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Ministry of Economy & Energy
2013
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
1
Content
Introduction
p.3
SWOT analysis
p.4
SME Sector: 7 years
р.5
SME Sector: Crysis
р.6
SBA
р.11
Entrepreneurship
р.12
Second Chance
р.13
Think Small First
р.14
Responsive Adiministration
р.15
State Aid
р.16
Access to Finance
р.17
Single Market
р.18
Skills and Innovations
р.19
Environment
р.20
Internationalization
р.21
Links: SBA and sectors
р.22
Annex 1
р.23
Annex 2
р.26
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
2
Introduction
"National Strategy on SME Promotion 2014-2020", also called
"Small Business Act" (SBA or Strategy from now on) is a
political document with mid-term nature by which the
Government of the Republic of Bulgaria has demonstrated its
vision of government policy to support small and mediumsized enterprises (SMEs) in the country, harmonize their
policies in this area with the policy of the European Union.
It is known that SBA is a key policy document of the
European Union in support of SMEs, a recommendation of
the European Commission, its principles should be
applied in each Member State. With this strategy Bulgaria
makes a major step towards convergence of national and
European policy to support SMEs in the period up to
2020. There will be no difference in the priorities set in
the European document and the Strategy.
Adaptation of the Strategy to SBA is done for the
following reasons:


Unifying the priorities on support to SMEs in
Bulgaria with those of the European Union. It is
not a goal by itself, but becomes more justified
as the Bulgarian enterprises are increasingly
integrated in a single market, they do not have
and could not have different problems and needs
that can be found existing in any EU Member
State.
Evaluation of the implementation of a
Strategy is always a major challenge. An
important advantage in this case is the provision
of information for the Strategy through the
annual reports of each Member State, called SBA
Fact Sheets. In this case, the European
Commission together with the Member States
has developed a methodology by which to
evaluate the progress of each Member State's
priorities, and the results are described in the
SBA Fact Sheets. So each MS can monitor its
own progress and even more - can be compared
to other Member States. Of course there will
always be states whose performance is below
the EU average, such as Bulgaria currently, but
at the same time the we will be able to monitor
whether the gap between the leaders and the
lagging behind countries shortens or on the
contrary - deepens. Also it will be monitored
whether the measures taken to support SMEs
have their effect, or do not have enough
influence.
The contents of this document comprises:

short SWOT analysis;

review of the status and development of SMEs
as a whole for the past 7 years (the previous
period of the Strategy 2007-2013);

review of the Sector (analysis) of SMEs for the
period of the global financial and economic crisis
2008-2011;

priority areas of the SBA with the current state
of Bulgaria on them and goals set to which
Bulgaria needs to move;

linking sectoral analysis to SBA.
MECHANISM OF THE STRATEGY
SBA
Implementation
assessment
STRATEGY
SBA
FACT SHEETS
Reflection of the Results
Implementation
assessment
Defining the
measures
ANNUALИндикато
PROGRAMME
ри за
изпълнен
ие
INSTRUMENTS
Operational Programme and other programmes
Figure 1
In this sense, the alignment of priorities and information
resources to assess the implementation of the Strategy
are significant advantages, which has not been available
in previous strategies.
The SME Strategy is justified by the Law for SMEs (Article
5, paragraph 1), the application of the Strategy is based
on an Annual program approved by the Minister of
Economy and Energy (Article 5, paragraph 2, item 4).
The Annual program contains proposals for measures
based on the results of Bulgaria, published in the SBA
Fact Sheets for the preceding year. The main financial
instrument of the formulated measures remains relevant
operational program of the Ministry of Economy and
Energy.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
3
SWOT Analysis
Strengths

For 2010-2012 Bulgaria is most powerful and above
average in the EU in the priority areas of the SBA "Access
to Finance" and "State aid and public procurement"

Bulgaria for the period 2010-2012 grew in "Responsive
administration". Given that in this area Bulgaria is EU
average, demonstrating optimism gives rise to lasting
positive trend, "Responsive administration" may soon
become the third area in which Bulgaria is above the EU
average.

After the first and most powerful wave of the crisis of
2009-2010 Bulgarian SMEs come out of it at higher levels
in terms of number of enterprises, employment and added
value compared to the average SME sector in the EU
based on year before the crisis - in 2005. In several
Member States the status of SMEs after the crisis is worse
than in 2005.

SMEs in Bulgaria for the period 2002-2006 and especially
after 2007 are developing dynamically and at rates higher
than those in the EU.

Despite the slowdown in the economic and financial crisis,
SMEs remain the main driver of economic growth in
Bulgaria .

SMEs in Bulgaria contributed to 75% of employment (68%
in the EU) and 62% of value added tax (58% in the EU) .

From 2002 to 2011 SMEs in Bulgaria increased their
contribution to the value added over 4 times.
Weaknesses

Despite various measures taken in different priority
areas of the SBA Bulgaria still lags in 5 of them:
"Entrepreneurship";
"Skills
and
Innovation";
"Internationalization";
"Environment";
"Second
Chance " .

In "Internationalization" and "Skills and Innovation"
Bulgaria ranks last in the EU. The situation is similar
in the "Environment" - 26th place.

Sector in which Bulgarian SMEs are most active is
retail trade (30% of SMEs in Bulgaria against about
17% in the EU) rather than business services, as in
the EU.

Labour productivity in all sectors in Bulgaria is below
the EU average .

Bulgarian SMEs in the sector of high-tech and
medium-tech manufacturing industries are only
0.8% (2% in the EU) and only 16% in the sector of
knowledge intensive services (28% in the EU). This
is a sign of the presence of low-skilled labor, which
is not able to create added value in high-tech
manufacturing and services. This is due to the lack
of training programs in SMEs and the move towards
more technological levels of employment and
production is difficult.

Dismissed workers (about 97 000) from SMEs
during the crisis is hard to get back to their jobs.
Opportunities

In "Responsive administration" and "Single Market"
Bulgaria is close to EU average, but the potential for
growth is significant.

Although Bulgaria is 27th in "Skills and Innovation", in
2010-2012, the country showed accelerated growth: the
most intense growth for the country among all nine areas
of the SBA and one of the highest in the EU but not
enough to "unstick" Bulgaria from the last spot in EU.

Advancement in "Entrepreneurship" for the same period
was hesitant, but here the growth potential is very high.
The same applies to areas "Second Chance" and "Single
Market".

Although most indicators are at or below the EU average
in many areas have been observed improvements in
results over the past few years.

There are opportunities to expand the sector of business
services and industry in Bulgaria.
Threats

The lack of sufficient data on the presentation of
Bulgaria in "Think Small First" can be read more as
a fact that Bulgaria does not do enough for
administrative support to SMEs.

In "State aid and public procurement " Bulgaria
occupies 10th place in EU, but we do not see a lot of
improvements. It is important to make sure
situation in this area does not deteriorate. The same
can be said about the field "Access to Finance".

The average size of Bulgarian SMEs is 5.2 people about one person more in comparison with SMEs in
the EU. This would be a problem if companies find
themselves in difficulty. The proportion of dismissed
workers would be larger. On the other hand, it
shows a lower entrepreneurial activity of the
population.

