Last update
24.Apr.2010

 

 

 

 

Member of the team *   Tasks	Braghina Cristian	Ianos Ioan	Talanga Cristian	Young researchers
				Peptenatu Daniel	Zamfir Daniela	Draghici Cristian	Pintilii Radu
First activity from first objective (2007)	yes				yes	yes	yes
Second activity from first objective (2007)	yes	yes	yes
First activity from second objective (2007)	yes	yes		yes	yes	yes	yes
Second activity from second objective (2007)	yes			yes
First activity from first objective (2008)	yes	yes	yes	yes
Second activity from first objective (2008)	yes				yes	yes	yes
Third activity from first objective (2008)	yes		yes	yes	yes	yes	yes
First activity from second objective (2008)	yes	yes	yes	yes		yes	yes
Second activity from second objective (2008)	yes		yes	yes
Third activity from second objective (2008)	yes	yes	yes	yes	yes	yes	yes
First activity from third objective (2008)	yes				yes	yes	yes
Second activity from third objective (2008)	yes	yes	yes
First activity from first objective (2009)	yes	yes	yes	yes
Second activity from first objective (2009)	yes				yes	yes	yes
Third activity from first objective (2009)	yes		yes	yes	yes	yes	yes
First activity from second objective (2009)	yes	yes	yes	yes		yes	yes
Second activity from second objective (2009)	yes		yes	yes
Third activity from second objective (2009)	yes	yes	yes	yes	yes	yes	yes
First activity from first objective (2010)	yes				yes	yes	yes
Second activity from first objective  (2010)	yes	yes	yes
First activity from second objective (2010)	yes	yes	yes	yes		yes	yes
Second activity from second objective (2010)	yes		yes	yes

 

 

 

 

  

  

 

 

  

•         Identifying the links between entrepreneurial initiative and local development in the land;

•         Analysis of the ties between local development and improvement of geographical space organization;

•         Assessing the way communities benefiting from foreign and local investments can become secondary hubs of development, and creating a model for local action to attract investments of that type;

•         The role of the business community in creating development hubs;

•         The evolution and impact of the SME sector in urban and rural communities;

•         Identifying changes that occurred in the territory as a result of the development of entrepreneurial initiative.

 

•         Treating the problems related to severe underdevelopment as emergencies;

•         Identifying disparities across a region in Gorj county – the system of parameters used to identify the disparities comprises four categories: state of demographics, state of the economy, infrastructure and living standards; all four are deemed as having an equal influence on development;

•         Supporting partnerships sealed by secondary development hubs and neighbor administrative subdivisions, with the goal of encouraging entrepreneurial initiative;

•         Laying the scientific foundation for policies and intervention in downsizing territorial disparities at medium- and micro-scale level;

•         Shortening the time it takes to implement the policies to diminish the effects of underdevelopment;

•         Approaches to underprivileged areas.

 

 

 

  

Braghina C., Peptenatu D., Constantinescu S., Pintilii D., Draghici C., (2010), The Pressure Exerted on the Natural Environment in the Open Pit Exploitation Areas in Oltenia, Carpathian Journal of Earth and Environmental Sciences, vol.5, nr.1, pg.33-40, ISSN 1842-4090,  http://www.ubm.ro/sites/CJEES/viewTopic.php?topicId=72;

Ianos I., Peptenatu D., Zamfir D., (2009), Respect for envinronment and sustainable development, Carpathian Journal of Earth and Environmental Sciences, vol.4, nr.1, pg.81-94, ISSN 1842-4090,  http://www.ubm.ro/sites/CJEES/viewTopic.php?topicId=72;

 

 

Peptenatu D., Pintilii R., Cepoiu L., Draghici C., (2009), Polycentric development strategy- an efficient instrument in administrative descentralization, Revista Romana de Geografie Politica, nr. 2/2009, ISSN 1454-2749, pg. 99-111, http://rrgp.uoradea.ro/index_files/2009_2.htm;

