Abstract:

The economic recession’s effects on Romanian economy, the entrepreneurship realities in EU and Romania, and change management contributions to improve both of the above are the main coordinates of this paper. The economic environment determines entrepreneurship realities and highlights the need for a structured approach of change processes; in this context entrepreneurship is considered a major enabler for economic growth, while change management - a booster for enterprises’ activity. Since small and medium enterprises (SMEs) have not yet been able to recover from last financial and economic crisis, numerous EU initiatives foster a SMEs friendly business environment, with a positive, but limited, outcome. A recent study highlighted that, in Romania, small enterprises having turnover between 100 - 500 k euros are the most affected by economic recession, having the highest insolvency risk. Also, the study categorizes Romanian industries by the economic risk they are facing. SMEs availability to change, in a structured manner, might be the only difference between their success and insolvency. Change management represents an important asset to these, as to all organizations, especially during economic crisis and recession, helping them to proactively relate to the turbulent environment.