Lack of linkages between strategy and financial
instruments to support SMEs
Source: The SWOT is baesd on data from SBA Fact Sheet 2010-2011 and 2012 for Bulgaria
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
4
SMEs Sector:
7 years ago and now
The last National Strategy for the promotion of SMEs
operated from 2007-2013, as the preparations began
in 2006. Statistics available at that time were from
2004, and to date (second quarter 2012) the available
data is for 2010-2011. What has changed during the
period 2004-2011?
The number of SMEs increased by 38% (221 000 SMEs
in 2004 against 306 000 SMEs in 2011), despite the
concerns of many analysts that membership in the EU
in 2007 will lead to mass closures due to the
introduction of a number of new requirements for
Bulgarian companies the could not meet. Negative
results did not become reality, just the opposite. Since
2007, the number of SMEs grew and Bulgarian
entrepreneurs adapted to new conditions and the rules
of the EU Single Market were predictable.
Changes in the balance between micro and small
enterprises: while in 2004 the share of micro
enterprises was 90% of all enterprises in 2011 it was
92% or 81 000 micros more. This shows that while in
the years before the crisis there was a growth in the
share of small enterprises, ie microenterprises had the
opportunity to hire new staff and to enter the small
business sector, now quite the opposite trend is seen.
Meanwhile, about half of the micro firms consist of one
person. But the situation is similar across the EU,
Bulgaria is no exception. In its current structure and
tendency of increasing the share of microenterprises,
the SME sector in Bulgaria is moving away from
countries like Germany, Denmark, Austria and Estonia,
which have a share of small businesses over 10% of
all enterprises. In our country it is now 7.2 percent.
The influence of various factors must be taken into
account, but countries with large share of small
businesses, meet the crisis in a more sustainable way
than others. Examples are Greece, Portugal and Spain,
where the share of small enterprises are respectively
3.1%, 3.9% and 6%.
The share of medium and large enterprises in Bulgaria
has remained stable over the years.
Important is another structure: the distribution of
SMEs by sector of high-tech and low-tech industrial
production and knowledge intensive and less
knowledge intensive services.
If we compare Bulgaria with other nine Member States
of the EU (Eastern Europe), Bulgaria currently has the
lowest proportion of firms in high-tech manufacturing 0.1% compared to 1% for Slovenia. Bulgaria had the
second lowest share in knowledge intensive services 15.6% of the SMEs in these sectors compared to
32.4% for Estonia. Bulgaria has the highest proportion
of less knowledge intensive services - 73.3%
compared to 55.2% in Hungary.
Although the share of knowledge intensive services in
Bulgaria is growing in recent years, growth is slow,
and new enterprises during the crisis appeared again
mostly in the less knowledge intensive services. A
realistic explanation would be - lack of qualified staff
able to perform tasks with high demands. Therefore,
measures such as staff training, technological
innovation, but mostly expanding access to venture
capital and the creation of modern business
incubators, particularly technological, combined with
changing focus to training at schools will permanently
change the alarming results.
Employment in SMEs continued to grow. Now working
in the sector, despite the crisis decline in 2008-2011,
there are 195 000 people more than in 2004 and the
share of people working in the SMEs exceeds ¾ of the
people working in all enterprises and comprise about
half occupied in the economy as a whole. 7 years ago
their share was higher - almost 78% of employees in
all companies, but for the same period employment in
large enterprises increased by 92,300 people. The
largest employment growth - nearly 35% - is in
microenterprises.
Obviously for Bulgaria, both SMEs and large
enterprises are an important source of jobs. It is
positive that the share of large enterprises formed
about 0.2%-0.3% of all businesses and this puts
Bulgaria to the EU average in share of the large
enterprises. The fact is that countries such as
Germany and the United Kingdom maintain the share
of large enterprises respectively 0.5% and 0.4%,
which in the scale of their economies means giant
sector of large enterprises, which provides ample
opportunities for partnership with tens of thousands of
SMEs. Concern for us is that while the largest
enterprises in Germany are in sectors such as
automotive, engineering, electronics, etc., in Bulgaria
they are in energy, communications and finance.
Countries such as Greece and Spain have the share of
large enterprises close to or below about 0.1%,
suggesting that in crisis situations a collapse is
possible in the number of SMEs and an increase of
unemployment, perhaps for the reason that there is
not enough SMEs respectively bound in their work with
large companies.
For the period 2004-2011, labor productivity in SMEs
increased by 126% and in large enterprises with
104%. The difference between large enterprises and
SMEs in this index narrowing by 2.5 to 2.3 times.
Again, the biggest growth in labor productivity is in
microenterprises. Bulgaria continues to catch up with
closing the gap in this indicator from other Member
States, and although Bulgaria has the highest growth
in labor productivity in EU, Bulgarian SMEs are still
ahead on this indicator only of the Romanian.
The main source of funding to support SMEs in the
seven-year period was the Operational Programme
"Competitiveness" at the Ministry of Economy and
Energy. Obviously simplifying application procedures
will be one of the most important tasks for the next
programming period. Aside from the contracted funds
program JEREMIE, the largest financing schemes for
technological innovation - total 515 contracts worth
over 370 million lev and another 659 contracts for the
introduction of internationally recognized standards
worth 65 million lev (by the editorial completion of this
part of the Strategy) - insufficient for significant
impact on any of the priorities of the Strategy.
Therefore the main task of programming the period
2014-2020 should be measures with greater multiplier
effect – following the example of the JEREMIE program
or creating business incubators and other innovation
infrastructure in the country, which will continue to
make impact post-public funding.
One billion euros from OP “Competitiveness” for the 7year period even fully used for its intended purpose
are not comparable with the 24 billion euros invested
by SMEs in fixed assets for the same period. Adding
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
5
another 9 billion for the same period from the large
enterprises investments in fixed assets, how can we
expect the effect of the 1 billion against € 33 billion if
that 1 billion is not focused and invested wisely, so
bringing desired effects?
In order to be effective, we created this Strategy
adapting it to the Small Business Act, looking for a
balance between reasonable administrative reforms
when necessary and direct funding where it is needed.
Each year, according to the Law for SMEs, the Ministry
of Economy and Energy will create Annual program,
which will describ the most urgent measures needed to
be taken according to the results of the Small Business
Act. By measurability and comparability of these
results, we can always be sure wether the measures
are working or not.
SME Sector:
Crisis period 2008-2011
For the period 2008-2011 the number of enterprises
has increased by just over 27,000 (or about 10%). But
start-ups are mainly in the sectors of retail, while
companies in the manufacturing industry decreased
with 796 only last year (2.6% of industrial companies
are missing).
TOP 10
sectors by number of start-up SMEs in 2011
1. Retail - 10,608
2. Wholesale – 3,540
3. Restaurants – 3,070
4. Real Estate – 2,537
5. Land Transport – 1,893
6. Wholesale and retail of motor vehicles, motorcycles
etc. – 1,228
7. Specialised construction activities – 1,073
8. Other professional activities (design, photography,
translations) – 1,007
9. Legal and accounting activities - 818
10. Construction of buildings - 792
The first three industrial sectors with most start-ups
are: manufacture of clothing, food and metal products,
occupying respectively the 14th, 15th and 22nd place
with 457, 449 and 214 new businesses.
In the period 2008-2011 SME employment decreased
by 97,000 people, or about 7%. Turnover fell by over
2.4 billion lev, or about 2%. Half of the decline in
turnover is in the manufacturing industry. Labor
productivity fell by 1,000 lev value added per
employee (7%). Profit margins have fallen from 10%
to 7.8%. Average investment in fixed assets by an
SME fell by 50%. The overall condition is poor, but
there are also some positive results observed. Along
with increased employment in the retail, restaurants,
accomodation, waste and others, there is increase in
the sectors of knowledge intensive services such as
research and development (43% employment
growth for 2011 compared to 2008), film and TV
production (34%) and information technology
(18%).
Turnover growth was observed in the food, chemical
industry, manufacture of basic metals, accomodation,
restaurants, information technology, film and TV
production, and information services.
Growth in labor productivity is reported in the
mentioned above sectors, especially in information
technology, film industry, and information services.
Among the industries where there is growth of labor
productivity is the production of computers,
electronics, optics, the automotive industry,
other vehicles, etc. However, this is mainly due to
the redundant staff and to a lesser extent due to
optimization and innovation in the production.
The growth of wages per employee is in excess by
1400 lev per employee per year in SMEs for all sectors
for the period 2008-2011. Especially high wage growth
there is in the film industry (50%), information
technology (20%) and air transport (25%).
TOP 20
manufacturing industries and knowledge
intensive services with the highest labor
productivity in 2011
1. Radio and TV activities – 58,000 lev
2. R&D – 45,000 lev
3. IT – 32,000 lev
4. Pharmaceuticals – 29,000 lev
5. Corporate headquarters and conultancy – 28,000 lev
6. Computers, electronics and optics – 27,000 lev
7. Film and TV industry, sound recording – 27,000 lev
8. Architectural and engineering activities – 23,000 lev
9. Chemical products – 22,000 lev
10. Other vehicles – 21,000 lev
11. Advertising and market research – 21,000 lev
12. Information services – 19,000 lev
13. Manufacture of basic metals 18,000 lev
14. Manufacture of machinery – 17,000 lev
15. Printing and recorded media – 17,000 lev
16. Postal and courier activities – 16,000 lev
17. Legal and accounting services – 16,000 lev
18. Other non-metallic materials – 15,000 lev
19. Electric equipment – 15,000 levs
20. Fabricated metal products – 14,000 levs
Importance of SMEs in 10 numbers in 2011
99.8% of all enterprises in Bulgaria
76% of the labor force in enterprises
69% of investments in fixed assets
67% of the turnover generated by businesses
62% of all fixed assets
59% of the value added created by businesses
42 per 1000 is the average density of SMEs in Bulgaria
14,000 lev is labor productivity in SMEs
7.8% is the rate of profit in SMEs
6,890 lev is the average annual salary per employee
Condition of SMEs in 10 numbers in 2011
1,375,000 employees
306,367 number of SMEs
12,000 lev is the labour productivity in industry
5,707 lev is the average annual salary per employee
135 billion lev turnover for SMEs
67 is average SME density in Sofia-City/24 in Vratsa
62 billion lev value of fixed assets for SMEs
20 billion lev added value for SMEs
11% is the profit rate in industrial SMEs
9.4 billion lev investment in fixed assets for SMEs
Development of SMEs in 10 numbers 2008-2011
- 97,000 employees
+27,000 SMEs
- 1,000 lev labor productivity in SMEs
+ 1,433 average annual salary per employee
- 8 billion lev in investments in fixed assets
+ 5.4 billion lev in fixed assets
+5 SMEs in 1000 average density of SMEs
- 2.4 billion lev turnover
- 2.2% rate of profit in SMEs
- 2 billion lev in value added
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
6
Key findings: SMEs in Bulgaria
EU - 6
For analytical purposes, a comparison was made
between the share of SMEs in different sectors of the
total number of SMEs in Bulgaria and six EU countries,
closest in population to Bulgaria. The goal was to
compare the sectoral structure in countries with a
similar number of workers because before we talk
about labor productivity and employment, we should
pay attention to the unit that generates employment
and productivity respectively, namely – the enterprise.
Share of the number of SMEs from the sectors of
all SMEs
Bulgaria
ЕU-61
High-tech manufacturing2:
1%
2%
Low-tech manufacturing:
10%
8%
Knowledge intensive services:
14%
23%
Less knowledge intensive services:
68%
51%
Other sectrors:
7%
16%
Bulgaria
Figures 2 and 3
Red: High tech manufacturing
Orange: Low tech manufacturing
Yellow: Knowledge intensive services
Light Blue: Less knowledge intensive services
Grey: Other sectors
Light Green: Retail as a part of the Less knowledge
intensive services
Figures 2 and 3 illustrate the differences in the
sectoral structure of SMEs in Bulgaria compared to EU6. There is no difference if we compare Bulgaria to EU28 as well or if we take a look individually at states
such as Germany, the UK or the Netherlands. The vast
majority of SMEs in Bulgaria is retail business (each
box or "block of the pyramid" indicates 1% of SMEs).
This majority comes at the expense of knowledge
intensive services (including information technology,
film and TV industry, information services, publishing)
and half the share of high-tech industries (including
pharmaceuticals, chemicals, machinery, automotive,
production of computers, optics and electronics, etc.)
А. Bulgarian manufacturing lacks high-tech
enterprises
Industry in Bulgaria is characterized by fewer
enterprises in the sectors: manufacture of metal
products (30% less than the average share of
countries for comparison), machine building (2 times
smaller share), production of computers, optics and
electronics (3 times smaller share), automobiles (2
times smaller share), production of other vehicles (2
times smaller share), textiles (30% smaller share) and
printing industry and production of recorded media
(25% smaller share).
Ceteris paribus to compensate for these differences
there would be needed:
+4,200 new SMEs in the above sectors and
+57,000 new employees - the number is based on the
average employment of an SME in the particular
