Few profitable companies

Less than half of the 400,000 companies that submitted financial statements for 2001 actually made profit, according to a study conducted by the National Council for Small and Medium-Sized Enterprises in Romania (CNIPMMR). “A number of 408,907 very small, small, medium and large companies submitted financial statements in 2001, but only 181,972 (44.5%) of them actually made profit in the fiscal year 2001,” the CNIPMMR study shows. Out of the total companies that submitted financial statements, 90.94% are micro-enterprises, 7.05% are small enterprises, 1.64% – medium-sized enterprises and only 0.38% are large enterprises. “The total turnover for the over 400,000 companies amounted to 1,586 trillion ROL, meaning that, regardless of its size, every company makes 3.8bn ROL in annual turnover. In fact, nearly 7% of this amount accounts for total profit, with the gap included in taxes to the Government or in the losses of certain companies. A company makes 265.8 million ROL in yearly profit on the average,” CNIPMMR says. The SME segment boasts the largest share of profitable companies (72.3% and 79.3% respectively). The micro-enterprise sector includes most non-profit making companies (41.6% of the total). ZF