Entrepreneurial Profiles, Sustainability, and Key Determinants of Business Trajectories in a Regional Context: Evidence from a NUTS 2 Region in an EU Country

Abstract

Understanding the entrepreneurial profile is essential for developing effective regional policies that promote business growth. The path of an entrepreneur is shaped not only by individual decisions but also by the inherent risks of managing a business. This study aims to identify the characteristics of entrepreneurs at the regional level, specifically highlighting the impact of accumulated experience in their fields. Our central hypothesis asserts that entrepreneurial experience significantly influences how business owners perceive and respond to economic challenges. Utilizing survey data from 120 entrepreneurs in Romania’s Center Region (a NUTS 2 area), we reveal that entrepreneurial experience profoundly affects perceptions of key business challenges, such as legislative instability, taxation predictability, governmental support strategies, and access to SME financing. Importantly, our findings demonstrate that entrepreneurs with less than 10 years of experience express greater concerns about these challenges compared to their more seasoned peers. This novel insight highlights the need for tailored policy interventions aimed at enhancing regional economic resilience and fostering entrepreneurial sustainability. By addressing the specific needs of less experienced entrepreneurs, our study contributes to a deeper understanding of how experience shapes business dynamics in the region.

1. Introduction

In recent years, financial dynamics have increasingly influenced the global business environment, with substantial implications for enterprise growth and sustainability. This impact is particularly pronounced among small- and medium-sized enterprises (SMEs), which often lack the structural resilience of larger corporations [1,2]. In the context of Romania—a member state of the European Union—the national business landscape is strongly influenced by EU policies and economic fluctuations, which directly affect local market performance, strategic opportunities, and the broader entrepreneurial ecosystem [3].

Enterprises operate within a multifaceted environment shaped by numerous external and often uncontrollable factors, including macroeconomic conditions, technological change, and workforce availability [4]. Periods of economic growth may enhance business performance with minimal additional input, while economic downturns can pose serious threats to operational continuity and strategic viability. Business success is thus increasingly contingent not only on product-market fit but also on the operational efficiency of firms, which in turn relies on access to technology and a skilled workforce [1,5,6].

Within this context, SMEs—defined by the European Commission as entities with fewer than 250 employees and specific thresholds for turnover and assets—constitute a cornerstone of both national and European economies [4,5]. They are essential for job creation, innovation, and regional development. The European Union’s “Europe 2020” strategy underscores the importance of fostering intelligent, sustainable, and inclusive growth, emphasizing the need to modernize labor markets and promote entrepreneurship [3,4].

Despite targeted policy initiatives in Romania aimed at stimulating entrepreneurship and regional development, significant gaps remain in the understanding of how entrepreneurs perceive the business environment and the accessibility of financial resources. This study aims to address this gap by examining entrepreneurial perceptions in Romania’s Center Region (NUTS 2 level), focusing on aspects such as opportunity recognition, strategic planning, competitive positioning, and human resource challenges related to recruitment and training.

By incorporating insights from entrepreneurs operating in competitive economic sectors, this study contributes to the existing literature on the regional entrepreneurial environment. Furthermore, it contextualizes the evolving entrepreneurial profile in light of both national constraints and international market demands, underscoring the need for adaptability and innovation in modern business models [7,8,9,10,11,12]. The research also aligns with broader discourses on sustainable entrepreneurship, which has gained prominence as a fundamental component of regional economic development strategies [13,14,15,16,17,18].

The remainder of this article is organized as follows. Section 2 is focused on a literature review, followed by the formulation of hypotheses for the research in Section 3. Section 4 outlines the research methodology, data collection instruments, hypothesis development, and participants’ demographic characteristics. Section 5 presents the empirical findings, followed by a discussion in Section 6 on key outcomes, their implications, and study limitations. The Section 7 provides concluding remarks and limitations of the research, and outlines avenues for future research.

2. Literature Review

2.1. The Role of External Factors in Business Performance

A growing body of literature emphasizes that external environmental factors—such as macroeconomic stability, policy frameworks, and technological advancement—play a critical role in shaping the operational landscape of enterprises [4,19,20,21,22]. Economic cycles, in particular, exert a notable influence: periods of expansion can boost sales and simplify growth, while downturns can hinder cash flow, reduce consumer demand, and create uncertainties that limit investment [4,23].

