EXCLUSIVE: Romania’s business landscape is undergoing a radical transformation that experts warn could destabilize the country’s economic foundations,, with 3,676 new PFAs registered this month alone. This explosive growth represents a fundamental shift away from the security of limited liability companies toward what economists describe as “precarious entrepreneurship.”

“The PFA boom is a clear signal of economic distress,” warns business analyst Maria Popescu. “Entrepreneurs are choosing the path of least resistance rather than building sustainable businesses. This creates a fragile ecosystem where companies can disappear overnight.”

Meanwhile,, while Individual Enterprises with Employees (IF) collapsed by 88.52%. Even the once-stable SRL structure shows concerning signs, with its growth rate of just 11.29% failing to keep pace with the overall market expansion.

Regional Disparities Widen

The structural shift is creating dangerous regional imbalances. Bucharest dominates with 2,682, while counties like Dolj saw explosive 149.2% growth that experts fear is unsustainable.

“This concentration of business activity in urban centers creates economic vulnerability,” notes regional development expert Andrei Ionescu. “When one region dominates so heavily, any economic shock there could ripple through the entire country.”

Industry-Specific Structural Collapse

The data reveals sector-specific crises in business structuring:

• Transport & Storage leads with 11,855, but this growth is overwhelmingly concentrated in individual enterprises rather than stable corporate structures
• Professional Services show 6,810 registrations, but the preference for PFAs over SRLs suggests professionals are avoiding the responsibilities of corporate governance
• Construction with 6,437 registrations reveals a worrying trend toward smaller, less capitalized entities that may struggle with larger projects

The Exit Crisis Deepens

The structural shift comes against a backdrop of alarming business closures. June saw 12,601 compared to only 11,765 new registrations, creating a net loss of 836 businesses.

“This negative net growth is particularly dangerous given the structural changes,, meaning more businesses are closing than opening—a clear indicator of economic stress.

What’s Driving the Shift?

Experts point to multiple concerning factors:

1. Regulatory Burden: Complex corporate governance requirements are pushing entrepreneurs toward simpler PFA structures
2. Economic Uncertainty: Businesses are choosing flexibility over stability in an unpredictable market
3. Tax Pressures: Individual enterprises offer perceived tax advantages that may prove temporary
4. Capital Constraints: Smaller initial capital requirements make PFAs more accessible but less resilient

The Future Looks Fragile

The dominance of individual enterprises creates systemic risks for Romania’s economy. PFAs lack the capital buffers, legal protections, and operational resilience of traditional corporations. When economic headwinds inevitably arrive—as they always do—this structural weakness could trigger cascading business failures.

“The current trend represents a hollowing out of Romania’s business foundation,” concludes Popescu. “We’re building an economy on sand rather than concrete. When the storm comes, we may discover too late that our business structures weren’t built to withstand it.”

The data shows a nation at a crossroads—will Romania continue down the path of fragile entrepreneurship, or will policymakers intervene to restore balance to the business ecosystem? The answer may determine the country’s economic stability for years to come.