Operational programme “ Development of the competitiveness ... · of the competitiveness of the...

This project is co-financed by the European fund for Regional Development through Operational programme “ Development

of the competitiveness of the Bulgarian economy” 2007 - 2013

ANNEX

Export strategy for

sector

“PUBLISHING,

PRINTING AND

REPORDUCTION”

Bulgarian Small and Medium

Enterprises Promotion Agency

2012

Operational programme “ Development of the

competitiveness of the Bulgarian economy” 2007-2013,

Priority axis 4.2. “Promoting the internationalisation of the

Bulgarian enterprises” Project № BG161РО003 – 4.2.01-

0001 “Promotion Of The Internationalization Of The

Bulgarian Enterprises”

of 127

Operational programme “ Development

of the competitiveness of the Bulgarian

economy” 2007-2013, Priority axis 4.2.

“Promoting the internationalisation of the

Bulgarian enterprises” Project №

BG161РО003 – 4.2.01-0001 “Promotion

Of The Internationalization Of The


This document was developed under project № BG161РО003 – 4.2.01-0001

“PROMOTION OF THE INTERNATIONALIZATION OF THE BULGARIAN

ENTERPRISES”.

Beneficiary: Executive agency for promotion of small and medium

enterprises

This document was developed with the financial support of Operational

programme “Development of the competitiveness of the Bulgarian economy”

2007-2013 co-financed by the European fund for Regional Development. The

overall responsibility of the document’s content lies with the Executive agency

for promotion of small and medium enterprises and under no circumstances it can

be accepted that this document reflects the official statement of the European

Union and the Contract authority.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



CONTENTS

CONDITION AND DEVELOPMENT OF THE SECTOR IN BULGARIA ......................10

EXPORT ORIENTATION OF THE SECTOR .....................................................................37

COMPETITIVENESS OF THE EXPORT OF GOODS AND SERVICES TO FOREIGN

MARKETS .................................................................................................................................69

BARRIERS TO THE SMALL AND MEDIUM-SIZED ENTERPRISES FOR

INTERNATIONALIZATION AND MEASURES AND PERSPECTIVES FOR EXPORT

PROMOTION AND DEVELOPMENT .................................................................................93

ESSENCE AND SUMMARY RESUTLS OF THE PESTEL AND SWOT ANALYSIS .118

BIBLIOGRAPHY AND STATISTICAL SOURCES ..........................................................127

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” LIST OF TABLES:

Table 1 Groups, classes and products of the sector, according to CEA-2008 ............................10

Table 2 Ranking of the sector in the manufacturing industry in terms of the variation in the

number of enterprises, 2010/2009 ...............................................................................................13

Table 3 Number of employed by labour or service contract for 2011 ........................................15

Table 4 Ranking of the sectors in the manufacturing industry in terms of turnover, 2010,

thousand BGN .............................................................................................................................15

Table 5 Ranking of the sectors in the manufacturing industry in terms of added value, 2010,

thousands BGN ...........................................................................................................................18

Table 6 Regional distributions of the companies in sector “Printing and reproduction of

recorded media” ..........................................................................................................................22

Table 7 Industrial production index for the period 2001 – 2010 (to the month of December of

the corresponding year, where the base is 2005) ........................................................................23

Table 8 Turnover index on the domestic market for the period 2001 -2010 (to December of the

corresponding year, where the constant base is 2005) ................................................................24

Table 9 SMEs distribution by number of employed and annual turnover ..................................25

Table 10 The companies’ turnover for the period 2008 – 2011 (Base 2007=100 %) .................26

Table 11 Exit data for the analysis of the financial condition of 19 companies from sector

“Printing and reproduction of recorded media”, (thousands BGN) ............................................28

Table 12 Index of profitability of income from sales ..................................................................30

Table 13 Indexes of profitability of equity ..................................................................................30

Table 14 Indexes of capitalization of the assets ..........................................................................31

Table 15 Indexes of revenue effectiveness .................................................................................32

Table 16 Indexes of financial independence ...............................................................................32