2.2. SMEs and the European Context

Within the European Union, SMEs are recognized as essential actors in economic development, employment generation, and innovation diffusion [3,4]. The Europe 2020 strategy provides a macro-policy framework that promotes sustainable and inclusive economic models. In Romania, these objectives are operationalized through regional development strategies, although implementation gaps persist—especially concerning the practical challenges SMEs face in terms of competitiveness, financial access, and skilled labor [5,24,25].

Despite these strategic efforts, many SMEs struggle with structural vulnerabilities that undermine their long-term viability. Limited access to funding, regulatory volatility, and bureaucratic burdens often inhibit entrepreneurial initiatives, particularly in regions with uneven development and resource distribution [6,26,27].

2.3. Sustainable Entrepreneurship

Sustainable entrepreneurship has emerged as a central theme in contemporary business literature, reflecting a shift in priorities from purely profit-oriented strategies to those integrating environmental and social objectives [1,5,13]. Scholars argue that sustainability not only adds strategic value but also enhances long-term competitiveness and resilience [15,16,17,18]. However, empirical evidence suggests that Romanian SMEs often face difficulties in operationalizing sustainability principles due to a lack of institutional support, knowledge gaps, and restricted access to green financing tools [1,6,26,27].

2.4. Entrepreneurial Perceptions and Strategic Adaptation

Entrepreneurial behavior is deeply shaped by perceptions of opportunity, risk, and resource availability [28,29,30,31,32]. Regional studies increasingly emphasize the importance of understanding how entrepreneurs interpret their environments and adapt their strategies accordingly [33,34,35,36,37,38,39,40,41,42]. In the context of Romania, the existing literature has only partially explored these subjective dimensions, particularly in relation to strategic planning, innovation, and workforce development [43,44,45,46].

This study seeks to bridge that gap by examining how Romanian entrepreneurs from the Center Region interpret external challenges and adapt their business models. In doing so, it also investigates their capacity to identify opportunities, leverage competitive advantages, and manage key constraints in areas such as human capital and financial planning.

3. Hypothesis Development

The formulation of the research hypotheses is grounded in prior theoretical insights and empirical findings related to entrepreneurial behavior, strategic orientation, human capital challenges, and sustainability in business. These hypotheses aim to explore the ways in which Romanian entrepreneurs, particularly those operating in the Center Region, perceive and respond to various internal and external business dynamics.

Hypothesis 1: Entrepreneurial experience and perceptions of the business context

Entrepreneurial experience is often linked to risk tolerance, decision-making strategies, and opportunity recognition. However, the literature suggests that less experienced entrepreneurs may demonstrate heightened sensitivity to external business environments due to their reliance on perceived contextual cues when forming strategies [1,2]. In contrast, experienced entrepreneurs may rely more heavily on heuristics and past experiences, potentially leading to lower responsiveness to contextual fluctuations [3,4]. Thus, the following hypothesis is proposed:

Hypothesis 1.

Entrepreneurs with less experience exhibit significantly stronger perceptions of relevant business contexts as compared to their more experienced counterparts.

Hypothesis 2: Strategic planning awareness and perceived competitiveness

Strategic planning plays a pivotal role in shaping entrepreneurial outcomes by guiding resource allocation, market positioning, and long-term goal setting. A well-developed strategic orientation is associated with improved organizational performance, particularly in volatile or uncertain environments [5,6,26]. Entrepreneurs who actively engage in strategic planning are more likely to identify competitive advantages and sustain their market position. Accordingly, the second hypothesis posits the following:

Hypothesis 2.

Strategic planning awareness among entrepreneurs is positively associated with perceived competitiveness.

Hypothesis 3: Human capital challenges and operational performance

Access to qualified human resources remains one of the most pressing issues faced by SMEs, particularly in regions where skilled labor is scarce or where educational institutions are misaligned with industry needs [7,27]. Recruitment and training challenges can lead to inefficiencies, decreased productivity, and reduced adaptability in day-to-day operations. Numerous studies highlight the direct impact of human capital constraints on business performance metrics [8,9], leading to the following hypothesis:

Hypothesis 3.

Difficulty in recruiting and training qualified staff significantly affects operational performance.

Hypothesis 4: Sustainability orientation and market adaptability

Sustainability-oriented entrepreneurship has emerged as a strategic response to contemporary environmental and social challenges. Entrepreneurs who recognize and act upon sustainable business opportunities are often more adaptable and resilient in the face of market volatility [10,11,12]. By integrating environmental, social, and economic goals into their business models, these entrepreneurs are better positioned to innovate and respond to changing consumer demands and regulatory pressures. This leads to the fourth hypothesis:

Hypothesis 4.