Ianos I., Braghina C., Peptenatu D., Zamfir Daniela, Cepoiu Loreta, Pintilii R., (2009), Geographical analysis of the higher education infrastructure in Romania, Studia Universitatis Babes-Bolyai, Geographia, LIV, nr. 1/2009, ISSN 1221-079X, pg. 19-34, http://www.studia.ubbcluj.ro/arhiva/cuprins_en.php?id_editie=392&serie=GEOGRAPHIA&nr=1&an=2009;

Ianos I., Zamfir Daniela, Peptenatu D., Pintilii R., (2009), Theindividualisation of discontinuities in deeply disadvantaged   areas of Romania, Romanian Review of Regional Studies, vol. 5, nr. 2, pg. 3-10, ISSN 1841-1576, http://geografie.ubbcluj.ro/cgr/index.htm;

 

Peptenatu D., Talanga C., Pintilii R., (2008), Rolul sectorului antreprenorial in tratamentul ariilor profund dezavantajate, Comunicari de Geografie, vol. XII, ISSN 1453- 5483, pg. 355-358;

Braghina C., Peptenatu D., Zamfir D, Nae M. (2009), Le developpement du secteur entrepreneurial et les management des disparites territoriales. Etude de cas: le Departement Gorj, Annals of Valahia University, Geogr. Series, Tom VIII, ISSN 1582- 6198, pg. 169-176;

Braghina C., Draghici C., Peptenatu D., Pintilii R., (2009), Rural changes in the restructuring minig areas within Gorj county, Annals of Valahia University, Geogr. Series, Tom VIII, ISSN 1582-6198, pg. 151-158;

Braghina C., Peptenatu D., Draghici C., (2009), The function of policentric development in the refinement of weakly polarised areas. Case study: Gorj county, Geographica Timisiensis, vol. XVII, nr. 1-2/2008, ISSN 1224-0079, pg. 45-53;

Peptenatu D., Pintilii R., Draghici C., Stoian D., (2009), Accentuarea disparitatilor teritoriale din Romania in conditiile crizei economice mondiale, GeoPolitica – Revista de Geografie Politica, GeoPolitica si GeoStrategie, Anul VII, nr 29 (1/2009), Edit. Top Form, Bucuresti, ISSN 1583-543X, pg.165-172;

Braghina C., Peptenatu D., Draghici C., (2008), Socio-economic restructuring of the mining areas of Gorj county, Human Geographies-Journal of Studies and Research in Human Geographies, vol. 2, Issue 2, ISSN 1843- 6587, pg.18-26,  http://humangeographies.org.ro/2_2_nov_2008.htm;

Braghina C., Peptenatu D., Draghici C., (2009), - The Reorganization of Economic Activities and the Perspectives of the Endogenous Development in the Mining Areas from Gorj County, Journal of Urban and Regional Analysis, vol. 1/2009, ISSN 1314-2420, pg. 85-94,  http://www.jurareview.ro/.

 

 

 

 

Talanga Cristian, Peptenatu Daniel, Stoica Valentina, Structurarea functionala a ariilor profund dezavantajate din judetul Gorj, A 8-a Conferinta internationala Cohesion and Disparities. Regional and local development in Central and south-Eastern Europe between Potentials, Policies and Practices, Timisoara, mai 2008;

Peptenatu, Braghina Cristian, Iancu Cristina, Stoica Ilinca Valentina, The management of area weakly polarized throughout innovations and good usage. Case study: Gorj County, Romania; Moravian Conference on Rural Research EURORURAL `08 : Investigating European Countryside, Brno, Cehia (August 25 - 29, 2008);

Peptenatu Daniel, Stoica Ilinca Valentina, Iancu Cristina, The dynamical reorganization of the rural areas in territories deeply disadvantaged. Case study: The south-western region;Moravian Conference on Rural Research EURORURAL `08: Investigating European Countryside, Brno, Cehia (August 25 - 29, 2008);

Peptenatu Daniel, Ilinca Valentina Stoica, Pintilii Radu, The economic and demographic characteristics of deeply disadvantaged areas in the South-West region of Romania; Geographical Environment And Cross-Border Cooperation Within The Lower Basin Of The Danube, Craiova, (2-5 octombrie 2008);