Table 17 Indexes of indebtedness ...............................................................................................33

Table 18 Indexes of liquidity ......................................................................................................34

Table 19 Dynamics of the export by sectors, 2001 – 2010 .........................................................40

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 20 Indicators for the condition of the export of the SMEs in the manufacturing industry

.....................................................................................................................................................48

Table 21 Index of the turnover of the international market for the period 2001 – 2010 (to the

month of December of the corresponding year, where the permanent base is 2005) .................49

Table 22 Indicators for the condition of the export in the frame of sector “Printing and

reproduction of recorded media” .................................................................................................50

Table 23 Dynamics of the export in the frame of sector “Printing and reproduction of recorded

media” .........................................................................................................................................50

Table 24 Average share of direct export by years .......................................................................52

Table 25 Number of companies according to the share of individual export for the period 2007

- 2011 ...........................................................................................................................................52

Table 26 Export of printing materials from Bulgaria during the period 2001 - 2010 (thousand

EUR) ............................................................................................................................................55

Table 27 Ranking of the exporters of printed books, brochures, leaflets and similar printed

matter for the period 2001 – 2010 (thousand EUR) ....................................................................58

Table 28 Dynamics of the export of printed books, brochures, leaflets and similar printed

matter for the period 2001 – 2010 (%, 2001=100) ......................................................................58

Table 29 Positioning of Bulgaria in the world export of printed books, brochures, leaflets and

similar printed matter for the period 2001 – 2010 ......................................................................59

Table 30 Share of the Bulgarian export in the export of the leading exporter in worldwide for

2010 (%) ......................................................................................................................................59

Table 31 Ranking of the exporters of “Other printed matter, including pictures and

photographs”, for the period 2001 – 2010 (thousand EUR) .......................................................59

Table 32 Dynamics of the export of other printed matter, including pictures and photographs

for the period 2001 – 2010 (%,2001=100) ..................................................................................60

Table 33 Position of Bulgaria in the world export of other printed matter, including pictures and

photographs for the period 2001 – 2010 .....................................................................................60


2010 (%) ......................................................................................................................................61

Table 35 Ranking of the exporters of “Newspaper, journals and periodicals”, for the period

2001 – 2010 (thousand EUR) ......................................................................................................61

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 36 Dynamics of the export of Newspaper, journals and periodicals for the period 2001 –

2010 (%,2001=100) .....................................................................................................................62

Table 37 Position of Bulgaria in the world export Newspaper, journals and periodicals for the

period 2001 – 2010 ......................................................................................................................62


2010 (%) ......................................................................................................................................62

Table 39 Ranking of the exporters of “Map, hydrographic or similar charts of all kinds,

including atlas, wall maps, etc.”, for the period 2001 – 2010 (thousand EUR) ..........................63

Table 40 Dynamics of the export of Map, hydrographic or similar charts of all kinds, including

atlas, wall maps, etc. for the period 2001 – 2010 (%,2001=100)................................................63

Table 41 Positioning of Bulgaria in the world export Map, hydrographic or similar charts of all

kinds, including atlas, wall maps, etc. for the period 2001 – 2010 .............................................64


2010 (%) ......................................................................................................................................64

Table 43 Ranking of the exporters of “Calendars of any kind, including calendar blocks”, for

the period 2001 – 2010 (thousand EUR) .....................................................................................65

Table 44 Dynamics of the export of Calendars of any kind, including calendar blocks for the

period 2001 – 2010 (%, 2001=100) ............................................................................................65

Table 45 Position of Bulgaria in the world export calendars of any kind, including calendar

blocks for the period 2001 – 2010 ...............................................................................................66


2010 (%) ......................................................................................................................................66

Table 47 Evaluations of the respondents regarding the level of importance of the factors,

related to the export success (in %) .............................................................................................67

Table 48 Volume of the Bulgarian export for group 49“Printed books, journals, pictures, etc.,

2006 – 2010, thousand EUR .......................................................................................................69

Table 49 Main 10 importers for 2010 .........................................................................................70