Entrepreneurs who identify sustainable business opportunities demonstrate greater adaptability to market changes.

These four hypotheses will be tested using empirical data collected from a diverse sample of entrepreneurs operating in the Center Region of Romania (NUTS 2 level). The selected region provides a representative context in which to assess how entrepreneurial perceptions, strategic orientation, human capital challenges, and sustainability considerations interplay in shaping business performance and adaptability.

4. Materials and Methods

We employed a structured questionnaire to assess entrepreneurs’ perceptions of the regional business environment from a NUTS2 region in Romania. The questionnaire was divided into four sections:

• Section 1—demographics: entrepreneurial experience in years, activity sector, location of headquarters (country; rural/urban area), legal type of entity, shareholders structure, age, sex, education level, and daily time spent on the business;
• Section 2—overall assessment of regional business environment;
• Section 3—information on policies, strategies, and competitive advantages;
• Section 4—aspects related to the labor force.

Most items had a Likert-type scale of answers from 5 to 1, with 5 being “to a very large extent” and 1 being “to a very small extent”.

For the purposes of this study, specific aspects from the second section were analyzed, as it captured perceptions on contextual factors influencing regional business development.

Hence, the items of interest for our study dealt with the following eight business contexts that can represent business challenges, with the abovementioned Likert-type answering scale:

• Legislative uncertainty in taxation aspects;
• Absence of a cohesive strategy for supporting the business environment and incentivizing entrepreneurial policies;
• Overall climate and social dynamics;
• Insufficient credit programs for small and medium enterprises, which could facilitate project co-financing;
• Restricted access to information regarding available credit lines for economic agents;
• Eligibility criteria that may limit access to financing programs for companies;
• Limited managerial capacity for project management and implementation;
• Skepticism towards consulting firms.

The demographic variable according to which we investigated potential differences among participants was entrepreneurial experience measured in years. This variable had the following answer options: (1) under 2 years; (2) 2–5 years; (3) 5–10 years; (4) 10–15 years; (5) over 15 years. Out of the five options, none of the participants declared themselves to have 10–15 years of entrepreneurial experience.

We chose to focus on this variable since the experience amassed within the business environment can influence how entrepreneurs perceive and navigate compliance with tax regulations, credit opportunities, financing strategies, managerial capacity, or collaboration with consulting firms [47,48,49]. In general, experience allows entrepreneurs to approach the decision-making process with a long-term orientation when improving risk-assessment methods, making them more resilient when managing businesses and capable of successfully interacting with tax authorities, banks and financial institutions, employees, clients, and the public [50,51].

Sample characteristics are presented in the paragraphs below by considering all nine demographic variables.

Participants Demographic Profile

The sample consisted of 120 entrepreneurs conducting business in the six counties comprised in the NUTS2 Center Region of Romania, namely Alba, Braşov, Covasna, Harghita, Mureş, and Sibiu. The largest proportion of entrepreneurs (24.2%) originated from Alba County, while the remaining five counties accounted for between 12.5% and 18.3% of the participants.

In terms of entrepreneurial experience at the time of the study, 34.2% of the respondents reported having less than 2 years of business activity, 24.2% had been in operation for 2 to 5 years, 34.2% had 5 to 10 years of experience, and 7.5% had been engaged in business for over 15 years. Most participants were engaged in sectors such as services (37.5%), trade (24.2%), construction (12.5%), and tourism (10.8%). Regarding the location of their business headquarters, 68.3% of the enterprises were situated in urban areas. We also examined the structure of the business organization and shareholder/associate composition. Specifically, 61.7% of the companies were classified as limited liability entities, 18.3% were sole proprietorships, 10% were family associations, 7.5% were individual enterprises, and the remaining respondents operated under various other organizational forms. Furthermore, 65.8% of the entrepreneurs were sole shareholders or associates, while 30% reported having between 2 and 5 shareholders or associates. The demographic profile of the entrepreneurs revealed that 55% were female. In terms of age distribution, 25% fell within the 25–35 age range, 55% were aged 35–45, and 12.5% were between 45 and 65 years old. Regarding educational attainment, 55% of the participants held undergraduate degrees, 18.3% possessed graduate qualifications, and 25.8% completed secondary education. Lastly, 44.2% of entrepreneurs reported dedicating more than 8 h per day to their businesses, while 25.8% indicated spending approximately 7 to 8 h daily on business activities.

We collected empirical data between 2023 and 2024 by administering questionnaires both in a paper-based format and via phone interviews, depending on entrepreneurs’ availability.

