Financial Stability an Imperative Condition to Develop the Enterprise Phenomenon

Abstract

The recent years research that aimed at identifying means and tools of encouraging entrepreneurship, have shown how important it is to be profoundly acknowledged and to improve the business environment as well as the investment climate. In the present paper I am focusing my studies on the impact the financial stability has on the investment climate and its pertinence to the entrepreneurship phenomenon in Romania, during the years of 1996-2012, where I make use of an aggregated index for the specific purpose of measuring the financial stability.

The main objective of the present article is to highlight the important role the financial stability plays, as essential integral part of the business environment, in ensuring the most favorable context of developing the entrepreneurship phenomenon. The tests applied indicate there is a strong connection, statistically significant, between the entrepreneurship and a better business environment, financial stability having a positive impact on the financial system ability to ensure financing for new businesses, for young companies or for Small and Medium Enterprises.