EXCLUSIVE: Capital region captures staggering 29% of all new businesses as rest of country struggles with alarming business closures

BUCHAREST, June 2025 - Romania’s economic landscape is undergoing a dramatic and dangerous transformation, with new data revealing a shocking concentration of business activity in the Bucharest-Ilfov region while the rest of the country faces a business exodus that threatens to hollow out provincial economies.

Capital Monopoly: The Numbers Don’t Lie

The Bucharest-Ilfov region recorded a staggering **3,362, representing nearly 29% of all new businesses nationwide. This dominance becomes even more alarming when compared to the rest of Romania’s largest counties combined.

The Capital’s Grip:

• Bucharest alone: 2,682
• Ilfov: 680 registrations
• Total Bucharest-Ilfov: 3,362 registrations

Provincial Struggle:

• Dolj: 623 registrations
• Timiș: 591 registrations
• Cluj: 568 registrations
• Constanța: 476 registrations

“The numbers paint a terrifying picture of economic centralization,, several provinces experienced explosive growth that masks deeper problems. Dolj county saw an astronomical 149.2% increase in registrations, but experts warn this could be a statistical anomaly rather than sustainable development.

“These provincial growth spikes are often driven by temporary factors or desperation entrepreneurship,” explains business consultant Marian Ionescu. “People are starting businesses because they have no other options, not because they see genuine opportunities.”

Entity Type Crisis: The PFA Explosion

The data reveals a disturbing trend in business structures across the country. While SRLs remain the dominant form at **7,677, PFA registrations exploded by 76.65% to 3,676 businesses.

“This PFA surge is deeply concerning,” says tax expert Andrei Vasile. “It suggests people are moving toward individual entrepreneurship not by choice, but because they can’t afford or don’t trust the corporate structure. This represents a massive informalization of our economy.”

Industry Concentration: Capital’s Knowledge Economy vs Provincial Basic Services

The industry breakdown reveals a stark divide in economic sophistication:

Capital-Focused Industries:

• Professional, scientific, and technical activities: 6,810 registrations
• IT and programming services: 4,376 registrations
• Administrative and support services: 3,960 registrations

Provincial Dominated Sectors:

• Wholesale and retail trade: 11,942 registrations
• Transport and storage: 11,855 registrations
• Construction: 6,437 registrations

“Bucharest is building a knowledge economy while the provinces remain stuck in basic services and trade,” observes regional development expert Cristina Moldovan. “This creates an unsustainable dependency where the capital produces value while the rest of the country merely distributes it.”

The Bleak Reality: More Businesses Closing Than Opening

The most alarming statistic comes from the business ecosystem health data. In June 2025, Romania recorded 12,601 business exits compared to only **11,765, resulting in a net loss of 836 businesses.

“The business churn rate is catastrophic,” warns economist Dr. Radu Constantinescu. “For every new business that opens, more than one closes. This isn’t growth - it’s economic musical chairs where the music is about to stop.”

The Perfect Storm: What’s Driving the Exodus?

Experts point to multiple factors creating this dangerous centralization:

1. Infrastructure Gap: Provincial businesses face higher transportation costs and limited market access
2. Talent Drain: Young, educated workers continue migrating to Bucharest
3. Funding Disparity: Capital region receives disproportionate investment and EU funds
4. Regulatory Burden: Smaller provincial businesses struggle with compliance costs

“The government’s regional development policies have failed spectacularly,” charges opposition MP Maria Stan. “We’re creating a country where only the capital matters, and that’s a recipe for social and economic collapse.”

The Future: Bleak and Centralized

Unless dramatic policy changes occur, Romania faces a future where:

• Provincial cities become economic satellites of Bucharest
• Rural areas face complete economic abandonment
• The talent gap between capital and provinces becomes irreversible
• Social tensions rise as regional inequality deepens

“The data shows we’re heading toward a point of no return,” concludes Dr. Popescu. “Either we implement radical decentralization measures immediately, or we accept that Romania will become a country with one functioning city and 40 economic wastelands.”

The clock is ticking on Romania’s provincial economies. The June 2025 business registration data may well be remembered as the moment we saw the warning signs of complete economic centralization - and chose to ignore them.