Braghina Cristian, Peptenatu Daniel, Draghici Cristian, Rolul dezvoltarii policentrice in tratamentul ariilor profund dezavantajate, A 8-a Conferinta internationala Cohesion and Disparities. Regional and local development in Central and south-Eastern Europe between Potentials, Policies and Practices, Timisoara, mai 2008;

Braghina Cristian, Peptenatu Daniel, Draghici Cristian, Rural changes in the restructured mining area from Gorj County; 23rd Session of PECSRL – The Permanent European Conference for the study of the Rural Landscape: “LANDSCAPES, IDENTITIES AND DEVELOPMENT”, Lisabona/Óbidos, Portugalia (1-5 septembrie 2008);

Braghina C., Talanga C., Zamfir Daniela, Role of the entrepreneurial sector in the regional development. Case study – Gorj County in cadrul conferintei “UnderStanding and shaping Regions: Spatial, Social and Economic Futures”, organizata de Regional Studies Association, Leuven-Belgia, 6-8 aprilie 2009;

Peptenatu D., Cepoiu Loreta, Stoica Valentina, Analysis and Management of the Poorly Polarized Areas in Oltenia, in cadrul conferintei “UnderStanding and shaping Regions: Spatial, Social and Economic Futures”, organizata de Regional Studies Association, Leuven-Belgia, 6-8 aprilie 2009;

Braghina C., Zamfir Daniela, Talanga C., Cepoiu Loreta, Le role des poles secondaire de croissance dans l’attenuation des disparites regionales. Etude de cas: Le departement de Gorj, in cadrul celui de-al III-lea Colocviu international romano-algeriano-francez “Directions contemporaines dans l’etude du territoire. La gestion du territoire, des aleas et de la ville.” Organizat de Universitatea din Bucuresti, Universitatea M’sila si Universitatea Paris Est, 27-31 mai 2009, Bucuresti.  

  

 

            In spatial terms, development depends on a set of determining factors, which generate significant differences in the presence of production facilities – both quantitative and qualitative – differences in sector structure and the distribution of economic activities, as well as in social terms. These differences cause a gap and permanent competition between human settlements, which results in the creation of development centers and areas comprising several competing entities, which make up the polarized area.

Major imbalances can be identified in the region analyzed, caused by the drop in the “development” dispersion rate for numerous centers, which generated a chain of shocks in the subordinated areas, going beyond the critical threshold in many cases.

            According to law 351 /2001, Gorj county has two second-rank towns (Targu Jiu and Motru) and seven third-rank towns. According to traditional criteria, the county seat is a medium-sized city, at the higher limit of the 100,000-inhabitant bracket. Motru is also a medium-sized city, at the lower limit of the 20,000-inhabitant bracket, while all other towns are included in the small-town category, with less than 20,000 inhabitants. Notice should be made of the significant gap between Targu Jiu and the other towns (a 4.1 ratio).

Granting the status of secondary center of development can – and should - be conditioned, alongside the other elements, by the value of domestic or foreign investments made both in the respective locality and in its area of influence.

Diversifying the economy of the region is a priority in the current context, as the economy is mono-specialized and in addition mining operations have fallen below normal values (the level in production that contributed to the development of the region until 1990 can no longer be reached). The entrepreneurial sector is the most dynamic element in the region; its development organizes and offers a structure to its enclosing areas, by means of its differentiated taking advantage of resources and the impact on the strength of relations among the other components of the system.

 

 

 

            Considering this economic setting features numerous drawbacks, one may conclude that an opportunity for new activities and jobs can be created by means of innovation.

            SME activity indicates an uneven distribution across the region and significant differences between urban and rural and northern and southern areas. Urban areas have around four times more SMEs per 1,000 inhabitants than rural areas; the cities of Targu Jiu and Motru make up for more than 60% of all SMEs in the county between them. There is a limited number of SMEs in the towns of Tismana, Turceni and Ticleni, while villages such as Arcani and Baia de Fier have a high number. The  least developed area in terms of the number of SMEs is the rural region to the south of the county, where the number of SMEs is less than 7 per 1,000 inhabitants and sometimes less than 4 per 1,000 thousand inhabitants (in Bustuchin, Negomir, Tantareni).