sector.
B. Lack of enough SMEs in the knowledge
intensive services
1
Sweden, Finland, Denmark, Austria, Hungary and Slovakia
2
The classification of technological intensity of Eurostat is used. In this
part of the analysis high-tech manufacturing means high and medium
high tech manufacturing, and low-tech: medium low and low tech
manufacturing.
There is a deficiency in enterprise sectors: information
technology (2 times smaller share), information
services (50% smaller share), production of films and
TV productions and recording (4 times smaller share),
publishing (half smaller share).
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
7
Again, ceteris paribus to compensate for this "lag"
Bulgaria will need:
+7,100 new SMEs in these sectors and
+28,500 employees.
C. Lack of SMEs in R&D
3 times smaller share in the number of businesses in
the sector of research and development is observed.
This will require:
+700 SMEs and
+4,500 highly qualified employees.
R&D is the sector of the Bulgarian economy, which is
closest to the average levels of labor productivity in
the EU. The difference is only 150% in favor of
European SME R&D sector. It reaches up to 1000% in
sectors such as production of beverages. All Bulgarian
sectors are characterized by labor productivity below
the average level in the EU.
D. Very wide sector of retail enterprises
Bulgaria has 3 times greater share in the number of
businesses in the sector of retail. Nearly 31 percent of
Bulgarian SMEs is in this sector. Average for the EU-28
it’s 17% and for the EU-6 it’s only 13%. In Germany,
this share is 16%, in the UK is 11%. This was
apparently due to the lack of industrial enterprises in
Bulgaria and the development of SMEs in the retail
shortfall of domestic production by further increasing
imports of foreign manufactured goods.
Е. Need of immediate measures for sectoral
restructuring
Even in the current structure of the sectors, the
Bulgarian economy registered growth. But how lasting
can be that growth and at what price is it? Bulgaria
should rely on the production of raw materials, should
rely on traditional sectors such as mass production of
food and clothing or national policy should focus more
efforts on the production of investment goods and
consumer goods of high-tech industries and knowledge
intensive services?
Let us recall that according to research by the
European Commission every 100 new manufacturing
jobs create between 60 and 200 new jobs in other
sectors of the economy.
If what’s written in point A above is fulfilled, 57,000
new jobs in industries may lead to a further maximum
of 114 000 new jobs in other sectors. This would cut
the current unemployment rate (as of Q2 2012 ) in
Bulgaria by about 50%.
Ceteris paribus, if there is just change in the structure
to align with shares in the EU-6, this would result in
additional €700 million value added to the Bulgarian
economy. This is equivalent to 7% growth in value
added, even with the current low levels of labor
productivity and GDP growth could add up to 4%. The
effect is undeniable. Even more powerful would it be if
labour productivity rises. Due to lack of innovation,
labour productivity in SMEs of the above mentioned
sectors for the past four years has risen slowly:
Textiles: +50% in labour productivity
Computers, electronics and optics: +35%
Other vehicles: +31%
Automobiles: +8%
Metal Products: +8%
Machines: +6%
Printing industry and production of recorded
media: -6%
Overall manufacturing: +9%
Information Technology: +19%
Film and TV productions, sound recording: +8%
Characteristic of this sector is that during 2008-2011
the number of companies increased by 50% and
employment by 25 %, and the value added by 40%.
Together with the IT and information services, despite
differences in the growth of labor productivity, these
three sectors come out of the crisis rising high
Information services: -9%
Publishing: -30%
Overall for knowledge intensive services: +16%
R&D: +61%
F. Export Potential
Bulgaria currently relies primarily on the basic metals
and petroleum products in the export business.
However, the mechanical engineering, metal products,
computers, optics and electronics, automobiles - have
increased over the last four years in the volume of
export and in export prices, and in labor productivity.
Along with them joins food production and
manufacturing of pharmaceuticals. These are sectors
which exports deserves to be encouraged.
The existing data on foreign trade of Bulgaria clearly
shows that the largest share in exports is of the raw
materials: 43.3% of total exports in 2012. Followed by
consumer goods 23.3% and investment goods by
16.7%.
Compared to the same period in 2011, the share of
consumer goods and energy resources increases and
decreases the share of raw materials (3.5% less).
High-tech industries achieve 6.1% of total exports,
making it third in exports per employee after exports
of petroleum products and basic metals.
TOP 10
share of export of the total export of Bulgaria in 2012
1. Petroleum products (energy source) - 13.9%
2. Ferrous metals (raw material) - 10.8%
3. Raw materials for food production (raw material) - 8.5%
4. Clothes and shoes (consumer goods) - 7%
5. Machinery and Equipment (investment goods) - 4.9%
6. Foods (Consumer Goods) - 4.7%
7. Furniture and household appliances (consumer goods) 3.6%
8. Iron and steel (raw materials) - 3.5%
9. Pharmaceuticals and cosmetics (consumer goods) - 3.4%
10. Ore (raw material) - 2.8%
G. Fast Growing SMEs: Locomotives among
Enterprises
Bulgaria in 2011 has 1,700 fast-growing small and
medium-sized enterprises (with over 20% growth in
turnover
per
year).
This
does
not
include
microenterprises. Research on past is not done, but by
expert judgment can be assumed that the fastgrowing microenterprises may be around 2,000.
Fast growing SMEs are about 6% of all SMEs, but
generate 40% of the value added generated by SMEs.
They can be found in each administrative area of the
country and in all sectors, 27% of them are from the
industry and a further 8% of services.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
8
If it can be considered that there is a correlation
between the increase in turnover and employment, it
is about 20% increase in turnover leads to
approximately 11% increase in employment, therefore
these 1,700 SMEs could provide at least another 3,700
additional jobs per year, added to 35,000 jobs they
have already secured.
H. Regional Specialization:
Key to the Clusters
The main objective of this review there would not be
executed if you do not pay attention to the
development of SMEs at regional level. Regional
specialization is determined by the quantitative
method of Bergman-Feser. Regional allocations are
based on production specialization of the specified
region whose territorial range is defined as the labor
pool at the district level. The degree of specialization is
higher in coefficient of specialization greater than 2
and average at high coefficient of specialization within
the range of 1.2 to 2 (1.2>LQ>2).
I. High Tech Manufacturing and Knowledge
Intensive Services
Group
of
high-tech
industries
and
high-tech
knowledge-intensive services includes production of
pharmaceutical products, the production of computers,
electronics and optics; film and TV shows production,
sound recording and music publishing; radio and TV
services, telecommunications, information technology,
information services and R&D. The group employs over
76,000 people, of which more than 48,000 (63.6%) in SMEs. Except for the production of pharmaceutical
products, where SMEs employees are only 22%, all
other activities are characterized by medium and high
share of SMEs.
Medium high and medium low tech
manufacturing
Group of medium high and medium low technology
industries covers economic activities of C19 through
C30 under CEA-2008 (NACE) without high-tech
economic activities and C33 "Repair and installation of
machinery and equipment".
The group employs over 184,000 people, of which over
110,000 (60%) of SMEs. Typical is a high degree of
specialization and concentration at the district level, as
69% of workers in this group are characterized by
regional specialization coefficient above 1.2 (LQ> 1.2 Figure 5).
The highest concentration of the group of mediumhigh and medium low tech manufacturing is in the
central regions of the country and in particular in the
districts of Plovdiv, Stara Zagora, Gabrovo and Veliko
Tarnovo.
The combination of regional specialization and
enterprise density yields the following conditions for
clustering by sector:
C20:
C22:
C23:
C25:
C27:
C28:
C29:
C30:
Chemical industry - Varna, Ruse and Plovdiv
Rubber and plastic - Plovdiv and Gabrovo
Non-Metal products - Gabrovo, Vratsa and Shumen
Metal products - Gabrovo, Stara Zagora and Plovdiv
Electrical equipment - Gabrovo and Sofia
Machines - Gabrovo and Stara Zagora
Automobiles - Lovech, Yambol
Other vehicles - Ruse and Varna
For all activities of the group is typical high degree of
specialization at regional level, 92.1% of the employed
are in areas out as highly specialized in high-tech
industries and high-tech knowledge-intensive services
(LQ> 1.2 - Figure 4). Activities are highly concentrated
in Sofia, as 82.1% of those employed in industry and
83.6% of those employed in the services operate in
the capital. Specialization of the workforce combined
with the density of enterprises, ie areas in the country
where both indicators are simultaneously high for the
sector suggest prerequisites for clustering in their
respective sectors: (map with regional specialization can be
found in Appendix 2 for more detailed consideration )
C26: Computers & Electronics - Sofia and Plovdiv
J59: Film and TV Industry - Sofia
J62: Information Technology - Sofia
J63: Information services - Sofia and Varna
Figure 5
Low tech manufacturing
Group of low-tech industries covers economic activities
of C10 to C18 by CEA-2008 (NACE) and C31 economic
activities "Manufacture of furniture" and C32 "Other
manufacturing".
The group employs over 307,000 people, of which over
232,000 (75.5%) in SMEs. This is a group of
production sectors, which employ the largest number
of employees. Total group is characterized by an
average level of specialization, as 56.7% of the
employed are in areas with pronounced regional
specialization due to the relatively even distribution of
manufacturing enterprises of the food industry.
High degree of specialization and concentration at the
district level is observed in the sectors of wood
processing and furniture industry, textiles and clothing
production. (Figure 6).
Figure 4
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
9
The highest concentration of the group of low-tech
industries is observed in the Southwest and South
central, and Northern and Central region.
The combination of regional specialization and
enterprise density yields the following conditions for
clustering by sector:
C10:
C13:
C14:
C15:
C16:
C17:
C31:
Food - Plovdiv, Yambol and Sliven
Textiles - Gabrovo and Sliven
Clothing - Blagoevgrad, Rousse, Haskovo
Leather and Shoes - Kyustendil, Blagoevgrad, Pazardzhik
Wood - Smolyan and Lovech
Paper - Sofia, Plovdiv, Pazardzhik and Veliko Tarnovo
Furniture - Lovech, Pazardzhik, Ruse, Gabrovo
Figure 6
The combination of regional specialization
and
enterprise density can be a good basis for the
formulation of more precise measures to support the
creation of enterprises, the clustering of existing
businesses and the creation of technology parks and
business incubators for the relevant sectors.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
10
SMALL BUSINESS ACT
Guiding principles of the Small Business Act,
respectively, of the Strategy are: adherence to
European policy in the field of small business,
application of the "Think Small First" in all areas of the
Strategy and clear and feasible measures to
implement the Strategy.
The Strategy or SBA consists of 10 priority areas, in
which, based on the methodology the Commission,
Bulgaria currently holds the following positions:
1. Entrepreneurship:
2. Secon chance:
3. Think Small First:
4. Responsive administration:
5. State aid:
6. Access to finance:
7. Single market:
8. Skills and innovation:
9. Environment:
10. Internationalization:
24 place
22 place
18 place
19 place
9 place
10 place
13 place
27 place
26 place
27 place
Overall:
23 place
Map 0
Performance of the EU member states in
„Small Business Act” implementation,
2012
It is noteworthy that the Member States of Southern
Europe and Eastern Europe generally have lower
performance than the countries of North and Central
Europe. In its leading areas Bulgaria differs from its
neighbors, and in areas where Bulgaria is low
performing, the neigbours are superior. Obviously,
success can not be uniquely identified with historical
and geographical reasons, but rather a commitment to
reforms and seeking efficiency in the example of best
practice in Europe.
Below there is a detailed description of each of the
priority fields; Bulgaria's place in it; indicators, which
has formed the position of Bulgaria; goals that were
set and what could be done, so that they can be
achieved.
The list of indicators is provided in Appendix 1, which
explains in detail what comprises each criterion.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
11
1. ENTREPRENEURSHIP
Goals 2020:
Bulgaria should create and maintain an
environment in which entrepreneurs can thrive
and entrepreneurship is rewarded. Bulgaria
should take care of future entrepreneurs,
particularly by encouraging entrepreneurial
interest and talent, particularly among students,
young people and women.
Strategic Goal
Figure 1.A
Level of the Member States
"Entrepreneurship". This priority area
has the eighth overall score for the
entire EU, 2012
Bulgaria is a place in which entrepreneurial
initiative has all the conditions for a quick and
easy start-up and implementation.
In view of this situation reaching the EU average in the
priority area "Entrepreneurship" is a realistic goal. This
implies the achievement of the following results:
Table 1.B Operational Goals
Criteria
Goal
Change
1.1.
> 12 %
+2% = +100 000 people
1.2.
> 55%
+17% = +85 000 people
1.3.
>= 50%
Keeping/increasing the share
1.4.
> 28%
+7% = +350 000 people
1.5
> 49 %
+2% = +100 000 people
Guidelines for urgent action:
1. Criterion 1.1. - More and more young people,
women and the elderly over 50 years to be able to
implement entrepreneurial initiative
2. Criterion 1.5. - Expanding the network of training
firms
3. Criterion 1.5. - Increase the number of trained
teaching staff in entrepreneurship with about 1,500
people.
Where are we?
In the field of entrepreneurship, according to the
methodology of the European Commission, Bulgaria
shows a result that gives it a 24th place in the EU for
2012.
Guidelines for action:

