REAL ESTATE IN 2023: SEARCHING FOR STABILITY AS CRISIS LOOMS
STARTUP HIRING COULD GAIN EDGE OVER BIG TECH LAYOFFS
SOLOPRENEURSHIP: THE POWER OF VISION AND HARD WORK
EUROPEAN CAPITAL OF CULTURE: SHINE ON, TIMISOARA
SECTORS TO WATCH IN 2023
SECTORS TO WATCH IN 2023
REAL ESTATE
According to the latest data, economic performance in the Eurozone is rather weak. The indicators published so far have indicated a significant slowdown in household consumption, a slowdown in service sectors, as well as a weak evolution of the industrial sector. Globally, energy crises, the war in Ukraine, and ethical concerns for the environment and the workforce will intensify and will continue to shape the economic environment, including the consulting industry. Locally, the business climate could be even more affected by a low absorption rate of EU funds and the slow implementation of structural reforms.
Yet, with the symbolic milestone of 1,000 kilometres of highspeed roads due to be reached this year and another 500 kilometres of new motorways and expressways currently in different stages of construction, Romania seems to be accelerating improvements to its road infrastructure, which could prove a crucial factor in attracting new foreign investments in the years to come.
According to experts, the biggest challenges for the overall business environment in 2023 will continue to stem from the effects of the war in Ukraine and the unpredictability it brings about. The end of the war will be what will trigger bigger investments, a return to normality, and an exit out of the energy crisis, which, in turn, will lead to the revival of many industries. But sectors like automotive, IT, medical services, infrastructure, telecom, professional services, and energy are shaping up to be among the star sectors this year in Romania, so we should keep a close eye on them.
6 Real estate in 2023: searching for stability as crisis looms
COVER STORY
8 Sectors to watch in 2023
MAIN STORY
18 Retail and logistics markets gearing up for further growth
ENTREPRENEURSHIP
28 Startup hiring could gain edge over Big Tech layoffs
34 The best concerts coming up in 2023
36 European Capital of Culture: Shine On, Timisoara
38 On the silver screen: Upcoming Romanian film premieres
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Deniza Cristian, Romanita Oprea, Oana Vasiliu
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Radu Marcu has been appointed co-CEO at Connections Consult. He will lead the company alongside the founder of Connections Consult, Bogdan Florea, who remains the leader of the company. Marcu joined Connections Consult in November 2021 and held the position of Software Chief Operating Officer. So far, he has led the bidding, delivery, and postimplementation operations of the software development team and was part of the Management Board of the Connections Group. He has over 15 years of experience in managing software development activities.
The 2023 Edelman Trust Barometer reveals that business is now viewed as the only global institution that’s both competent and ethical. Business now holds a staggering 53-point lead over government in competence and is 30 points ahead on ethics. Its treatment of workers during the pandemic and return to work, along with the swift and decisive action of over 1,000 businesses to
exit Russia after its invasion of Ukraine helped fuel a 20-point jump on ethics over the past three years. Business (62 percent) remains the most and only trusted institution globally.
“The increased perception of business as ethical brings with it higher than ever expectations of CEOs to be a leading voice on societal issues,” said Richard Edelman, the CEO of Edelman.
“By a six-to-one margin, on aver-
age, respondents want more societal involvement by business on issues such as climate change, economic inequality, and workforce reskilling. But business must tread carefully, as more than half (52 percent) of our respondents do not believe business can avoid being politicised when it addresses contentious societal issues.”
This year’s report finds that economic optimism has collapsed globally (from 50 to 40 percent), with half of the countries surveyed showing a year-over-year double-digit decline in the belief that their families will be better off in five years’ time. Further, not one developed nation has over 36 percent of its people confident that their family will be better off in five years, and 24 of the 28 countries surveyed dropped to all-time lows in optimism including the US (36 percent), the UK (23 percent), Germany (15 percent), and Japan (9 percent).
Mateja Podgornik was appointed Managing Director for Mondelez Romania and Slovenia. She previously held the position of Category Planning & Activation Lead for South Central Europe (SCE), after a period in which she had managed business activities related to the acquisition and integration of the Chipita company, as Senior Manager for M&A Project, Commercial Planning. Mateja has extensive and varied experience within Mondelēz International, having been with the company for 14 years.
page 5
Brico Dépôt was recognised as a Top Employer in 2023 by the Top Employers’ Institute in the Netherlands, becoming the first DYI retailer to obtain this title in Romania. The title is proof of a sustainable, stable business that operates according to high standards in terms of
its commitments in the field of human resources. Following the evaluation, Brico Dépôt distinguished itself through processes and programmes that optimise the employee experience inside the company and target key moments in the employee journey—from recruitment and
The title is proof of a sustainable, stable business
By Mihai-Alexandru Cristea
crease with 119 deals recorded (compared to 112 in 2021), while the number of transactions undertaken by foreign investors (inbound) increased by 38 percent year-on-year, to a total of 119.
Todor Kesimov
The Romanian mergers and acquisitions (M&A) market recorded 258 transactions in 2022, with a total estimated value of USD 6.6 billion. This represents a 26 percent increase compared to the deal count of 2021 (206), and an estimated 10 percent higher value on a year-on-year basis (up from USD 6 billion in 2021).
On a global level, after one of the most successful years on record for M&A activity in 2021, last year marked a significant slowdown due to elevated
uncertainty, increased financing costs, higher energy prices, and supply-chain disruptions. Multiple headwinds led the value of global M&A to decrease by 37 percent year-on-year, while the value of European M&A decreased by 28 percent. In this context, Romanian M&A activity bucked the global and regional trends and was a clear outperformer. Strategic investors continued to be the dominant players in Romanian M&A, accounting for 88 percent of transactions in 2022. Domestic transactions showed a slight in-
The most active sectors by deal volume were technology (19.4 percent of transactions) and real estate (16.3 percent), followed by healthcare (11.2 percent), power and utilities (8.1 percent) and diversified industrial products (7.8 percent). The top position was reversed between technology and real estate compared to 2021, showing the growing importance of addressing digital transformation needs as well as the slowdown brought to the real estate sector by higher interest rates. Furthermore, M&A activity in the healthcare space was boosted by well-capitalised corporates coming out of the covid crisis stronger.
is the new Country Manager of Takeda Romania. With a 10-year career within the company, Todor Kesimov held the position of Country Manager in Bulgaria until recently. He started his activity within Takeda as Business Controller for the Romanian and Bulgarian markets, then took on the role of Finance Director for the Balkan region. Recently, while also coordinating operations in Bulgaria, he was the interim Country Manager for Romania.
Sorin Dumitrascu is the new Development Director of Nusco Imobiliara. Dumitrașcu has over 30 years of experience in construction management and has contributed to the development and delivery of multiple major projects, on both the local and international markets. A construction engineer by profession, throughout his career, Dumitrașcu has managed over 25 large-scale projects, both in Romania and globally.
onboarding to development opportunities.
Brico also achieved very good results for its ethics and integrity framework, the way in which its human resources strategy is connected with its business one, as well as for communicating its decisions and the involvement of employees in internal projects. The company’s emphasis on well-being was noted as well: the Brico SOS programme is an assistance service built on three pillars: psychological, legal, and financial counselling.
Ioana Munteanu
is the new Creative Director of Golin Romania. A professional with extensive experience in communication and dozens of awards at major local and international festivals, Ioana will coordinate the agency’s creative department, with the goal of strengthening its creative product and providing clients with integrated communication solutions based on consumer insights.
The real estate market was fairly stable in 2022, even with everything that happened during the year, including the war in Ukraine, rising energy prices, inflation, supply chain disruptions, and humanitarian crises—all under the spectrum of a prolonged pandemic and the threat of nuclear war. But the real estate market proved resilient enough to keep going, avoiding drops in prices or sales. The total value of transactions even saw an increase of 39 percent, according to Cushman and Wakefield Echinox data.
By Aurel ConstantinReal estate prices did not decline in 2022, but they did experience a stagnation, only moving a few percentage points up from 2021 levels. Still, the real value of assets was lowered due to inflation. “Real estate prices have already decreased, and we are probably seeing a minimum level now. However, we are not talking about a decrease in absolute value, but one in relative value. And that’s because developers tried to maintain the price of real estate constant throughout last year, despite the rising costs of all construction materials and, in general, of all products in the economy. We witnessed the inflation rate reaching 15.9 percent in 2022, which was a challenge for both developers and customers. We hope to see a flattening of construction costs in the first half of this year, with housing prices adjusting based on this factor,” says Adrian Stoichina, COO at Prima Development Group.
Inflation remains high at the start of 2023, and it is only expected to begin decreasing in the second half of the year, which means it is still putting pressure on raw materials and construction costs. “Inflation is certainly the main current challenge, as it puts pressure on costs and, in the end, on the product itself. Rising interest costs also continue to be a challenge for developers and customers alike. We do not expect to see any decrease in real estate prices in the near future. However, with such issues on the map, we have noticed that customers are more insightful when approaching a property, and there’s been more interest for high-quality developments that also represent a long-term investment,” says Beatrice Dumitrascu, CEO of the Residential Division at One United Properties. But there is yet another type of pressure on the market, also stemming from the problems of 2022: the rising cost of mortgages. High inflation has
led the Central Bank to increase monetary policy interest rates, forcing all banks to display higher interest rates on loans and leading to a stagnation in loan volumes. “There is a double pressure. We are indeed seeing a stagnation in the number of mortgages being granted, while the cost of construction has increased considerably. Moreover, the desire to develop sustainable and energy-efficient real estate projects comes with a higher price. Today, inflation, the cost of energy, and especially market uncertainty will not have a negative effect on construction prices. The result will be a decrease in the number of new projects and, implicitly, in the supply of quality residential projects,” says Jan Demeyere, Architect and Partner at Speedwell.
The perspective for 2023 is not great in the current conditions. Not only is demand decreasing, but the supply is on a downward trend too. “I am convinced that there will be a decrease in supply in 2023, and that it will only get sharper in 2024. There is uncertainty about the future of the market, as the war in Ukraine is still going on and causing fear among people. History has taught us that when the market is driven by fear, there is also an aversion to risky investments, and real estate is considered to be a risk factor,” Jan Demeyere points out, adding that authorities should be more open to new construction projects, especially in Bucharest. “It is also the responsibility of the authorities to create a secure and reliable authorisation environment. As long as the issues and uncertainties
related to the permitting process persist, you will see a big step back from investors interested in the local market,” he argues, referring to the situation in the Romanian capital city, where most permitting processes have been halted due to a lack of urban planning.
But not all projects are on hold. Several new residential projects are due for completion this year, and many of the apartments have already been sold. “I think the supply will remain somewhat constant. The number of new real estate projects up for sale has declined in recent years, generally because of the urban planning jam in Bucharest. However, there are a number of projects that were already in the process of getting authorised earlier, and they will obtain their permits in the coming period, as well as others that have recently obtained permits. For example, over the past few years, we have delivered two important residential developments in Bucharest: Boemia Apartments, delivered in 2020 and completely sold out, and Core Timpuri Noi, which was finished in December 2021 and is now 80 percent sold out,” Adrian
Stiochina notes. “We saw increased demand for sustainable residential units last year, which we can now respond to with the building permits we have recently obtained. In the last 3-4 months, our company has received authorisations for six projects, and construction has already started on some of those.
In Q1 2023 we will start the construction of One Lake Club and One Lake District, located in north Bucharest. In total, we will deliver 4,000 apartments over the next 3-4 years. We believe this will address the consistent demand for new, green certified units in premium locations. Nevertheless, Bucharest needs legislative and urban predictability in order to develop and meet its inhabitants’ needs,” Beatrice Dumitrascu argues.
What will keep the real estate market going is the fact that there’s a need for new buildings of all kinds, from residential to logistics and offices. Romania is still a developing economy and there are many things it must improve, including its residential buildings. “Romania has a great need for good quality residential developments. On the one hand, there is a stock of houses and apartments that
do not meet the quality standard and have low energy standards. Given the high energy costs, people living in these conditions are losing money every day, but at the same time they cannot afford a new home. The need is there, but the affordability of new homes has dropped considerably. We can see that the lower-middle market segment is moving towards renting, while the upper-middle segment will continue to generate demand, but at a lower rate, and people will choose very carefully when they finally buy,” Demeyere argues.