            There has been a significant drop in the ratio of medium-sized SMEs, with a rise in the ratio of small SMEs and micro-enterprises. According to National Trade Registry Office (ONRC) data, there were 21 large companies in activity with more than 30,000 employees in the county by 2005 (around 12.5% of the working population), the most important of them being the Oltenia National Lignite Company (around 10,000 employees) and the two major energy-generating complexes, Turceni and Rovinari (with a total of more than 8,000 employees).

Evaluating the geographical distribution of companies and their share capital highlights differences between the secondary centers of development, as well as certain similarities:

- the total number of companies varies inside a range going from 50 to more than 100, with most of them located in Motru, Bumbesti Jiu, Targu Carbunesti and Novaci;

- there is a concentration of companies in the northern half of the county, a situation favoured by the presence of natural resources, but especially by the polarizing capacity of the city of Targu Jiu, despite the higher demographic aging rate;

- the total value of the companies’ equity is low as compared to the situation in the main development center, the city of Targu Jiu;

- the highest values in company equity are registered among companies in Motru, Targu Carbunesti, Bumbesti Jiu and Novaci. The town of Rovinari is also included, due to the scope of mining there, although it is not included among secondary centers of development;

- a feature shared by all administrative units in the county – secondary centers of development included – is the vast preponderance (90%) of Romanian-capital companies; in terms of structure, the tertiary sector is predominant;

- the secondary sector makes up for 10% to 25 % of all companies in secondary centers;

- the size of the enterprises is conditioned by their field of activity, raw material resources, the level of technology, workforce training levels and existing demand from the market. Under the current economic conditions, microenterprises are dominant in the county.           

 

 

Figure 2 The number of companies

 

In the secondary centers of development, microenterprises make up for 60% to 75% of companies, with small and medium enterprises making up for the rest (Motru, Matasari, Ticleni, Turceni, Targu Carbunesti, Novaci, Baia de Fier, Bumbesti Jiu, Tismana, Pades). Mention should be made of the presence of these small and medium enterprises in the area of influence of these centers of development.

Foreign capital makes a limited contribution to investments. The geographical distribution and the ratio of foreign capital features high differences in villages and towns in the county.

The number of companies with foreign capital contributions by the end of 2007 ranged from 1 to 245. The highest number of companies is located in the county seat. The number of companies with foreign capital in the vast majority of administrative units ranges from 1 to 25. In this respect, one could say the county seat is excessively developed.

 

 

 

 

Figure 3 The structure of share capital in joint venture companies - urban areas (2007)

 

Among secondary centers of growth, most companies with foreign capital contributions are located in the cities of Motru (25), Bumbesti Jiu (24) and Targu Carbunesti (13). An important place is held by the city of Rovinari, with 25 companies with foreign capital contributions.

Foreign capital makes up for close to 100% in the equity of these companies in the case of the cities of Motru and Bumbesti Jiu, and more than 75% in the case of the others.

In absolute terms, the biggest figures are posted by companies in Motru and Bumbesti Jiu, with modest figures for the other centers of development. The city of Rovinari is also included in the category of high values.

A RON 2 million investment (with 50% foreign-capital contribution) is located on the premises of the Catunele settlement, inside the area of influence of the city of Motru.

If companies with foreign-capital contributions in Motru, Rovinari, Targu Jiu and Bumbesti Jiu are also considered, one notices they are concentrated along a northeast-southwest axis.

                        - the contribution of foreign capital to the establishment of companies is a fact in the case of secondary centers of development;

 

 

 

  

            The suggested courses of action in order to attract investments in secondary centers of development are:

1.      Promoting their strengths during programs developed at county scale: energy resources, the quality of human resources, the presence of an entrepreneurial sector.

