Implications of Digital Businesses on Romanian Economy

Theoretical Background and Research Focus

Theoretical Background and Research Focus

The study aims at understanding the implications of digital businesses in the economy of Romania where the economic market share is fairly dominated by SMEs. The relevant implication of digital business on the Romanian economy during the present scenario of the raging pandemic will also be discussed.

The research objectives are:

1.To understand how various digital businesses in Romania have gained momentum on various platforms.

2.To evaluate how various digital businesses have impacted the Romanian economy.

3.To understand how digital businesses have carried on business in Romania during the pandemic.

Research Questions

Q1. How have various digital businesses gained momentum in Romania on various platforms?

Q2. How have various digital businesses impacted the Romanian economy?

Q3. How have digital businesses carried on business in Romania successfully during the pandemic?

Detailed research using secondary sources of data to analyse the scope, market and impact of digital business in Romania.

Impact of digital business on the economic growth of Romania.

The Romanian culture has been very inclusive of new developments in the business sector. The country is blessed with one of the most dynamic digital markets in Europe. It comes under the umbrella of the top 5 big European markets where businesses want to capture the customer base. Romania has one of the most rapidly growing economic sectors because it employs a very tactical transformative force to capture the opportunities provided after globalisation. The fast-growing economy of the country reflects highly of the socio-economic development that the society is making, the improving lifestyle and quality of life of the citizens, opportunities that the entrepreneurs are getting, how cultural diversity is becoming inclusive and accepted in the society. Such a dynamic business market offers opportunities to generate more income, attract and retain a highly trained and efficient workforce and supports export earnings (Hadad, 2017).  The Romanian businesses after the globalisation of the international markets have gained momentum and have expanded into many countries. Globalisation has helped the country to improve its economy, socio-economic status of the citizens, and improved the scenario for the labour market. With the businesses going global, it has resulted in huge export earnings and has also strengthened Romania’s political relations with the countries which the businesses are associated with. The Romanian businesses have gone global with the help of digitalisation and globalisation and have not only boosted their economy but have also created job opportunities in the countries where they have expanded their business (Toma et al., 2018). Romania is very active in the digital business sector. Hence, the country needs to have strict IT and E-Commerce laws to protect the interests, rights, and integrity of both the customers and businesses. The country has a wide spectrum of such related laws which makes it a haven for the business enterprises practicing digital business and equally for the customers (Ciobanu and Ghin?raru, 2016).

The economy of Romania is dominated by SME businesses. Thus, the labour market in the country is robust and allows migrant workers opportunities to work. After the boom in the digital business sector, many traditional businesses have shifted to digital platforms to attract a new customer base and retain the existing ones. But, with the increasing scope in the SME sector due to digitalisation, there has been no mention of its impact on the labour market. The status, significance, role, and condition of the local labourers and the migrant workers have not been much discussed.

The country has always been an attractive place for businesses because the country has a very welcoming and experimental customer base. With such a dynamic and modern customer base many businesses aimed to launch their digital platforms, be it the local businesses or e-commerce giants. But COVID-19 spoiled most of the plans. The economy sure did take a hit due to the ongoing pandemic but not much has been discussed regarding the status, business plan of such businesses whose plans had taken a back seat because of the pandemic, and how much delay in capturing the market has affected the country’s economy.