In times of economic stagnation, it is no surprise that developers are looking for higher paying customers as they may have some resilience during a crisis. “Clients are looking for quality apartments, as they no longer want to live in developments that are not meeting their needs. Demand is strong: at the end of September 2022, out of 2,000 apartments under construction in our portfolio, 90 percent had been sold, as early as one or two years before completion. The range of customers has diversified in recent years, so One United Properties is looking at middle and top management from corporations or local and international companies, entrepreneurs, and freelancers. We have quite a large number of customers and we don’t just offer high-end penthouses and designer apartments, but also residential units with prices starting from EUR 100,000, which are more accessible and similar in price with the stock of old apartments, but with superior quality, integrated facilities, and very good locations,” says Beatrice Dumitrascu.
“Bucharest needs tens of thousands of new homes, in the context where most of its old buildings are approaching or have already exceeded their intended lifespan, which is about 50 years. People want to live in new buildings that offer them a better lifestyle in the city. However, the general context and the economic challenges will make the demand for new housing remain the same in 2023 as compared to the March-December period of last year. People looking to make a long-term investment that protects their finances from inflation, as well as people in the mediumupper medium segment looking to make un upgrade and move into a new home will be the ones who will buy in 2023,” Adrian Stoichina concludes.
"INFLATION IS CERTAINLY THE MAIN CURRENT CHALLENGE, AS IT PUTS PRESSURE ON COSTS AND, IN THE END, ON THE PRODUCT ITSELF. RISING INTEREST COSTS ALSO CONTINUE TO BE A CHALLENGE FOR DEVELOPERS AND CUSTOMERS ALIKE," BEATRICE DUMITRASCU, ONE UNITED PROPERTIES
"WE CAN SEE THAT THE LOWERMIDDLE MARKET SEGMENT IS MOVING TOWARDS RENTING, WHILE THE UPPER-MIDDLE SEGMENT WILL CONTINUE TO GENERATE DEMAND, BUT AT A LOWER RATE," JAN DEMEYERE, SPEEDWELL
By Aurel Constantin & Anda Sebesi
IT. Automotive. Infrastructure. Medical services. Telecom. Professional services. Oil and gas. What do all these sectors have in common? Analysts believe they will be Romania’s star sectors this year. And since they are also some of the biggest contributors to the development of the local economy, and the top employers on the local market, Business Review talked to several company representatives who helped us predict this year’s most important developments in each sector and understand what companies should do to respond to the challenges that 2023 will bring to the business environment, be they geopolitical, economic or regulatory.
The information technology (IT) industry is going through difficult times, just like many other industries around the world. US giants appear to be the most cautious at the beginning of 2023, announcing layoffs in the tens of thousands and citing concerns about a potential economic recession. Fortunately, this has not been the case in Romania, where the deficit of qualified employees is estimated at around 10,000 every year.
By Aurel ConstantinAccording to the Software and Services Industry Employers’ Association (ANIS) there are over 270,000 employees in the Romanian IT industry, with a 6.2 percent contribution to the GDP in 2021 (and 7 percent in 2022, according to estimations). The industry grew at a yearly pace of 17 percent between 2015 and 2020, while GDP growth stood at 6 percent yearly.
Will the industry keep up the pace or is it in turmoil? “The main challenges on the IT market in 2023 are related to the overall macroeconomic and political troubles. One of the biggest issues in 2022 was the supply chain, affected by delivery delays. For some components, the usual delivery period increased by up to three months. Manufacturers were affected by the war in Ukraine or the covid restrictions maintained by China, as well as by the recession that continues to be a threat all over the world. Inflation affected consumption and led companies to reconsider their business targets and strategies. So, all things considered, we have a challenging year ahead, especially the first half,” says Bogdan Constantinescu, General Manager at ASBIS Romania.
But there are positive elements in the crisis as well. “The IT industry has been profoundly impacted by the recent geopolitical and economic uncertainties. These developments have had a significant effect on the industry's growth and evolution. Since 2020, the covid-19 pandemic has accelerated the adoption of business software solutions at an unprecedented rate. In 2022, Romanian businesses’ approach to technology became more measured due to the new geopolitical climate, with the war in Ukraine and the resulting
energy crisis,” says Alexandra Lucescu, General Manager at SoftOne Romania. “Despite the fact that the situation in Ukraine remains uncertain, 2023 could be a defining year for technology companies in Romania, as the government has set forth several initiatives to help digitalize small and medium-sized enterprises. The ‘PNRR Digitalization of SMEs’ programme is a key part of this effort, and it could have a major impact on the country's tech sector. The programme could open up new opportunities for tech companies to provide services and products to these businesses,” she adds.
Zemy Apfelbaum, Managing Director at Wizrom Software, also looks to the positive aspects of the situation and states that the industry will come out stronger in the end. “One of the biggest challenges for 2023—not just for the IT sector, but for the business environment in general—will continue to stem from the effects of the war in Ukraine and the unpredictability it brings about. From our point of view, the end of the war will be what will trigger bigger investments, a return to normality, and an exit out of the energy crisis, which, in turn, will lead to the revival of the IT industry.”
The revival may not come in the sense of resuming growth after a recession, but in terms of a change in the way companies do business. “In 2023 and beyond, we’ll see IT departments relying more and more on the ‘business technologist,’ i.e., someone who doesn't have advanced knowledge of writing code, but who will use a suite like SAP Build to create the applications and solutions that
are needed in their business. This will allow developers to focus on supporting large projects that require special attention,” says Diana David, Managing Director at SAP Romania.
Business technologists, AI, cloud computing, digitalization: these things are on everyone’s minds when it comes to the future of the IT industry. “As technology continues to evolve, Artificial Intelligence (AI) solutions are becoming increasingly accessible to businesses of all sizes. By 2023, AI is expected to be deployed in many organisations, allowing them to make more informed decisions and optimise their IT systems for greater reliability. At the same time, businesses are also looking to become more sustainable by investing in green technologies. This shift towards sustainability is driven by the need to reduce their environmental impact and make their operations more efficient,” Alexandra Lucescu explains. “AI will definitely become the solution to many of the present challenges and, at the same time, it will continue to be a challenge in itself, in terms of the relationship between humans and AI,” Bogdan Constantinescu argues.
“In the medium term, cloud computing is expected to become increasingly important as more businesses move their operations online and digitalize their services. The demand for software development services will also rise significantly due to increased automation and digitalization initiatives being undertaken across industries,” Lucescu notes. “The IT industry is undoubtedly on the rise and it will continue to attract investments as many organisations are accelerating their digitalization and cloud migration efforts,” Zemy Apfelbaum says.
The pandemic “helped” the IT industry by showing people and businesses the importance of digitalization. Government agencies, schools, and universities also acknowledged the need for digitalization. Now, the Ukraine war is pushing Romania to become a major software exporter. And speaking about the good that may come out of a crisis, we can also say that inflation and the economic recession gloom may end up convincing companies of the need for automation tools, digital platforms, efficient resource management, and business intelligence. The IT sector continues to be extremely dynamic, which is why we are optimistic about the future, and at the same time we are taking the necessary steps to prepare for any developments in the local economy,” Wizrom Software’s managing director explains.
“The software industry has adapted very quickly to the changes of the recent years, and it has also supported other businesses in this transformation process. We are fully aware that every company has its own unique path and challenges, and this helps us offer customised solutions to a wide range of business problems,” Diana David says.
The IT industry’s adaptability is just one of the elements that make it one of the most important sectors for the future of the Romanian economy. ANIS estimates that the industry’s GDP contribution could reach a gross added value of about EUR 17.4 billion by 2025, compared to a total of EUR 13.6 billion today. And the value could even go up to EUR 20.4 billion if the situation gets better and competitiveness grows.
"THE IT INDUSTRY IS UNDOUBTEDLY ON THE RISE AND IT WILL CONTINUE TO ATTRACT INVESTMENTS AS MANY ORGANISATIONS ARE ACCELERATING THEIR DIGITALIZATION AND CLOUD MIGRATION EFFORTS,"
ZEMY APFELBAUM, WIZROM SOFTWARE
"IN 2023 AND BEYOND, WE’LL SEE IT DEPARTMENTS RELYING MORE AND MORE ON THE ‘BUSINESS TECHNOLOGIST,’ I.E., SOMEONE WHO DOESN'T HAVE ADVANCED KNOWLEDGE OF WRITING CODE,"
DIANA DAVID, SAP ROMANIA
"AS TECHNOLOGY CONTINUES TO EVOLVE, ARTIFICIAL INTELLIGENCE (AI) SOLUTIONS ARE BECOMING INCREASINGLY ACCESSIBLE TO BUSINESSES OF ALL SIZES ," ALEXANDRA LUCESCU, SOFTONE ROMANIA
Telecom has been a star sector for years, as one of the industries that has developed rapidly in the last couple of decades and has kept up with all the innovation at the global level. In the last five years, the industry has entered a consolidation phase and several mergers have taken place between leading telecommunications companies. In 2023, we will see the development of 5G networks, which will greatly transform the telecom environment.
By Aurel ConstantinThe industry is undoubtedly also affected by the problems faced by the economy and society at large. “The local context is now characterised by two major challenges: inflation—which went above 16 percent at the end of 2022, the highest level of the last 20 years, putting pressure on consumer purchasing power—and the rise of energy prices, with all the recent changes affecting both consumers and companies,” says Razvan Bogasiu, Chief Strategy, Transformation, and Wholesale Officer at Orange Romania.
“In our industry specifically, we are operating in a very competitive and dynamic market, with some of the best quality of services and prices for customers worldwide. But telecommunications is a heavy investment infrastructure industry, with funds periodically being allocated to equipment, civil works, and spectrum, so profitability is key for future developments,” Bogasiu explains, adding that supply chains disruptions and the resulting shipping delays have had an impact on the sector.
But even in a complicated year like 2022, the local telco industry managed to reach some important milestones. The 5G auction, the adoption of the European Electronic Communications Code or maintaining one of the best internet speeds in Europe are just a few of last year’s achievements.
At the end of 2022, the auction for the new spectrum was finalised, with Orange, Vodafone, and RCS&RDS buying several blocks worth a total of EUR 432 million. “In 2023, 5G rollout will accelerate, following the new spectrum allocation through the 2022 auction, and this implies large investments in network development, paving the way to the future. 5G is key for our plans, and through it, Orange is
maintaining its commitment to providing the best customer experience. In addition, fibre rollout will continue, improving fixed network coverage and quality, further expanding our broadband and TV capabilities. We will also continue to focus on speeding up digitalization, green energy, and ESG,” says Razvan Bogasiu.
Orange bought the largest number of frequency blocks and will most likely be the biggest investor in 5G infrastructure, followed by Vodafone and RCS&RDS (Digi Mobil). The other big player, Telekom, decided not to buy new spectrum as it is preparing to exit the market.
Investment in 5G and associated services will increase the value of the telecom industry. “The telecommunication industry’s contribution to the GDP is below 10 percent. But considering the growth in the usage of digital services and the development of the ICT/M2M services in the public and private sectors, this share might grow in the future,” Bogasiu notes.
We should see several important developments in telecom in 2023. Besides 5G adoption, there is also a need to develop full support among operators for the Digital Agenda, which will enable widespread access to digital services. There are plans at the government level to expand the national fixed high-speed broadband coverage, especially in rural areas, and that should lead to a growth in data services. “And we should also see better and more complex ICT solutions and the improvement of new technologies like automation and virtualisation, increasing adoption for IoT, M2M, cloud, and AI,” Bogasiu adds. Gartner estimates that worldwide spending on IT products and services will reach USD 4.5 trillion in 2023, up 2.4 percent from 2022. This is down from the previous quarter's growth forecast of 5.1 percent. As Romania tends to follow global trends, we should see a similar increase in IT spending locally.
Automotive is one of the most important industries in Romania, with a GDP contribution of over 28 percent, according to Economy minister Florin Spataru. There are over 500 companies operating in the sector, employing more than 230,000 workers and covering almost a third of all exports.
