Public Policies and Entrepreneurship Development in Romania

Considering the recent events in Romania, related to all sorts of instability, this paper aims at analysing and discussing the way this context influences entrepreneurship, as a key element for economic development. Based on the existing literature, we first provide an overview of the factors that influence entrepreneurship. From the perspective of our paper, we focus mostly on the contextual determinants of this phenomenon. Then, using a set of variables from Global Entrepreneurship Monitor (GEM) and the White Charter of Romanian SMEs, we analyse the entrepreneurial profile of the Romanian economy over time, in relation with its determinants. The last part of the paper discusses the policies implemented by the different Romanian governments to support entrepreneurship. It highlights the main macro policies such as, taxation, the rule of law etc. of the recent period and it shows that the mix of incoherent policy measures has created instability, confusion and chaos rather than encouraging entrepreneurial activities.