Internal Analysis
Strengths & Weaknesses
Attraction of foreign direct investors.
STRENGTHS
- Good geographical location — proximity to Pitesti (national road intersection, railroad).
- Available sites owned by the city in or close to industrial areas at affordable prices.
- Premises potentially available for business/production purposes.
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Existing plans to improve road connection to Mioveni.
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Openness of local politicians to FDI, availability and openness to deal with investors.
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Cheap and available housing.
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Good access to infrastructure in these areas. Proximity to Brasov.
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Construction materials available locally.
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Capacity reserves in the use of technical infrastructure.
WEAKNESSES
- Institutions for investors — notary, land office, Chamber of Commerce, court — are nonexistent.
- No local investment agency or person from the City Hall involved in FDI.
- No industrial park (to be managed and developed to accommodate investors).
- No policies prepared or even undertaken by local government to attract FDI.
- Access roads to Mioveni are not maintained.
- Education [capacity and curricula] not adjusted to the needs of companies.
- No Business Center or business incubator. No premises available at this moment.
- No airport in Pitesti, closest airport in Bucharest (2 hours).
- Bad railway connection.
- Lack of funds for road development.
- Lack of capacity at local road infrastructure.
Strengthening the local SME sector.
STRENGTHS
- Existing larger companies willing to contract out.
- Consumer service sector underdeveloped.
- Higher purchasing power among employees of DACIA.
- Good although inactive approach of local institutions to SMEs.
WEAKNESSES
- Low wages in SMEs.
- No business association for SMEs.
- Lack of capital.
- High taxes — even these are locally levied.
- Lack of entrepreneurial education.
- Neither Chamber of Commerce in Mioveni nor local branch of CoC of Pitesti.
- Unfair/unequal approach of local authorities to SME.
- Majority of SMEs in retail sector.
- Lack of technology.
- Missing entrepreneurial spirit.
- Difficulty of SMEs to cooperate with large companies — quality, terms of contracts, delivery.
- Preference of foreign companies to cooperate with partners from abroad.
- No premises available except for land.
Human resources development
STRENGTHS
- Unemployed people ready/willing to work.
- Qualified and skilled industrial/automotive labor force.
- Young technically educated population with wide range of skills.
- Tendency among young people to have their own business.
- Commuters from Pitesti — an advantage because they get skilled labor force that may also spend money locally.
- The competition from Pitesti can determine people in Mioveni to become more competitive.
WEAKNESSES
- Poverty level increasing in Mioveni.
- Lack of involvement from civil society. Inefficient labor office.
- Labor force interested in working in larger companies, not in SMEs or even in own business.
- No functional communication between education institutions and companies.
- Health/medical system inadequate.
- Black market in labor — some cases of non-contractual employment.
- High unemployment, 52% of women among unemployed people.
- Labor force not willing/ready to requalify.
- Out migration of labor force.
- Lack of facilities for leisure time.
Internal analysis
Opportunities & Threats
Political / Legeslative
STRENGTHS
- Export oriented state policy.
- Adaptation of EU legislation will improve function of institutions and will lead to a more stable business environment.
- Fiscal policy — supportive to business development.
- Increasing autonomy of LG.
- Stabilization of bureaucratic apparatus.
- Law on statute of civil /public servants.
- Decrease of inflation.
- Introduction of EU environmental law.
- Costs, achievability, penalties.
WEAKNESSES
- Fiscal policy — not motivating to grow business and create jobs.
- Fiscal policy.
- High taxation, uncollected taxes.
- Complicated and confusing legislation with many decrees below existing laws.
- Nonparliamentary norms.
- Unstable and unpredictable legislation.
- Ineffective tax collection system.
- Political instability.
- Lack of funds in public budgets.
- Unequal attitude of authorities to businesses.
Economic / EU Accession
STRENGTHS
- EU pre-accession programs/structural funds.
- Effort to adjust to EU monetary policy/Monetary Union — fiscal stabilization.
- Privatization — revenue for public budgets.
- Business opportunities because of privatization.
- “Compulsory” state investments related to EU accession improving local conditions.
- Liberalization of capital market and inflow of capital.
- Investment of emigrants in Romania.
WEAKNESSES
- Competition increased because of Euro and the EU accession.
- State-owned companies compete unfairly against private ones.
- Increased competition because of privatization.
- Low interest of investors after workforce prices increases.
- EU quality standards will endanger SMEs.
- Lack of capital in Romania.
- Better consumer protection requirements may create problems to many companies.
Social / Demographic
STRENGTHS
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Successful reform of education and health system.
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Better consumer protection will increase quality of life.
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Support from emigrants to Romanian households.
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Quality of political environment.
WEAKNESSES
- Brain drain — 2 million young people left the country.
- Increase of low income, low class people, reduction of middle class.
- Growth of unemployment rate — registered and non-registered.
- Increasing social instability.
- Decrease of population.
- Increase of Roma population.
Technological
STRENGTHS
- Information systems in local government /state administration.
- Technological modernization — computers/automation.
- Data processing /software communication. Development of information infrastructure.
- Increase of competitiveness and productivity relating to technological changes.
- Increase in technological transfer caused by EU accession and new FDI in Romania.
- Copying of know-how.
- Keeping/maintaining traditional Romanian technologies/crafts.
WEAKNESSES
- High costs of technological change.
- Social costs associated with technological change.
- Redundancy of unskilled workforce.
- Copying of know-how.
- Lack of state support to research.
- Weak or missing research in industry.