By Aurel Constantin“The pandemic has accelerated the electrification process and has pushed for the development of new projects, which can now also be found in Romania, including in Craiova, contributing European-level objectives like upgraded technology, decarbonisation, and electrification of the entire automotive industry. This transfer will not only bring a change of shareholders; it will also bring new projects, investments in the Craiova factory, and another development opportunity. We should also note that the factory in Craiova will be the only one to produce both passenger and commercial vehicles,” said minister Florin Spataru while attending the takeover event of the Ford Craiova factory by Ford Otosan in July last year.
The Economy minister also mentioned that Ford Otosan had set major objectives for the factory in Craiova, namely investments worth EUR 490 million, an increase in production from 250,000 to 272,000 vehicles per year, the creation of new jobs, and the development of new capabilities.
Automobile Dacia, Ford, and Star Assembly (owned by MercedesBenz) are the biggest exporters in Romania. The automotive industry itself is the country’s biggest exporter, covering almost 30 percent of all exports. That doesn’t just include fully built automobiles, but also components, sub-assemblies, and automotive technologies, which account for over 60 percent of the domestic auto industry.
While Michelin, Star Assembly, Star Transmission, Fujikura or Leoni are manufacturers that mainly focus on production, corporations like Renault, Continental, and Bosch have made significant investments in engineering and research centres in Romania. Continental, the biggest employer in the industry with over 17,500
workers, has six production units and four engineering and research centres, with one third of its engineers recruited from Romania.
The automotive industry can also be called a star sector in 2023 because of the value of ongoing investments designed to further develop the sector. Apart from the Ford Otosan investment in Craiova, Mercedes Benz AG will continue investing in the Sebes factory, with a new production unit to be built starting this year. The investment in the new hall is estimated at EUR 134 million. The project is being carried out through the Star Assembly subsidiary in Sebes. The new building will have an area of approximately 33,650 square metres, where 526 new employees will produce approximately 500,000 electric drive units per year for the all-electric Mercedes-EQ models. The construction of the hall will take place over a period of 15 months, between January 2023 and March 2024.
Another big investment was announced by Nokian, the Finnish tyre manufacturer, which decided to relocate a production facility from Russia. The value of the investment is estimated at EUR 650 million for a factory that will produce 6 million tyres every year. "This investment is a significant strategic decision that allows us to envision future growth. A world-class production facility in Europe is a critical step to gain additional capacity and create a balanced production platform as we begin to build the new Nokian Tyres without Russia," said Jukka Moisio, President and CEO of Nokian Tyres. The construction of the facility started in January this year and the first tyres are expected to come out of its doors in the second half of 2024.
With the symbolic milestone of 1,000 kilometres of high-speed roads due to be reached this year and another 500 kilometres of new motorways and expressways currently in different stages of construction, Romania seems to be accelerating improvements to its road infrastructure, which could prove a crucial factor in attracting new foreign investments in the years to come.
By Anda SebesiThe new year kicked off with high hopes for new infrastructure and civil engineering projects that are scheduled to be started, completed or opened to traffic in 2023.
The goal of the Romanian public authorities is to make good use of the European funds allocated by Brussels, especially those under the National Recovery and Resilience Plan (PNRR). The challenge is to conceive and implement mature, feasible projects that are capable of absorbing EU funds, and to see them through the public procurement and contract execution stages, two tasks that have been problematic for the Romanian authorities in the past.
“For the first time in many years, Romania may see the completion of more than 80 km of new motorways and expressways this year, and even up to 126 km in the most optimistic scenario. In any case, the symbolic milestone of 1,000 km of high-speed roads will certainly be reached this year. Additionally, over 500 km of new motorways and expressways will be in various stages of construction, with contracts for another 400 km due to be awarded in 2023,” says Adina Chilim-Dumitriu, partner and co-head of the PPP and public procurement department at NNDKP.
As for railways and underground lines, Romania’s 2023 budget (including PNRR funds) provides a EUR 4.7 billion allocation for infrastructure and rolling stock investments, as well as a EUR 2.9 billion allocation for urban subway projects. “This year, over 100 km of modern railway are expected to be completed, and upgrade works are scheduled to begin for another 300 km,” Chilim-Dumitriu adds.
Hospital infrastructure is another sector that should get major investments in 2023, with 27 different hospital units identified by the Health Ministry as eligible to receive PNRR funds of up to an aggregate EUR 1.7 billion, for construction or extension works.
Additionally, in December 2022, the Environment, Water, and
Forests Ministry launched a call for projects under the PNRR investment scheme concerning the extension of water and sewage systems in prioritised towns with more than 2,000 inhabitants, with a total budget of almost EUR 800 million. Proposals may be submitted until February 21, 2023. The goal is to build and put into operation up to 400 km of new water distribution networks and 300 km of sewage networks by October 2024, as well as up to 1,600 km of water distribution networks and 2,500 km of sewage networks by July 2026.
“Considering the significant share of PNRR funds in all these projects, a major challenge for Romanian authorities will be to observe PNRR milestones, which are necessary for receiving the funds. Only 33 of the 55 milestones that were due in Q4 of 2022 were reached, 20 of these being behind schedule and two of them blocked, which could potentially trigger a negative reaction from the European Commission,” says the NNDKP representative. In her view, another threat comes from the authorities’ so far limited capacity to overcome bureaucracy and show flexibility when coming across unexpected challenges during the public procurement and contract performance stages.
“Public procurement rules and their implementation are still causing difficulties in Romania. Inexperience breeds fear and excessive rigorousness that often goes far beyond the strictness of the procurement rules,” she says. As they are often faced with differences between feasibility studies and real, in situ conditions, soaring material and manpower costs, and legal and case-law unpredictability, contractors should be treated less as opponents and more as partners by contracting authorities, if Romania is to rise to the moment represented by PNRR—a truly unique historical opportunity to leap forward across (at least part of) the gap that separates us from the developed West.
industry
The latest estimates show that private clinics providing specialised medical assistance reached well over EUR 2 billion in revenues in 2022. In 2021, the number stood at EUR 1.9 billion, up almost 25 percent from the previous year. Companies operating in the hospital segment had revenues of EUR 450 million (RON 1.9 billion). Investments in the sector are concentrated around big cities, where medical personnel is easier to find.
By Aurel Constantin
medical services market was EUR 2.9 billion in 2019 and EUR 3.1 billion in 2020. Investments in the private health segment doubled between 2010-2020, reaching 0.2 percent of GDP.
There are major players on the market that make investments in development every year, both organically and through acquisitions. The Regina Maria group of hospitals and clinics has an yearly expansion budget of EUR 20-25 million. MedLife, Medicover, and Gral Hospital are also buying smaller competitors every year.
One of the most important transactions that took place last year marked the entry of Turkey’s Memorial Healthcare to Romania through the acquisition of the Monza oncology hospital within the Enayati Medical City. The Italians from Monza owned 80 percent of the oncology unit, while Wargha Enayati, the founder of Enayati Medical City, owned 20 percent. The transaction perfectly illustrates the interest sparked by the local market among international companies.
New investments will also be made in test labs and collection centres, which are a winning bet given that most patients usually pay for their own medical tests because public funds tend to run out in the first days of each month. The lists of patients waiting for routine blood tests stretch for one or two months.
The private health system, including private hospitals, had 23,065 doctors and 54,540 other health personnel in 2020, according to INS data. Private health providers make up an important component of Romania’s health system and they have a considerable impact on the country’s economy. The total estimated value of the private
The largest share of the entire healthcare system expenditure comes from public sources (approx. 80 percent), while the private sector covers about 20 percent, through the direct payments people make in order to access medical services, but also through medical subscriptions or voluntary insurance. And subscriptions for private medical services will continue to be successful, even as employees are still paying the compulsory contribution to the public system. The big market players are often announcing new investment projects. Medicover, for example, is collaborating with German company Karl Storz, a world leader in the field of endoscopy, to equip the new hospital in Bucharest with one of the most advanced digital technologies for the operating room. The OR1 system will provide intelligent interconnectivity between surgical teams and medical devices inside and outside the operating room, improving patient-centred medical performance. The new Medicover hospital in Bucharest responds to a pressing need to treat increasingly complex conditions through minimally invasive surgical techniques. The new hospital will also have a high-tech imaging centre, an integrated outpatient clinic, and over 150 beds. The works on the hospital in Bucharest are ongoing, with completion expected in the second half of the current year. Medicover's investment in the new hospital amounts to EUR 20 million and involves the transformation of an office building with a total area of 15,000 sqm. "We set out to equip the new hospital with the most advanced technology and to support the team in achieving excellence in the medical practice, to the benefit of patients. Today, technology allows not only access to rich data, but also a high degree of collaboration between doctors, helping them successfully address complex conditions," said Dr Florinela Cirstina, the general director of Medicover Romania.
The private medical services industry has been growing rapidly over the past 10-12 years. The
grew along with the economy and the population’s purchasing power. Offering a much needed alternative to the public health system, private services have been welcomed by Romanian people.
According to the latest data, the economic performance in the Eurozone is rather weak. The indicators published so far have indicated a significant slowdown in household consumption, a slowdown in service sectors, as well as a weak evolution of the industrial sector. Demand for professional services has traditionally followed the general economic trend, but at a faster pace, whether upwards or downwards. However, starting with the pandemic-induced crises, there seems to have been a decoupling of this demand from the overall economic performance as both mega-trends in business and society (such as digital and sustainability transformations, for instance) and short-term developments (new regulations, state support schemes, an increased focus on compliance, etc.) have generated additional need for professional services.
“Expectations of economic growth in 2023 have declined lately and recession risks are rising. Globally, energy crises, the war in Ukraine, and ethical concerns for the environment and the workforce will intensify and will continue to significantly shape the economic environment, including the consulting industry. Locally, the business climate could be even more affected by a low absorption rate of EU funds and the slow implementation of structural reforms,” says Alina Timofti, partner and Co-Head of NNDKP Tax Advisory Services.
With such pessimistic expectations for the economy in 2023, demand for professional services may also be expected to decline. “Yet this is not what we are seeing; on the contrary, there is sustained demand as the impact we can have on businesses has never been greater. Companies are transforming rapidly amid developments in technology and innovation, geopolitics, supply chains, energy transition, and others, and they are also pressured by increasingly complex regulations and compliance requirements, creating a need for expertise and capacity that cannot be sourced internally,” says Alexandru Reff, country managing partner at Deloitte Romania. In his view, the main challenge is to build that expertise and capacity
in line with the pace of change and innovation, in a context of talent shortage that may hold back growth.
At the same time, the professional services sector continues to be attractive for jobseekers, including graduates, as it provides diverse career growth and personal development opportunities. With technology changing some delivery models, it makes sense for companies to outsource entire global functions to specialised organizations that invest in building new business models. “There is talk about a ‘golden age’ for professional services, which resonates with me,” says Reff of Deloitte.
The main achievement of the professional services sector last year was adapting to fast-changing developments in business and society and to companies’ increasingly complex needs. “At Deloitte in particular, we had double-digit growth and an impact that matters to our clients and our people across all areas of expertise, in various forms, both new and traditional,” Reff explains.
As for trends, Timofti of NNDKP says that the split of the consultancy market into two main market “divisions”—the first one a commoditised segment, and the second a highvalue specialised consultancy segment—will become even more obvious. “Each consultancy company will be ‘forced’ to identify its strengths and transform its business models, pricing structures, and even brand architecture, in some cases. In other words, in the rather unstable business environment we will have in 2023, the consultancy industry can no longer embrace the traditional approach of channelling all its efforts towards developing new revenue streams; it will need to gain a better understanding of its clients’ needs and identify ways to create greater value for them,” Timofti adds.
Faced with all these challenges, the consulting industry (including tax and legal advisors) will have no choice but to adapt, in several ways, and therefore the firms’ efforts to embrace the digitalization trend that started during the pandemic will have to continue this year.
As most executives and economists seem to expect an economic slowdown in 2023, one may think demand for professional services would contract as a result. In fact, specialists predict that the opposite will happen, as the consultancy industry’s impact on businesses has never been greater.
The energy sector’s crucial nature was highlighted in 2022, when supply chains were disrupted by the war in Ukraine. The energy crisis that followed showed how fragile the transport infrastructure is and how easily the market can slide into chaos. The good news is that we’ve managed to survive, albeit at the cost of rising inflation. And there are hopes for a more secure future in terms of energy supply.
