Doing Business in Romania | Navigating Business Culture

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Romania is located in south-eastern Europe, sharing borders with Bulgaria, Moldova, Hungary, Serbia, and Ukraine. It has a coastline on the Black Sea and a busy port at Constanta. The capital Bucharest: along with Ilfov (a city surrounding Bucharest) constitutes the most developed region in Romania. The population of 18.1 million comprises Romanian (89.3%), Hungarian (6%), Roma (3.4%), Ukrainian (0.3%), German (0.1%) and others (0.9%) and the country is mostly Eastern Orthodox in religion.

An independent republic, Romania joined NATO in 2004, the EU in 2007 and achieved partial accession to Schengen in March 2024. Romania’s economic growth has been one of the highest in the EU since 2010, however it is not yet part of the Euro although efforts are being made to meet the criteria to join the Eurozone.

Romania has attracted over USD 59 billion in foreign direct investment (FDI) since the 1990s, primarily from EU partners, with most investments in industry, real estate, and IT. The Emerging Europe IT Competitiveness Index shows that Romania is ranked highly for tech talent availability and cost-effectiveness, making it attractive for outsourcing.

Romanians are serious when speaking about business and at the outset it is important to present a highly professional, even conservative, style. Be respectful of protocol and the authority of the person in charge. According to a recent Flash Eurobarometer report by the European Commission, Romania ranks high in entrepreneurial spirit but low on trust in institutions and rule of law, influencing how business is conducted.

Business relationships remain formal and reserved and old-world courtesy is the norm. Romanians tend to prefer their privacy and do not trust strangers readily. They admire modesty and humility in themselves and others. The young post-communist generation, however, are more open to change and eager to engage with cross-cultural teams due to their higher exposure to Western ideals and international experiences.

Business life is based on personal networks, so invest time in creating all the necessary relationships you require. Newcomers without introductions may find it difficult to break into these groups. Socialising and hospitality in the evenings and even weekends, is an essential part of cementing relationships. Despite many aspects of the business being heavily regulated by the government, it is common for Romanian businesses to be less firm in enforcing certain policies and procedures. While official procedures exist, Romanian businesses may take a pragmatic approach to implementation, especially when navigating bureaucratic obstacles.

Romanian leaders are aware of their power and status. Managers and subordinates do not tend to socialise together. As with other countries in this region, business is organised along systemic and hierarchical lines and the principal decision-making power is held at the top of the company. The lower down the organisation they are, the less people are willing to deviate from their allotted responsibilities. At all but the highest level of the organisation, people are used to receiving instructions and not being empowered. In meetings, they will need to be encouraged to make contributions as lower-ranking employees normally wait to be addressed.

Romanians prefer to conduct negotiations in an indirect manner, as being too direct can come across as rude. As there is a more casual approach to deadlines and productivity, patience is needed due to the slow nature of business. In presentations, Romanians are attentive listeners but may be concerned about being taken advantage of. They like detailed presentations, presented with logical arguments. Their feedback can be equally lengthy. They prefer delicacy and indirectness - frank bluntness is considered poor manners and offensive. Directness of speech is only for those you know well so avoid confrontational behaviour or high-pressure sales tactics.

At the first meeting it is especially important to address your Romanian partner with Mr. or Mrs. followed by their last name or title, such as ‘Mr. Doctor,’ ‘Mrs. Professor,’ ‘Mr. President,’ ‘Madam Director,’ etc. It is customary for those in senior positions or older individuals to initiate greetings. Men typically greet women first, and a firm handshake with eye contact is expected.

• Mr. = Domnule
• Mrs. = Doamna
• Ms. = Domnisoara

In Romania, the use of titles is considered a sign of respect and even if the relationship becomes more informal, you should continue using titles during formal meetings particularly when dealing with the public institutions. A firm handshake with direct eye contact made is also key to maintaining good manners and showing respect when greeting.

Refrain from any talk of Romania’s communist past, this is an uncomfortable topic for many Romanians to discuss with foreigners. It is also important to not confuse Romania and its cultural norms with its surrounding Eastern European neighbours; Romania is not a Slavic country like most of Eastern Europe nor was it any part of former Yugoslavia. Avoid comparing ethnic Romanians with the Roma people, as these are two distinctly different ethnic groups with a sensitive history with each other, and neither will take kindly to the comparison.