Bulgaria should promote the work of the
Centre for training firms to the Ministry of
Education to provide funding for teacher
training to create and maintain training firms
in schools; should continue and intensify its
cooperation
with
non-governmental
organizations that support entrepreneurship
education in schools.

network of training firms to expand as to
professional schools in the network include
art schools (Ministry of Culture) sports
schools (Ministry of Youth and Sports) and all
other secondary schools .

To alleviate the conditions for starting a
business ;

To eases access to financing through existing
and new programs ;

To create a program especially for start-ups
with a target group of young people, women
and people aged over 50 years.

To create a network of women entrepreneurs,
to encourage women in their desire and
efforts to start their own business.
Figure 1.B
Bulgaria's position on "Entrepreneurship" in comparison with
the leader, the EU average and the catching up
state
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
Criteria in the priority area "Entrepreneurship"
1.1.
1.2.
1.3.
1.4.
1.5.
Entrepreneurial activity
Entrepreneurship as an opportunity
Preference to be self-employed
Feasibility of self-employment
School training in entrepreneurship
Table 1.A Performance of Bulgaria
Cr.
Result
Av. EU
Leader
Place in EU
1.1.
10% = 500 000 p.
12%
25%
19-20
1.2.
38% = 190 000 p.
55%
81%
26
1.3.
50% = 2 500 000 p.
45%
66%
7
1.4
21% = 1 050 000 p.
28%
49%
20
1.5.
47% = 2 350 000 p.
49%
64%
18
Source: SBA Fact Sheet 2012 / Flash Eurobarometer on Entrepreneurship
2009
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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2. SECOND CHANCE
Goals 2020:
Bulgaria should ensure that the entrepreneurs
who have been declared bankrupt and have
come to this situation in a completely fair way
will be able to place a new beginning, by
providing conditions to quickly complete the
bankrupt business to launch new.
Figure 2.A
Level of Member States 'Second
Chance'. This priority area has the fourth
overall score for the entire EU, 2012
Strategic Goal
Bulgaria is a place where entrepreneurs who
bankrupted honestly can quickly and easily close
the failed business and start a new. Society
tolerates and encourages second chance for
enterprising people.
Bulgaria with decisive action could rapidly move at
least to average EU levels in the priority area "Second
Chance."
Table 2.B Operational Goals
Criterion
Goal
Change
2.1.
< 1 year
28 months decrease
2.2.
=< 9%
Keeping the result
2.3.
> 81%
+4% = + 200 000 people
Guidelines for urgent action:
For criterion 2.1. - Reduction deadlines for closing a
business in less than 1 year. If such a measure is
necessary to present useful information to the public ,
its implementation will affect indirectly on the state of
the indicator under criterion 2.3.
Where are we?

In the field of second chance, according to the
methodology of the European Commission, Bulgaria
shows a result that places it 22nd in the EU for 2012.
Securing the necessary legislative changes to
ensure the closure of bankrupt business
within one calendar year.

More efforts are needed to improve public
opinion about second chances - emphasis on
public awareness that entrepreneurs who
have failed honestly once, starting a new
business, actually create more sustainable
business, as evidenced statistics at the
European level, a fact that and this last
quarter of the population of the country ought
to know.
Figure 2B
Bulgaria's position on "Second Chance" compared to the
leader, the EU average and the catching up state
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
Criteria in the priority area "Second Chance":
2.1. Time to close the business3
2.2. Cost of closing a business
2.3. Public support for second chance
Table 2.A Perfrormance of Bulgaria
Cr.
Result
Av. EU
Leader
2.1.
3.3 years
1.94 years
2.2.
9%
10.64%
2.3.
77%
81%
Place in EU
0.4 years
4%
95%
25-26
9-15
25-26
Source: SBA Fact Sheet 2012 / Doing Business 2012
Flash Eurobarometer on Entrepreneurship 2009
3
With red are marked the top 10 weakest results of Bulgaria
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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3. THINK SMALL FIRST
Goals 2020:
Bulgaria should always act according to the
"Think Small First" principle, ie always take into
account the characteristics of SMEs when
designing legislation, so that it does not bear
additional burdens on small businesses, and
where possible - to simplify existing rules.
Strategic goal
Figure 3.A
Level of Member States 'Think small
first'. This priority area is the second
most common result for the whole EU,
2012
Bulgaria is a country where the administrative
burden for businesses is acceptable, and as
legislative changes are fully consistent with the
impact that would have on small businesses and
they do not hinder its development.
Table 3.B Operational Goals
Criterion
Goal
Change
3.1.
< 3.10
Reduction of administrative burden
3.2.
< 1.06
One Stop Shop Development
3.3
< 0.63
Simplification of procedures
Guidelines for urgent action:
For criterion 3.1. – Introduction of the "SME test".
Bulgaria is not far from the EU average in this priority
area therefore next target is the country to stand in
the top ten in EU easing the administrative burden for
small businesses.

The main task is to introduce the "SME test" it serves as a comprehensive assessment of
the impact of future legislative and
administrative initiatives on SMEs and taking
account of the results in the preparation of
proposals for legislative changes. The test
must accompany each draft legislative
change, as well as financial statement and
clearly and specifically summarizes how the
rules will affect small businesses. If the test
finds that the measure prevents SMEs, brings
additional administrative burden, but it turns
out
that
the
measure
can
not
be
implemented, it must be the exclusion of
SMEs (especially microenterprises) from the
scope of this measure.

make better use of the public consultation is
essential before the introduction of any
legislative changes.

