Businesses. present and future

• Author: D. A. Lupsa-Tataru - S. Constantin
• Position: Department of Management and Economic Informatics, Transilvania University of Brasov.
• Pages: 227-230

Bulletin of the Transilvania University of Braşov • Vol. 4 (53) •No. 1 - 2011

Series V: Economic Sciences

BUSINESSES. PRESENT AND FUTURE

D. A. LUPŞA-TTARU1 S. CONSTANTIN1

Abstract: A successful business is tough to define: a business passes

through several milestones, which, when reached, prove that the business is

on the right track. These milestones serve as indicators that the business is

growing and expanding - in the right direction. A successful business does

not happen overnight. Considering the climate of Romania nowadays and

also the supposed interest or lack of interest in starting a business, we have

tried to identify and measure the factors considered to contribute to the

success of a business.

Key words: business, success, failure, economy.

1 Department of Management and Economic Informatics, Transilvania University of Braşov.

1. Introduction

The main idea we have tried to develop

in the project that we have written is to

find the differences between entrepreneurs

and people who want to start their own

business in the future. We also tried to

identify possible mistakes that future

entrepreneurs might do.

Also, we focused on the past and present

situation of Romania and on finding

indicators of the future business

environment.

For this purpose, we have interviewed

100 persons between the age of 18 and 59

(40 of whom have already become

entrepreneurs), using two types of

questionnaires. By doing so, we have

received 87 surveys, determining a

response rate of 87%, from which we have

tried to outline the answer of the most

common and important question referring

to the Romanian business environment.

The questions were designed to identify

significant information although the

sample size is very small. General

information about the interviewed subjects:

male 70%, female 30%; students or higher

education 95% and 67% are 25 or younger.

2. Business failure and success

Small businesses fail at an alarming rate

in Romania. Every day, tens of small

businesses close their doors because they

were not able to effectively blend the many

elements needed for success.

Based on information provided by the

Chamber of Commerce [1], only 10% of

the newly founded businesses pass the first

year of activity. Furthermore, approx. 10%

of the companies that pass the first year;

succeed in passing the first 5 years.

There have been many articles and books

written on the subject of why businesses

fail, and most of them [2, 3, 4, 5, 6, 7, 8, 9,

10] point to the same reasons, such as:

inadequate funding, bad location, lack of a

well thought-out business plan, poor

execution, bad management, expanding too

quickly, insufficient marketing or

promotion, inability to adapt to a changing

marketplace, failure to keep overhead costs

low and underestimating competitors.