By Aurel ConstantinBefore the covid pandemic, Europe was on a path to clean and green energy, closing coal-based production units and setting the stage for getting rid of oil and, eventually, natural gas as well. But the war in Ukraine changed these plans. The shortage of gas supply from Russia forced Europe to change the way its industry worked and how energy was produced. Coal-based production sites were reopened and new supply lines from outside Europe were found.
The changes have also led to a lot of new investments in energy projects. For Romania, these will come in new natural gas extraction sites and renewable energy like wind and solar power. The hottest site for natural gas is the offshore exploration in the Black Sea. "The gas supply was for a time significantly under threat, but the situation changed. It changed from a supply crisis to a price and cost crisis, impacting the competitiveness of the chemical value chain. With energy, gas prices 3-8 times higher than in US the competitiveness is challenged," said Andreas Lier, Managing Director at BASF Romania & Bulgaria.
Last year, Romgaz bought ExxonMobil’s 50 percent share in the Neptune Deep project, where it’s now in a partnership with OMV Petrom. Romgaz paid EUR 1.06 billion for half of the 88 billion cubic metre deposit of natural gas. The investment needed to tap into this resource is estimated at EUR 4 billion and it is supposed to start in the first half of 2023 in order for production to begin in 2027.
The Black Sea already has an offshore site extracting gas at a rate of about 1 billion cubic metres per year: Black Sea Oil&Gas (BSOG). The main shareholders are Carlyle, the biggest private equity fund in the world, and the European Bank for Reconstruction and Development (EBRD). Both shareholders (with 70 percent of BSOG shares) are looking for an exit and have created data room for the project to
share with interested buyers. 11 companies have shown interest in getting access to the site data.
Two of the interested companies are OMV Petrom and Romgaz, both of whom may be trying to carry out an integration with Neptune Deep, as the BSOG project is in shallower water and closer to the shore, and it is already extracting, so there is no need for additional investment. Other interested parties are smaller Romanian companies, state companies from the region (Hungary, Bulgaria), and investment funds.
On the renewable energy side, there’s a lot funding from both national and European budgets. Through the PNRR, in the 20222026 period, EUR 1.62 billion will be allocated within the Energy component for investments in wind and solar energy production and storage capacity, green hydrogen production capacity, cogeneration, investments in the entire value chain of batteries, cells, and photovoltaic panels, but also in ensuring energy efficiency for the industrial sector.
"The production of green energy must immediately become a priority for local authorities, both for own consumption as well as for sale especially amid the recent significant increase in utility prices. There is a funding scheme through which we encourage local authorities to adopt measures to produce green energy, intended for public services such as hospitals, schools, public lighting, and the supply of heating to the population," said Investments and European Projects minister Marcel Bolos. The official made the statement at the end of last year, when he also said that EUR 500 million had been allocated for energy efficiency to local authorities, who are required to use local budgets to fund the operation of public education and health services.
Romania’s real estate market is poised for continued growth in 2023, thanks to the projected 3-4 percent expansion of the local economy, despite the ongoing conflict in Ukraine and the potential for stronger effects of monetary policy tightening in the Eurozone and the US. While an exceptional 2022 is likely to be followed by a year of rebalancing in terms of activity in the real estate investment segment, the logistics and industrial market remains dynamic. However, Colliers consultants point out that 2023 could also be dominated by political noise, with presidential, general, local and European Parliament elections coming up in 2024, which could stop or at least hamper the significant reforms the Romanian economy needs to uphold its longterm competitiveness. Business Review spoke to representatives of top electro-retail, e-commerce, mall, courier, real estate consultancy, and real estate development companies to learn about this year’s key trends in these sectors.
By Anda SebesiAccording to Raluca Radu, country manager Answear.ro, the Romanian e-commerce market grew by less than 10 percent last year, as a result of market consolidation. “However, the local fashion e-commerce segment increased by about 30 percent. The main factors contributing to this rise were the removal of pandemic restrictions and the growing public trust in fashion e-commerce. Our estimation is that online fashion will grow by more than 20 percent in 2023 as a result of the increase in travel post-covid.”
2022 was defined by the great comeback, when people finally came out of their homes after the pandemic years, seeking new experiences and wanting to catch up on their postponed travel plans. For eMAG, that meant a change in the structure of users’ shopping baskets, which contained a different mix of products: for example, instead of TV sets or furniture, they started buying more fashion or personal care items.
“Amid inflation circumstances, we made some business decisions to help our customers better navigate the complexity of an unpredictable environment, of which I would mention a few: we maintained the price for the Genius subscription unchanged and expanded the benefits of the subscription; We standardised the price for easybox deliveries irrespective of where the customer’s order comes from—whether it’s eMAG or a seller on the Marketplace,” says Irina Pencea, VP of Marketing at eMAG, adding that about 60 percent of orders today are delivered through the easybox system.
Asked about consumer behaviour, Pencea says that one of the changes that emerged during the pandemic had to do with the structure of the shopping cart: consumers started purchasing more products from different categories during a single session. “This trend is here to stay. At the same time, they’ve become more interested in flexible services that can help them save time and money.” Pencea adds that flexibility was a keyword in 2022. “The same way they want to be able to choose the way they work after getting used to working from home during the pandemic, they want to own their schedules and budgets and thus quickly embrace
services that give them personal space and flexibility.” In 2021, eMAG announced a threeyear investment plan worth RON 3.2 billion, having invested over RON 1 billion over the past year alone. One key pillar of its strategy is strengthening its logistics capabilities. After completing a EUR 43 million investment in technology at its warehouse in Joita, Giurgiu County last year, the retailer is building a new warehouse in Hungary near Budapest—its first one outside Romania. Last but not least, “our Marketplace ecosystem remains a top priority and we aim to continue building it up in order to increase the number of products on the platform as well as support the sellers’ international expansion.” Currently, over 42,000 retailers are using the Marketplace platform to boost their sales in Romania, Bulgaria, and Hungary. “Our aim is for the number of products on the platform to exceed 18 million in Romania alone, and that can only be achieved by attracting more entrepreneurs to our platform; therefore, the Marketplace will be a key driver of our business in the year ahead.”
Talking about the specifics of online fashion shopping, Radu of Answear says there were several noticeable trends after pandemic restrictions were lifted, including a surge in categories like high-heeled shoes, dresses, sneakers, and coats. Additionally, the average order value also increased by more than 40 percent. As for trends that might emerge this year, Radu expects an increase in the use of alternative payment methods such as Buy Now Pay Later. “We believe that segments like fashion, beauty products, and everything connected to travel will be on an upward trend this year,” she adds. The company aims to expand its brand portfolio in 2023, mainly with Scandinavian and premium brands. “We will also continue to invest in the development of the Answear LAB brand as well as in diversifying payment and delivery methods for our customers in order to offer them better services. We’re taking various approaches into account in order to improve our delivery times,” Radu of Answear concludes.
“The line between brick-and-mortar stores and e-commerce is blurring, as more and more players have integrated both into their business models, with many trying to optimise the customer experience through an omnichannel approach. Interestingly enough,
“Our estimation is that online fashion will grow by more than 20 percent in 2023 as a result of the increase in travel postcovid.”
“The same way people want to be able to choose the way they work after getting used to working from home during the pandemic, they want to own their schedules and budgets.”
“The need for emotional connection and networking will deepen in 2023, and we will find this being reflected in the shopping experience, as physical retail holds this advantage.”
with the exception of Hungary (which has a smaller share), about one in two people in the CEE-6, if not more in some countries, tend not to shop online because they would rather see the product before they make the purchase. Nevertheless, this (possibly) cultural reluctance around online shopping is exactly why a BOPIS (buy online, pick up in-store) approach may work quite well in the CEE region,” says Victor Cosconel, head of leasing, office, and industrial agencies & member of the board at Colliers Romania.
“It’s already been 3 years during which retailers have focused on surviving, and
they need to bring freshness into the experiences they provide. Generation X is getting jobs, and their consumption behaviour is different from the millennials’; they pay much more attention to a brand’s efficiency, values, and mission. Therefore, we believe that many retailers will be focusing on their sustainability strategies in a bid to attract these consumers,” says Sebastian Mahu, Head of Asset Management at IULIUS.
Last year, the IULIUS portfolio was expanded with two proximity retail projects under the Family Market brand, in Iasi. The company is now operating a retail area that exceeds 325,000 sqm, including two mixeduse urban regeneration projects—Palas Iasi and Iulius Town Timisoara—, the Iulius Mall regional shopping network in Iasi, Cluj-Napoca, and Suceava, as well as the two Family Markets.
“2022 was a year of revival, after a long period of challenges. The first quarter was still affected by the pandemic as well as by the war that broke out on Romania’s border. In the second part of the year, we saw increases of more than 50 percent in the retail segment against 2021. In terms of footfall, as expected, the results show a comeback in terms of shopping behaviour, reaching levels comparable to those of 2019. As compared to 2021, footfall increased by an average of 23 percent. Our projects¬— which are defined by the synergy between functions such as offices, park, entertainment, services, and retail—are also strongly anchored in the life of the community, and their footfall levels had risen above the market average even during the pandemic,” Mahu explains. As for the retailer mix, he notes that the IULIUS projects have a high degree of maturity and an occupancy rate of over 98 percent, so any fluctuations are related to optimising and updating the tenant portfolio in response to consumption behaviours. “In 2022 we had more than 60 new store openings and several relocations and refittings.”
Mahu believes that consumers this year will continue to seek efficiency and focus more on discounts, promotions, and good prices, given the pressure of inflation. “In addition, the need for emotional connection and networking will deepen in 2023, and
we will find this being reflected in the shopping experience, as physical retail holds this advantage.” He adds that it will become more challenging for retailers to enter new markets, due to high initial investment costs. Yet,“in terms of profitable segments, we expect last year’s trends to continue in 2023, so areas like sports, health & beauty, and food should see some of the highest growth levels.”
The electro-retail market continued its growth in 2022, albeit at a slower pace, with specialists estimating a single-digit expansion compared to 2021. One of the main reasons was the fact that customers could freely return to malls and shopping centres.
“2022 brought several challenges, but even in the difficult macroeconomic context, Altex managed to consolidate its growth through more efficient processes and an improved customer experience. Our company was able to attract new customers, consolidate its position as a specialist in the electro-IT sector, and add new categories of products to its portfolio,” says Raul Filip, acquisitions director at Altex. The company has an omnichannel approach that provides customers with a wide range of products and services available for all channels: online, mobile app, and offline. In 2023, Altex aims to expand its store network with 14 new stores by the end of the year, as well as modernise some of its existing ones. According to Filip, one of the biggest challenges the company now faces is building the Altex Marketplace as a modern and innovative shopping solution that aligns with its values and quality of customer experience. “This year we will operate on a more mature and sophisticated market with a high level of volatility as customers’ expectations for quality products and services have increased. Digitalization and retail automation will certainly represent an area of focus, while technology and innovative tools will improve processes and ensure efficiency in operations,” Filip notes.
Along similar lines, Dragos Sirbu, CEO at Flanco Retail, says that his company listened to its customers’ needs more than ever last year. “Our research shows that customers appreciated the convenience and simplicity
“This year we will operate on a more mature and sophisticated market with a high level of volatility as customers’ expectations for quality products and services have increased.”
“Our research shows that customers appreciated the convenience and simplicity of our 45-day return policy, which is the most generous period for free returns in our industry.”
“Our most important achievement of the year remains the expansion to Bulgaria. The international market was first tackled by Sameday in 2020, when we launched our services in Hungary.”
of our 45-day return policy, which is the most generous period for free returns in our industry. We’ve also deployed a faster refund policy: on the spot if the return is carried out in a Flanco store and within 24 hours if it’s via courier delivery or lockers.” Sirbu adds that the company took its slogan a step further, enabling its clients to invest in high-quality electro-IT that have long lifespans. “We were the first in our business to launch in-store installment payments using the customer’s salary card—and we did that across all of our 157 stores,” he points out. As for attracting new customers, Sirbu says that Flanco has increased its social media presence. “Considering that people have been investing more in domestic
holidays and travels lately, we have laid the foundations of an OOH network aiming to increase our visibility in areas with intense traffic. We have also opened up new stores in high traffic shopping centres, all while increasing our brand visibility in the most important malls in the country.”