Table 50 Main competitors on the EU markets, where the Bulgarian export is the biggest, 2009

– 2010 ..........................................................................................................................................71

Table 51 Main competitors out of the EU markets, where the Bulgarian export is the biggest,

2009 – 2010 .................................................................................................................................73

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 52 Main 10 importers for 2010 .........................................................................................74

Table 53 Main competitors on the EU markets, where the export of Bulgaria is the highest,

2009 – 2010 .................................................................................................................................75


2009 – 2010 .................................................................................................................................76



– 2010 ..........................................................................................................................................78


2009 – 2010 .................................................................................................................................80



– 2010 ..........................................................................................................................................82


2009 – 2010 .................................................................................................................................83


Table 62 Competitors in the EU markets, where the Bulgarian export is the biggest, 2009 –

2010 .............................................................................................................................................85


2009 – 2010 .................................................................................................................................86

Table 64 Reasons for the export markets perspective .................................................................90

Table 65 Changes in the company export in the next 5 years (in %) ..........................................91

Table 66 Evaluation of the level of seriousness of the main barriers (obstacles) for the export of

the companies and for the sector as a whole for the period 2007 – 2011 (in %) ........................94

Table 67 Prioritizing of the measures for supporting the small and medium-sized enterprises .96

Table 68 Regularity of use of the sources of information (in %) ...............................................98

Table 69 Effect on the companies’ export of the services, provided by BSMEPA (in %) .........99

of 127






BG161РО003 – 4.2.01-0001 “Promotion



LIST OF GRAPHS:

Graph 1 Index of the turnover of the domestic market, 2000 – 2011 .........................................17

Graph 2 Added value per 1 employed in the sectors of the manufacturing industry, 2010,

thousands BGN ...........................................................................................................................20

Graph 3 Distribution of the companies and employed in sector “Printing and reproduction of

recorded media” by regions, 2011 ...............................................................................................23

Graph 4 Average change in turnover of the studied companies by years (in %) ........................27

Graph 5 Indexes of the turnover of the sector on the external market for 2000 – 2011 .............38

Graph 6 Top 5 of the Bulgarian export markets for the sector (2001 – 2010 data in thousand

EUR) ............................................................................................................................................39

Graph 7 Export markets of the studied companies (in %) ..........................................................87

Graph 8 Percentage distribution of the export by number of export markets .............................88

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” LIST OF ABBREVIATIONS:

ЕU European Union

BSMEPA Bulgaria Small and Medium Enterprises Promotion Agency

CEA Classification of Economic Activities

CN Combined Nomenclature

SME Small and Medium Enterprises

CM Council of Ministers

ITC International trade centre

MF Ministry of Finance

MEET Ministry of Economy, Energy and Tourism

MSLP Ministry of Social and Labour Policy

MEYS Ministry of Education, Youth and Science

MFA Ministry of Foreign Affairs

R&D Research and Development

BCC Bulgarian Chamber of Commerce

NCEA National Classification of Economic Activities

NIS National Institute of Statistics

OP Operational Programme

OPHRD Operational programme “Human resources development”

OPC Operational programme “Competitiveness”

MB Management bodies

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” CONDITION AND DEVELOPMENT OF THE SECTOR IN BULGARIA

The analysis of the condition and the development of sector “Publishing, printing and

reproduction” is organized in a way to answer the following questions:

1. What is the place of the SMEs of sector “Publishing, printing and reproduction”

in the industry in general and in the manufacturing industry in Bulgaria?

2. What is the general condition of the sector and what are the trends for the period

2009-2010 in terms of turnover, employed, value added, etc.

3. What is the dynamics of the sector development in relation to the development

of the rest of the analyzed sectors, of the industry in general and of the manufacturing industry?

4. What is the place of the sub-sectors within sector “Publishing, printing and

reproduction”.

