOR THE SMES IN BIHOR COUNTY  
 
Ban Olimpia 
University  of  Oradea  Faculty  of  Economics  Universită ii  1-2,  Oradea  oban@uoradea.ro 
0359422506 
 
By its nature, the SMEs sector is flexible having a great capacity to adapt to the changes occurring on the 
market. Due to this reason,  for most European countries, the SMEs sector has been and still is very 
carefully treated. The Structure of the SMEs in the Bihor county is similar to that at the national level, and 
also European, having a weight of the micro-enterprises of 88.7% of the total of SMEs. Bihor county has 
an  important  development  potential  on  certain  sectors  and  sub-sectors  of  the  economy,  such  as:  the 
agriculture, the manufacturing industry and the tourism.    
 
Keywords: SMEs, Bihor regional development, potential, perspectives  
 
Cod JEL lucrare: M21 
 
1. The evolution and structure of the SMEs in Bihor county  
In Romania, there have been obvious efforts to stimulate this sector since the 90s. In 2004, the 
Governmental  SMEs  Development  Support  Strategy,  2004-2008  was  adopted.  Through  the 
partnership regarding the adhering to the European Union, the Romanian Government took the 
obligation to strengthen  the  efficiency  of this  sector,  to  encourage  the  establishment  of  new 
enterprises, to develop the entrepreneurial bases and to improve the business environment.   
In 2007, the directions of the SMEs development at the national level were: the improvement of 
the technological and productive capacities, the increase of the quality of products and services, 
the  facilitation  of  the  access  to  funding  and  on  the  export  markets,  the  development  of  the 
entrepreneurial culture and the increase of their managerial performances. The year of 2007 is the 
first year when the economy in Romania functioned as a member of the EU, a year with an 
economic growth of 6%.  
At the end of 2007, at the level of the entire Romanian economy, the SMEs sector recorded, from 
a demographical point of view, growths both regarding the number of active SMEs as well as the 
structure on size categories on economic sectors. The SMEs’ contribution to the support of the 
entrepreneurial spirit and to the development of the emerging private sector is a feature of the EU 
member states.     
 
Table 1 The evolution of the number (absolute, relative, comparative) of active SMEs in 
Bihor on size classes  
Year  Total  out of which: on size classes, according to the average number 
of employees  
0 - 9  10 - 49  50 - 249 
2003  13033  11479  88.07%  1229  9.42%  325  2.5% 
2004  14364  12742  88.7%  1258  8.7%  364  2.5% 
2005  15417  13658  88.59%  1384  8.9%  375  2.4% 
2006  16414  14532  88.53%  1527  9.3%  355  2.1% 
2007  18010  15976  88.7%  1697  9.42%  337  1.87% 
(Source: processing data according to the Bihor County Statistics Office)  
 
The micro-enterprises of Bihor represented in 2007, 3.7% of the total of micro-enterprises at the 
national level. The small sized enterprises of Bihor had in 2007 a similar percentage of 3.6% and 
the middle sized enterprises represented 3.5% of the total of middle sized enterprises in Romania. 35 
 
