THE IMPACT OF THE EUROPEAN REGIONAL DEVELOPMENT FUND ON SMES – EVIDENCE FROM ROMANIA

As the first programming period for Romania is reaching its end, more information becomes available regarding the effects of the European Union funds on the Romanian economy. Going beyond the mathematical absorption rate, it is important to analyse these effects, especially with regard to the small and medium-sized enterprises (SMEs), in order to improve the future implementation documents for 2014-2020. The purpose of this article is to measure the impact of the European Regional Development Fund (ERDF), granted within one of the 2007-2013 operational programmes, on the net turnover, number of staff and gross profit of the small and medium-sized enterprises from one Romanian county – Iasi. Overcoming the difficulties of gathering reliable data, the empirical research presented in this article tests three hypotheses. The first one is that the EU funding provided to an SME leads to an increase in its net turnover, number of staff and gross profit. The second hypothesis is that there is a direct relationship between the amount of the grant given to an SME and the evolution of the three previously mentioned parameters. The third and last tested hypothesis is that the SMEs that implemented more than one EU-funded project have a better evolution than the ones that implemented only one. The conclusions of our study include recommendations for the implementation guides that are currently being drafted by the responsible national authorities. They also include suggestions with regard to the availability of data concerning the EU-funded projects, especially in the context of the new requirements of the European Union regarding e-cohesion and information and communication. In this context, we also explore the potential benefits of implementing projects that complement each other instead of independent projects. As such, the research presented in this article aims to contribute to a better understanding of the impact of the EU regional development policy and to the improvement of the legislative and procedural framework of its implementation