The paper has two purposes: to present the evolution of higher education in Romania after 1990, as an illustration of the transition period in Central and Eastern Europe and as a background for the subsequent section, and to present the results of a study concerning the relationship between higher education and the business community in Romania. The empirical study is based on a survey of private companies from Bucharest. The survey had as its main objective to analyse the evolution and performances of graduates from both private and state universities in the labour market, based on the companies' experiences with them. Considering the results of the study, the paper draws conclusions in relationship with the general status of higher education in Romania, focusing on the needs of the companies, as major beneficiaries of higher education, along with individuals and society as a whole.