Exclusive Analysis Reveals Alarming Economic Centralization Trend as Capital Region Captures 28.5% of All New Businesses

BUCHAREST - Romania’s economic landscape is becoming dangerously lopsided, with the Bucharest-Ilfov region cementing its dominance over the country’s business ecosystem while provincial regions face an increasingly uphill battle for economic relevance.

New data for October 2025 reveals a startling concentration of entrepreneurial activity in the capital region, raising serious concerns about sustainable economic development across the country.

Capital Crush: The Numbers Don’t Lie

The Bucharest-Ilfov region recorded a staggering 4,534 business registrations in October 2025 , representing 28.5% of all new businesses in Romania despite housing only about 15% of the population.

Bucharest alone accounted for 3,510 registrations , while Ilfov added another 1,024 . This represents explosive growth of 32.1% for Bucharest and 29.6% for Ilfov compared to October 2024 .

Provincial Disparity: The Widening Gap

The contrast with provincial regions is stark. While the capital region booms, the rest of Romania shows more modest growth patterns:

• Cluj County, often touted as Romania’s “second capital,” managed only 832 registrations - less than a quarter of Bucharest’s volume
• Timiș County recorded 785 registrations with minimal 3.4% growth
• Iași County, Romania’s second-largest city, saw 738 registrations with 17.7% growth

The alarming trend becomes clear when comparing the top 15 counties: Bucharest and Ilfov combined registered more businesses than the next 8 counties combined.

Entity Type Crisis: The PFA Explosion Masks Structural Weakness

The data reveals another worrying trend: the explosive growth in PFA (individual enterprises) registrations, which surged 67.4% year-over-year to 5,935 . Meanwhile, SRL registrations - typically representing more substantial, job-creating businesses - declined by 12.5% to 9,342 .

This suggests Romania’s business growth is increasingly driven by precarious individual entrepreneurship rather than stable corporate structures that can withstand economic shocks.

Industry Concentration: Capital Captures High-Value Sectors

The industry breakdown reveals why the capital region dominates: it captures the most dynamic and high-value sectors of the economy.

Transport and storage leads with 21,492 registrations , followed by wholesale and retail trade at 20,294 . Both sectors show massive growth - transport surged 60.3% year-over-year .

These sectors naturally cluster around major logistics hubs and consumer markets, giving Bucharest-Ilfov an insurmountable advantage.

Economic Health Warning

While Romania’s business ecosystem shows positive net growth of 3,041 companies , the health ratio of 1.24 masks deeper structural problems.

The concentration of economic activity in Bucharest-Ilfov creates multiple risks:

1. Regional Inequality: Provincial regions risk becoming economic backwaters
2. Infrastructure Strain: Bucharest faces increasing pressure on housing, transportation, and public services
3. Economic Vulnerability: A centralized economy is more vulnerable to localized shocks
4. Brain Drain: Talented individuals migrate to the capital, further weakening provincial economies

The Future Looks Centralized

Unless dramatic policy interventions occur, the trend toward economic centralization appears unstoppable. The capital region’s infrastructure advantages, access to capital, and concentration of skilled labor create a self-reinforcing cycle that provincial regions cannot easily break.

As one economic analyst warned: “We’re creating two Romanias - a booming capital region and a struggling periphery. This isn’t sustainable development; it’s economic polarization that will have long-term consequences for national stability and growth.”

The October 2025 data serves as a stark warning: Romania’s economic future is becoming increasingly concentrated in the Bucharest-Ilfov region, leaving the rest of the country to fight for the economic crumbs.