The classification on categories reflects a structure at the county level almost identical with the 
one existing at the national level. The overwhelming weight of the micro-enterprises is obvious 
both at the county level as well as at the national level, meaning over 88% of the total of SMEs.  
In 2007 the biggest number of active SMEs in Romania was recorded (until 2007), with 18.2% 
more than in 2000. During 2003-2007 no spectacular changes took place in the structure of Bihor 
county  SMEs.  We  can  notice  a  slight  lowering  of  the  weight  in  total  of  the  middle  sized 
enterprises in favour of the small sized enterprises.    
The analysis of the structure of Bihor county SMEs at the level of 2007 shows the impressive 
weight of the micro-enterprises, that is 88.7% of the total of SMEs. On the second place, taking 
into consideration the weight, at a considerable distance, there are the small enterprises with 
9.42% of the total, after which there are the middle sized enterprises with 1.87% of the total. At 
the national and EU level, too, the micro-enterprises are predominant
15. 
At the territorial level, the SMEs density is measured by comparing their number to 1000 
inhabitants. In 2007, the situation at the national level was the following
16: 
- Bucharest-Ilfov with 49.9 SMEs at 1000 inhabitants;  
- North – West (Bihor, Satu-Mare, Maramure , Bistri a-Năsăud, Sălaj, Cluj-Napoca) with 25.3 
SMEs to 1000 inhabitants;  
- The Western area with 24.3 SMEs to 1000 inhabitants;   
- Centre with 24.2 SMEs to 1000 inhabitants;   
- South – East with 20.4 SMEs to 1000 inhabitants;   
- South of Muntenia with 15.8 SMEs to 1000 inhabitants;   
- South – West with 15.5 SMEs to 1000 inhabitants;   
- North – East with 14.5 SMEs to 1000 inhabitants. 
We can  notice that the  North-East region  is  on  the  second position after  Bucharest  Ilfov  as 
density of the SMEs. Bihor county has even a higher density of SMEs than the region average, 
this being of 30.31 for 2007
17. The European average is of 5 SMEs to 1000 inhabitants.  
The  situation  reflects  the  lacks  of  balance  between  the  development  regions,  obviously  the 
highest lack of balance being between Bucharest-Ilfov and the rest of the regions. With 49.9 
SMEs to 1000 inhabitants, Biharest-–Ilfov is the only region aligning to the average density 
values recorded in the EU countries.   
It is worth retaining that, in 2007, for the first time, the North-Western region was on the first 
position for the growing rhythm of the number of SMEs compared to 2000, the reference year, 
meaning 6.7%. 
The dynamic of the SMEs in Bihor county is reflected by the ration between the number of newly 
registered SMEs in 2007 and the number of the SMEs which were not crossed off in 2007. A 
more  useful analysis  would  be  given  by  the  comparison  of  the  SMEs  which  in  the interval 
between the registration and crossing off had activity, meaning the active SMEs.  
Figure 1 The evolutional situation of the number of registered SMEs and the number of 
crossed off SMEs in Bihor county 
 
(Source: processing data Bihor Commerce Registry Office)  
                                                       
15 Observatory European SME s Report no.7/2003, pp.77-78. 
16 Idem, p.46. 
17 data provided by the Bihor Statistics Office.  
0
2000
4000
2003 2004 2005 2006 2007
SM…36 
 
 
The situation of the SMEs’ registrations and crossing offs in Bihor county during 2003-2007 
shows the tendency towards the lowering of the number of the crossed off SMEs and the increase 
of the number of registered SMEs. In 2003, 2004 and 2005, the number of the crossed off SMEs 
was higher than the number of the registered SMEs (in 2003 for a registered SME, 3 crossed off 
SMEs are due). In 2006 and 2007 the number of crossing offs decreased and the number of 
registrations increased (in 2007 for a crossed off SME almost 5 registered are due). 
At the country level, in 2007, the average number of SMEs employees was of 2764768
18, with a 
relatively  balanced  repartition  on  micro,  small  and  middle  sized  enterprises  (32.5%;  33.5%; 
34%). The average number of employees for an enterprise considering the size category for 2007 
is the following: 2.1 for micro enterprises, 19.7 for small enterprises and 98 for middle sized 
enterprises.  
The service SMEs provide more than half of the number of jobs occupied by paid employees 
(53.9%), followed by the industry SMEs  (30%),  construction SMEs (14%) and so on. 
The weight of those working in services is negatively correlated with the size class, it increases 
as the enterprises are smaller, reaching 73.9% in the case of the micro-enterprises. In Bihor 
county, in 2007, approximately 96268 people were employed at the SMEs. The highest weight of 
the workers was in the manufacturing industry, of 35.25%.  
The country average is of 12.8%. The North-Western region is higher than the country average, 
having 16% of the total per country.  
There is a correlation between the territorial distribution of the SMEs and that of the SMEs 
employees on the development regions. The evaluation index used is the average number of 
employees in the SMEs sector which is due to 100 inhabitants.   
 
