Summary
The intervention calls for a package of legislative reforms and tax incentives to make the process of starting a business and investing in startups easier.

Rationale
Current regulations slow down the process of company formation and core growth activities, such as fund-raising. They may also prevent entrepreneurs from structuring their firm in the most appropriate way (e.g. it is common for startups to reward staff with stock options; however, this is difficult under current legislation).

Fund-raising can be particularly onerous: many entrepreneurs report that fund-raising can become a full-time activity, diverting precious attention away from building their business. Many Romanian startups are underfinanced, and hence unable to scale effectively.

This intervention therefore calls for a range of regulatory reforms that make the process of company formation easier; simplify and encourage investment; and make it easier for entrepreneurs to structure their firms in the most appropriate way. These reforms also seek to encourage different forms of finance (including ‘alternative finance’ such as crowdfunding), which, at present, have an unclear status within the Romanian regulatory environment. Lack of clarity regarding legislative measures can, in itself, dissuade investors – especially investors from overseas.