--- title: "SMEs need more than just funding to build functional businesses" url: https://moldova1.md/p/85978/smes-need-more-than-just-funding-to-build-functional-businesses published: 2026-09-23T12:28:00Z language: en author: "Nicoleta Borodin" section: "Economic" source: moldova1.md --- # SMEs need more than just funding to build functional businesses > Although they account for 99.7% of Moldova’s economy and provide around 400,000 jobs, small and medium-sized enterprises (SMEs) continue to face significant barriers. Limited access to finance, infrastructure, and a skilled workforce in the regions suggests that existing support programs do not always reach those who need them most. ![](https://storage.moldova1.md/images/a467e378-27f4-48df-aad8-50e350b2239c.jpg) Although they account for 99.7% of Moldova’s economy and provide around 400,000 jobs, small and medium-sized enterprises (SMEs) continue to face significant barriers. Limited access to finance, infrastructure, and a skilled workforce in the regions suggests that existing support programs do not always reach those who need them most. "SMEs employ around 400,000 people, representing 75% of the workforce in the Republic of Moldova. Therefore, we cannot view small or medium-sized entrepreneurship as a niche sector. In fact, we see them as the driving force of the national economy. They are the 'small log that overturns the big wagon,'" stated Natalia Efros, President of the Alliance of Small and Medium-Sized Enterprises (AIM) in the Republic of Moldova, during the "Bună Dimineața" program on Moldova 1. Entrepreneurs outside Chișinău feel disadvantaged and point to major disparities compared to the capital regarding infrastructure, access to credit, and information about funding programs. "Entrepreneurship in the regions starts with a certain disadvantage. Things are different in the capital: we are in a bubble with greater financial power and different purchasing capacity. The situation is more difficult in the regions because access to infrastructure and credit differs. Although various opportunities for the regions are announced, they either run out very quickly, are insufficient, or people lack complete information," explained Natalia Efros. During field visits, AIM representatives found that entrepreneurs need more practical support to capitalize on existing opportunities. "People lack sufficient information on how to access certain funding sources; consequently, it takes them a long time to understand all the documentation and the application process, even when consultancy and support are available. I wouldn't want to paint an overly rosy picture, because the funds do not necessarily reach the areas where they are needed most," the AIM president noted on public television. In her view, business development outside the capital cannot be separated from social infrastructure. Kindergartens, schools, road conditions, and workforce availability are all factors that directly influence a business's capacity to grow. "We must understand that, to be sustainable, entrepreneurship requires social infrastructure. Women running businesses in rural areas need functional kindergartens and schools to support them. You cannot engage in entrepreneurship in isolation and expect to build something on your own," Natalia Efros said. **Large companies can pave the way for smaller ones** On exports, the AIM president notes that while some small and medium-sized enterprises (SMEs) reach foreign markets, access remains challenging. In this process, large companies play a crucial role in opening up new markets and creating opportunities for smaller suppliers. *"Large companies—the 0.7% that stand alongside the 99.7% of SMEs—act like bulldozers for the economy. They forge paths that the rest of us, the smaller players, follow. For instance, in the wine industry, there are major players who push us into export markets and open doors, allowing us to follow in their wake,"* Efros explained. At the same time, she pointed out that a sector's success does not automatically mean all companies in that field are growing at the same pace. *"I would not want us to fall into the trap of believing that this happens equitably and equally for everyone. There is immense pressure to get products onto shelves abroad, and even greater pressure to maintain that presence. We are competing in a vast market, against systems where the state offers greater predictability, more support schemes, and substantial subsidies—characteristics of far more developed economies,"* stated Natalia Efros. **"Resilience should not be treated as an economic policy"** Amid the difficulties entrepreneurs face, Natalia Efros argues that their resilience should not replace effective economic policies. *"Entrepreneurs are constantly praised for their resilience, but this should be treated neither as an economic policy nor as a normal state of affairs. The fact is, however, that resilience doesn't put food on the family's table. What I mean is that it significantly erodes patience and the belief that things can still work out, because the pressure in entrepreneurship is immense,"* she stated. Efros believes that the relationship between the state and the business community must be predictable and that entrepreneurs should be consulted before decisions affecting them are adopted. The AIM President noted that, compared to previous years, there are now more platforms for dialogue between the authorities and the business community, as well as a wider range of funding programs. "It is not just the recommendations you bring that matter, but also what is taken into account when formulating them. It is crucial for associations to be invited to the dialogue before decisions are made; this is an essential aspect that must be considered," said Natalia Efros. She also spoke about the need for a predictable fiscal policy so that entrepreneurs can plan their operations for the long term. "We continue to need fiscal predictability and a stable economic ecosystem, because entrepreneurs cannot guess what the state might decide to do three months down the line. As for the range of grants and funding programs, these have multiplied; some have become more generous in terms of requirements, others in terms of the amounts offered. Unfortunately, however, I do not have data showing how equitably they are distributed," Efros noted on Moldova 1. **Financing risks amidst labor shortages** Another issue raised concerns the risk that business financing may prove insufficient if the conditions necessary for operations are lacking. In this context, Natalia Efros highlighted the labor shortage and low purchasing power in the regions. *"If we finance a piece of equipment in Edineț, Briceni, or Cahul, but lack the workforce and the purchasing power for the resulting product, what becomes of that grant? It funded an asset. But what do we do with it next? It turns into a liability. That is why we must create policies that continue to support the growth of purchasing power and human potential,"* explained the AIM president. She also emphasized the acute shortage of employees—including in the agricultural sector—underscoring the need for better-coordinated policies in vocational education and measures to facilitate the return of the diaspora. Even under these circumstances, Natalia Efros says she remains optimistic about the development of entrepreneurship in the Republic of Moldova. *"I am very optimistic. I represent an alliance of optimistic entrepreneurs, and I strongly believe—on the one hand—in people's ability to overcome their vulnerability and keep working in the hope of success. On the other hand, I want a state that turns this hope into something measurable. This is where the relationship with the state is crucial, and I want to believe that, beyond simply being heard, we will also be taken seriously,"* concluded Natalia Efros. [Video: https://trm.blob.core.windows.net/photos/8de37677-916f-4263-90e4-9a6d64f3b3c3.jpg](https://original.trm.md/video/definst/MP4:2026/9/23/EFROS.mp4/playlist.m3u8)