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How do companies in Romania address the challenges of international trade?

In the context of regional expansion strategies or conducting regular business, an increasing number of Romanian companies are exploring efficient methods for making international payments. They face challenges such as currency diversity, market fragmentation, and regulatory differences in international trade, according to a study conducted by global payments provider iBanFirst. However, with the rapidly advancing technology and local success stories, these difficulties can be transformed into growth opportunities and competitive advantages.

For businesses in Romania, the Central and Eastern Europe (CEE) region represents more than just geographic proximity. It constitutes a crucial strategic step towards global expansion, according to the study. The common history, cultural similarities, and specific economic connections of the region act as a bridge that allows entrepreneurs to refine their expansion strategies in a relatively controllable environment before expanding to more diverse and complex regions. This process also enables the transformation of major challenges into strategic advantages.

The fintech company iBanFirst, together with Ziarul Financiar and the communication company Pi2 PR, is organizing the third annual edition of the iBanFirst Regional Business Summit on Wednesday, April 24, 2024. Organized in collaboration with media partners – Ziarul Financiar from Romania, Bloomberg TV Bulgaria, and the business newspaper Portfolio from Hungary – the regional summit offers participants a rich agenda of discussions and networking opportunities. The event brings together entrepreneurs and executives from Romania, Bulgaria, and Hungary, who have built successful companies in the region and will share their experiences regarding cross-border expansion.

The invited speakers include:

  • Andrei Ursulescu – CEO of Scandia Food
  • Maria Metz – CEO of NTT Data
  • Radu Georgescu – chairman of the board at SeedBlink
  • Gabriela Bereș – managing director of Central & Eastern Europe at Puratos
  • Bogdan Colceriu – founder & CEO of Frisbo
  • Roxana Gureanu – managing director of HABAU Romania

What are the main challenges that can be transformed into advantages for companies looking to conduct business at the regional level:

Market fragmentation: The varied economic contexts and consumer preferences offer companies the opportunity to test different market strategies and adjust their offerings to efficiently meet diverse customer needs and expectations.

Regulatory diversity: Tackling the complexity of regulations in different countries of the region can improve companies’ legal and operational flexibility. This provides a valuable knowledge base for managing global compliance policies.

Competition and talent recruitment: Although fierce competition and the talent search represent challenges, they stimulate innovation, efficiency growth, and investment in developing a skilled workforce essential for international success.

Cultural differences: The cultural and linguistic diversity encountered in the CEE region can help companies refine their marketing and customer service strategies, preparing them for the complexities of international expansion.

Currency diversity: Although currency diversity might seem like a hindrance, it offers companies more flexibility in pricing and negotiation, allowing efficient risk management through customized hedging strategies.

Traditionally, businesses in Romania have preferred international transactions in euros due to the currency’s stability and familiarity. However, with easier access to various currencies, competitive exchange rates, and risk management solutions tailored for SMEs, they can position themselves more advantageously on the global market. In practice, this means they can make payments to foreign suppliers in their currency and, in turn, receive payments in local currencies from international clients. The benefits are multiple: the ability to negotiate more favorable prices, openness to new markets, and, in some cases, the possibility to conduct transactions that would not have been feasible before, from Central and Eastern Europe to China and South Africa,” explains Johan Gabriels, Regional Director for Southeast Europe at iBanFirst.

In essence, the expansion process of Romanian and regional companies into the markets of Central and Eastern Europe involves strategic planning. This will be the main topic discussed at the third edition of the regional summit “How can CEE companies expand internationally?” organized by iBanFirst in partnership with Ziarul Financiar. This edition will focus on the example of some of the most successful entrepreneurs and executives from Romania, Bulgaria, and Hungary, to explore how businesses can build a solid foundation for expanding their operations internationally by leveraging the region’s advantages and turning challenges into opportunities.

In collaboration with media partners – Ziarul Financiar from Romania, Bloomberg TV Bulgaria, and Portfolio from Hungary, the event promises to provide a detailed perspective on the challenges accompanying the international expansion process of SMEs and practical insights on how companies can overcome them.

This article was published on Ziarul Financiar.