Table 2 The average life span of Bihor county SMEs  
Year  The average life span of the SMEs (in months)  
2003  66.92 
2004  55.17 
2005  43.85 
2006  31.69 
2007  20.04 
(Source: Bihor Commerce Registry Office) 
 
The data show a decrease of the average life span of Bihor county SMEs during 2003-2007, from 
66.92 months to 20.04 months. This index was computed only for the firms which completed 
their life span in the interval 2003-2007.   
 
2.  Activity sectors and sub-sectors of the national economy with development potential in 
Bihor  
Analysing the presence of a connection between the degree of regional specialisation in different 
fields of activity and the evolution of the number of SMEs at the region level, we can notice
19:  
- In the North-Western region, the SMEs in the service sector have the highest weight in total the 
SMEs of over 60%, followed by the SMEs in the industrial sector with 13.8%, the SMEs in 
constructions with more than 10% and the SMEs in agriculture with a weight under 5%.  At the 
country level, the North-Western region is predominant together with the Bucharest-Ilfov region 
for the category of SMEs of other services. By other services, we understand: financial services, 
insurance services, foreign trade negotiations, real estate services and other services with high 
                                                       
18 ANIMMC, The Annual SME 2008, p.52,  http://www.animmc.ro/files/Raport_Anual_IMM_2008.pdf. 
19 ANIMMC, op.cit., http://www.animmc.ro/files/Raport_Anual_IMM_2008.pdf. 37 
 
added value. The North-Western region is on the first position for the transport services, with 
13%, followed by the South-Eastern region with 10.6% and the Centre with 10.4%;  
- Among the SMEs in the industry in the North-West, the SMEs in the textile industry are 
predominant (with 18.8% ), which situates this region on the second position in Romania after 
the North-Western region which has a weight of 20.9%; 
- For the category of active SMEs in other industries, the North-Western region is situated on the 
second position with 21.4% after Bucharest-Ilfov with 32.9%, which demonstrates an industrial 
system more dispersed on other industrial sub-branches.   
We can notice that for the North-Western region there is a relatively small weight, compared to 
other regions, of the active SMEs in commerce. The preponderance of the commerce sector 
indicates a high number of small family businesses and a lower degree of concentration of the 
distribution activities. The tendency at the national level is that of lowering the number of the 
SMEs in commerce.     
On the total of the Romanian economy, there is the tendency of lowering the number of SMEs in 
commerce, though the highest turnover is obtained from these.  
The very small weight of the turnover coming from the SMEs in tourism reflects a potential 
which has not been fully capitalised, taking into consideration the ration resources/the use of 
resources.  
For the category of other services, where the North-Western region is on top, the contribution to 
the turnover on types of activities is the following:  
I  Activities  of  juridical  consultancy,  accounting,  accounting  revision,  market  research  –  the 
average of the SMEs is of 28.5% (out of which the micro-enterprises have the highest weight of 
34.1%); 
II The architecture, engineering and technical consultancy services – the average of the SMEs is 
of   26.6% (out of which the middle sized enterprises have the highest weight of 30%); 
III Advertising – the average of the SMEs is of 23.3% (out of which the small enterprises have 
the highest weight of 34.1%); 
We have performed an analysis of all the economic entities in Bihor county because the big 
enterprises have a weight of only 0.35% of the total. We can notice that on the first position, as 
number,  are  the  commerce  entities,  followed  by  the  real  estate  entities  and  those  of  the 
manufacturing industry (in accordance to the performances of the North-Western region). In the 
service sector, the tourism entities have an insignificant weight, being grouped to other activities 
of the national economy.      
The  distribution  of  the  turnover  of  Bihor  county  SMEs  on  economic  sectors  in  2007  was: 
commerce 51.27%, manufacturing industry 18.97%, constructions 9.8%, and the rest with lower 
values
20. The sector of hotels and restaurants represents only 1.28%. 
Due to the resources it has, Bihor county favours the development of some industrial 
sectors, especially those of the manufacturing industry. In 2007, the biggest investments 
at the level of Bihor county SMEs were made in industry  (27.48% of the total). The 
county’s  fields  of  excellency,  which  distinguish  themselves  through  their  innovative 
potential, the capacity to export and the positioning on the European markets of the local 
products are: the light industry (especially, the alimentary industry, the leather and shoe 
making industry and that of clothing industry) and the wood industry. At the end on 
2008, at the European level, there were significant changes on sectors and sub-sectors of 
the economy
21. Most of the European countries recorded decreases in the fields like: industry 
(the extractive industry, textile, leather, tobacco), constructions and commerce. The increases 
                                                       