Statistics show that the Romanian courier market saw continued growth in 2022, reaching a value of EUR 850 million, and expectations remain positive. “The unpredictable market circumstances have challenged the status quo, and this impacted our entire industry. Two years of pandemic restrictions followed by the armed conflict on Romania's border changed consumption habits and brought significant volatility. We increased our ability to adapt to the business environment which we were entirely thrusted into. 2022 was a year of investments, a strategy that would usually be applied in more predictable market conditions, which we’ve lacked in recent months,” says Sameday CEO Lucian Baltaru.
“For 2023, we estimate a market growth of 10-15 percent. Retail is rapidly migrating online, so online trade was the trigger of the courier market in 2022, and it will continue to be in 2023,” says Adrian Mihai, the CEO of FAN Courier. He adds that ecommerce had a share of 60-65 percent in the company's activity last year, especially in the context of the traditional shopping campaigns of the last two months of the year—Black Friday and the Winter Holidays.
FAN Courier’s investments last year topped at EUR 31.5 million. The company completed its second largest HUB in Romania, in Cluj-Napoca, started the modernisation and automation of its HUBs in Brasov and Stefanesti, relaunched its lockers network, and continued the digitalization and expansion of its car fleet. “We invested around EUR 10 million in relaunching and developing our smart lockers network, FANbox, and this was the biggest investment of 2022. At the moment, we have a total of about 500 lockers in Bucharest and other large cities in the country,” Mihai
adds. This year, the courier firm will continue projects that it started last year, including expanding its headquarters in Stefanestii de Jos and its two HUBs, further developing its locker network, and advancing digitalization. The purchase of electric cars and investments in sustainability are also on its list of priorities.
“On the international market, we plan to continue developing operations in the Republic of Moldova. We entered the neighboring country in 2021, after an initial investment of EUR 3 million. We want to attain leader status on this market as well and will continue to invest in the fleet, employees, logistics facilities, and technology following a period of uncertainty generated by the war taking place in the immediate vicinity. We are also increasingly interested in other international markets and are analysing expansion opportunities, to give customers from Central and Western Europe access to the Romanian market and vice versa,” Mihai explains.
2022 was a year of investments for Sameday as well. The company launched services that facilitated the interaction between couriers and end customers, through the Interactive Delivery Management application, and it increased its parcel management capacity, while also expanding the easybox network that today counts more than 3,700 lockers in Romania alone. “Yet our most important achievement of the year remains the expansion to Bulgaria. The international market was first tackled by Sameday in 2020, when we launched our services in Hungary, but this was only the beginning. At the moment, we have approximately 800 easybox lockers outside Romania’s borders, in Hungary and Bulgaria,” Baltaru says.
“In 2023, the focus remains on our customers and their needs, so the company is working on large-scale projects to improve the end-to-end experience, from order confirmation to package pickup. The two aces up our sleeves are acknowledging and implementing the feedback we are given and our openness to new technologies. Technology is the word that will dominate Sameday’s activity this year,” the CEO adds.
Industrial developments and leasing
For 2023, we estimate a market growth of 10-15 percent. Retail is rapidly migrating online, so online trade was the trigger of the courier market in 2022, and it will continue to be in 2023.”
“The line between brick-and-mortar stores and e-commerce is blurring, as more and more players have integrated both into their business models, with many trying to optimise the customer experience through an omnichannel approach.”
“Totalling 1.11 million sqm, industrial transactional activity passed the 1 million sqm threshold for the first time, and was 31 percent higher than the 2021 level.”
demand are showing no signs of a material slowdown and, in some cases, are set to remain on par with levels of previous years, which have been record-setting for some countries, argues Cosconel of Colliers Romania. “On a per capita basis, the modern industrial and logistics stock in the CEE-6 countries remains well below that of a ‘normal’ Western country, so there is still a lot of room to grow over the medium term. A country’s economic momentum as well as its infrastructure dictate how fast
each market will grow,” says Cosconel. In numbers, 2022 was the best year ever for logistics players. “Totalling 1.11 million sqm, industrial transactional activity passed the 1 million sqm threshold for the first time, and was 31 percent higher than the 2021 level,” says Victor Rachita, head of industrial and logistics services at CBRE Romania.
2022 saw Romania becoming a regional hub for retail and e-commerce, with 3 transactions above 50,000 sqm, and companies such as CCC, LPP, PEPCO or H&M renting logistics space mostly in industrial developments around Bucharest. There have also been numerous new entries in the manufacturing sector, especially in the central-western part of the country, thanks to the highly qualified workforce, accessible geographical location, a stable economic and social environment, and substantial state aid.
“Last year was very strong in terms of completed construction projects as well, reaching a level of 6-700,000 sqm, with a trend of vacancy going below 5 percent. This will lead to a developers’ market in the following two years across the entire country. We’re already seeing it in regions/ counties such Cluj, Brasov or the north of Bucharest,” says Tudor Iuga, partner for land development, industrial, and logistics at Simon & Partners Real Estate Advisors. He adds that even though “recession” may be a key term in 2023, we should still expect the industrial sector to perform better than the other real estate segments.
“In a year when we estimate for another 550,000 sqm to be added to the stock of modern industrial & logistics space, the market will look to benefit from Romania’s strong positioning both for the non-shoring strategy of many manufacturing companies as well as for local and regional distribution in CEE,” Rachita argues. Last but not least, local companies will consolidate their storage areas based on new volumes, which will be lower than those of 2020-2022. According to the CBRE Romania representative, the good news for this year is that the Eastern/ North-Eastern region comes in third, with 18 percent of future deliveries. “Once overlooked by investors mostly due to its underdeveloped infrastructure, the region has managed to attract local investors willing to
create the foundation of modern industrial stock in the area,” Rachita adds.
Elsewhere, Iuga says that yield decompression, high interest rates, high inflation, and rising construction costs will lead to a decline in new speculative construction. This will translate into rent level increases for the industrial sector. “Still, considering the supply chain challenges of the past two years, both nearshoring and friendshoring are expected to flourish in the coming period, with Romania finding itself in a very attractive position due to costs and workforce availability, by being the second biggest country in the CEE region, and having a strategic geographic position,” Iuga notes.
In 2022, CTP Romania focused on expanding the parks in its portfolio, starting with Bucharest, which is increasingly emerging as a regional hub. CTPark Bucharest West, which is due to become the largest industrial park in Europe, was expanded, and so were CTPark Bucharest at km 13 and CTPark Bucharest North, in the Stefanesti-Afumati area. Recently, CTPark Bucharest West reconfirmed its position as a regional logistics hub for the whole Balkans and beyond, by starting its cooperation with LPP, the fastest growing fashion retailer in Romania, for its regional distribution centre. LPP leased 65,000 sqm of warehouse space in CTPark Bucharest West.
As for its 2023 plans, CTP is starting the expansion of CTPark Bucharest South, which represents another pin on the Bucharest map, this time in the Popesti-Leordeni area. “Our park in the south of Bucharest benefits from the best infrastructure in the area, with two direct entrances from DN4, near the ring road, but also with direct access to A0, at the junction point located at less than 500m from our new building. We already have 70,000 sqm that are fully leased, another 15,000 sqm will soon be delivered, and we’ll start the construction of an additional 60,000 sqm. With this expansion, for which all the infrastructure is already prepared, CTPark Bucharest South will reach 150,000 sqm”, says Ana Dumitrache, country head at CTP Romania. The effervescence of the Romanian real estate market is also proven by Cometex,
“Our park in the south of Bucharest benefits from the best infrastructure in the area, with two direct entrances from DN4, near the ring road, but also with direct access to A0.”
“We have a different approach and development strategy, targeting all urban areas in Romania, from small towns of 20-30,000 inhabitants to large cities with over 300,000 inhabitants.”
“Last year was very strong in terms of completed construction projects as well, reaching a level of 6-700,000 sqm, with a trend of vacancy going below 5 percent.”
a developer of retail parks and member of the Altex Group. The company has 10 projects for retail parks for 2023, in cities such as Dej, Vatra Dornei, Valenii de Munte, etc. “We’re seeing online and offline as always being together. We have a different approach and development strategy, targeting all urban areas in Romania, from small towns of 20-30,000 inhabitants to large cities with over 300,000 inhabitants,” says CEO Adrian Urda.
Even though we’re continuously being warned of an impending economic downturn, companies in Romania can still find the means to grow and overcome the crisis in 2023 thanks to the stability of the financial system and the inflows of foreign capital. But there are indeed growing threats, including at the international level, and they may overlap with economic weaknesses, which we’ll highlight by conducting a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the Romanian business environment.
By Claudiu VrinceanuThe fact that the banking system has a relatively low exposure to risk and the steady growth in foreign investment are two strengths of the country’s business environment. The Romanian banking system is less sensitive to threats than the average European system, while its hazard indicators, including the own funds, non-performing loans, and provisioning ratios, are much better than those of EU peers, according to the National Bank of Romania.
One fact that strengthens Romania's position further is that no public funds were used to bail out banks. The resolution of the country's non-performing loan issues has been positive. Moreover, the banking system has recently returned to a liquidity surplus (over EUR 1 billion) after almost a year of large deficits.
Foreign direct investments (FDIs) have potential to grow in 2023 after last year's record performance. Net FDI inflows passed the EUR 11 billion threshold in 2022, making it the best year in this respect. Previously, the best year for FDI had been 2008, with a total net inflow of EUR 9.2 billion. FDI has a 40 percent share of total investments. Foreign firms also have
a higher stake in high-tech industrial sectors compared to the economy’s average. These companies account for about one third of the loans granted by domestic banks in the real economy.
There are two key weaknesses for the business environment in 2023: Romanian firms are still dealing with capital shortages, and tax system changes will undoubtedly continue to impact them this year. Companies with significant capital deficits continue to account for a large share of non-financial businesses (31.6 percent in 2021), but their number has decreased compared to the previous year (-5 percent). According to the central bank, these firms’ recapitalisation needs has declined by 7 percent. 2023 began with a series of significant tax changes for companies and labour. Increased VAT rates, changes to the tax regimen for micro-enterprises, and higher income taxation are just some of the changes that came into effect earlier this year.
In terms of business opportunities, we’ve been working on the implementation of new
reforms and increased absorption of European funds, mainly through the Recovery and Resilience Facility, the key instrument at the heart of NextGenerationEU. Fifty-one milestones were achieved in the first half of last year, with a further 79 milestones and targets to be "ticked off" by the end of 2022, according to the Investment and European Projects Ministry. The country’s Recovery and Resilience Program involves 292 investments and 215 reforms. Of these, 155 investments and 32 reforms are aimed at transitioning the economy to an environmentally friendly growth model.
Global uncertainties, in the context of the energy crisis and the war in Ukraine, represent a severe and, unfortunately, growing systemic risk to financial stability. Another extreme systemic risk has to do with the deterioration of domestic macroeconomic balances resulting from regional and international geopolitical developments. At the same time, the large share of floating-rate loans implies considerable interest rate risk and remains a concern for the period ahead, especially for mortgages.
Pursuing growth on the United States market requires a lot of research, support, and meticulous planning, and diligent companies tend to come across substantial opportunities for development. For many Romanian startups and scaleups, breaking into the US market is a compelling prospect for rapid growth and boosted credibility. Let’s take a look at five Romanian companies that are taking on the US market this year.
By Claudiu VrinceanuOne challenge for local firms is the fact that Europeans must improve and adapt their sales skills for the US market. To successfully sell there, you must be short, concise, and assertive. Europeans tend to be more laid back, wordy, and patient. You can always hire people with those skills, assuming that you are able recognise the gap. Still, if you’re from Europe, most people in your network are likely to be from here as well. The best solution would be to hire someone in the US who has experience working with Europeans or, better yet, country-specific experience, acknowledging that each country has a distinct culture. That person would be able to speak "American" with prospects and US-based partners while being aware of the culture internally. Founders moving to the US may also be a good solution, but learning the US culture and selling to prospects on that market takes time, so the short term requires a more concentrated effort.
