Radiography of microenterprises under Coface radar

When the public sector’s capacity to create new jobs is limited, the attention is shifted to the private sector, which may represent the foundations for economic re-launch only through investment and occupancy rate growth on the job market.

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COFACE ROMANIA CREDIT MANAGEMENT SERVICES S.R.L.

IANCU GUDA

IANCU GUDA

COFACE ROMANIA CREDIT MANAGEMENT SERVICES S.R.L.

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Generating over two thirds of the number of jobs and over half of the added value in our national economy, the sector of small and medium-sized enterprises is an important engine of the economic development.  
 
 
 
The payment discipline of SME has an important impact over the stability of the financial system, amid that approximately 70% of the balance of credits given to companies by the banking system, is directed towards the sector of SME.  
 
 
  •  the improvement of the competitive environment – due to their reduced dimensions and high number, the SME have the capacity to stimulate the competition and to weaken the monopoly positions of big enterprises in general;
  •  the strong individualization of products and services offered by SMEs and of the efficiency of their activity, which contributes to the enhancement of the competitive vibe of the market;  
  •  generating the highest number of new jobs – the SMEs create a  significantly higher number of new jobs than the number of new jobs created by the large companies already present on the market, with a lower capital cost, acting as a buffer for the fluctuations on the labour market and representing the most important alternative in fighting unemployment;
  •  high perception of the needs of the market due to unmediated contact with the market, thus resulting in a better adaptation of their offer to the clients’ needs. Through their specific flexibility, their innovative ability, fast response time, the SMEs are becoming the only enterprises compatible with the forever more complex and dynamic environment.  
 
 
Microenterprises – the most affected segment within SME. Their liquidity, profitability and solvency is deteriorating
 
 
 
Coface Romania has calculated the main financial indexes for the Romanian companies on different size categories, based on the financial statements submitted to the Ministry of Public Finances for the activity in the year 2011. Based on this analysis, it was noticed that microenterprises: 
• register the highest level of debt, respectively 99% (as weight of total debt in assets); 
• represent the only sector that registers a negative capitalization;
• have the highest loss rate, namely -4.5%; 
• register the longest days sales outstanding (DSO), namely 172 days, two months longer than the one registered before the financial crisis;  
• registers the lowest total debt coverage ratio through turnover, namely 37%.
 

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