The sample of participants was randomly selected from the group of entrepreneurs who operated in competitive economic sectors in the Center Region and who belonged to the target group of a project financed by the European Social Fund (the project call was titled “Creating responsible entrepreneurs for sustainable development!”, financed by the European Social Fund, Human Capital Operational Program 2014–2020). Participation in our study was entirely voluntary, with no incentives provided to entrepreneurs for questionnaire completion. Additionally, anonymity was ensured throughout the data collection process.

In our view, the sample is adequate in terms of size and structure. The sample is also valuable considering that, generally, entrepreneurs are less reachable and willing to participate in empirical studies because of various concerns (e.g., tight schedules; work overload; reluctance to share insights; perceived direct benefit from research) [52].

5. Results

Empirical data were analyzed using the statistical software IBM SPSS Statistics version 26. To develop a profile of entrepreneurs operating in competitive sectors at regional level (Center Region of Romania), the study examined potential differences in perceptions of the eight business challenges among participant groups with varying levels of entrepreneurial experience (i.e., ranging from short-, medium,- to long-term experience).

Since our data were non-parametric as confirmed by both Shapiro–Wilk and Kolmogorov–Smirnov normality tests ($p<0.05)$, we ran a Kruskal–Wallis test to identify potential perception differences for our entrepreneurs. We used the post hoc Bonferroni correction to single out pairwise experience groups with statistically significant differences.

In the case of legislative uncertainty in taxation aspects, the Kruskal–Wallis H test showed the existence of a significant difference concerning entrepreneurs’ overall perceptions, $H\left(3\right)=14.621, p<0.01$. Our results (

Table 1. Results on the first business challenge.

Ranks
Legislative uncertainty in taxation aspects	Entrepreneurial Experience	N	Mean Rank
	Below 2 years	41	47.61
	2–5 years	29	75.45
	5–10 years	41	60.78
	Over 15 years	9	69.78
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience subsample.

) indicated a mean rank of 47.61 for participants with less than 2 years of experience, 75.45 for participants running business across 2–5 years, 60.78 for those operating on the market 5–10 years, and 69.78 for entrepreneurs with over 15 years of experience. According to the post hoc test (

Table 2. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. 5–10 years	−13.171	6.851	−0.922	0.055	0.327
Below 2 years vs. Over 15 years	−22.168	11.419	−1.941	0.052	0.313
Below 2 years vs. 2–5 years	−27.839	7.527	−3.699	<0.001	0.001
5–10 years vs. Over 15 years	−8.997	11.419	−0.788	0.431	1.000
5–10 years vs. 2–5 years	14.668	7.527	1.949	0.051	0.308
Over 15 years vs. 2–5 years	5.670	11.837	0.479	0.632	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

), the perceptions of entrepreneurs with less than 2 years of experience was significantly different than those of entrepreneurs with 2–5 years of experience ($p<0.01).$ For that matter, we deem that this result is in line with Hofstede’s 6-D model of national culture, according to which Romania scores quite high on dimensions such as uncertainty avoidance [53].

For absence of a cohesive strategy for supporting the business environment and incentivizing entrepreneurial policies, the Kruskal–Wallis H test elicited significant perception differences, $H\left(3\right)=7.513, p<0.1$. Empirical results (

Table 3. Results on the second business challenge.

Ranks
Absence of cohesive strategy for supporting business environment and incentivizing entrepreneurial policies	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	53.62
	2–5 years	29	55.59
	5–10 years	41	69.94
	Over 15 years	9	64.67
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

) showed a mean rank of 53.62 for entrepreneurs with less than 2 years of experience, 55.59 for entrepreneurs with 2–5 years, 69.94 for entrepreneurs with double the previous experience, and 64.77 for entrepreneurs with over 15 years of experience. Based on the post hoc analysis (

Table 4. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. 2–5 years	−1.964	7.109	−0.276	0.782	1.000
Below 2 years vs. Over 15 years	−11.045	10.784	−1.024	0.306	1.000
Below 2 years vs. 5–10 years	−16.317	6.471	−2.522	0.012	0.070
2–5 years vs. Over 15 years	−9.080	11.179	−0.812	0.417	1.000
2–5 years vs. 5–10 years	−14.353	7.109	−2.019	0.043	0.261
Over 15 years vs. 5–10 years	5.272	10.784	0.489	0.625	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

), we concluded again that entrepreneurs with less than 2 years of experience had significantly different perceptions than those with 5–10 years of experience ($p<0.1).$

The study examined perceptions of the overall climate and social dynamics. According to the Kruskal–Wallis H test ($H\left(3\right)=15.396, p<0.01)$), entrepreneurs’ perceptions were different. Namely, we found a mean rank of 47.05 for the less experienced participants, 65.47 for participants operating for 2–5 years, 71.67 for those with 5–10 years, and 54.89 for the most experienced participants (

Table 5. Results on the third business challenge.