FintechOS started its internationalisation process in the United States after the USD 60 million Series B funding led by Draper Esprit. The launch followed the company’s development in Europe, Asia, and the Middle East. FintechOS has been forging links with American credit unions and traditional banks
to remove common obstacles to digitalization that are currently hampering the market. The digital solutions provider forecasted intense demand for its US offering.
AROBS Transilvania Software, a technology company listed on the Bucharest Stock Exchange, is one of the Romanian companies trying to develop on the American market through acquisitions. In this sense, the Clujbased company bought Nordlogic, a local group of companies specialised in developing custom software products and platforms, with offices in Seattle. AROBS also took over Enea Software Development Services in a transaction worth EUR 17.9 million, which included the latter’s operations in the US.
Romanian MedTech startup Medicai is already targeting markets in Western Europe, and entering the US is the next strategic expansion step for the company. Through new partnerships, Medicai already has access to some big software companies and ecosystems.The company is raising a new investment round to support its international expansion on the US market. Medicai has been accepted to AWS Expand, an incubation programme created by MATTER, a premier
healthcare incubator and innovation hub, in collaboration with Amazon Web Services (AWS). With investors like ROCA X, DMoonshot, and Cleverage VC, Medicai has raised a total of EUR 1 million over the past two years.
Krugman & Partners opened offices in New York and Bucharest last year, thus entering the competitive intelligence and cybersecurity market, which has been continuously growing in recent years. In 2019, the global value of this market was close to USD 40 billion, and estimates say that it will exceed USD 82 billion within the next five years.
OVES
OVES Enterprise, a software development company from Cluj, will expand its international presence in 2023 after opening an office in Silicon Valley—its fifth office opened outside the country in the last 11 months. The company is currently present in Germany (with two offices), the United Arab Emirates (Dubai), the UK, and the US. According to the OVES team, the US is one of the most attractive areas for developing IT projects, both from the financial perspective—with fees 20-30 percent higher than those in the DACH area—as well as in terms of project complexity and degree of innovation.
The company plans to continue the investments in increasing its production capacities from renewables. At the same time, the company will continue to modernize the natural gas infrastructure to accommodate green gases.
system will produce over 14,000 MWh/year, thus covering approximately 20% of the plant’s electricity needs.
The company will continue to invest in the modernization of the gas network, as well as in the preparation to integrate hydrogen. "In the medium term, we aim to convert part of the gas network for the use of green gases. Two of the projects we are working on are the modernization of a part of the gas distribution network for the injection of hydrogen, as well as the development of a biomethane production project, aiming at injecting the resulting biomethane into the distribution network", said Răzvan Grecu, Head of Business Development ENGIE Romania, at the ZF Energie event.
The company is one of the main green energy producers, with an installed capacity of 120 MW in wind and solar, and it will focus on developing more photovoltaic parks next year. ENGIE Romania’s plans are ambitious and in line with the Group's strategy to accelerate the transition towards a carbon-neutral economy and reach net zero emissions by 2045.
"We're developing our renewable electricity portfolio of new projects which accounts currently of about 700 MW. Our portfolio is under continuous development and will
continue to be so at least until 2030.", stated Răzvan Grecu, Head of Business Development at ENGIE Romania.
At the same time, the supplier of electricity, natural gas and tehnical services offers its customers decarbonization solutions by developing decentralized renewable energy capacities that partially or fully cover their electricity consumption. For example, next year, ENGIE Romania will start the construction of the largest on-site photovoltaic park in Romania, with an installed capacity of 8.6 MWp, on the premises of SaintGobain’s glass plant in Călărași. The photovoltaic
He emphasized that, for Romania, there is no universal technology that can be applied, but a mix of reliable solutions in terms of cost and implementation. "Energy transition is not a parachute jump but a carefully planned journey. For the energy transition to be successful we should acknowledge that no single technology is the response, not even natural gas, hydrogen, or biomethane”, Răzvan Grecu continued.
With the development of renewable energies and energy efficiency measures, the share of natural gas, although decreasing, will remain important in the energy mix of the country for the coming decades. Also, the interest in being connected to the gas network still remains high. For instance, between 2020-2021, the number of requests to connect to the network increased by 30%, according to ENGIE Romania.
Recently, the position of Regional Director at IFC Europe was taken over by Rana Karadsheh Haddad, and her first visit outside Vienna was to Romania. Business Review took the opportunity to talk to Rana Karadsheh about IFC’s investments in Romania and the challenges the organisation sees across the world.
By Aurel ConstantinThis is your first official visit since taking on the Regional Director role at IFC Europe. Why did you choose Romania?
Yes, this is my first visit outside Vienna. Romania was the immediate choice as it is the country in Europe where IFC has the largest exposure. We are also celebrating 30 years of the World Bank’s presence in Romania.
What’s your view of Romania following these three decades of development?
Romania is a very important country in the region and, as I mentioned previously, the country where IFC has the largest exposure in Europe. Today, our portfolio stands at EUR 1.5 billion, across a number of different projects. What we are here to do is support the private sector, as we know from experience that if the private sector grows, so does the economy. Since 2000, 80 percent of investment has come from the private sector, which demonstrates how important it is for the whole economy. Romania is now a strategic geopolitical player, so it is especially important for it to have a strong private sector. Of course, the
public sector is also a critical partner in terms of alleviating risk and creating jobs efficiently. To attract private investments, countries need to have the right policies and incentives in place.
What are the key strategic areas that investments should be focused on today?
There are several important areas, but I will focus on the most critical. The number one priority is connectivity; I think physical and digital connectivity across the country are essential, as they facilitate trade in and out of Romania. Physical infrastructure is as important as digital infrastructure for the country. Second, of course, is the climate and the green transition. In terms of energy, Romania is a little bit different from its neighbours. But the one thing that the covid pandemic taught us was that economic and energy resilience were critical. At the end of the day, diversification is important as well. Resilience will come along with the green transition. So, we need to reinforce the strategic position that Romania finds itself in and, of course, support
nearshoring. I was based in Asia for 10 years and I saw the shift in supply chains, so I know that nearshoring is key.
The green transition is a strategic priority for us in Romania. We’ve marked a lot of firsts here so far, including the first blue bond in the EEC with Banca Transilvania, valued at EUR 100 million, the first sustainability bond with Raiffeisen Bank, and the first loan to a consumer finance company to create a portfolio of green bonds. All were dedicated to sustainability. In the last year, 75 percent of our investments have been green, out of total IFC investments that came close to EUR 460 million. There are plenty of opportunities and as people become increasingly aware of them, there will be more green projects to invest in. As the return on investment becomes clear, we’ll start to see conventional financing coming in and taking over.
With support from the government, Romania had a period when it managed to start a lot of green energy projects, most of which were wind farms. Do you think the government should find new ways to financially support these types of projects?
I wouldn’t want to comment on the details of the industry and the legislation in Romania, but what I can talk about is what I have seen globally. First, the cost of installing renewable energy projects has come down significantly over time. Second, these projects didn’t necessarily receive subsidies from the government but were partnerships in which the authorities provided the land or other non-financial components. There may have been some subsidies in the beginning, but things eventually changed.
The mass layoffs that have hit IT workers in large US-based companies could provide an opportunity for tech startups that are looking to fill their ranks with skilled specialists. While the wave of staff restructuring processes might also hit Western Europe, tech workers in Eastern Europe are likely to be less impacted, and the region could continue to attract new investment and generate tech startups with scaleup potential.
By Ovidiu PosircaMost of the layoffs are hitting companies that have reached unicorn and corporate status—especially those relying on the internet economy
Romania’s IT industry is still in need of around 15,000 new workers on average each year, according to data from the Software and Services Industry Employers’ Association (ANIS).
“As we have members ranging from startups to big multinationals operating on the
local market, we also wanted to check with them as to whether they predict a contagion in the coming months, so we have just launched a pulse survey (the ANIS Sentiment Survey) that we plan to run at least annually. Though we don’t yet have the consolidated data, preliminary answers from our members
have indicated a rather positive outlook for 2023, both for staff numbers and expected turnover for this year. In a nutshell, most companies expect their teams to grow this year, in line with revenues/turnover,” Corina Vasile, the executive director of ANIS, tells BR. ANIS members account for a total of over
60 percent of the local IT industry’s turnover, as well as for over 40 percent of the workforce.
Cristian Dascalu, co-founder and managing partner of Techcelerator, expects the wave of layoffs in the US to reach Europe, but to make most of its impact in Western Europe, because a significant part of the jobs will actually come to Eastern Europe.
In the US, most of the layoffs are hitting companies that have reached unicorn and corporate status—especially those relying on the internet economy, which is slowing down following aggressive growth during the pandemic.
Carmen Sebe, the CEO of startup crowdfunding platform SeedBlink, tells BR that “unemployment among tech workers remains low; many smaller companies and startups are looking for talent and they are now in a better position to compete with Big Tech recruiters.”
In late January, Google’s parent company Alphabet said it would cut 12,000 jobs, representing 6 percent of its total headcount.
This would be the company’s single biggest round of layoffs amid worsening economic conditions.
Elsewhere, Microsoft announced at the start of this year that it would fire 10,000
employees in its biggest layoff round of the past eight years. The IT giant also cited the global economic slowdown as the main reason for the elimination of jobs.
E-commerce behemoth Amazon said it would reduce its headcount by 18,000 people, while business software provider Salesforce laid out plans to cut 8,000 employees or 10 percent of its global workforce.
Since the start of the year, over 120 tech companies have laid off a total of over 37,000 employees, according to data from Layoffs.fyi.
“The next couple quarters are really going to tell us what is really going to happen in the economy,” said WebEx CEO Chuck Robbins during an interview at Davos.
The risk of recession remains high for major economies as central banks have aggres-
sively increased key interest rates in a bid to stave off inflation. In the European Union, GDP growth is forecast to subdue to 0.3
slowing down hiring staff, and cutting other expenses with tighter and more efficient budget control. The Romanian economy is
platform for office leasing and marketing. It has already added local and international developers to its portfolio and it is looking to expand across Europe.
“At the moment, startups are paying even more attention to recruitment as well as to efficiency and optimisation, and I think this is a good step to take. It minimises the likelihood of layoffs and it also helps companies adapt to the new economic reality,” she tells BR.
Startups that are looking for new talent are also noticing a mindset change among specialists, as people are less willing to define themselves through a specific job title. Instead, they want to become more relevant as professionals and focus more on their activities.
“People are increasingly looking to highlight who they really are, and this kind of self-identification helps startups. On the other hand, in tech, many IT specialists no longer want to go to the office, because at home, they can hack their time and work for the company where they are employed full-time but also take on collaborations on the side and work on 2-4 additional projects,” Techcelerator’s Dascalu notes.
percent this year, while Romania is expected to record an economic growth of 1.8 percent, according to an estimate by the European Commission, the executive arm of the EU.
On this backdrop, local tech hiring will have to adapt to changes in the demand structure. Sebe of Seedblink suggests that Romanian developers working remotely for companies abroad or those who are part of outsourcing companies working with Big Tech could be affected. However, they’ll have the opportunity to work more flexibly with startups or start their own tech companies as entrepreneurs. In turn, international companies could accelerate the opening and expansion of development centres in Romania, as costs are rather low, similar to those in countries like India.
“There is a general prudence in companies’ approach: freezing budgets for travel,
expected to continue to grow in 2023, so we will not hear of any layoffs from big tech companies here, but we will see them having a cautious strategy,” Sebe adds.
Some Romanian tech startups have already conducted analysis to see whether they can maintain the current size of their teams, whether they can continue to hire as planned, and what they have to spend their time and money on in order to have the best results, says Ioana Gheorghe, People & Culture Manager at Bright Spaces Proptech. The startup is developing a SaaS
The types of skills and personality traits that startups tend to look for are quite similar to those sought out by large companies, but people who are thinking of making the switch need to be aware of the specifics of an earlystage firm that moves at high speed and looks for accelerated growth.
“As a startup, you want to hire smart people who can get up to speed quickly, are constantly learning, are open to navigating ambiguity, are hardworking, have high integrity— and low tolerance for politics or lies, are empathic, and have a strong team mindset. A combination of business creativity and technical depth is ideal,” the SeedBlink CEO argues. She says there are a few ways in which startups can attract talent and keep people engaged.