2.       The need for domestic and foreign investors’ creating SMEs that would take advantage of the local resources – human, natural, and socio-cultural capital and the modern technology – so as to develop into units able to cope with European-market competition, attractive for commercial banks, generating jobs and leading to the emergence of a well-off middle class.

3.      Attracting foreign investments by simplifying red tape, cutting down corruption, lowering taxation and granting incentives in certain strategic sectors or for profit reinvested in the local community.

4.      Setting up partnerships between secondary centers of development and their neighboring administrative units, with the goal of stimulating entrepreneurial initiatives, as well as implementing infrastructure-modernization projects, accessing of development funds included.

5.      Achieving cooperation between the county seat (Targu Jiu), as main center of development, and the secondary centers, matching the reevaluation of urban-rural and urban-urban ties.

  

  

  

  

 

The main economic development target of Gorj county’s development strategy is encouraging SMEs, so that gross domestic product per capita should reach the national mean average level, or no less than 95% of that value, in the wake of a diversification of economic activities by developing the SME sector, so that it should rise to the mean national average of 19.3 SMEs per 1,000 inhabitants, attracting foreign investments, so that they should reach at least 5% of all foreign direct investments in Romania and modernizing the educational and professional training systems so that they would produce a well-trained workforce, matching the demands of the market and modern technologies (The Gorj County Socio-Economic Development Strategy for 2007-2013, 2007).

Analyzing the relation between the development of administrative systems and entrepreneurial initiative was grounded in a complex set of indicators and processing forms submitted to authorities, entrepreneurs and inhabitants of the representative administrative units.

 

 

 

It can be noticed that the number of SMEs per 1,000 inhabitants registered a slight rise during the 2004-2007 interval, but fell short of the national mean average (19.4 in 2004 and 20.5 in 2007). As compared to the state of things in 2004, one can notice an upward trend in the number of SMEs and especially their multiplication in the production sector. The pace of creating new companies was partly influenced by changes in legislation concerning the establishment of small- and medium-sized companies – the National multiyear program for the development of entrepreneurship among women managers, the National multiyear program for 2005-2009 to support microenterprises and small enterprises’ access to training and consultancy services, the Program to modernize and develop sale of market services and products, among others.

The main problems among entrepreneurs are related to obtaining contracts, difficulties linked to requesting or offering them. As far as the offer is concerned, most new enterprises mainly face financial problems, especially lined to fund shortages, limited access to loans, the absence of customers or customers with payments on stand-by. As far as demand is concerned, entrepreneurs consider that the major problems are related to the limitations of competition on the retail market (77%), their company not being well-known enough (56%) and the absence of funds among potential customers (55%).

 

 

 

 

 The distribution of enterprises in terms of employees highlights a predominance of microenterprises, as a result of government-promoted policies to encourage the entrepreneurial sector. Figure 1 presents the dependence of local economies on small and medium enterprises; in certain administrative units, they are the sole companies to contribute to the dynamics of the socio-economic system. The analysis of the Gorj county entrepreneurial sector highlighted the acute need for an intervention of decision-making authorities to support this sector, which faces a severe blockage because of the financial crisis. The detailed analysis of the structure of enterprises highlights the small- and medium-sized companies’ dependence on the large state-owned companies, which benefit from government support.

The dominant category in the county is that of companies with less than 9 employees. The majority of small enterprises are located in urban areas and in the northern part of the county. Medium-sized enterprises are located in the main cities (Motru, Rovinari, Targu Jiu) and in their areas of influence, while large enterprises are located in the city of Targu Jiu (where they make up for more than 23% of all enterprises) and in cities with mining-related industries (Motru, Rovinari).

 

 

 

 

 

The distribution of profit made by small and medium companies at locality scale highlights significant differences in terms of location, with the highest values registered in cities and administrative units with large populations, an important factor in competition.

The highest values in profit made by SMEs is registered in the cities of Targu Jiu and Motru, which, thanks to their positions at county and region levels offer the best terms for the emergence and the development of small and medium companies.