Ranks
Overall climate and social dynamics	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	47.05
	2–5 years	29	65.47
	5–10 years	41	71.67
	Over 15 years	9	54.89
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

). The Bonferroni test (

Table 6. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. Over 15 years	−7.840	10.913	−0.718	0.473	1.000
Below 2 years vs. 2–5 years	−18.417	7.194	−2.560	0.010	0.063
Below 2 years vs. 5–10 years	−24.622	6.548	−3.760	<0.001	0.001
2–5 years vs. Over 15 years	10.577	11.313	0.935	0.350	1.000
5–10 years vs. Over 15 years	16.782	10.913	1.538	0.124	0.745
2–5 years vs. 5–10 years	−6.205	7.194	−0.863	0.388	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

) indicated two sets of differences: one difference between the group with less than 2 years and the group with 2–5 years ($p<0.1$); another difference between the less experienced group and participants with 5–10 years ($p<0.01$).

Regarding the insufficient credit programs for small and medium enterprises, which could facilitate project co-financing, the Kruskal–Wallis H test ($H\left(3\right)=14.696, p<0.01)$) suggested potential differences among entrepreneurs. Hence, the results (

Table 7. Results on the fourth business challenge.

Ranks
Insufficient credit programs for small and medium enterprises, which could facilitate project co-financing	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	47.01
	2–5 years	29	58.66
	5–10 years	41	72.98
	Over 15 years	9	71.06
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

) showed a mean rank of 47.01 for the first participant group, 58.66 for the second group, 72.98 for the third group, and 71.06 for the last group. After examining the differences via the post hoc analysis (

Table 8. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. 2–5 years	−11.643	7.737	−1.505	0.132	0.794
Below 2 years vs. Over 15 years	−24.043	11.737	−2.048	0.041	0.243
Below 2 years vs. 5–10 years	−25.963	7.042	−3.687	<0.001	0.001
2–5 years vs. Over 15 years	−12.400	12.167	−1.019	0.308	1.000
2–5 years vs. 5–10 years	−14.320	7.737	−1.851	0.064	0.385
Over 15 years vs. 5–10 years	1.920	11.737	0.164	0.870	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

), we concluded that the most significant perception differences were reported between the group that had less than 2 years of experience and the group that had 5–10 years of experience ($p<0.01$).

We investigated perceptions concerning the restricted access to information regarding available credit lines for economic agents. In this sense, the Kruskal–Wallis non-parametric test indicated potential differences, $H\left(3\right)=25.521, p<0.001$. Empirical results (

Table 9. Results on the fifth business challenge.

Ranks
Restricted access to information regarding available credit lines for economic agents	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	44.66
	2–5 years	29	82.03
	5–10 years	41	59.59
	Over 15 years	9	67.44
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

) reported the following mean ranks: 44.66 for the first group of entrepreneurs, 82.03 for the second group of entrepreneurs, 59.59 for the third group of entrepreneurs, 67.44 for the last group of entrepreneurs. The post hoc analysis (

Table 10. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. 5–10 years	−14.927	6.802	−2.194	0.028	0.169
Below 2 years vs. Over 15 years	−22.786	11.337	−2.010	0.044	0.267
Below 2 years vs. 2–5 years	−37.376	7.473	−5.002	<0.001	0.000
5–10 years vs. Over 15 years	−7.859	11.337	−0.693	0.488	1.000
2–5 years vs. 5–10 years	22.449	7.473	3.004	0.003	0.016
Over 15 years vs. 2–5 years	14.590	11.751	1.242	0.214	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

) identified that statistically significant perception differences between two sets of groups: less than 2 years of experience and 2–5 years ($p<0.001$); 5–10 years and 2–5 years ($p<0.05$).

The next variable of interest was eligibility criteria that may limit access to financing programs for companies. The non-parametric H test suggested potential differences, $H\left(3\right)=16.534, p<0.001$, and revealed the following mean ranks (

Table 11. Results on the sixth business challenge.