First of all, remote working is here to stay, and talent can be kept through flexibility, responding to people’s desire to have more
programmes generate increased employee retention, improved employee performance, and better product and service offerings.
invested in it and will be more likely to stay with that company for a long time.
Dascalu of Techcelerator adds that entrepreneurs generally look for complementary skills when looking for fellow co-founders. This means that if you are a technical person, you will be looking for marketing people, product people, and people who know the importance of the diaspora. If you are a businessperson, you will look for more technical colleagues.
“The multi-disciplinary nature of the co-founding team (with backgrounds in business, tech, marketing, and product creation) is increasingly visible in many startups. In terms of choosing co-founders, but also other colleagues, it is essential to select people who are patient and understand that it will take time for the product to succeed, who are willing to go through ups and downs, face failures, reinvent themselves, and understand that every failure can represent a new opportunity,” Dascalu adds.
control over their own lives. Second, their desire to get better and better at something that matters can be encouraged with learning and coaching opportunities. Startup job training
Startups also need to acknowledge people’s ambition to work on something larger than themselves. Lastly, employees who own stock in the company they work for feel more
One challenge startups are facing is keeping up with the level of pay offered by big companies. This can become an issue for early-stage firms that need to have a tight cost structure while looking to raise financing in tougher conditions.
“Though the limited financial offer may be viewed as a minor setback, we have seen how attractive it is for candidates to have a comprehensive salary package with benefits which are tailored to their current needs and wants, access to remote work, flexible working hours, constant support for learning and development, and a good and healthy work environment,” Ana Visian, marketing manager of job portal BestJobs, tells BR.
Communication and teamwork are crucial for Bright Spaces in its current development stage. At the same time, ambition and rapid learning are paramount for the startup in the recruitment phase.
“Other important skills and personality traits we are looking for are problem solving, adaptability, initiative and proactivity, enthusiasm for learning, and the ability to give and receive feedback. It is a mix between the skills needed for healthy and productive teamwork and the skills that help people perform well in a startup," Gheorghe of Bright Spaces adds.
“UNEMPLOYMENT AMONG TECH WORKERS REMAINS LOW; MANY SMALLER COMPANIES AND STARTUPS ARE LOOKING FOR TALENT AND THEY ARE NOW IN A BETTER POSITION TO COMPETE WITH BIG TECH RECRUITERS,” CARMEN SEBE, CEO, SEEDBLINK
Anastasia Soare. Ingvar Kamprad. Erika Leonard. Daymond John. Sara Blakely. Pierre Omidyar. Andrew Carnegie. Jeff Bezos. Craig Newmark. Pierre Omidyar. What do all these famous business people have in common? They started out as—and for a long time remained—solopreneurs, a term that’s becoming more and more popular these days.
By Romanita OpreaSolopreneurs are both founders and employees
The distinction between a solopreneur and an entrepreneur can be difficult to see, especially since so many entrepreneurs start out alone. But their mindsets are subtly different, and noting those differences can help professionals determine the long-term direction they'll take with their businesses. Anastasia Soare immigrated to the US in the late 1980s from her home country of Romania. Anastasia arrived in Los Angeles not fully comprehending the English language and with a small child. Though she had studied art and architecture in Romania, she temporarily put her training to the side and got a job at a Hollywood beauty salon. As an aesthetician, she noticed that the client’s eyebrows weren’t getting the care they deserved. When she brought this to the attention of the salon owner, Anastasia was dismissed. According to her boss, there wasn’t a market for eyebrow shaping. Yet, Anastasia persisted. She began by renting out a room in which she provided eyebrow shaping along with other
cosmetic procedures. Anastasia has publicly stated that her first clients were supermodels Naomi Campbell and Cindy Crawford. Her current celebrity clientele includes the who’swho of Hollywood, including Jennifer Lopez and the Kardashians. She utilises the Golden Ratio method to produce masterpieces on faces, with her net worth now estimated at USD 1.2 billion, and Forbes having ranked her #21 on America’s Self-Made Women list of 2019.
Ranked #23 on the same list, Spanx creator Sara Blakely, whose net worth is estimated around USD 1.1 billion, turned an inconvenience into a money-making, industry-changing idea. According to soloprepreneurinstitute.com, it all began when she started selling fax machines door-to-door in her home state of Atlanta. One day, while getting ready to attend a professional event, Blakely decided to cut the feet off her pantyhose. She hated having the seam show when she wore opentoed shoes, but loved the control-top support
the pantyhose provided. Though cutting the feet off was not the most comfortable thing to do, since the pantyhose would roll up her legs, it did give her an idea. Two years and USD 5,000 later, she was once again knocking on doors, but this time, she was looking for manufacturing companies that could bring her concept to life. One out of the many mills she visited decided to take a chance on her.
Soon after, Blakely was meeting representatives of the Neiman Marcus Group, where she gave them a live demonstration of the product. As a result, her merchandise was placed in seven stores throughout the country, including Bloomingdale’s and Saks. Out of all of her marketing tactics, sending a gift basket filled with products to the Oprah Winfrey show proved to be the winning strategy. Shortly thereafter, Winfrey included Spanx in her list of Favourite Things, which led to a swift increase in sales. In her first year of business, Blakely made a whopping USD 4 million. By her second year, profits more than doubled bringing in an estimated USD 10 million. Blakely has since expanded both her company as well as her product line. The company features maternity wear, leggings, and other intimate apparel.
If we take a closer look, we’ll see that all these solopreneurs have certain values in common, as they tend to set up their business ventures with the expectation of taking full responsibility for the risks. In general, all share these basic traits: passion for the job, management skills, ability to live with the risks, adaptation and versatility, financial management skills, quick decision making, and, maybe one of the most important aspect, innovation. For example, Swedish business giant Ingvar Feodor Kamprad, who is famous
for having founded the international furniture company IKEA, is said to have displayed entrepreneurial traits at an early age by selling Matchbox in his local neighbourhood. He then went on to trading picture frames, stockings, nylons, and jewellery. At just 17 years of age in 1943, he founded IKEA, which would go on to become the world’s largest retailer of household items and furniture. Kamprad used his built-in sense of ingenuity to trade quality furniture at an incredible low price. This led to his stellar reputation not only on the Swedish market, but eventually all around the world. His net worth today is said to be around USD 59 billion.
Andrew Carnegie started with absolutely nothing and ended up constructing an empire of steel. Originally born in Scotland to a working class family, he witnessed his father losing everything he had ever worked for. His family then emigrated to the United States. He was too poor to attend a formal school so he read everything he could get his hands on and became self-taught. He eventually went to work as a telegrapher and found employment with a few different companies. Carnegie was quick to see that steel was the crucial component to the construction of railroads and worked hard to create a monopoly on steel production in the US. By 1901, he’d become one of the wealthiest men in the world. Today the Carnegie estate is said to be worth around USD 310 billion.
Jeffrey Preston Bezos is an American entrepreneur, media proprietor, investor, and commercial astronaut. He is the founder, executive chairman, and former president and CEO of Amazon. With a net worth of US 114.5 billion dollars as of November 2022, Bezos is the fourth-wealthiest person in the world and was the wealthiest from 2017 to 2021 according to both Bloomberg's Billionaires Index and Forbes. Bezos founded Amazon in late 1994 on a road trip from New York City to Seattle. The company began as an online bookstore and has since expanded to a variety of other e-commerce products and services, including video and audio streaming, cloud computing, and artificial intelligence. It is the world's largest online sales company, the largest internet company by revenue, and the largest provider of virtual assistants and cloud infrastructure services through its Amazon Web Services branch.
A solopreneur is both the owner and the workforce of their business. They are responsible for organising, managing, and taking on the risks of their enterprise, without the help of a partner. But what makes them different from entrepreneurs or freelancers? As solopreneurs have a single business focus, do everything by themselves, don’t need to spend much time on logistics. Entrepreneurs manage and delegate tasks, look for new ways to grow their business offering, spend a lot of time on decision-making, and need to think about payroll, employee benefits, etc.
Solopreneurs are both founders and employees. That doesn’t mean that they can’t— or won’t—work and collaborate with others, but they won’t hire anyone full-time. A solopreneur might work alongside a freelancer or contractor, for example, to perform certain tasks or meet deadlines in a busy month. But this would not form part of the daily operations of their business. The business also wouldn’t depend on these parties to deliver its core services. Entrepreneurs, on the other hand, might have founded their company on their own, but will typically be seeking to grow, manage, and delegate responsibilities to other people over time.
“Solopreneurs don’t want to build an empire. They want to stick with a smaller, more manageable business that allows them to make most or all of the decisions on their own. This means that there’s a limit to what they can take on. There’s only so much time in a day, so a solopreneur needs to figure out the right business model and tools to make sure they’re making the most of it,” wrote Amanda Gaid for Oberlo.com.
On the other hand, the sky is the limit for an entrepreneur. According to Gaid, once they hit their own personal growth cap—and they’ve made enough revenue—they can start to build out their team. They can find partners and stakeholders and hire as many employees as they need to make sure everything is running smoothly.
When it comes to the differences between a solopreneur and a freelancer, Dropbox’s blog writes that solopreneurs undoubtedly share traits with freelancers, but opinions differ from person to person. To some, a freelancer is only a freelancer until their business grows to a certain size. They then become a solopreneur because they are seen as running a business, whereas freelancers are seen more as contractors with a small client base.
“However, we know that a solopreneur is an individual that sets up and runs their business without help. If this is what a freelancer is doing, then they can—and should—be considered a solopreneur. It might be easiest to think of it like this: while some freelancers are solopreneurs, solopreneurs aren’t necessarily freelancers. Is a freelance graphic designer that works full-time for a roster of 10 steady clients a solopreneur? More than likely, yes. Would you consider a one-person dog grooming business a freelancer? Probably not.”
In turn, Amanda Gaid thinks that established freelancers totally count and that they do become solopreneurs. According to her, if you build a freelancing business then decide to scale it up with automation or contractors, that’s even better. “Aspiring solopreneurs are in luck because the freelance industry is booming. In 2019, a survey by Upwork and Freelancers Union found that 57 million people in America alone did freelance work. And it’s becoming a full-time career path: 28 percent of participants said they were full-timers vs 17 percent in 2014,” oberlo.com writes.
“While entrepreneurs can work harder than anyone they know, a solopreneur is a worker by their very nature. If a task needs to be done, their first thought is to roll up their sleeves and start working. For this reason, this new generation of freelance workers and sole proprietors have emerged, with professionals content to run a one-man shop with no intention of bringing another person on,” entrepreneur.com concludes.
It looks like live music is coming back in a big way in Romania this year, bringing us the highly anticipated returns of Depeche Mode and Robbie Williams, among others. Here’s a preview of who’s going to perform at venues across Romania this year.
By Oana Vasiliuated and best-selling stars of the international music circuit. Tickets start from RON 130.
March 15, Bucharest
and Amy Roberts. Passes are already on sale on summercity.ro and iabilet.ro, with early bird prices starting from RON 499. Organisers have announced that there will be no oneday tickets available.
June 8, Bucharest
BONEY M.
February 25, Bucharest
Boney M., the cult disco band of the 70s and 80s, a living legend of the entire disco period, will perform at Sala Palatului in Bucharest with Liz Mitchell, the most famous voice of the beloved musical group. Nostalgic fans can purchase tickets with prices starting at RON 139.
AVISHAI COHEN
March 6, Bucharest
Trumpeter Avishai Cohen is returning to Romania with a concert that will take place at Rhapsodia Hall in Bucharest. Cohen is a multicultural jazz musician with influences from the legendary Miles Davis, and he’s achieved worldwide recognition as a musician with a unique sound, featuring several jazz genres as well as an active band leader or sideman. Tickets start at RON 125.
