Regulatory Reform. What Role for the Romanian Business Environment

The „business environment” in its complexity and components includes all the external (exogenous) factors: the natural, economic, technological, social and institutional factors, likely to constrain, to validate or to modify the business decisions. The main element of the business environment, the economic agent, reacts according to these factors and, primarily, to the effects of the public policy regulations, caused, consequently, by the national and international economic situation. The volume and complexity of regulations, the number of changes and new regulations and the poor quality of regulatory reform, the uncertainty, risk and lack of trust are part of the main problems that business environment has to overcome in many countries in the European Union. Once reducing the administrative burdens, the economic operators may allocate more resources to their core activities, having thus, the ability to develop the innovation and other additional investments, with positive effect on the improvement of the productivity and the competitive position, creating new jobs. The problems that the Romanian authorities and businesses must cope with, are similar to those identified by the Organization for Economic Co-operation and Development (OECD) with the analysis of the regulations management capacity of the business in the New Member States of the European Union. Among them, Romania needs to encourage the entrepreneurship to boost potential GDP growth through physical capital accumulation and productivity gains.