Ranks
Eligibility criteria that may limit access to financing programs for companies	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	48.72
	2–5 years	29	77.24
	5–10 years	41	61.65
	Over 15 years	9	55.00
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

): 48.72 (less experience businesspeople); 77.24 (2–5 years); 61.65 (5–10 years); 55 (most experienced businesspeople). The post hoc test (

Table 12. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. Over 15 years	−6.280	10.766	−0.583	0.560	1.000
Below 2 years vs. 5–10 years	−12.927	6.460	−2.001	0.045	0.272
Below 2 years vs. 2–5 years	−28.522	7.097	−4.019	<0.001	0.000
Over 15 years vs. 5–10 years	6.646	10.766	0.617	0.537	1.000
Over 15 years vs. 2–5 years	22.241	11.160	1.993	0.046	0.278
5–10 years vs. 2–5 years	15.595	7.097	2.198	0.028	0.168

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

) (i.e., Bonferroni correction) elicited one pairwise significant difference between entrepreneurs with less than 2 years of experience and those with 2–5 years of experience ($p<0.001$).

In terms of the variable limited managerial capacity for project management and implementation, the Kruskal–Wallis H test indicated the existence of significant difference among participants, $H\left(3\right)=10.858, p<0.05$. We obtained the following mean ranks (

Table 13. Results on the seventh business challenge.

Ranks
Limited managerial capacity for project management and implementation	Entrepreneurial experience	N	Mean Rank
	Below 2 years	41	52.45
	2–5 years	29	75.10
	5–10 years	41	57.17
	Over 15 years	9	65.28
	Total	120

Source: Created by authors based on empirical data. N denotes the number of participants in each experience group.

): 52.45 (first group), 75.10 (second group), 57.17 (third group), and 65.28 (fourth group). According to the post hoc test (

Table 14. Pairwise comparisons from post hoc text.

Sample 1–Sample 2	Test Statistic	Std. Error	Std. Test Statistic	Sig.	Adj. Sig. a
Below 2 years vs. 5–10 years	−4.720	6.533	−0.722	0.470	1.000
Below 2 years vs. Over 15 years	−12.827	10.889	−1.178	0.239	1.000
Below 2 years vs. 2–5 years	−22.652	7.177	−3.156	0.002	0.010
5–10 years vs. Over 15 years	−8.107	10.889	−0.745	0.457	1.000
5–10 years vs. 2–5 years	17.933	7.177	2.498	0.012	0.075
Over 15 years vs. 2–5 years	9.826	11.287	0.871	0.384	1.000

Source: Created by authors based on empirical data. Note: Each row tests the null hypothesis that the Sample 1 and Sample 2 distributions are the same. Asymptotic significances (2-sided tests) are displayed. The significance level is 0.050. ^a. Significance values have been adjusted by the Bonferroni correction for multiple tests.

), we found statistically significant differences between two sets of groups: less than 2 years and 2–5 years ($p<0.05$); 5–10 years and 2–5 years ($p<0.1$).

We ran the non-parametric test on the variable skepticism towards consulting firms, and the results were not significant ($H\left(3\right)=5.936, n.s.$), meaning that all groups of entrepreneurs reported similar skepticism levels in relation to consulting firms. In other words, skepticism is persistent throughout the first business years, no matter how much one has been exposed to the market dynamics. In our view, when entrepreneurs reach maturity with their businesses (especially regarding profit margins and market stability), they may decrease skepticism levels and work with consulting firms to explore potential development opportunities in the region or abroad.

All in all, we concluded that our research hypothesis was supported since we found that less experienced entrepreneurs reported significantly different perceptions than more experienced entrepreneurs for seven of the eight business challenges considered (i.e., uncertainty on taxation precepts; cohesiveness of strategies used to support and incentivize business initiatives; climate and social dynamics; credit availability; availability of information on crediting; eligibility criteria for financing programs; managerial capacity of implementing projects).

Our results are in line with expectations because the challenges that we considered for the NUTS2 Romanian entrepreneurs are more likely to deter newbies and younger entrepreneurs than more experienced ones. For a case in point, unstable and ever-changing tax legislation puts additional pressure on younger entrepreneurs, who might be forced to increase initial business costs and hire tax advisors to fully comply with the tax law.

6. Discussion

Entrepreneurs are generally businesspeople who incur the risk of carrying out an economic activity; assume social responsibility towards the community where they operate; create, secure and maintain jobs; and produce and/or provide goods or services.

