The share of CEOs in Romania who believe their organizations need to rethink their business model to survive the next decade has risen to 37% this year, up from 27% in the previous edition of PwC’s CEO survey. The main factors influencing how companies in Romania create value and requiring their transformation are new technologies, changes in consumer behavior and government regulation, according to respondents.

Thus, the vast majority of them (80%) named technology as a decisive factor for changes, over the past five years, 74% named changes in consumer behavior, and 68% – state regulations.

“The conclusion of our survey is that in order to remain viable and profitable ten years from now, Romanian companies, like companies globally, will have to continue the process of rethinking imposed by technology and regulatory changes. More and more CEOs are realizing that change is needed and are already taking steps in this direction, developing new products and services, implementing new technologies and entering into strategic partnerships to improve capabilities,” says Dinu Bumbeca, Managing Partner of PwC in Romania.

On the other hand, more than two-thirds (69%) of Romanian CEOs say that the regulatory environment is an obstacle to rethinking the business model, 58% point to a lack of skills in their company’s employees, 53% to a lack of technology and 49% to supply chain instability.

“The right measures are different for each company, depending on the strategy, operating model, industry context and competitive environment. CEOs must have a clear understanding of how businesses, projects or other investments create value and be prepared to make tough decisions, whether it’s reallocating resources between activities or scaling them. The flexible allocation of resources is a recognized feature of companies with high productivity and profitability, and as a result, at least to some extent, it is necessary to rethink the business model”, explains Dinu Bumbechea.

According to the survey, 53% of Romanian managers report reallocating resources (financial and human) by more than 10% year-on-year.

The main conclusions of the report:

• 37% of Romanian company executives predict economic growth this year, compared to 26% in 2023. As a result, the share of those predicting an economic downturn decreased from 62% to 47%.
• Inflation, macroeconomic instability and geopolitical conflicts remain among Romanian leaders next year.
• 37% say they are very or extremely confident about their companies’ revenue growth prospects over the next 12 months, compared to 52% in 2023, while 30% expect a decline.
• 61% believe that technological innovation will significantly or very significantly change the business model within the next three years.
• Thus, 53% believe that Generative Artificial Intelligence (GenAI) will significantly change the way companies work and increase competition in the next three years.
• 65% say their organizations are constantly taking steps to improve energy efficiency.
• 41% plan to make at least one purchase in the next three years.

The CEO Survey 2024 report for Romania is published, the results of which are discussed at a presentation event by Dina Bumbeca, Managing Partner of PwC in Romania, Adam Krason, CEO of PwC in Central and Eastern Europe, Mihaela Bitu, CEO of ING Romania, and Bohdan Putinica, Country Manager of Microsoft Romania. The report also includes interviews with 10 leading executives from Romania who spoke to us about the reimagining of business and the impact of artificial intelligence, which you can read here.

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Article supported by PwC Romania