The financing options for the Romanian SMEs in the current economic condition

Abstract

The financing decisions, together with the investment decisions, are probably the most important financial decisions that any entrepreneur or small and medium enterprise has to adopt from the very beginning of their activity. Therefore, particular attention should be paid to different factors that are influencing the financing decision such as costs, duration, flexibility, the risk involved, control, timing and so on. In this paper, we intend to analyze the way the Romanian SMEs are financing their activities in the current economic conditions, what are their options and preferences. We also intend to make a comparative analysis of the patterns of financing of SMEs in the EU with the Romanian SMEs to observe what the similarities and discrepancies are.