Sector “Publishing, printing and reproduction” covers division “Printing and

reproduction of recorded media”. According to the Classification of the Economic Activities

for 2008 of the National Institute of Statistics, it includes the following groups:

Table 1 Groups, classes and products of the sector, according to CEA-2008

GROUPS CLASS PRODUCTS

18.1 Printing

18.11 Printing of

newspapers

Printing of newspapers

Printing of other periodicals, appearing at least four

times weekly

18.12 Printing of

other periodicals and

publications

Printing of magazines and other periodicals, appearing

less than four times weekly

printing of books and brochures, music and music

manuscripts, maps, atlases, posters, advertising

catalogues, prospectuses and other printed advertising,

postage stamps, taxation stamps, documents of title,

cheques and other security papers, smart cards, albums,

diaries, calendars and other commercial printed matter,

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” GROUPS CLASS PRODUCTS

personal stationery and other printed matter by

letterpress, offset, photogravure, flexography, screen

printing and other printing presses, duplication

machines, computer printers, embossers etc., including

quick printing

Printing onto textile, plastic, glass, metal, wood and

ceramics

printing on labels or tags (lithographic, gravure printing,

flexographic printing, other)

18.13 Pre-press

services

composing, typesetting, phototypesetting, pre-press data

input including scanning and optical character

recognition, electronic make-up

preparation of data files for multi-media (printing on

paper, CD-ROM, Internet) applications

plate-making services including image setting and plate

setting (for the printing processes letterpress and offset)

cylinder preparation: engraving or etching of cylinders

for gravure printing

plate processing: "computer to plate" CTP (also

photopolymer plates)

preparation of plates and dies for relief stamping or

printing

preparation of:

artistic works of technical character, such as preparation

of lithographic stones and wood blocks

presentation media, e.g. overhead foils and other forms

of presentation

sketches, layouts, dummies, etc.

production of proofs

18.14 Binding and

related services

- trade binding, sample mounting and post press

services in support of printing activities, e.g. trade

binding and finishing of books, brochures, magazines,

catalogues, etc., by folding, cutting and trimming,

assembling, stitching, thread sewing, adhesive binding,

cutting and cover laying, gluing, collating, basting, gold

stamping; spiral binding and plastic wire binding

- binding and finishing of printed paper or printed

cardboard, by folding, stamping, drilling, punching,

perforating, embossing, sticking, gluing, laminating

- finishing services for CD-ROMs

- mailing finishing services such as customisation,

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” GROUPS CLASS PRODUCTS

envelope preparation

- other finishing activities such as die, sinking or

stamping, Braille copying

18.2 Reproduction of recorded media

18.20 Reproduction

of recorded media

- reproduction from master copies of various carriers

(gramophone records, compact discs(CD), digital discs

(DVD), tapes or other sound recordings)

- reproduction of video records (films, documentaries,

cartoons and other types of motion pictures) from

master copies (digital discs (DVD), video recordings

and others)

- reproduction from master copies of software (system

or application) and data on discs and tapes

Source:NIS

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Place of the SMEs from the sector in the SMEs from the manufacturing industry:

Number of SMEs

At the end of 2009 by the number of small and medium-sized enterprises in sector

“Publishing, printing and reproduction” takes eight place in the manufacturing industry with a

total of 1 171 enterprises. In 2010 the sector maintains this position, although an insignificant

decrease in the number of enterprises down to 1159. In relation to the change in the number of

the companies in 2010 relative to 2009, the sector is on fourth place after the manufacture of

chemical products and manufacture of beverages (marking growth in the number of companies)

and manufacture of food products (falling by 0,98%).

Table 2 Ranking of the sector in the manufacturing industry in terms of the variation in the

number of enterprises, 2010/2009

Number Division

according

CEA 2008

Division name Number of

enterprises

2009

Number of

enterprises

2010

Variation

2010/2009

(%)

1. 20 Manufacture of

chemical products

558 577 103,41


beverages

778 780 100,26

3. 10 Manufacture of food

products

4783 4736 99,02

4. 18 Publishing, printing

and reproduction

1171 1159 98,98


machinery and

equipment n.e.c.

