Crisis Drives Small Companies In Western Romania Out Of Business

Paula Bulzan,

Arad

Over 2,400 companies headquartered in the western part of Romania filed for suspending their operations, while some 1,300 companies were dissolved in the first four months of the year, according to a presentation made by the Regional Federation of Small- and Medium-Sized Enterprises (FRIMM) - West on Wednesday.

According to a press release from the Regional Federation of Small- and Medium-Sized Enterprises (FRIMM) - West, most of the companies that have been struck off or voluntarily dissolved were registered in Timis County and Hunedoara County. Based on the statistic information collected and processed by the Registry of Companies in the counties of Arad, Timis, Caras-Severin and Hunedoara for the first four months of this year, 1,065 companies were struck off, 2,410 companies filed for suspending operations and 1,361 companies were dissolved. The figures reflect the overall situation in Region West.

"The Regional Federation of Small- and Medium-Sized Enterprises (FRIMM) - West and the business alliances are continuing their efforts to support small- and medium-sized enterprises and keep collecting information about the difficulties confronting such enterprises in the western part of Romania," said Mircea Purcaru, President of FRIMM - Arad.

Arad County reported 175 companies struck off, 24 companies voluntarily dissolved, 895 companies pending suspension. Timis County reported 495 companies struck off, 18 dissolved and 1,125 companies pending suspension. Caras-Severin County reported 41 companies struck off, 18 companies dissolved and 68 companies pending suspension. Hunedoara County reported 354 companies struck off, 894 companies voluntarily dissolved, 322 companies pending suspension.

Grouped by their registered core business, retailers, construction companies and service providers are the most affected. As the global financial crisis continues to severely affect Romania, too, the small- and medium-sized companies seem to be the first victims.