Are Small Businesses Performances Influenced by the Macro Economical Elements?

Abstract

The paper aims to discover if the particular macroeconomic factors are influencing the capacity of small businesses in Romania to generate more added value in the national economy. In order to analyze the impact of the selected phenomenon on the performance of the businesses as expressed by the ratio of the added value, a regression analysis, a correlation test and a co-integration test were performed. The novelty of the paper is represented by the focus on the small firms, elements often included in the bigger category of SMEs. The results are showing that only two of the six factors selected could be test for correlation and co integration, the annual inflation and the average exchange rate between the national currency and the EURO.