920 895 97,28

6. 21 Manufacture of basic

pharmaceutical

products and

pharmaceutical

preparations

56 54 96,43


electrical equipment

531 508 95,67

8. 17 Manufacture of paper

and paper products

553 517 93,49


computer, electronic

and optical products

389 363 93,32

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Number Division

according

CEA 2008

Division name Number of

enterprises

2009

Number of

enterprises

2010

Variation

2010/2009

(%)


furniture

2452 2279 92,94

11. 16 Manufacture of wood

and of products of

wood and cork, except

furniture; manufacture

of articles of straw and

plaiting materials

2112 1962 92,90

12. 22 Manufacture of rubber

and plastic products

2078 1930 92,88

13. 15 Manufacture of leather

and related products

535 494 92,34

14. 23 Manufacture of other

non-metallic mineral

products

1591 1467 92,21


fabricated metal

products, except

machinery and

equipment

4415 4061 91,98


wearing apparel

4924 4477 90,92


transport equipment

84 74 88,10


textiles, except apparel

681 599 87,96

Source: NSI

Employed in SMEs

The SMEs, performing printing activities and reproduction of recorded media, ensure

approximately 2% of the employment in SMEs in the manufacturing industry for 2010 or 9

044 employed for same year. In terms of this indicator the sector is ranked 10th

among the

priority for MEET sectors, where at average annual values this is one of the two branches,

where there was growth in the number of employed (together with the sector “Manufacture

of pharmaceuticals”). At the decrease in the number of companies, this means that there is an

optimization of the market, but not a general fall in employment.

The variations in the number of employed continues still in 2011 (again according to

NIS, although classified as “preliminary data”) and at the present moment we are disposing

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” with detailed indicators by trimesters for the last year. At the end of 2011 a total of 7 293

employed in the branch (where there are no companies with over 250 employed, all data for

the sector in its entirety are valid for the SMEs too.

Table 3 Number of employed by labour or service contract for 2011

Economic activity Eurostat

code

2011 trimesters

I II III IV

Industry - general B_to_E36 563 167 568 922 570 720 556 425

Manufacturing industry С 489 158 494 360 496 418 483 171

Publishing, printing and reproduction С18 7 742 7 816 7 629 7 293

Source: NIS

The branch SMEs are lately and lightly influenced by the cyclic factors of the economic

crisis, and the “cleaning” process of the weaker in financial and market aspect companies is

ongoing.

Turnover and added value in the SMEs

In 2010 the turnover of the SMEs in sector “Publishing, printing and reproduction”

accounts for 2,76% of the total turnover of SMEs in the manufacturing industry or 490 227

thousand BGN. There is an increase of 11,55% in relation to 2009 that ranks the sector in fifth

place in terms of turnover growth. Out of the 18 analyzed sectors, there is an increase in the

turnover in 13 of them, varying from 0,35% in the manufacture of apparel to 40,78% in the

Manufacture of computer, electronic and optical products.

Table 4 Ranking of the sectors in the manufacturing industry in terms of turnover, 2010,

thousand BGN

Number Division

according

CEA 2008

Division name Turnover

2009

Turnover

2010

Variation

2010/2009

(%)

1. 10 Manufacture of food

products

4822896 5173275 107,26


fabricated metal

products, except

machinery and

equipment

1872617 1618573 86,43

of 127






BG161РО003 – 4.2.01-0001 “Promotion



according

CEA 2008

Division name Turnover

2009

Turnover

2010

Variation

2010/2009

(%)


wearing apparel

1359707 1364456 100,35

4. 22 Manufacture of rubber

and plastic products

1195769 1305231 109,15


non-metallic mineral

products

1235756 934392 75,61


machinery and

equipment n.e.c.