MARIZA
March 8, Bucharest
Mariza, the best-selling fado music singer in Portugal's musical history, will perform at Sala Palatului in March. Over the past 20 years, Mariza has evolved from a local phenomenon into one of the most appreci-
Bruce Dickinson will return to Romania with a concert dedicated to Jon Lord and Deep Purple, with big names of international rock who will take the stage together with an orchestra of 80 instrumentalists. Some of his guests will include Tanya O'Callaghan – bass, John O'Hara (Jethro Tull) – keys/hammond, Kaitner Z Doka (Jon Lord, Ian Paice) – guitar, Bernhard Welz (Jon Lord, Don Airey) – drums, and Paul Mann (Deep Purple, Jon Lord), who will conduct a full symphonic orchestra (the Bucharest Film Orchestra).
April 23, Bucharest
Eros Ramazzotti will also perform at Sala Palatului, with an event which is part of the tour promoting his future album, "Battito Infinito." Tickets start from RON 259, and organisers are also offering an extended package that allows fans to experience the concert up close.
June 4-5, Bucharest
The biggest surprise announced recently was Summer in the City, the festival that will bring Stan Smith and Robbie Williams to Romania, as well as Editors, LP, Calum Scott,
The supergroup Hollywood Vampires, which includes Alice Cooper, Johnny Depp, and Joe Perry, will perform their second concert in Romania this summer. Ticket prices start from RON 290.
DEEP PURPLE
July 9, Bucharest
Soloist Ian Gillan, drummer Ian Paice, bassist Roger Glover, guitarist Simone McBride, and keyboard player Don Airey will take to the stage in July, with tickets priced between RON 320 and 740.
July 26, Bucharest
Depeche Mode are also coming back to Bucharest with the "Memento Mori" world tour at the end of July. Tickets are still available in several categories, with prices starting at RON 255. The Memento Mori tour will be Depeche Mode's 19th tour and the band’s first in more than five years.
August 3, Cluj-Napoca
One of the biggest pop-rock bands in the world, Imagine Dragons, has been announced as a headliner of this year’s Untold festival in Cluj-Napoca. Tickets are already available, with early bird prices starting at EUR 139.
After a two-year delay, Timisoara is finally ready to call itself the European Capital of Culture in 2023. “Shine your light! Light up your city!” is the tagline that invites people to embark on a journey through light and dark spaces, as well as celebrate and rediscover the city, which aims to be a good host for experimentation and collaboration, whether we are talking about arts, technology, architecture, education or culture in general. BR talked to Corina Bucea, education & mediation expert in the Timisoara 2023 Curatorial Team.
By Oana VasiliuThe Timisoara 2023 European Capital of Culture (ECoC) project mostly focuses on community building through culture, using the metaphors of light and darkness. What are the keys to more active civic participation in the city’s cultural life?
The programme is built around two keywords: participation and engagement. This means building cultural programmes that are able to reach as many citizens as possible and are accessible to everyone, making everyone feel included. This of course is such an ambitious endeavour that even a programme as big as the European Capital of Culture is only one brick of that foundation. But it has the potential to bring a strong impulse, and sometimes that’s all that is needed. This impulse is generated by projects that place the spotlight on invisible communities and places, through participatory theatre, exhibitions about marginalised groups, as well as concerts and celebrations of diverse cultures¬—whether they are defined in a more traditional or broader sense. It is also brought about by projects that
celebrate the immense heritage of Timisoara and the surrounding region through new forms of expression, such as VR, or through reinterpretations by contemporary artists.
Most international complaints regarding the ECoC refer to there being low engagement for the locals, while there’s too much for tourists. How do you deal with that, especially considering the number of voices who are currently arguing against the entire programme?
That’s an interesting observation; I feel I should match it with a recent conversation I had with someone from Romania saying that what they expected from the ECoC was for it to bring more tourists to our cities. I believe each city and each country has its special traits and needs, and it greatly depends on the eyes of the beholder as well. There are no universal needs, and in reverse, there are no universal complaints. But jokes aside, I believe the future of ECoCs depends a lot on the capacity of those cities (their administra-
tions and cultural sectors) to make the best of the title—highlighting their people, their heritage, their future. The Timisoara 2023 programme is focused greatly on the local community—and through its empowerment and engagement, it has always stubbornly insisted on this approach, trusting that this will also create an aura of the city that inevitably also becomes attractive for tourists.
Beyond the official programme of TM2023, what do you think will be the real, day-today impact in citizens’ lives?
I believe in impalpable effects, as abstract as they may sound. I believe the title has already managed to re-establish a sort of pride in the hearts of the people of Timisoara—and one that puts culture at the centre. At the same time, I hope that this pride will be felt by Romanians outside the city too, and we are working on making that happen. On a more concrete level, I’m very interested in the programme’s impact on the cultural sector, and I think it’s already having an effect, in terms of generating stronger and more predictable support for culture, more powerful organisations with a greater capacity of developing brilliant artistic content, a more diverse cultural and art scene, and some highlights programmes and events that can be a compass for culture in Romania and the region. This translates into a greater and better cultural offer for locals and visitors alike, a better standard of life, and a more meaningful relationship between citizens and the city.
Is Timisoara ready to accommodate the tourists that will be flooding its streets?
What’s the city’s current capacity?
Timisoara can accommodate over 10,000 tourists at a time, according to official data on accommodation units. But I want to point out that there will be something for everyone throughout the 12 months of the year, and we hope all the tourists who are going to be passing through will take their time and enjoy the many faces of the city.
What does the typical attendee of the programme look like?
The type of audience we are looking to nurture are the explorers: those who are driven by curiosity, with a broad interest in culture, looking for a variety of experiences and not necessarily favouring a particular art field. They are not afraid of going into unconventional spaces and they are interested in the city’s neighbourhoods just as much as in the more central venues.
Timisoara has received a lot of international media coverage since the beginning of the year, with well-known publications presenting the city as a great weekend getaway. What’s the most impressive description you’ve read about Timisoara in the international press?
I trust that all this media attention is part of the well-deserved reward that the city is getting for preparing its title year. I’m not sure whether this qualifies as impressive, but what I did enjoy a lot was a short statement by one of the locals quoted in a material by DW. Mimo Obradov, who I am paraphrasing, talked about Timisoara as being a city whose diversity has something to offer and a living example of how Europe itself should function. I believe he really captured the spirit of the city.
Timisoara is very close to the other capital of culture, Veszprém (Hungary). Are there any projects to encourage people to discover both cities?
I would just highlight what the two cities share in terms of collaboration. First of all, Timisoara-based DJ K-lu travelling to the neighbouring city to shake up one of their party stages celebrating the official opening of Veszprém 2023. On the other hand, for the Opening of Timisoara 2023, a parade of giant
puppets from the Kabóca Theatre in Veszprém will animate the city centre.
In Veszprém, Timisoara will again be present at the INTERURBAN event (February 17 – March 13), with a showcase of cultural projects from the Timisoara 2023 Cultural Programme. INTERURBAN brings 25 cities from 25 countries to Veszprém this year, sharing music, flavours, and creators, alternating every two weeks with a new tandem of cities.
Another common initiative is Mysterious – Artists in search of hidden stories in the European Capitals, an international art project
and difficulties are bound to appear, some of which I believe to be hard to fully understand by the public outside the professional field.
What I think is specific to us, though, is the fact that we tend to lose trust easily—and Timisoara 2023 definitely had to earn its trust by making a bigger effort than that should have required. I truly hope—and feel—that this was gained back once the title year got closer, that stability was finally achieved at the local level, that cultural operators finally managed to get the support they needed to bring their projects to this stage, and that the
in which artists and young people from five cities in the Danube Region—including four ECoCs (Novi Sad, Veszprém, Timişoara and Bad Ischl)—are working together. In September, an event presenting the results of this collaboration will be hosted in Timisoara.
There has been some controversy about the development of the cultural programme since Timisoara won the title back in 2016, as well as some international investigations into some of the former consultants who worked on the ECoC project. How has all this affected your plans so far? Did media attention on the topic help raise awareness of the city’s cultural potential or was it all just bad PR?
The European Capital of Culture title is one of the most important and long-standing projects at the European level. It requires a lot of accountability and responsibility and, as with any programme of this scale, those values are challenged sometimes. Add to that the complexity of the Romanian context, hiccups
cultural programme finally took shape in a visible manner for the general public.
The Opening is definitely something that should not be missed! On the weekend of February 17-19, the European Capital of Culture is officially opening with an abundance of events—some organised by the Curatorial Team for Timisoara 2023, others by local operators who are implementing the programme, and some selected from proposals coming from the local community. There will be concerts, performances, meetups, exhibitions, installations, and art interventions throughout the city. The programme can be found here: opening.timisoara2023.eu/en
For the rest of the year, I would gracefully dodge the bullet of choosing for your readers and invite them to check out these 123 highlights we have hand-picked from the programme: opening.timisoara2023.eu/en/ highlights.
At the beginning of 2023, Romanian cinema reached a new milestone, as “Teambuilding”
(d. Matei Dima) attracted over 1 million cinemagoers. From highly promoted Romanian comedies to art movies that first go to international festivals, BR takes a look at what’s worth seeing in cinemas in the coming months.
By Oana Vasiliu
“TAXIMETRISTI”
(D. BOGDAN THEODOR OLTEANU)
Currently in cinemas
“Taximetristi” tells the story of Lica and Liviu, two taxi drivers who, in the course of a single night, cross paths with all kinds of clients who end up unexpectedly having an impact on their lives, for better or worse.
The film is a screen adaptation of the 2018 play of the same name, and the cast includes Alexandru Ion, Ronaldo Matsangos, Maria Popistasu, Victoria Raileanu, Monica Barladeanu, Andi Vasluianu, and Cosmin
Nedelcu (Micutzu), with special guests Adrian Nicolae and rapper Spike.
Premiere: February 3
The film is full of adventures and a lot of humour, centred around main character Ramon, a simple and good man who finds himself in exceptional situations, to which he doesn’t know how to react. The unpredictability of
these situations takes viewers through a carousel of events and emotions, with hilarious and spectacular scenes and a totally unexpected ending.
The cast includes Pavel Bartos, Smiley, Andreea Vasile, Alexandru Ion, Elvira Deatcu, Andreea Esca, Selly, Carmen Tanase, Ionu Rusu, Teona Stavarachi, Iulian Postelnicu, and others.
Premiere: at the Berlinale Film Festival
Surrealist drama Mammalia, directed by Sebastian Mihailescu, was selected for the Forum section of the 73rd edition of the Berlin International Film Festival, which will take place February 16-26, 2023. The film follows Camil, a 39-year-old man who embarks on a dreamlike journey where the mundane and the fantastic intertwine. Having lost control over his job, social status, and romantic relationship, he ventures on a quest that makes him question his identity and masculinity.
The cast includes István Téglás, Malina Manovici, Denisa Nicolae, Steliana Balacianu, Rolando Matsangos, Mirela Cretan, Andreea Gheorghe, Mircea Bujoreanu, Marian Pirvu, Dan Zarug Mihai, and Elena Chingalata.
World premiere: at the Berlinale Film Festival
The film features a semi-fictional correspondence between two women who meet at
university in Romania. One of them goes to Iran in 1979 to overthrow the Shah, while the other lives through the difficult years of Ceaușescu's Romania. Divided by two revolutions, their words describe women struggling to be heard, countries moving in different directions, and two souls united in their longing for each other.
Premiere: March 17
The film presents real but lesser-known events of the Romanian revolution of December 1989. In the chaos and panic generated by the crowd’s protest against the authorities, a militia unit in Sibiu becomes the target of a violent assault that degenerates into a bloody confrontation between soldiers, militiamen, security guards, and civilians.
The cast brings together Catalin Herlo, Iulian Postelnicu, Alexandru Papadopol, Andi Vasluianu, and Mirela Oprisor, alongside actors Adrian Matioc, Ali Deac, Cendana Trifan, Marius Turdeanu, and many others.
Premiere: April 21
The screenplay focuses on Bogdan (Laurentiu Banescu), a meticulous ambulance driver working in poverty-stricken Bucharest, who takes part in an armed robbery together with three men he barely knows. As the robbery ends in disaster, Bogdan starts a thorough, almost compulsive investigation to dig up the true identities of his accomplices, but the more he discovers, the deeper he sinks into a spiral of fear and paranoia. Cast also includes Ioana Bugarin, Sergiu Costache, Teodor Corban, Cosmina Stratan, Cuzin Toma, Mimi Branescu, and Diana Cavallioti.