Conducting research, what are the 10 most
severe administrative burden by business whether legislative norms, rules or any
procedures - an assessment of their current
impact and transition to alleviate or eliminate
them following the results.
Where are we?
In the "Think Small First" area, according to the
methodology of the European Commission, Bulgaria
with its result occupies 18th place in the EU in 2012 as
this is close to EU average.
Figure 3.B
Bulgaria's position on the "Think Small First" compared to the
leader, the EU average and the catching-up state
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
Criteria in the priority area "Think Small First":
3.1. Burden of government regulation
3.2. System of licenses and permits
3.3. Communication strategy and simplification of rules and
procedures
Table 3.A Perfrormance of Bulgaria
Cr.
Result
Av. EU
Leader
Place in EU
3.1.
3.10
3.09
4.4
10
3.2.
1.06
1.59
0.0
9
3.3
0.63
0.30
0.0
24
Source: SBA Fact Sheet 2012 /
The Global Competitiveness Report 2011-2012
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
14
Table 4.A Perfrormance of Bulgaria
4. RESPONSIVE ADMINISTRATION
Bulgaria should create willingness of the public
administration to respond to the needs of SMEs
by facilitating SMEs daily life, particularly
through the introduction and expansion of egovernment and the work of "one stop
shop".
Figure 4.A
Level of Member States “Responsive
administration". This priority area
takes the best permormance for the
whole EU, 2012
Cr.
Result
Av. EU
Leader
Place in EU
4.1.
18 days
13.8 days
4 days
20-21
4.2.
1.50%
4.98%
0.00%
8
4.3.
0.00%
16.10%
4.4.
15 days
36.1 days
4.5.
3.00%
4.69%
4.6.
17 pcs.
15.4 pcs.
8 pcs.
20
4.7.
500 hs.
205.6 hs.
59 hs.
26
4.8.
23.80%
20.62%
9.70%
18
4.9.
75%
89%
0.00%
1 day
0.00%
100%
1-8
6
10-11
21-25
Source: SBA Fact Sheet 2012 /
Doing Business 2012 / DG INFSO 2010
Goals 2020:
Strategic Goal
Bulgaria is a country in which registration and
launch of new business, payment of taxes and
other obligations to the state budget, the closure
of bankrupt business, etc. be implemented in a
fast and easy way without any additional burden
on businesses. E-systems and "One-stop shops"
significantly facilitate these processes.
Table 4.B Operational Goals
Where are we?
In the priority area "Responsive administration"
according to the methodology of the European
Commission, Bulgaria with its result occupies 19th
place in the EU in 2012 as this is close to EU average.
Figure 4.B
Bulgaria's position on "Responsive administration" compared
to the leader, the EU average and the catching up state
Criterion
Goal
Change
4.1.
< 7 days
At least 11 days less
4.2.
=< 1.50%
Keeping it
4.3.
= 0.00%
Keeping it
4.4.
=< 15 дни
Keeping it
4.5.
=<3.00%
Keeping it
4.6.
< 8 pcs
At least 9 payments less
4.7.
< 150 hours
At least 350 hours less
4.8.
< 20%
At least 4% less
4.9.
100%
Full electronization
Guidelines for urgent action:
1. For criterion 4.1. Speeding up the registration for
VAT
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
2. For criterion 4.6. Reducing the number of payments
Criteria
in
the
administration":
4.1.
4.2.
4.3.
4.4.
4.5.
4.6.
4.7.
4.8.
4.9.
priority
area
"Responsive
Time to start a business
Cost to start a business
Initial minimum capital
Transfer time (registration) property
Transferring costs (registration) property
Number of tax payments
Time required to pay 3 key taxes
Cost to enforce contractual obligations outstanding
An electronic version of the eight main society services
3. For criterion 4.7. Shortening the time for payment
of the 3 main types of taxes
4. For criterion 4.9. Complete computerization of 8 key
business services
Improved performance is related to the full
implementation and development of e-government: an
electronic service for entrepreneurs and exchange of
data between institutions. The rules for the
introduction of new fees or amending existing, must
be clear and well known. Reducing the number of
charges and their sizes can be linked to the creation of
a single point of contact where one can obtain
information and to signal the disproportionate fees or
procedures hindering SMEs.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
15
5. STATE AID & PUBLIC PROCUREMENT
Bulgaria should apply best practices in the field
of public procurement, providing easier access
for SMEs. Bulgaria should make effective use of
Community provisions in the field of State aid by
supporting the development of SMEs throughout
their life cycle.
Figure 5.A
Level of Member States in “State aid and
public procurement". This priority area is the
penultimate in a total score for the entire
EU, 2012
Table 5.A Perfrormance of Bulgaria
Cr.
Result
Av. EU
Leader
5.1.
79.00%
38.00%
5.2.
4.00%
4.20%
5.3.
14.5 days
24.8 days
5.4.
52.00%
72.94%
5.5.
4.80%
9.53%
23.60%
5.6.
4.10%
2.11%
9.25%
79.00%
18.00%
4 days
100.00%
Place in EU
1
10-13
10
21-22
22
6
Source: SBA Fact Sheet 2012 / DG ENTR 2008 /
State Aid Scoreboard 2011 / European Payment Index 2011 / DG INFSO
2010 / DG REGIO 2011 / DG AGRI 2011
Goals 2020:
Strategic Goals
Bulgaria is a country where SMEs have a free and
competitive access to public procurement system
which is fully electronic. State aid for SMEs is
available. All the rules of the legislation in the
field of competition are explicitly designed to
promote more innovative and entrepreneurial
business environment.
Table 5.B Operational Goals
Where are we?
In the priority area 'State aid and public procurement”,
according to the methodology of the European
Commission, Bulgaria occupies ninth place in the EU in
2012 as an this is above the EU average
Figure 5.B
Bulgaria's position on "State aid and public procurement" in
comparison with the leader, the EU average and the catching
up state
Cr.
Goal
Change
5.1.
>= 79.00%
Keeping the result
5.2.
> 5.00%
Increase by 1%
5.3.
< 7 дни
One week less
5.4.
= 100%
Full electronization
5.5.
> 9.00%
Double money available
5.6.
>= 4.00%
Keeping the result
Guidelines for urgent action:
1. For criterion 5.4. - Full computerization of the public
procurement system and achieving the level of
Ireland, Cyprus, the UK and Sweden.
2. For criterion 5.3. - Complete elimination of delays in
payments for the procurement or shorten the delays to
a maximum of 1 week.
3. For criterion 5.5. - An increase of 100% (up to 9%
of all structural funds) of EU funds for:
ЕС
0.000
0.100
0.200
0.300
0.400
0.500
0.600
Criteria in the priority area 'State aid and public
procurement ":
5.1. Share of SMEs in total procurement
5.2. State aid for SMEs
5.3. Late payments by public authorities
5.4. Availability of e-procurement
5.5. Planned share of European Structural Funds focused on
SMEs and Entrepreneurship for 2007-2013
5.6. Planned share of European funds for agriculture and rural
development aimed at supporting start-up and business
development from 2007 to 2013.

Technology transfer and improvement of cooperation
networks between SMEs, universities, educational
institutions of all kinds, regional authorities,
research centers and development, science and
technology parks, etc.

Support for R&D carried out in particular SMEs,
including access to R&D - services research centers.

Support to SMEs for the promotion of nondestructive environmentally friendly products and
production processes.

Measures to stimulate entrepreneurship and starting
a business

Measures to promote e-commerce, education and
training, networking and cooperation etc.

