Entrepreneurship in the Republic of Moldova. Challenges and Recommendations.

This paper aims to analyze the challenges of entrepreneurship in the Republic of Moldova, including the special regions of Transnistria and Gagauzia. The main methodology of data collection used throughout this paper is qualitative semi-structured interviews with entrepreneurs, legislators, foundations, and investors in the various fields. Where relevant, data from the neighboring countries Romania and Ukraine will be used. Additionally, the research is supported by data, literature reviews and academic papers that provide a more macro-level perspective about the economic situation of Moldova. The research is based on the hypothesis that Moldova’s human development index (HDI) could in fact be low due to the country’s business ecosystem, more specifically, due to its entrepreneurial challenges. Based on the information collected, the study identified challenges and potential solutions throughout four main sections: Education (Migration, Skills mismatch), Policy and Regulation, Financing (Distrust of banks, Corruption) and Geography. Some common themes explored revolve around the unifying the Moldovan society around the fight against corruption, building stronger regional ties and creating startup-friendly policies for high potential industries.