Are young Romanians returning to the villages?
What business are the young betting on: agriculture ranks second, IT comes close by, featured three times in top 10.
Agriculture ranks second in the top of the areas entrepreneurs born after 1990 bet on, over the last five years, with over 6.000 companies created active in growing vegetables. IT comes close, featured three times in top ten, but none amongst the first five: internet commerce (3.300 companies), custom software development (2.400 companies) and information technology consulting activities (2.600), shows data from confidas.ro, a platform that analyzes the financial risk of companies. The top three areas where youngsters born after `90 have set up companies in the last five years are: hairdressing salons, agriculture and freight.
”Over the years, I have worked mostly in sales, and then abroad, in the field of hotel photography. After this experience, I decided to open an online store with traditional products - zacuscă and jams - from Maramures ”, says Marian Pop, a young man from Tulghieş, founder of Cămara Moroşenilor brand. He grows fruits and vegetables, and cooperates with fruit and vegetable producers in the area.”
Three out of ten in IT
What are the first ten areas that entrepreneurs born after 1990 have bet on:
1. HAIR DRESSING AND OTHER BEAUTY ACTIVITIES
6.479 companies opened in last 5 years
2. CULTIVATION OF VEGETABLES AND WATERMELONS, ROOTS AND TUBERS
6.069 companies opened in last 5 years
3. CARRIAGE OF GOODS BY ROAD
5.215 companies opened in last 5 years
4. CONSTRUCTION OF RESIEDENTIAL AND NON-RESIDENTIAL BUILDINGS
4.583 companies opened in last 5 years
5. RETAIL SALE IN NON-SPECIALISED STORES, SELLING MOSTLY FOOD PRODUCTS, BEVERAGES AND TOBACCO
4.007 companies opened in last 5 years
6. RETAIL SALE, THROUGH DELIVERY FIRMS OF VIA INTERNET
3.322 companies opened in last 5 years
7. MAINTENANCE AND REPAIRS OF VEHICLES
3.071 companies opened in last 5 years
8. RESTAURANTS
2.752 companies opened in last 5 years
9. DEVELOPMENT OF CUSTOM-MADE SOFTWARE (CLIENT ORIENTED SOFTWARE)
2.610 companies opened in last 5 years
10. CONSULTANCY IN INFORMATION TECHNOLOGY
2.445 companies opened in last 5 years
The agriculture, one of the main growth engines for the local economy, brings to the businesses engaged in this sector profit margins of over 20%. The sector has thus become increasingly popular among young people. Flavia Bileru, a 29-year-old from Dăbuleni, Dolj County, decided to bet on watermelon cultivation in 2012, and she currently works four hectares and has an annual production of over 150 tons of watermelons.
At the same time, the European funds aimed at young people have stimulated the creation of agricultural businesses. Over 11.300 young farmers received funding through sub-measure 6.1 "Support for the installation of young farmers", a program for farmers up to 40 years old. Between 2014 and 2020, the beneficiaries received a maximum of 50.000 euros, non-refundable money.
Robert Tulkos, another 25-year-old from Oradea, has a 1.000 square meter plantation with certified organic raspberries, set up four years ago; he plans to expand and create also a blueberry culture. This year, he had a production of 600-700 kilograms and revenues of 15.000 lei
”It all started as a hobby, I found it interesting to set up an organic raspberry culture, I researched it and then I wanted to have a business. I bought a house with a garden with my own money and the following year I set up the plantation,”, says Robert Tulkos, founder of the Zmeuro brand.
One third of the companies created in the vegetable growing sector over the last five years have a shareholder born after 1990, aged 30 years or less. For the last five years there are 85.000 companies with a shareholder born after 1990. The 85.000 represent 20% of the total number of companies created over the last five years (2015-2019).
Source: ZFCorporate