Measures to improve SME access to more efficient
use of ICT
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
16
Table 6.A Perfrormance of Bulgaria
6. ACCESS TO FINANCE
Bulgaria should facilitate SMEs' access to
finance, in particular to risk capital, micro-credit
and capital type "mezzanine" and maintain a
legal and business environment supportive to
timely payments in commercial transactions.
Figure 6.A
Level of the Member States in
"Access to Finance". This priority area has
the third overall score for the entire EU,
2012
Cr.
Result
Av. EU
Leader
Place in EU
6.1.
0.012%
0.016%
6.2.
8
7.03
6.3.
6
4.4
6.4.
35.93 days
53.09 days
6.5.
3.58%
2.91%
6.6.
16.00%
19.22%
6.7.
11.60%
14.60%
0.00%
11
6.8.
16.70%
22.30%
3.10%
16
6.9.
13.10%
27.10%
4.90%
7
0.039%
10
6
16
9-10
1-5
8
22.70 days
1.79%
-2.76%
24
13
Source: SBA Fact Sheet 2012 / DG ENTR 2011 /ESTAT 2009
ЕCB, IMF 2011 / European Payment Index 2011 / Doing Business 2012
Goal 2020:
Strategic Goals
Bulgaria is a country in which SMEs have free
access to financing in all phases of the life cycle
of an enterprise of seed and start-up capital
through
venture
capital,
growth
capital,
mezzanine financing and credit guarantees.
Creditors' rights are protected, and the payment
of debts incurred becomes time.
Table 6.B Operational Goals
Where are we?
In the priority area "Access to Finance", according to
the methodology of the European Commission,
Bulgaria occupies 10th place in the EU in 2012 with a
performance above EU average.
Figure 6.B
Bulgaria's position on "Access to Finance" in comparison with
the leader, the EU average and the catching up state
0.100
0.200
0.300
0.400
0.500
0.600
Goal
Change
6.1.
> 0.025%
Doubling the risky investments
to achieve at least 15,000,000 euro
6.2.
>= 8
Keeping the result
6.3.
>= 6
Keeping the result
6.4.
=< 35 дни
Keeping the result
6.5.
< 2.50%
Decreasing lost payments
6.6.
=< 16.00%
Keeping the result
6.7.
=< 11.00%
Keeping the result
6.8.
< 10.00%
Reducing to 10% the claims that access
to state funding worsens
6.9.
=< 13.00%
Keeping the result
Guidelines for urgent action:
ЕU
0.000
Cr.
0.700
0.800
0.900
Criteria in the priority area "Access to Finance":
6.1. Investments in venture capital
6.2. Under the right
6.3. Depth of credit information
6.4. Length of time to receive claims
6.5. lost receivables
6.6. Differences in interest rates on loans to EUR 1 million and
loans over EUR 1 million.
6.7. Requests for bank loans, which have been rejected
6.8. Access to public financial support including guarantees
6.9. Willingness of banks to provide loans.
1. For criterion 6.1. - Strengthening of venture
investing, creating an environment conducive to
investment risk, including the development of
networks of business angels and seed funds and startup capital.
2. For criterion 6.8. - Easing the terms of use of EU
structural funds.
Ensuring the rights of creditors is important for
investor success in the country, so it is important to
continue to ease conditions for the collection of late
payments occurred, along with limiting the increase in
uncollected receivables.
Bulgaria should maintain sufficient conditions for
access to public funds by reducing administrative
barriers to receipt of public funding.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
17
7. SINGLE MARKET
Table 7.A Perfrormance of Bulgaria
Bulgaria should encourage SMEs to benefit more
from the opportunities offered by the single
market - in particular by improving information
about the Single Market. Bulgaria should allow
SMEs' interests to be better represented in the
development of standards, and access to the
protection
of
patents
and
trademarks
facilitated.
Figure 7.A
Level of the Member States in
"Single Market". This priority area has the
fifth overall result for the whole EU, 2012
Cr.
Result
Av. EU
Leader
7.1.
4.10 months
5.47 months
7.2.
0
0.15
7.3.
1.00%
1.17%
7.4.
3.15%
7.01%
7.5.
6.33%
16.54%
2.40 months
0
0.10%
17.10%
53.50%
Place in EU
4-5
1-23
7-11
24
23
Source: SBA Fact Sheet 2012 / Comext 2009
Internal Market Scoreboard 2011
Goals 2020:
Strategic Goals
Bulgaria is a country in which SMEs have all the
conditions to trade freely within the Single
Market. Their presence is protected by relevant
legislation and secured information on the
necessary standards and how to protect
intellectual property.
Table 7.B Operational Goals
Where are we?
Cr.
Goal
Change
7.1.
=< 4 months
Keeping the result
7.2.
=0
Keeping the result
7.3.
=< 1.00%
Keeping the result
7.4.
> 7.00%
More SMEs exporting
7.5.
> 12.00%
More SMEs importing
In the priority area of "Single market", according to
the methodology of the European Commission,
Bulgaria occupies 13th place in the EU in 2012 which
slightly below EU average.
Guidelines for urgent action:
Figure 7.B
Bulgaria's position on "Single market" compared to the leader,
the EU average and the catching up state
The presence of Bulgarian SMEs in the Single Market
can be promoted in different directions - as support for
the introduction of new standards, and through more
awareness
about
the opportunities
intellectual
property - tvenost businesses to be protected in a
market using the services of both national patent
authorities and the community - especially in the field
of protection of patents or registration of Community
trade marks and community designs.
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
0.900
1.000
Criteria in the priority area "Single Market":
7.1. Delay the transposition of directives into national law
7.2. Number of directives which transposition into national law
was delayed more than two years
7.3. The single market directives not transpositioned into
national law
7.4. Share of SMEs with exports to EU
7.5. Share of SMEs witth imports from EU
1.
For Criteria 7.4. and 7.5. - Increase the share
of SMEs in one market.
The presence of Bulgarian firms in the market may
continue to be encouraged through participation in
international exhibitions and fairs.
Of key importance is the information security, which
can ensure both under administration and under the
network organizations such as Europe Enterprise
Network.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
18
Table 8.A Perfrormance of Bulgaria
8. SKILLS AND INNOVATION
Bulgaria should improve skills in SMEs and all
forms of innovation. Bulgaria should encourage
investment in research by SMEs and their
participation in programs to support research
and development, cross-border research in the
creation of clusters and active management of
intellectual property by SMEs.
Figure 8.A
Level of the Member States in
"Skills and innovation." This priority area is
the last in a total score for the entire EU,
2012
Cr.
Result
Av. EU
Leader
Place in EU
8.1.
17.10%
30.30%
8.2.
3.50%
11.20%
8.3.
20.70%
34.20%
53.00%
22
8.4.
17.40%
39.10%
68.00%
26
8.5.
14.20%
13.30%
25.60%
13
8.6.
8 SMEs
23.3 SMEs
8.7.
3.00%
13.00%
8.8.
4.00%
28.00%
8.9.
29.00%
58.48%
2.50%
10.50%
8.10.
22
46.00%
25
25.00%
22-23
85 SMEs
27
25.00%
27
53.00%
26
90.00%
27
35.90%
Source: SBA Fact Sheet 2012 / Community Innovation Survey 2008 / DG
Research 2010 / Eurostat Information Society Indicators 2011 /
Eurostat Labour Force Survey 2010
Goals 2020:
Strategic Goals
Where are we?
In the priority area "Skills and innovation," according
to the methodology of the European Commission,
Bulgaria occupies 27th place in the EU for 2012.
Figure 8.B
Bulgaria's position on "Skills and innovation" compared to the
leader and the EU average.
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
Criteria in the priority area "Skills and Innovation":
8.1. Share of SMEs innovating in-house
8.2. Share of innovative SMEs collaborating with other
companies and organizations
8.3. Share of SMEs that have introduced innovative products
or processes
8.4.
Share
of
SMEs
that
have
introduced
organizational/marketing innovation
8.5. Share of sales of new company products or new to the
market products or services
8.6. Number of SMEs involved in R & D funded by the EU
8.7. Share of SMEs (not micro) selling online
8.8. Share of SMEs (not micro), buy online
8.9. Share of SMEs in the trainings
8.10. Employee participation (in micro) courses and training
Bulgaria is a country in which SMEs invest in
R&D, creating its own or in collaboration and
marketing of new or improved products and
services,
introduce
new
or
improved
organizational or marketing processes. Training
and overall training of personnel is a national
and company policies and companies have no
difficulty in hiring qualified worker or refine their
own employee with the right skills.
Table 8.B Operational Goals
Cr.
Goal
Change
8.1.
> 30.00%
45,000 SMEs more
8.2.
> 11.00%
26,000 SMEs more
8.3.
> 34.00%
46,000 SMEs more
8.4.
> 39.00%
76,000 SMEs more
8.5.
>= 14.00%
Keeping or increasing the result
8.6.
> 23 МСП
53 SMEs more
8.7.
> 13.00%
2,400 small and medium more
8.8.
> 28.00%
6,700 small and medium more
8.9.
> 58.00%
102,000 SMEs more
8.10.
> 10.00%
26,000 microenterprises more
Guidelines for urgent action:
1. For criterion 8.7. and 8.8. - Increase the share of
SMEs trading online.
2. For criterion 8.9. and 8.10. - Encouraging SMEs to
train their staff.
3. For criterion 8.4. - Encouraging
organizational and marketing innovation.
SMEs
to
4. For criterion 8.2. - Encouraging SMEs to establish
cooperation among themselves or with research
institutes in order to create and implement
innovations.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
19
Table 9.A Perfrormance of Bulgaria
9. ENVIRONMENT
Bulgaria
should
enable
SMEs
to
turn
environmental challenges of the environment
into opportunities. Bulgaria should provide more
information, expertise and financial incentives in
order to fully exploit the opportunities for new
"green" markets and increased energy efficiency,
partly
through
the
introduction
of
SME
management systems environment.
Figure 9.A
Level of the Member States in
"Environment". This priority area has the
sixth overall score for the entire EU, 2012
Cr.
Result
Av. EU
9.1.
0.01%
0.04%
9.2.
85.00%
93.00%
9.3.
2.00%
9.00%
9.4.
31.00%
56.00%
9.5.
21.00%
26.00%
9.6.
17.00%
22.00%
9.7.
7.00%
8.00%
9.8.
19.00%
62.00%
Leader
Place in EU
0.07%
99.00%
22.00%
96.00%
36.00%
48.00%
21.00%
100.00%
27
22-23
25-27
23
20-24
17-19
13-15
21
Source: SBA Fact Sheet 2012 / Community Innovation Survey 2008 /
Еurobarometer Survey on SMEs Resource Efficiency and Green Markets
2012
Goals 2020:
Strategic Goals
Bulgaria is a country in which SMEs invest in
energy efficiency, developed and marketed, and
used in the production "green" products. The
state provides financial incentives for this
purpose and inform entrepreneurs about all the
possibilities on the way to "green" technologies.
Table 9.B Operational Goals
Cr.
Goal
Change
9.1.
>0.04%
At least 60 SMEs more (no micros)
9.2.
> 93.00%
28,000 SMEs more
9.3.
> 9.00%
25,000 SMEs more
In the priority area "Environment", according to the
methodology of the European Commission, Bulgaria
occupies 26th place in the EU for 2012.
9.4.
> 56.00%
88,000 SMEs more
9.5.
> 26.00%
18,000 SMEs more
9.6.
> 22.00%
18,000 SMEs more
Figure 9.B
Bulgaria's position on "Environment" in comparison with the
leader, the EU average and the catching up state.
9.7.
> 8.00%
3,500 SMEs more
9.8.
> 62.00%
151,000 SMEs more
Where are we?
Guidelines for urgent action:
1. For criterion 9.1. - Increasing the share of SMEs
that
produce or
implement
innovations
with
environmental benefits. Appropriate measures may
provide additional actions in support of microenterprises than those page indicators sectors.
ЕU
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
Criteria in the priority area "Environment":
9.1. Innovations with environmental benefits.
9.2. Share of SMEs with measures of resource efficiency.
9.3. Share of SMEs that have received public support for the
introduction of measures to resource efficiency.
9.4. Share of SMEs satisfied with public support in the field of
environment.
9.5. Share of SMEs, offering "green" products or services.
9.6. Share of SMEs with a turnover of over 50% generated
from "green" products or services.
9.7. Share of SMEs that have received public support for the
production of "green" products or services.
9.8. Share of SMEs satisfied with public support for the
production of "green" products or services.
2. For criterion 9.3. - We need more businesses to get
help to support the introduction of effective use of
resources
3. For criterion 9.5. - Encouraging SMEs to market
more "green" products and services.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
20
10. INTERNATIONALIZATION
Bulgaria should encourage SMEs to benefit from
the growth of markets, especially outside the EU,
making the conditions for foreign trade, the