Entrepreneurs are not only risk-takers who initiate and manage economic activities, but also socially responsible agents who generate employment, provide goods and services, and contribute to community development. Their performance and sustainability are deeply influenced by the broader ecosystem in which they operate—including taxation policies, strategic governmental incentives, access to credit, and the quality of advisory services. Several studies reinforce this view by highlighting the critical role of financial literacy and inclusion in enabling entrepreneurs to navigate complex financial systems and make informed decisions that ensure long-term viability. For instance, it has been shown that financial literacy significantly enhances financial inclusion, thereby equipping entrepreneurs with the knowledge and tools necessary to access and manage credit effectively [54,55,56,57]. These findings underscore the importance of educational initiatives and targeted programs that address regional disparities and promote both in-person and digital training. In addition, studies have demonstrated a strong positive link between entrepreneurial orientation and sustainable entrepreneurship, confirming that an entrepreneur’s behavior, resilience, and strategic decision-making capacity are fundamental to long-term business success [58,59,60]. However, limitations such as insufficient SME credit programs, restrictive eligibility criteria, lack of access to reliable information, and weak project management skills continue to hinder the trajectory of many entrepreneurial ventures, particularly in developing regions. As Khan et al. (2022) [61], Burchi et al. (2021) [62], and Chepngetich (2016) [63] argue, gaps in financial literacy can severely damage the sustainability of entrepreneurship and the broader economy. Therefore, policymakers must prioritize financial education, strengthen trust between entrepreneurs and financial institutions, and foster supportive ecosystems that address the practical and psychological barriers faced by entrepreneurs—including skepticism towards consulting firms and limited capacity for effective implementation.

Unpredictable changes in labor legislation, tax regulations, and compliance frameworks significantly undermine the reliability of financial forecasting for novice entrepreneurs. Such instability constrains their ability to make informed investment decisions and plan for human resource expansion, thereby impeding overall business development [64,65]. Early-stage entrepreneurs, who often lack institutional knowledge and financial buffers, are particularly vulnerable to these shifts, as their capacity for risk absorption and regulatory adaptation is limited [66].

By contrast, more experienced entrepreneurs typically demonstrate a greater resilience to policy fluctuations, leveraging accumulated capital reserves and a deeper understanding of regulatory dynamics to navigate uncertainty and maintain business continuity [67,68]. This differential impact highlights the need for policy interventions tailored to the specific vulnerabilities of young enterprises.

In this context, policy reforms aimed at reducing tax complexity and enhancing the consistency of fiscal frameworks are essential to fostering a stable entrepreneurial environment. Streamlining tax administration and ensuring predictable legislative processes would improve the planning capacity of emerging entrepreneurs, thereby facilitating more accurate financial projections, informed investment behavior, and sustainable business scaling [69,70].

The present empirical study focused on differences in perceptions regarding various business challenges arising in the business environment of 120 entrepreneurs from the NUTS 2 Center Region in Romania. Hence, we surveyed perceptions on legislation instability regarding taxation, cohesiveness of strategies supporting and incentivizing businesses, overall climate and social dynamics, insufficiency of crediting programs for small- and medium-sized enterprises, restricted access to information on available crediting, eligibility criteria limiting access to financial support, limited capacity of management on project implementation, and skepticism towards consulting firms.

In relation to the first variable of interest, legislation instability on taxation issues triggered stronger perceptions for less experienced entrepreneurs (up to five years on the market), as expected. The result could be explained by the fact that novice entrepreneurs are generally interested in mitigating risks and growing the business in the long run while complying. Nevertheless, when one cannot keep up with the pace of changes concerning important aspects such as the tax code or the labor law, one cannot do long-term financial projections and expand the business. When assessing the set of strategies and policies meant to support businesses, the entrepreneurs with less than two years in the market reported statistically different perceptions from those operating for 5–10 years. According to official statistics from 2019, 20% of new businesses failed during the first year of activity, 50% after five years, while 66% closed after 10 years. Professional guidance and monitoring from public institutions could save many new companies from the brink of bankruptcy in their initial years.

The overall climate and social dynamics counted more for businesses younger than five years, which strive to find efficient employees, develop and maintain a client network, while competing with established firms from the market. The result could be explained by the fact that less experienced entrepreneurs worry more about the future, and newer businesses perceive potential losses to a stronger degree than their more experienced counterparts. Therefore, should the general climate worsen, new businesses would be the first to fail.

Differences in perceptions of insufficient crediting opportunities were identified among companies with up to five years of experience. Again, the result is sensible because third-party financing is crucial, at least in the first period of business activity, until one can build a stronger reputation in relation to financial creditors.

