90% of companies in rural areas have under 10 employees | SIVECO Romania

90% of companies in rural areas have under 10 employees

Thursday, September 10, 2009

942 entrepreneurs from 493 localities in the country participated in sociological research.

Bucharest, 25 of August 2009 - Two thirds of those who have a business or want to start a business in rural areas are men (66.3%). Most are married, have children and are attached to rural areas. The patrons, almost half are in the production business (agricultural, livestock, woodworking, baking, construction, clothing), fourth in charge of services (rural tourism, transportation, notary, consulting), and the fourth work in trade. Although most rural businesses are small - 90% have fewer than 10 employees - but they operate at a satisfactory level for three quarters of employers, which means that their satisfaction does not depend on the size of business conducted.

These are just some of the findings of sociological research involving 942 entrepreneurs and potential entrepreneurs in 493 localities in north-east, center and south-east of Romania.

Women who want to start a business are divorced or have a legalized relationship; they have a personal computer and stay longer than men on the Internet.

Most companies have women working as managers. Almost 60% have secondary education and only 10% have universitary economic studies, confirming the affirmation that the degree is not required to succeed in business. Moreover, half of survey participants have or want to start a business in an area where they have not a qualification certified by a diploma.

The mean age of study participants was 33 years. After 45 years the desire to start a business is decreasing.

Research confirms EU data that shows that the average age of entrepreneurs is about 35 years, which shows that young people take to be a business decision not immediately after their studies.

Private sector employees are preponderant unmarried, have an average level of Education, and have lower incomes than their colleagues from public administration.

Self employed (traders, craftsmen) together with farmers have a slightly different social profile: use the least computer and the Internet, the least mastered foreign languages, not too make loans to banks in return, have an important marketing activity: almost half the farmers interviewed personally sold agricultural products or livestock to market last year (two times more men than women).

Research on training and consulting needs of entrepreneurs and those wishing to start a business in rural areas was carried out in the strategic project "Rural-Manager - www.ruralmanager.ro, selected in the Human Resources Development Sectoral Operational Program -POSDRU, which is co-financed by European Social Fund, "Invest in people!"

Implemented by the National Foundation of Young Managers - FNTM (www.fntm.ro), as leader of the consortium, in partnership with the Training and Development Center of Employers Associations of Bavaria - bfz gGmbH ((www.bfz.de), SIVECO Romania (www.siveco.ro) and the Euro 26 (www.euro26.ro), Rural-Manager runs from January 2009-April 2010. Project beneficiaries are entrepreneurs or prospective rural entrepreneurs of the 18 counties of Nord-East, Center and South-East.

Rural-Manager project promotes culture management and motivation of entrepreneurs to start a process of entrepreneurship education, to improve performance, increase access to finance, properties of good practice and ideas of national and international success.

The social survey have been conducted by the Bureau of Social Research, from March to April 2009.