Lavinia Mastac, Alexandru Nicolae Bizu, Gabriela Draghici, Cosmin Filip
DOI: 10.2478/ouacsce-2024-0010
Pages: 86-95
Abstract – This study examines cost processes in the Romanian construction
industry, focusing on their implications for profitability and bankruptcy risks among
small construction firms. Through a case study of a microenterprise operating
between 2005 and 2022, the research demonstrates that effective cost management
strategies contribute significantly to profitability. However, the findings also highlight
the substantial challenges posed by legislative and economic instability. The analysis
emphasizes the critical importance of stable and supportive fiscal policies for the
sustainability of small and medium-sized enterprises (SMEs) in the construction
sector. By analyzing financial data and industry statistics, the study identifies a clear
correlation between legislative changes and the financial performance of SMEs,
reinforcing the need for a consistent regulatory framework to foster sustainable
growth and employment opportunities within the industry.
Keywords – construction company, costs, financial management, micro enterprise.