opportunity to access these markets, offering
support for training and development activities
of SMEs in foreign markets.
Figure 10.A
Level of the Member States
in"Internationalization". This priority
area has the seventh overall score
for the entire EU, 2012
The methodology according to which these results are
formed contains some subs on which it would be
difficult to influence in the short and medium term such as the cost of transport of export goods from the
largest business center in the country to the seaport.
Some subs on which could be more easily influenced
are time and cost of obtaining the documents required
for import and export. These criteria showed the
following results:
10.9. Cost of obtaining import documents
10.10. Time for obtaining import documents
10.11. Cost of obtaining export documents
10.12. Time for obtaining export documents
Table 10.B Perfrormance of Bulgaria
Cr.
Result
10.9.
Av. EU
200 USD
Leader
205 USD
15-17
10.10.
9 days
5.7 days
19-21
10.11.
200 USD
177.1 USD
16-19
10.12.
13 days
5.4 days
26
Source: SBA Fact Sheet 2012 / Doing Business 2012
Goals 2020:
Bulgarian companies do not have difficulty in the
implementation of foreign trade: the preparation
of documents is quick, easy and inexpensive.
Table 10.C Operational Goals
Where are we?
Bulgaria lags behind the other EU Member States in
foreign trade and in 2012 occupies 27th place in the
EU in the priority area "Internationalization".
Figure 10.B
Bulgaria's position on "Internationalization" in comparison with
the leader and the EU
average
Cr.
Goal
Change
10.1.
< 1100 USD
33% decrease
10.2.
< 11 days
6 days less
10.3.
5 docs
1 doc less
10.4.
< 1000 USD
55% decrease
10.5
< 11 days
10 days less
10.6.
5 docs
Keeping the number
10.7.
> 4.99%
4,000 SMEs more
10.8.
> 3.06%
4,500 SMEs more
In terms of cutting the documentary procedures for
import and export the goals are:
ЕU
0.000
10.1.
10.2.
10.3.
10.4.
10.5.
10.6.
10.7.
10.8.
0.100
0.200
0.300
0.400
0.500
Table 10.D Operational Goals
0.600
0.700
0.800
0.900
Cost of doing imports
Time to perform the import
Number of documents for the import
Cost of export performance
Time for export performance
Number of documents for the process of export
Share of SMEs importing from outside the EU
Share of SMEs exporting outside the EU
Table 10.A Perfrormance of Bulgaria
Cr.
Result
Av. EU
10.1.
1666 USD
1111 USD
620 USD
10.2.
17 days
11.4 days
5 days
22-23
10.3.
6 docs
5.2 docs
2 docs
16-20
10.4.
1551 USD
1024 USD
540 USD
26
21 days
11.2 days
5 days
27
10.6.
5 docs
4.5 docs
2 docs
16-22
10.7
3.84%
4.99%
12.40%
17
10.8
1.76%
3.06%
6.24%
20
10.5
Leader
Place in EU
27
Cr.
Goal
Change
10.9.
<= 200 USD
No increase
10.10.
< 6 days
3 days less
10.11.
< 170 USD
15% less
10.12.
< 6 days
7 days less
Bulgaria is 22/23 in EU in volumes of exports/imports
for 2011. At the same time, the country is 24/26 in EU
in export/import per capita (3700/4034 USD). There is
clearly a link between the terms of trade and trading
volumes.
Guidelines for urgent action:
1. For critera 10.10 and 10.12. - Reduce the time for
preparation of documents for import and export of 9
and 13 days to less than 6 days.
2. For criteria 10.9. - Reduce the cost of obtaining
documents for export around 15%.
Source: SBA Fact Sheet 2012 / Doing Business 2012 / Comext 2009
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
21
GOALS BASED ON MATCHING THE
SECTORAL ANALYSIS AND SBA
The following indicative targets for alignment with the
EU average in the relevant indicators of the areas of
the Small Business Act (the document that is based
and future national strategy for the promotion of SMEs
in Bulgaria from 2014 to 2020) in which Bulgaria is
lagging behind most:
Entrepreneurship (24th in the EU), environment (26th in the EU)
internationalization (27th in the EU), innovation (27th in the
EU)
This can be done by creating technology partnerships,
for example, using the potential of Europe Enterprise
Network, and by strengthening the opportunities for ecommerce activity in which our country is last in the
EU. To reach the EU average in e-commerce is
necessary to:
2,400 more SMEs to start online sales.
C. Innovation measures
Strong incentive for innovation culture of SMEs can be
an example of fast growing SMEs, as most of them
progress is thanks to a new product, service, energy
efficiency,
better
marketing
approach,
better
management structure or other innovation.
Back on data SBA, the introduction of new products
and services created in the enterprises themselves
need at least:
46,000 more SMEs;
76,000 more SMEs ust implement organizational or
marketing innovation;
102,000 more SMEs should start training their staff;
A.Measures for the creation of new businesses
and promote entrepreneurship
Goals: 12,100 more new SMEs and 90,000 new
employees
Start-ups should be mainly from the following sectors:
-
Computers, optics and electronics
Cars and other vehicles
Metal products
Machines
Printing and recorded media industry
Textiles
Information Technology
Films and TV productions, sound recording
Information services
Publishing
R&D
Creation
of
new
businesses
and
fostering
entrepreneurship is the key to restructuring the sector.
According to regional specialization enterprise creation
can be oriented according to the concentration of the
workforce and SMEs in the respective districts of the
country. This will also facilitate the clustering of these
sectors. The fact is that in Bulgaria there is no critical
mass of businesses, leading to a quantum leap in the
production of relevant sectors. Enterprise creation can
be stimulated in a combination of grant and revolving
tools using the network of entrepreneurial and
business
centers
in
the
country.
Key
is
entrepreneurship education to people with business
idea to create a sustainable business that will remain
on the market and after the first 5 years.
This can be driven both by strengthening the role of
the National Innovation Fund and by the mass-scale of
the innovation voucher scheme and the demarcation of
the Operational Programme " Human Resources " and
" Innovation and Entrepreneurship" , the creation of
enterprises and entrepreneurship education should be
left to "Innovation and entrepreneurship " and
retraining required 90,000 employees in item a fully
"Human Resources" .
Crucial here is the introduction of enterprise education
in schools and the expansion of the training firms in all
schools, including the School of the Arts ( where lay
the groundwork in preparation employed in the
creative industries that are part of most intense of
knowledge services).
D. Green technologies measures
The results of Bulgaria show that:
18,000 more SMEs need to generate at least 50% of
their turnover from green products and technologies;
28,000 more SMEs to achieve efficiency in resource
use
In the case of energy efficiency measures and
technological
innovation,
and
related
"green
technology" innovation can be fully committed to
improving the ecological orientation of companies.
Measures are formulated annually in
the Annual Programme for
implementation of the Strategy
B.Measures to stimulate exports
Based on the data of Small Business Act in order to
reach the EU average in export-oriented SMEs, the
target can be formulated as follows:
14,000 more SMEs to enter the Single Market
4,000 more SMEs to enter third markets
These businesses should be mainly from industries in
point A.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
22
ANNEX 1.
CRITERIA LIST
1. ENTREPRENEURSHIP
1.1. Entrepreneurial activity
Proportion of people (15-64) who have ever started a business
now have their own business or are about to start their
business
1.2. Entrepreneurship as an opportunity
Share citizens (15-64 years) from ever started a business that
started because they are mature advantageous opportunity to
do so, not because of extreme need
1.3. Preference to be self-employed
Share citizens (15-64 years), who prefer to be their own
leaders themselves responsible for business
1.4. Feasibility of self-employment
Proportion of people (15-64) who think that it is perfectly
feasible to become an entrepreneur
4. RESPONSIVE ADMINISTRATION
4.1. Time to start a business
Measured in calendar days. The index covers the average,
which, according to lawyers in corporate law is the necessary
time for the minimum number of procedures with government
(the executive) agencies, not including the time for various
additional payments. The time during which entrepreneurs
gather information for the purpose, shall not be taken into
account. The length of recording time up to the time at which
the last required document is received .
4.2. Cost to start a business
Measured as % of income per capita. Cost includes all official
fees and fees for legal or professional services if such services
are required by law.
4.3. Initial minimum capital
Measured as % of income per capita. Reflects the amount that
the entrepreneur needs to deposit in a bank before
registration of the company and 3 months after the
incorporation of the business.
1.5. School training in entrepreneurship
4.4. Transfer time (registration) property
2. SECOND CHANCE
4.5. Switching costs (registration) property
Proportion of people (15-64) who believe that schooling has
helped the growth of entrepreneurial spirit and attitude in
them
2.1. Time to close the business
The indicator measures the time it takes lenders to recover
their due in calendar days in the case years ago. Measurement
period is from the date of default of the debt until the bank
receives all or part of the amount due. Different tactics for late
payment are also taken into account
2.2. Cost of closing a business
% Of the debtor's property that is spent on various charges on
settlement
2.3. Public support for second chance
3. THINK SMALL FIRST
3.1. Burden of government regulation
The indicator shows the view how severe administrative
burden for businesses in terms of different requirements to the
business of the government. Evaluation means 7 - "I have no
difficulty
"rating
1
means"
extremely
cumbersome
administrative procedures"
3.2. System of licenses and permits
System of licenses and permits self-assessment covers the
following Member States: 1 - Does your country the principle
of "tacit consent", ie If the authority has to issue a license or
permit does not act in time, permit or license is granted
automatically to the company; 2 - Are available in the country
places called "One stop shop" for information on permits,
licenses, etc.; Rating 0 implies full presence and functioning;
grade 6 presumes no; The indicator is the arithmetic mean
value.
3.3. Communication strategy and simplification
of rules and procedures
The indicator contains questions such as: Regarding
communication: 1 - Government introduces you society with
rules and procedures; 2 - Is there a policy in the country to be
governed by the principle of "clear and simple expression"
when drawing legislative texts and other administrative
documents; 3 - Do You Make the affected parties to challenge
norms imposed injurious to them; 4 - Is it possible imposed
rules to be accessible and understandable for external state
parties concerned; 5 - Government policy requires any specific
requirements on transparency and freedom of expression; On
simplification 1 - government (ministries and agencies ) keep
you list the number of licensing and permit regimes; 2 - Is
available program designed to reduce the administrative
burden imposed by government on businesses / citizens; 3 Is available ongoing program to review and reduce the number
of licenses and permits. Rating 0 implies "Yes." Grade 6
suggests "no." Overall rating is with the average
Measured in calendar days. The average length of time for the
transfer of property as a property right lawyers , notaries or
registry officials
Measured as % of property value. It includes all official fees
required by law for the transfer of ownership.
4.6. Tax payments
Measured as the number of payments , including electronic .
Covers the number of payments - tax and other , the
frequency of these payments , the number of institutions that
made these payments. In particular methodology includes
enterprises in the second year of its creation.
4.7. Time required to pay 3 key taxes
Measured in hours per year. Measure the time it takes for the
payment of the three main taxes: corporate tax, VAT and
taxes and fees related to the labor market - such as social
security contributions and income tax.
4.8. Cost to enforce contractual obligations
outstanding
Measured as % of claim. Measure the financial efficiency of the
justice system in a commercial dispute. Cost is measured as a
percentage of the claim, assumed to be equal to 200% of