703096 883555 125,67


chemical products

727137 871899 119,91


furniture

547237 563924 103,05


electrical equipment

542648 558704 102,96

10. 18 Printing, publishing

and reproduction

439473 490227 111,55

11. 16 Manufacture of wood

and of products of

wood and cork, except

furniture; manufacture

of articles of straw and

plaiting materials

431909 473329 109,59


computer, electronic

and optical products

321139 452104 140,78


beverages

412614 434331 105,26

14. 17 Manufacture of paper

and paper products

406424 372203 91,58


transport equipment

261386 245997 94,11

16. 15 Manufacture of leather

and related products

212737 219978 103,40


transport equipment

168206 138874 82,56


pharmaceutical

products and

pharmaceutical

preparations

110491 125524 113,61

Source: NSI

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” The data show hesitating but as a whole stable increase to the peak in 2007. After the

fall in the crisis years, the sector is starting to recover, notwithstanding that in the first months

of 2012 the preliminary data of NIS show indexes at levels of 84,5.

The base for comparison is 2005, traditionally strong for the whole manufacturing

industry in Bulgaria.

Graph 1 Index of the turnover of the domestic market, 2000 – 2011

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Индекси на оборота на вътрешния пазар 2000-2011

Source: NIS

The added value of the SMEs in sector “Printing and reproduction of recorded media”

amount to 150 553 thousand BGN in 2010, accounting for 3,58% of the total added value in the

manufacturing industry. In relation to 2009 the branch marks growth of 5,51%, that is 7 856

thousands BGN, ranking it ninth among the rest 18 sectors. There is an increase of added value

for 2010 in relation to 2009 in half of the studied sectors, in particular 2% in the Manufacture

of wood and of products of wood and cork, except furniture; up to 45% in the Manufacture of

computer, electronic and optical products; and there is almost 1% decrease in terms of this

indicator for the SMEs in the manufacturing industry as a whole.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



We may conclude therefore that the SMEs in sector “Printing and reproduction of

recorded media” are in the group of the developing sectors with potential for increasing its

export opportunities.

Table 5 Ranking of the sectors in the manufacturing industry in terms of added value, 2010,

thousands BGN

Number Division

according

CEA 2008

Division name Added

value 2009

Added

value 2010

Variation

2010/2009

(%)

1. 10 Printing and reproduction

of recorded media

783939 850805 108,53

2. 14 Manufacture of wearing

apparel

522960 497789 95,19

3. 25 Manufacture of fabricated

metal products, except

machinery and equipment

491740 438892 89,25

4. 28 Manufacture of machinery

and equipment n.e.c.

223155 273932 122,75

5. 22 Manufacture of rubber and

plastic products

283769 266457 93,90

6. 23 Manufacture of other non-

metallic mineral products

320586 244241 76,19

7. 20 Manufacture of chemical

products

162850 172799 106,11

8. 31 Manufacture of furniture 167165 157716 94,35

9. 18 Printing and reproduction

of recorded media

142697 150553 105,51

10. 26 Manufacture of computer,

electronic and optical

products

99235 143744 144,85

11. 27 Manufacture of electrical

equipment

139986 127155 90,83

12. 16 Manufacture of wood and

of products of wood and

cork, except furniture;

manufacture of articles of

straw and plaiting materials

107204 109346 102,00

13. 15 Manufacture of leather and

related products

87126 91709 105,26

14. 11 Manufacture of beverages 76129 88453 116,19

15. 17 Manufacture of paper and

paper products

102205 75571 73,94

of 127






BG161РО003 – 4.2.01-0001 “Promotion



according

CEA 2008

Division name Added

value 2009

Added

value 2010

Variation

2010/2009

(%)


transport equipment

56076 68963 122,98


pharmaceutical products

and pharmaceutical

preparations

43412 51070 117,64


transport equipment

45942 30201 65,74

Source: NIS

Labour productivity

The SMEs in sector “Printing, publishing and reproduction” have higher labour

productivity (measured as ratio of the produced added value per 1 employed) of the average in

the manufacturing industry, but almost twice lower than the leading for 2009 and 2009 sector –

manufacture of pharmaceutical products and pharmaceutical preparations. The sector holds

fifth place in terms of this indicator. The trend of increasing the labour productivity in almost

all sectors, including the publishing and printing activity is to be seen in combination of the fall

in the total number of companies in the branch.

