Bucharest Stock Exchange Financing Opportunities for Romanian IT SMEs

Abstract

Abstract The paper presents the current development status of the Romanian capital market and the opportunities it offers for small and medium enterprises (SMEs) to finance their growth strategies through the stock exchange. It is well known that SMEs represent a growth engine for any economy in terms of contribution to GDP, employment rate, and tax contribution to the state budget. Their primary role of supplying goods and services dynamises the market landscape and creates the proper context for competition, innovation, and research and development. However, in this context, they are the most affected by the economic crisis, inflationary pressures, post-Covid uncertainties, and the war in Ukraine. Thus, their access to finance is now more important than ever. The paper’s focus is on SMEs from the Romanian information technology (IT) sector and how their growth since listing could be a driver for other Romanian IT companies to list on the Bucharest Stock Exchange. The stock exchanges offer SMEs medium and long-term financing opportunities, regardless of market conditions. Therefore, the more successful the SMEs business, the more significant their role as an economic growth engine is. The research is based on a quantitative approach-content analysis provided by Bucharest Stock Exchange and local and international financial institutions. The SMEs’ performance profile is determined by using trading evaluation indicators for IT SMEs listed on the Exchange. Results show that, by listing, companies benefit from contextual market conditions, highlighting the recommendation for other companies from the IT sector to list their business on the stock exchange.