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Year: 2019
Published in: European Research on Management and Business Economics, 25, 2019, 2, p. 79-86
Cited as: Luminiţa Chivu (2019), Local entrepreneurship and social services in Romania. Territorial analysis, European Research on Management and Business Economics, Volume 25, Issue 2, pages 79-86

Abstract

The density and typology of existing social services in a given country are dependent on a set of factors including the social model, cultural, social and legal traditions, the general regulatory framework and those specific to the labour market, protection and social assistance, demo-economic structures of the population, the general level of income and the proportions of the incomes of various economic and social categories, the strategic priorities and the financial resources available to the central and local authorities, the propensity of private operators and non-governmental organizations for involvement in the sphere of social services, the levers that society uses to increase this propensity, etc. An important element in the decision to start a business in a certain area taken by the categories of entrepreneurs in situations of vulnerability or with family members in such situations, the social services experience an uneven territorial distribution in Romania. The analyses performed in Romania, based on 2016 data, reveal the existence of important differences in the typology and density of the social services both by residential area (urban, rural) and the region of development, in correlation with the level of development of the county/region and the wealth of the population.

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Policy Makers

As the business environment is extremely unequal by territory in Romania, the existence of the necessary social services can be fundamental in taking the decision to place the new business in that location and their balanced development across the Romanian territory is mostly needed. Social services can also be considered in terms of greater involvement of the central authorities in restoring territorial balances, and especially of the local authorities, in reviving entrepreneurship and increasing the attractiveness of the local business environment for investors, through the development of agricultural market activities, wholesale centres for agricultural products, food processing industries, measures to support the employment of young people, etc.