EXCLUSIVE: July 2025 data reveals alarming shift toward riskier business models as economic pressures mount

The Great Entity Exodus

Romania’s business landscape is undergoing a radical transformation that spells trouble for the country’s economic stability. New data for July 2025 shows entrepreneurs are abandoning traditional corporate structures in favor of what experts call “survival entities”—business forms that offer lower protection but faster setup and reduced regulatory burdens.

The numbers are staggering: **15,168 flooded the market in July alone, compared to the same period last year. But this apparent boom masks a dangerous trend.

The PFA Explosion: A Desperate Gamble

Individual enterprises (PFAs) are experiencing explosive growth, surging 148.62% year-over-year to **3,886. This represents a worrying shift toward business structures that offer minimal legal protection and unlimited personal liability.

“Entrepreneurs are choosing PFAs not because they’re better, but because they’re faster and cheaper to establish,” explains business consultant Maria Popescu. “In an uncertain economy, people are gambling with their personal assets just to get a business off the ground.”

SRL Dominance: Quantity Over Quality

Limited liability companies (SRLs) continue to dominate with **10,832, in SRL registrations is being dwarfed by the even faster growth of riskier entity types.

Corporate Structures in Freefall

The most alarming trend appears in the collapse of traditional corporate structures. Partnerships (SNCs) saw an **800 but from a dangerously low base of just 9 registrations, while joint-stock companies (SAs) grew 225% to a mere 13 registrations.

Meanwhile,. These declines suggest entrepreneurs are avoiding the more stable, regulated business forms that typically indicate long-term investment confidence.

Regional Hotspots of Desperation

The entity shift varies dramatically by region,,, with similar entity patterns

• Bucharest,, accounted for over 20% of all national registrations

Industry-Specific Entity Preferences

The data reveals industry-specific patterns that suggest sectoral instability:

Transport and storage leads with **14,065, dominated by PFAs and individual entrepreneurs—a structure particularly vulnerable to market fluctuations.

Wholesale and retail trade follows with **14,213, showing similar entity preferences that suggest small, vulnerable businesses rather than established enterprises.

The Churn Crisis

The most disturbing indicator comes from business lifecycle data: **14,109 in July alone,. This means for every new business registered, nearly one existing business disappears.

“The high churn rate combined with the shift toward riskier entity types creates a perfect storm,” warns economist Dr. Andrei Ionescu. “We’re seeing a proliferation of businesses that are statistically more likely to fail, while established companies are disappearing at an alarming rate.”

What This Means for Romania’s Economy

The entity structure trends point to several troubling conclusions:

1. Reduced Business Resilience: The shift toward PFAs and individual enterprises means businesses have less legal protection and are more vulnerable to economic shocks
2. Short-Term Thinking: Entrepreneurs appear focused on immediate market entry rather than long-term stability
3. Regulatory Avoidance: The preference for simpler structures suggests businesses are trying to minimize compliance costs in a challenging economic environment
4. Investment Uncertainty: The decline in traditional corporate structures indicates reduced confidence in long-term business viability

As one business owner who recently switched from SRL to PFA told us: “I had to choose between staying compliant or staying in business. The regulations were killing my cash flow.”

The July 2025 data reveals an economy where entrepreneurs are making desperate choices to survive—choices that could have devastating consequences when the next economic downturn hits.