The significant rise in profit for SMEs in rural areas, where the development of the land depends on this category of enterprises, is outstanding. It is interesting to notice that the ratio of SMEs rises in direct proportion with then isolation of the administrative unit from the main axes of structure; the profit made is therefore essential for the settlements’ economic development. This spatial layout indicates the SME’s importance for the economic recovery of areas plague by severe socio-economic imbalances. This situation is present in the townships of Samarinesti, Vagiulesti, Bolbosi, Negomir, Slivilesti, Ionesti, Stoina, Stejari, Danciulesti, Logresti, Berlesti, Sacelu, Bumbesti-Pitic, Câlnic.

Analyzing the distribution of Groj county’s SMEs’ profit emphasizes the importance of this category, complementary to the other types of companies, in the setting up of new centers of development that can contribute in the long run to the consolidation of a solid development network, interconnected with the larger socio-economic systems.

 

 

              Disparities in the territory. The overall evolution of the current economic and political life, as well as the pre-1990 industrialization policy brought about imbalances in development from one region to another. Tempering these imbalances should be a task for the central administration, but also for county and local authorities, against the general background of the national policy for regional development, whose targets are:

 

 

 

 

 

  

 

 

 

The development index was calculated by aggregating several categories of demographic indicators (population aging index, demographic evolution index), economic indicators (the number of companies, the number of employees), infrastructure indicators (length of the water supply network, the number of telephony subscriptions), living standards (infant mortality rate, the number of toilet-equipped dwellings)  The analysis of that map indicated a certain consistency (at high values of the index) in the case of the localities Motru, Matasari, Rovinari, Bumbesti-Jiu, Novaci, Turceni, Urdari, and a slight drop in Ticleni and Baia de Fier.

Low and dropping values were registered in the southwest and southeast regions (because of depopulation and demographic aging, limited entrepreneurial spirit, limited access to telecommunications and a high rate of population working in agriculture).

 

  

 

Although on an upward trend in the past few years, the SME sector currently registers a series of problems in the context of the current crisis of the economy. Subsequently, it is to be expected that, at least in the short run, both the number of SMEs and the number of their employees would register a significant drop.

The problems highlighted by form-filling indicate the idea that SMEs should be helped overcome the current period (as expressed by both the managers of these enterprises and local authorities) considering that they have a significant contribution to the economy of the region and especially to workforce absorption. This aid might come in the form of the program to develop entrepreneurial skills among the youth and easing their access to funding (START 2007).

Field data analysis indicates that the rate companies are closed down in less than a year after creation is higher in areas where the educational level of the managers is lower. This indicates the need for training current managers, in order to both cut down default instances, and raise the competitiveness of existing companies.

Previous experience indicates that local feedback is extremely important in the process of insertion of entrepreneurial initiatives. It an determine the success or failure of such an initiative. The interaction between the initiative and the space it unfolds in is shaped by means of the feedback of the latter’s elements.

 In terms of the intensity of changes induced, one can identify two types of entrepreneurial initiative insertion: some are slow and very hard to observe, while others are sudden and even violent. Slow insertion has the quality of being harmoniously integrated into a certain dynamic, altering the older structure. Violent insertion ruptures local structures, creates a new structure by destroying the older one and risks causing irreversible changes in the system in the respective region.

 As a general rule, the insertion of entrepreneurial initiative inside spatial coordinates considers: putting to best use local resources (natural and human), traditions or socio-economic and cultural niche sectors, a local context. All these are external elements and account for the implementation of a certain entrepreneurial initiative in a certain location in space.

Entrepreneurial initiative emerges out of a need to identify solutions to the problems in a community or to achieve targets set by the communities in various areas in space.

In the case of Gorj county, one can notice,

- the presence of limited economic activity in rural areas due to the following reasons: inefficient agriculture, lacking modern technology and equipment, the disappearance of certain traditional trades such as livestock breeding, limited level of entrepreneurial development in general and especially in rural areas, fewer SMEs than the national mean average, most of them in urban areas and in the service sector, rising unemployment, specially among the young and women, and a low foreign-investment attraction rate.