FINANCING ROMANIAN SMES – CHALLENGES AND OPPORTUNITIES DURING THE PANDEMIC CRISIS

Abstract

The small and medium-sized enterprise sector (SMEs) is considered an essential factor for growth and economic development. But despite its economic, social and innovative role, the SME sector is confronting with many vulnerabilities. Access to finance represent one of the main problems facing the SME sector. The new economic context imposed by the pandemic crisis has further highlighted these vulnerabilities and imposed new solutions for resilience and post-crisis recovery. The paper presents the characteristics and evolutions of the Romanian SMEs, the effects generated by the crisis on small and medium enterprises, the main measures adopted to support and to provide liquidity for SMEs affected by the crisis. This challenge comes both with restrictions and negative aspects, but also with some positive aspects, which can be turned into real opportunities for this sector so important in the economy. The main sources of finance for the Romanian SME sector as well as the major financing programs and instruments at the national and European level are analyzed in light of the role that financing plays in supporting and developing small and medium-sized enterprises. The measures adopted (greater financing flexibility, credit guarantees, public and private investment), the financing programs and instruments but also ensuring a stable legal and juridical framework, can contribute to the development of SME sector in Romania, after the pandemic crisis.