income per capita. Take into account three types of costs:
legal fees, costs of implementation of the contract and the
average value of attorney fees.
4.9. An electronic version of the eight basic
public services
The indicator measures whether they are available online 8
basic services for business: social security payments, payment
of corporation tax; payment of VAT; registration of a new
company; Submission to the National Statistical Institute;
declaration; permits related to environmental protection;
applying for participation in public procurement;
5. STATE AID AND PUBLIC
PROCUREMENT
5.1. Share of SMEs in total procurement
Measured in%
5.2. State aid for SMEs
It is expressed in % of total aid. State aid granted as a
horizontal measure for SMEs. Aid granted as a crisis measure
not included.
5.3. Late payments by public authorities
Measured in the average number of days. The number of days
during which public authorities delaying payments to SMEs
after contract.
5.4. Availability of e-procurement
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
23
The indicator presents comparable information on the level of
availability of electronic services in public procurement . For
example: 1 - electronic notification - electronic publications of
notices of public procurement; 2 - E-Commerce - Preparation
and submission of documentation electronically to participate
in the ad / auction; 3 - e-assessment and award electronically
5.5. Planned share of European Structural Funds
focused on SMEs and entrepreneurship for the
period 2007-2013
It is expressed in % of the total allocation for the period 20072013. These funds planned Corrigendum to Council Regulation
(EC) No 1083/2006 of 11 july 2006 laying down general
provisions on the European Regional Development Fund, the
European Social Fund and the Cohesion Fund and repealing
regulation (EC) No 1260/1999 ANNEX IV, codes:
03 - Technology transfer and improvement of cooperation
networks between SMEs and between universities and other
educational institutions of all kinds, regional authorities ,
research centers and development, science and technology
parks , etc.
04 Support for R&D carried out in particular SMEs, including
access to R&D - services in research centers
06 Support to SMEs for the promotion of non-destructive
environmentally friendly products and production processes,
such as the introduction of pollution prevention technologies,
etc.
Rejected loan applications and loans whose conditions are
considered unacceptable business as% of all loan applications
6.8. Access to public financial support including
guarantees
Share of enterprises that responded to the question that
access to public financial support has deteriorated in the last
six months
6.9. Willingness of banks to provide loans.
Share of enterprises that responded to the question that
access to loans made by banks has deteriorated over the past
six months.
7. SINGLE MARKET
7.1. Delay the transposition of directives into
national law
Measured in months. Average delay in the transposition of
directives.
7.2. Number of directives whose transposition
into national law was delayed more than two
years
The relevant number of directives
7.3. The single market directives not transposed
into national law
09 Other measures to stimulate research and innovation and
entrepreneurship meters SMEs
Measured in %. Proportion of directives that have successfully
transposed into national law within the prescribed period by
the European Commission amid all directives .
14 Services and applications for SMEs - such as e- commerce,
education and training, networking and cooperation etc.
7.4. Share of SMEs to export to the EU
15 Other measures to improve SME access to more efficient
use of ICT
68 Support for self-employment and business start-ups
5.6. Planned share of European funds for
agriculture and rural development aimed at
supporting start-up and business development
from 2007 to 2013 .
Measured as % of total spending. Resources planned under
Measure 312" Support for the creation and development of
business" for 2007-2013
6. ACCESS TO FINANCE
6.1. Investments in venture capital
Measured in % of GDP. Includes seed- capital and start-upcapital.
6.2. Strength of the rights
Measured as an index from 0 to 10. Index shows the extent of
the rights that the law on bankruptcy and collateral
guarantees to lenders and thus facilitate the borrowing of
funds
6.3. Depth of credit information
The index measures rules and practices affecting the coverage
and accessibility of credit information through a public registry
or private credit bureau .
6.4. Length of time to receive claims
Measured in the average number of days during which the
client pays the amount of the invoice - refers to payments
B2B, B2C and State to business.
6.5. lost receivables
Measured as a share of invoiced receivables that were written
off and never received by the entity.
6.6. Differences in interest rates on loans to EUR
1 million and loans over EUR 1 million.
The indicator measures how much more expensive (measured
as interest rates) to obtain a loan under 1 million euros
compared with a loan over 1 million.
6.7. Requests for bank loans, which have been
rejected
Measured in%. Share of SMEs in the Member State that export
goods and services to other Member States in the EU on the
basis of all SMEs in the country.
7.5. Share of SMEs in EU imports
Measured in %. Share of SMEs in the Member States importing
goods and services from other Member States in the EU on the
basis of all SMEs in the country.
8. SKILLS AND INNOVATION
8.1. SMEs innovating in-house
Measured in %. Share of SMEs (all SMEs), which have
introduced new or significantly upgraded product, service or
production process, developed within the establishment or
with other enterprises . Not reported products, services or
processes introduced in the market by an undertaking, but
fully developed by other companies.
8.2. Innovative SMEs collaborating with other
companies and organizations
Measured in %. Share of SMEs involved in innovation cooperation of all SMEs. Enterprises that have innovative
cooperation are those who have entered into any agreement
for cooperation on innovation activities with other enterprises
or institutions. Complex innovation, especially in the ICT
sector, often depend on the ability to handle a variety of
sources of information, require much knowledge. They depend
on the entity's ability to cooperate in the development of
innovation. This indicator measures the flow of knowledge
between research centers (often government) and enterprises
and between enterprises.
8.3. SMEs that have
products or processes
introduced
innovative
Measured in %. Share of SMEs (all SMEs) that have introduced
market innovative products, services or processes.
8.4. SMEs that have introduced organizational/
marketing -volume innovation
Measured in %. Share of SMEs (all SMEs) that have introduced
market organizational or marketing innovation.
8.5. Sales of new company products or new to
market products or services.
Measured in% . Share of turnover from new (for the company
and/or market) or significantly improved products or services
of the total turnover of all undertakings .
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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8.6. SMEs involved in R&D funded by the EU
Measured in %. Share of SMEs with a turnover of over 50%
generated from "green" products or services in the last
financial year.
8.7. SMEs selling online
9.7. Share of SMEs that have received public
support for the production of "green" products or
services.
Measured in number of SMEs 100 000 SMEs involved in R& D
funded by the EU Framework Programmes .
Measured in%. Share of SMEs (only SMEs, ie with employees
from 10 to 249 people) selling online and generated by these
sales at least 1% of their turnover.
8.8. SMEs buying online
Measured in %. Share of SMEs (only SMEs, ie with employees
from 10 to 249 people), buy online and generated by these
sales at least 1 % of their orders .
8.9. SMEs, which are conducting training
Measured in %. SMEs account for all SMEs in sectors C to K
NEAC -2003 (now the sectors B to M under CEA - 2008) ,
which performs any professional training.
8.10. Employee participation in training courses
Measured in %. Employed in micro enterprises (less than 10
persons employed) aged 17 to 84 years “training throughout
life”.
9. ENVIRONMENT
9.1. Innovations with environmental benefits .
Measured in %. Share of innovative SMEs (not micro) of
sections and divisions under CEA - 2008 (B, C, D, E, G46, H,
J58, J61, J62, J63, K and M71) producing innovations
(products, processes, organizational innovation) with benefits
for the environment and/or the end user. Environmental
benefits include reduced carbon footprint (total carbon dioxide
emissions) by now, reduced energy expenditure per unit of
outpu, reduced material consumption per unit of output, less
pollution of soil, water, air, or reduced levels of noise, waste
minimization, etc. Final customer benefits include reduced
energy consumption, reduced pollution of soil, water, air and
reduced noise levels, improved recycling of product after use,
etc.
9.2. Share of SMEs with measures of resource
efficiency .
Measured in %. SMEs account for all SMEs in the last two
years to put in place measures for resource efficiency.
9.3. Share of SMEs that have received public
support for the introduction of measures to
resource efficiency.
Measured in %. Share of SMEs that have received public
support in the last two years for the introduction of measures
of resource efficiency .
Measured in %. Share of SMEs that have received public
support in the last two years for the production of "green"
products or services.
9.8. Share of SMEs satisfied with public support
for the production of "green" products or
services.
Measured in %. Share of SMEs satisfied with public support for
the production of "green" products or services in the last two
years.
10. INTERNATIONALIZATION
10.1. Cost of importation.
Measured in U.S. dollars. The cost includes fees for 20-feet
container. All fees required for completion of import
procedures are included. This includes costs for documents,
administrative costs for customs and technical control, port
charges and inland transport to the port. The cost does not
include duties or costs related to transport by sea. Included
are only formally established and justified cost.
10.2. Time to perform the import.
Measured in days. Include the time required for obtaining
import documents, inland transport, cargo raztovarachnite
activities at the port, customs control.
10.3. Number of documents for the import.
These are all documents required for importation of goods.
These include documents from ministries, customs authorities,
port authorities, health and technical control, banks, etc.
10.4. Cost of export performance.
Measured in U.S. dollars. The cost includes fees for 20-feet
container. All fees required to complete export procedures are
included. This includes costs for documents, administrative
costs for customs and technical control, port charges and
inland transport to the port . The cost does not include duties
or costs related to transport by sea. Included are only formally
established and justified cost
10.5. Time to perform the export.
Measured in days. Include the time required for obtaining the
export documents, inland transport, cargo raztovarachnite
activities at the port, customs control.
9.4. Share of SMEs satisfied with public support
in the field of environment.
10.6. Number of documents for the import.
Measured in %. Share of SMEs satisfied with the level of public
support in the field of environment in the last two years.
Measured in days. Include the time required for obtaining
import documents, inland transport, cargo raztovarachnite
activities at the port, customs control.
9.5. Share of SMEs , offering "green" products or
services.
10.7. Share of SMEs importing from outside the
EU.
Measured in % .
Measured in %. SMEs account for all SMEs importing from
outside the EU.
9.6. Share of SMEs with a turnover of over 50%
generated from "green" products or services.
10.8. Share of SMEs exporting outside the EU.
Measured in %. SMEs account for all SMEs that export to
countries outside the EU.
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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ANNEX 2.
REGIONAL SPECIALIZATION MAPS
Figure 4
Figure 5
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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Figure 6
National Strategy for SMEs Promotion - Small Business Act - 2014-2020
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