It means that the increased overloading of the production capacity with view to

optimizing the results and may be understand with view to the present macroeconomic frame

and instable demand on behalf of our global partners.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Graph 2 Added value per 1 employed in the sectors of the manufacturing industry, 2010,

thousands BGN

Source: NIS

*Translation:

21 Manufacture of basic pharmaceutical products and pharmaceutical preparations

26 Manufacture of computer, electronic and optical products

20 Manufacture of chemical products

28 Manufacture of machinery and equipment n.e.c.

18 Printing and reproduction of recorded media

23 Manufacture of other non-metallic mineral products

27 Manufacture of electrical equipment

30 Manufacture of other transport equipment

22 Manufacture of rubber and plastic products

25 Manufacture of fabricated metal products, except machinery and equipment

10 Food manufacture

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” 17 Manufacture of paper and paper products

The share of the sector in employment, turnover and added value of the SMEs in the

manufacturing industry gives grounds to determine the sector as perspective, with development

potential of the general performance and the export.

Inter-sector characteristics

The registered trend of decrease in the number of SMEs in the sector in 2010 relative to

2009 is due to the decrease only in one of the two sub-sectors: “Printing” (1155 SME in 2009

and 1143 enterprises in 2010). In sub-sector “Reproduction of recorded media” the number of

enterprises remains unchanged in 2009 and 2010 – 16.

Obviously due the important weight of printing for the general aspect of the branch

(98,6% of employed), we may say that this is the sub-sector determining the employment in the

sector. In 2010 this is the sub-sector where a growth in the employed has been observed.

During the two years the contribution of both sub-sectors to the total sector turnover is

correspondingly 413 955 thousands BGN (2009) and 462 509 thousands BGN (2010) for

“Printing” and 25518 thousands BGN (2009) and 27718 thousands BGN (2010) for

“Reproduction of recorded media”. The turnover dynamics in both sub-sectors is similar – there

is growth respectively of 11,73% and 8,62%. There is an essential difference concerning the

value added – 7,36% growth for “Printing” and decrease of 18,16% in “Reproduction of

recorded media”.

Regarding labour productivity, the leading position is held by the smaller of the two

sub-sectors - “Reproduction of recorded media”.. For 2010 it is 3,76 folds bigger than the one

of “Printing”. However, at the same time in the sector there is 6,68% growth in productivity for

2010 relative to 2009, while in the case of “Reproduction of recorded media” for the same

period there is a decrease by 21,65%.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” At the moment of elaboration of the export strategy no other official statistical

information have been granted concerning SMEs and the various sectors, as for the years

before 2009, as well as for other indicators, not including the abovementioned.

Printing and reproduction of recorded media is carried in total out by approximately 1

217 companies (2011, MEET). Their regional distribution is given in Table 6 and Graph 3

below.

Table 6 Regional distributions of the companies in sector “Printing and reproduction of

recorded media”

Employed

in the

sector

(number)

% of the

employed in

the region

% of the

employed in

the sector

Companies

in the

sector

(number)

% of the

companies

in the

sector

North-western region 736 0,4% 5,4% 130 10,68%

North-central region 1 213 0,5% 8,9% 164 13,48%

North-eastern region 933 0,3% 6,9% 134 11,01%

South-eastern region 1 371 0,4% 10,1% 175 14,38%

South central region 3 484 0,8% 25,6% 246 20,21%

South-western region 5 891 0,6% 43,2% 368 30,24%

Source: Database Amadeus, MEET, 2011

The distribution of the companies and employed by regions reflects to certain extent

the economic development and the resource availability of the Bulgarian regional development.

The concentration of companies and employed is the highest in the South-western region,

followed by the South-central region, and it is the lowest in the North-western region. At the

same time the interregional differences by % of employed in the corresponding region, are

insignificant – between 0,3 and 0,8%.

