2015 was successful for Bulgaria’s small and medium business, because it managed to come off the bottom. Many companies in the construction, tourism and agriculture field managed to survive and marked a slight growth. That is why we believe that 2016 would be even better for this business, unless some serious political turbulence or foreign factors influence the local business environment, Chairwoman of the National Association of the Small and Medium Business Eleonora Negulova told Radio Bulgaria. According to statistical data, the unemployment level in Bulgaria is way under 10% at the end of 2015. What is the contribution of the small and medium business to the increase of employment in that country?

“The small and medium-sized business forms between 67% and 70% of all jobs in Bulgaria and in this sense it is the biggest employer. Moreover, it is the biggest tax-payer and investor in Bulgaria, including in the mountain, depopulated and border regions where the large companies are not present. The only investors there are small local family firms who employ local people. In other words, the low levels of unemployment registered last year are mainly due to the huge efforts of the small and medium-sized companies.”

Eleonora Negulova voiced her satisfaction with the fact that the Retail Chains Act was finally adopted last year. The first positive results of that move can be seen now - the number of Bulgarian suppliers, especially on the stands of fresh vegetables and fruit has risen significantly. In Mrs. Negulova’s view, the small producers stand a bigger chance to succeed, if they unite in common structure, which would enable the companies to act both as producers and wholesale suppliers to the local retail chains. The latest good news for the small and medium business is linked with the online services provided by Sofia municipality and the computerization of the BULSTAT Register. In Eleonora Negulova’s words, the good interrelation between the authorities, the business and the civil sector is of great importance for the development of the small and medium-sized enterprises. The demographic problem, however, which affects the market volumes in Bulgaria, is hardly likely to be resolved in the foreseeable future. So, the main business strategy of the companies in growth will regard possibilities of internationalization of their business activities, Eleonora Negulova added.

How would the latest relations between Russia and Turkey affect Bulgaria’s business?

“The latest relations between Russia and Turkey will favor the development of some economic sectors in Bulgaria such as the tourism field, which are linked with other economic activities. The number of Russian tourists visiting Bulgarian resorts will increase for sure. The question is how big the increase would be, because our competitors in Greece, Italy, France, Spain and other countries are also interested in those tourists. The alleviation of the visa regime for Russian nationals and the promotion of tourist packages at attractive prices would undoubtedly have positive effect on the number of Russian tourists. On the other hand, this process would influence positively the construction field, because the Russian investors will return to the Bulgarian real estate market. ”

Recently ten mixed trade chambers sent a letter of discontent to Premier Boyko Borissov and other Bulgarian institutions. They expressed concerns about the standstill in the country’s judicial reform and warned that the foreign capital may be redirected to other alternative destinations.

“The access to justice is of great significance for both the local and the foreign investors. The letter in question can be interpreted as a warning sent to Bulgaria’s politicians and urges them to make adequate changes in the country’s legislation, so that the first results in the judicial field can be seen soon. ”

In Mrs. Negulova’s view, there is another reason for concern, which was not mentioned in that letter, yet the National Association of the Small and Medium Business has been repeatedly alarming that the small business often abandons its intention to look for justice, because in many cases these efforts are extremely expensive and as a result, the companies incur substantial losses.

English version: Kostadin Atanasov