In the same line of thought, participants with less experience in the market (below 5 years) perceived restricted access to credit information and fewer opportunities for financing on account of demanding eligibility criteria. Moreover, as expected, new entrepreneurs struggled more with implementing and managing business endeavors than experienced ones. Especially in emerging markets such as the one in Romania, the principle of learning-by-doing is widely used by first-time entrepreneurs, who navigate the intricate waters of the business environment, as opposed to developed markets.

7. Limitations

As with all empirical research, this study is subject to several limitations that should be acknowledged when interpreting the results. First, although the sample size is relatively substantial, it does not represent the entire entrepreneurial population of Romania’s Center Region. The selection was non-random and may reflect a bias toward certain sectors or profiles of entrepreneurs more inclined to participate in such surveys. Consequently, caution must be exercised in generalizing the findings to the broader regional or national entrepreneurial population.

Second, the geographic scope of the study is limited to a single development region—namely, the Center Region (NUTS 2 level) of Romania. While this region provides valuable insights into entrepreneurial perceptions and behaviors, it does not fully capture the diversity and heterogeneity of business environments across Romania’s eight development regions. Regional disparities in economic structure, institutional support, and labor market dynamics may result in different entrepreneurial experiences that are not reflected in this study.

A particularly noteworthy finding was the uniformly low level of trust in consulting firms, irrespective of the respondents’ level of entrepreneurial experience. This skepticism suggests that professional business consultancy is perceived with caution, regardless of the maturity or size of the business. These findings align with the Ipsos Global Trustworthiness Index published in 2023, which reported that only 26% of Romanian respondents consider business leaders to be highly trustworthy, followed by 23% for lawyers, 11% for bankers—the lowest among 31 countries surveyed—and 16% for advertising professionals. Such data underscores the broader issue of institutional trust deficits within Romania’s business ecosystem, which may impact entrepreneurs’ willingness to seek external support.

8. Future Research Directions

To build upon the findings of this study, several avenues for future research are recommended. First, expanding the geographic coverage to include all eight development regions of Romania would offer a more comprehensive understanding of the national entrepreneurial landscape. Such comparative studies could reveal regional variations in entrepreneurial behavior, perceptions of risk, strategic planning, and openness to professional advisory services.

Second, future research could investigate cross-regional differences within the broader European Union context by examining entrepreneurial perceptions in other NUTS 2 regions. This would allow for the benchmarking of Romania’s entrepreneurial environment against that of other EU member states and could identify common challenges as well as region-specific policy needs.

Third, given the consistent skepticism toward business consultancy services observed in this study, future research might delve deeper into the causes of this distrust. Qualitative studies, such as interviews or focus groups, could explore entrepreneurs’ specific concerns, past experiences, and expectations regarding professional consulting services. Understanding these underlying factors may provide valuable insights for improving the credibility and effectiveness of external business support mechanisms.

Finally, subsequent studies could adopt longitudinal designs to assess how entrepreneurs’ perceptions evolve over time, particularly in response to economic shifts, policy changes, or increased exposure to support services. Such research could contribute to the development of more responsive and tailored strategies for fostering entrepreneurship in diverse regional contexts.

9. Conclusions

In conclusion, entrepreneurs play a pivotal role in shaping both national and regional economies by generating substantial economic and social value [71]. The identification and analysis of entrepreneurial profiles are essential for informing and guiding a wide array of stakeholders, including prospective entrepreneurs, policymakers, financial institutions, potential investors, and the broader public. Such insights contribute not only to a better understanding of entrepreneurial dynamics in a specific regional context but also to the design of more targeted and effective support mechanisms aimed at fostering sustainable business trajectories.

Future perspectives on sustainability in entrepreneurship highlight the need for an integrated approach that fosters long-term business resilience while addressing environmental and social challenges. Given the findings of this study, which indicate that less experienced entrepreneurs face significant barriers in accessing financial resources, understanding regulatory frameworks, and implementing effective management strategies, future efforts should focus on enhancing financial literacy and sustainability-oriented training programs. Public institutions and private sector stakeholders should collaborate to develop targeted policies that provide easier access to credit programs and incentives for green business initiatives. Additionally, fostering a culture of innovation and digital transformation can contribute to more sustainable business models, ensuring long-term competitiveness in regional economies. Future research should explore the role of digital tools, circular economy principles, and public–private partnerships in promoting sustainable entrepreneurship at both the regional and national levels. By integrating sustainability into entrepreneurial strategies, businesses can not only enhance their market performance but also contribute to the broader goals of sustainable economic development.