The Silent Crisis Killing Romanian Business: 87% Get Funded, But We're Too Afraid to Ask (It's Not the Economy). Inferiority Complex

Romanian companies aren't getting the funding they deserve. And let’s be clear—this isn't about geopolitics or some conspiracy cooked up in the boardrooms of Western corporations. The cold, hard truth? The problem lies at home. It's not that Romania doesn’t have good business opportunities—it’s that companies here don’t know how to sell themselves.

This isn’t a criticism, it’s a wake-up call.

Inside:

• The shocking BNR data: Why 81% of Romanian companies are trapped in self-funding
• The psychology holding back our potential: Breaking down the "inferiority syndrome"
• The funding paradox: 87% loan approval rate, but only 10% dare to apply
• Beyond corruption myths: How outdated narratives mask our 16% corporate tax advantage
• The real skills gap: It's not what you think
• The €2B question: Why only 2% of firms chase EU grants

The Funding Drought No One Wants to Admit

Look at the latest survey from the National Bank of Romania (BNR) on non-financial companies. The big takeaway? Most companies are relying on internal funds—81% to be exact—to finance their operations. Now, that’s fine if you’re playing it small, but we’re talking about businesses that want to scale, grow, and compete internationally. Digging into your own pockets isn’t a strategy; it’s a slow bleed.

What’s even more telling is that only 10% of companies are turning to bank loans. Why? It’s not like the banks are saying no—87% of those who applied got their funding. The problem is that businesses aren’t even trying. They’ve convinced themselves that external financing isn’t for them, either because they’re afraid of rejection or because they think they don’t measure up. And here’s where the inferiority complex kicks in.

The "Inferiority Syndrome" Holding Romania Back

This is where things get psychological. There’s an underlying narrative in Romania, a kind of inferiority syndrome, where businesses and professionals believe they’re somehow “less than” their Western counterparts. Maybe it’s historical, maybe it’s cultural, but this mindset is deadly for business.

Why do we think Western specialists are inherently better? It's not that Romania lacks talent or potential—far from it. Our companies can compete on quality, labor, and innovation. But in the global marketplace, having the best product doesn’t always cut it. It’s about perception, confidence, and knowing how to sell yourself. That’s where we’re falling flat.

Western businesses aren’t succeeding because they’re inherently better—they’re succeeding because they know how to communicate their value, negotiate deals, and build partnerships that scream “profitability.” Romanian companies have the goods but aren’t packaging them right. And that’s on us.

Investors Want to Buy In, But We’re Not Selling

Let’s talk about investors. They’re out there, constantly hunting for opportunities. They’re looking for companies that offer profitability, efficiency, expansion potential, and skilled workers. Romania could check every box, but the reality is, investors aren’t lining up at the door. Why? Because no one’s selling Romania as an opportunity.

Investors aren’t being wooed by flashy presentations or compelling pitches. They’re not hearing about how Romanian companies can help them cut costs, boost their bottom line, or outpace their competitors. What they see are businesses that are struggling to present a clear, confident picture of their potential. It’s not just about the numbers—it’s about the story we’re telling. Or more accurately, the one we’re not telling.

And here’s the kicker: only 2% of Romanian firms are even applying for European grants. Two percent! These grants are literally sitting there, like an open invitation for anyone with a half-decent business plan. It’s like a permanent “Shark Tank” audition where the money’s already on the table, but no one’s showing up to pitch! It’s beyond hilarious—it’s tragic. Why? Because applying for a grant is just another way to sell yourself. If we can’t even take advantage of these laid-out opportunities, how do we expect to attract real investors?

The Missing Soft Skills: Sales, Negotiation, and Self-Confidence

It all boils down to this: Romanian businesses lack soft skills. Sales, communication, negotiation, self-confidence—these are the real drivers of investment. And yet, they’re not being cultivated. This isn’t just a business problem; it’s a national problem. A nation that doesn’t know how to sell itself is a nation that will miss opportunities.

The BNR’s data shows us that companies aren’t even trying to get the funding they need. And when they do, it’s like they’re tiptoeing around the idea, as if asking for money is an admission of weakness. It’s not. It’s how you grow. But growing takes more than capital—it takes confidence, it takes boldness, and it takes knowing how to close a deal.

Time to Break the Cycle

Romanian companies need to stop thinking of themselves as second-class citizens in the global economy. We have the talent, the resources, and the potential. But until we develop the soft skills necessary to attract investment—both from inside the country and abroad—we’re going to keep watching opportunities pass us by.

It’s not just about what you have. It’s about how you present it. Investors don’t care where you’re from—they care about what’s in it for them. If we can’t learn to speak that language, we’re not just losing out on money. We’re losing out on Romania’s future.

Romania Has Tax Advantages That Should Be a No-Brainer for Investors—But Corruption Kills the Buzz (Or Does It?)

Here’s the crazy part: Romania has one of the lowest corporate tax rates in the EU, sitting at just 16%. Compare that to Germany’s hefty 30% or France’s 25%. Throw in the 0% income tax on salaries in sectors like IT, and it’s a tax paradise for anyone looking to make a buck. If investors were just after tax savings, Romania should be flooded with capital.

And yet, it’s not happening. Why? The easy scapegoat is corruption. We’ve heard it a million times—Romania is plagued by corruption, right? Well, here’s where the narrative gets outdated. In reality, corruption has been on the decline for years. The National Anti-Corruption Directorate (DNA) has been kicking down doors and cleaning house, bringing high-profile cases against corrupt officials, and pushing Romania closer to EU standards. We’ve made strides, and it shows.

In fact, when you look at international businesses, corruption is hardly on their radar anymore. Sure, it’s a factor, but it’s no longer the dealbreaker it once was. Big companies like Ford, Renault, and Continental have been thriving here for years. If corruption were truly stopping progress, why are these global giants still expanding their operations? The same goes for local companies, small and big—they’re managing just fine, and most don’t even list corruption as a top issue anymore.

And yet, it’s the perception that drags us down. Investors love low taxes, but they love stability even more. While Romania's laws can be unpredictable, the corruption monster that used to scare everyone away is shrinking. Investors should be all over Romania, but the messaging hasn't caught up with the reality.

Let’s look at the FDI trends: in 2022, Romania attracted USD 11.2 billion in foreign direct investment. Not bad, but it’s still small potatoes compared to the likes of Germany and France. Why? Because while we have tax advantages, we lack trust. Investors see the old headlines about corruption and hesitate, despite the fact that corruption-related concerns have sharply declined. What’s really stopping them? We’re simply not telling our story the right way.

Romania ranks 55th on the Ease of Doing Business index. Meanwhile, countries like Ireland, with its 12.5% corporate tax, rank much higher, attracting tech giants left and right. Investors don’t just want a good tax deal; they want to know their money will be safe and their businesses can operate smoothly. And here’s the thing—Romania is safer now than it’s ever been. We just need to get that message out.

Here’s where the inferiority syndrome kicks in again. Romania has the tax benefits and the educated, low-cost laborthat industries crave, but businesses here often fail to highlight those advantages. Instead, we let the outdated narrative of corruption and instability dominate. It’s not that Romania isn’t worth the investment; it’s that we’re not selling ourselves well enough to counterbalance the negative press.

If we want to change the game, Romanian companies need to take control of the narrative. Show investors that the tax benefits, the workforce, and the growth potential far outweigh the risks. If Ireland, with its similarly low taxes and stable legal environment, can be a tech hub, what’s stopping Romania? It’s not the taxes or even corruption—it’s how we present the entire package.

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