20 Bihor Statistics Office. 
21  Isabelle  Remond-Tiedrez,  Recession  in  the  EU-27:  output  measures,  Eurostat,  17/2009, 
http://ec.europa.eu/enterprise/newsroom/cf/document.cfm?action=display&doc_id=2325&userservice_id=1. 38 
 
continued only in the fields of birotics equipment, radio, television, chemical products and others 
to smaller extent. Yet, in Romania, although the industrial production lowered, the constructions 
and the commerce recorded increases in 2008.   
The  agriculture  made  in  Bihor  county  has  a  low  weight  in  the  turnover  and  the 
investments made by the SMEs, although it has a high potential in the development of 
the ecological cultures (corn, potatoes, sunflower, technical plants, fruit, vegetables) and 
their weight within the county agricultural production should increase. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 2 Repartition of Bihor SMEs on sub-branches of the economy for 2007 
(Source: processing data provided by Bihor Statistics Office) 
 
A sector with development potential is the zoo-cultural sector, with the derived products (meat, 
milk).  In  2008,  at  the  European  level  the  revenues  from  agriculture  recorded  an  increasing 
tendency, Romania being on the second position of the eight states which recorded increases, 
with an increase of 28.4%.
22 
The revenues increased especially from: the production of oil seeds, cereals, wine and olive oil, 
the pork farming, the production of eggs, milk and derived activities.   
Correlating he resources of the county with tendencies on the world tourist market (the return to 
nature, to the less modified environment, the recapitalisation of the balneary-climactic resources, 
the search for the unusual, original and origin) it is required the  stimulation of the balneary-
climactic tourism, of the mountain, adventure tourism, of the speleological tourism, and of the 
sportive tourism.  
 
   
                                                       
22 Eurostat newsrelease, 46/2009, 2 April 2009, Second estimates for 2008 EU 27 real agricultural income per worker 
down  by  3,5%, 
http://epp.eurostat.ec.europa.eu/pls/portal/docs/page/pgp_prd_cat_prerel/pge_cat_prerel_year_2009/pge_cat_prerel_ye
ar_2009_month_04/5-02042009-en-ap.pdf. 
46%
17%
13% 10%
11% 3%
0%
0% 0%
0%
commerce
transactions
industry-total
constructions
transport, storage and 
communications
agriculture, hunting, 
fishing
hotels and restaurants39 
 
Bibliography 
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Second estimates for 2008 EU 27 real agricultural income per worker down by 3,5%,

The North-West Regional Development Agency, The analysis of the interviews applied to the intermediary structures in the North-West region, http://www.nord-vest.ro/Document_Files /Analiza%20structurilor %de%20interfata_ro_fgyll7.pdf

The SME Annual Report

DEVELOPMENT PERSPECTIVES FOR THE SMES IN BIHOR COUNTY

http://steconomice.uoradea.ro/anale/volume/2009/v2-economy-and-business-administration/04.pdf

DEVELOPMENT PERSPECTIVES FOR THE SMES IN BIHOR COUNTY

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