An outlook on the competitive framework of Romanian SMEs challenged by the economic crisis

SMEs account for over 99% of all European business, proving to be engines of economic growth and employment. Due to the European integration, the competition has increased both on the international and national markets and the quality of the products and services offered to customers are considered to be major factors of competitiveness for SMEs. The SMEs sector in Romania proved to be the most dynamic sector but it was also one of the first sectors to be affected by the global financial crisis, in spite of the defining features of SMEs such as dynamism, flexibility, innovative spirit, client orientation or capacity to adapt that were not enough to resist the powerful impact of the crisis. The main challenges most SMEs in Romania have to cope with as a result of the economic-financial crisis are sudden rises in the prices of raw materials, energy and food, liquidity and credit related problems, a marked decline in the demand for products and services, considerable variations in the exchange rate, and inflation. The article approaches the competitive framework of SMEs in Romania amid the economic-financial crisis, by looking first of all at the current situation of the SMEs sector since Romania joined the European Union, followed by an analysis on the way in which SMEs in Romania have been affected by the crisis