One peculiarity of the labour productivity is that the leading position is hold by the

smaller from two sub-sectors – “Reproduction of recorded media”. For 2010 it is 3,76 times

bigger than that of “Printing activity”, despite of its fall by 21,65%.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Graph 3 Distribution of the companies and employed in sector “Printing and reproduction

of recorded media” by regions, 2011

Source: Database Amadeus, MEET, 2011

*Dark blue – Employed in the sector(number of persons)

Light blue – Companies in the sector (number)

North-western region; North Central region; North-eastern region; South-eastern regions;

South central region; South-western region

Important characteristic for the sector “Publishing, printing and reproduction” is also

the dynamics of the industrial production index and its comparison to that of the industry and

in particular to the manufacturing industry.

Table 7 Industrial production index for the period 2001 – 2010 (to the month of December

of the corresponding year, where the base is 2005)

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Industry - general 87,0 86,2 87,7 98,6 110,3 119,5 123,1 132,3 117,6 101,8 107,1

Manufacturing

industry

75,1 71,7 79,3 92,8 106,5 118,2 131 132,6 114,4 96,0 103,3

Printing,

publishing and

reproduction

101,4 85,4 85,7 84,6 94,4 144,9 118,5 158,7 161,9 130,7 128,0

Source: NIS

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” While until 2007 the Industrial Production Index in general for the industry and for the

manufacturing industry is growing with similar dynamic, for sector “Printing, publishing and

reproduction” for the period 2001 – 2003 the values are relatively constant, there is growth in

2005 and a variable movement in the next years. The index continues to fall and in 2010,

although at the minimum, for the industry in general it marks slight increase. That indicates that

the global financial and economic crisis influences more strongly the dynamics of the

production in sector “Printing and reproduction of recorded media”.

The dynamics of the turnover index on the domestic market for the period 2001 -2010 is given

in table 8.

Table 8 Turnover index on the domestic market for the period 2001 -2010 (to December of

the corresponding year, where the constant base is 2005)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Domestic market

Industry – general 83,6 87,7 104,7 94,8 114,9 126,7 142,7 168,9 178,1 150,0 161,4

Processing industry 75,7 75,6 82,5 88,8 110 122,4 144,0 155,7 157,4 135,6 136,9

Printing and

reproduction of

recorded media

68,1 69,0 73,6 85,2 99,5 143,5 125,3 150,1 154,9 117,7 125,6

Source: NSI

The turnover index on the domestic market in printing and reproduction of recorded

media shows constant increase until 2005 and after a slight variation in 2006, it reaches its peak

for the period in 2008. It is followed by a decrease in 2009 and new growth in 2010. The

branch follows the general trend, observed as a whole in the industry and the manufacturing

industry in terms of this indicator.

In total 21 companies by 9 locations in the country have been interviewed in the frame

of a sociological survey, where the distribution by number of employed and annual turnover is

the following:

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 9 SMEs distribution by number of employed and annual turnover

Employed Num. Percent

Less than 10 persons 2 9,5

From 11 to 50 persons 6 28,6

From 51 to 250 persons 13 61,9

Total 21 100,0

Annual turnover

Less than 3 900 000 BGN 12 57,1

From 3 900 000 to 19 500 000 BGN. 8 38,1

From 19 500 001 to 97 500 000 BGN 0 0,0

Didn’t answer 1 4,8

Total 21 100,0

Source: Sociological survey

In the major part of the companies (16,9%) the number of employed varies between 51

and 250. Between 11 and 50 persons is the personnel in 28,6% of the studied companies. Only

two business units (9,5%) have personnel of less than 10 persons. But the basic part of the

companies (57,1%) have annual turnover up to 3 900 000 BGN (that of the lowest group). I.e. it

could be considered that there are some problems with the level of labour productivity in the

sector. Only one of the possible explanations is related to the technical and technological level

of the productivity and (as it will become clear further on in the analysis) this is confirmed by

the opinion of the major part of the respondents.

Within the period 2008 – 2011 the number of companies, having increased their

turnover in relation to the pre-crisis 2007 decreases and increases the number of those with

reduced turnover. However, the major part is of the companies, increasing their turnover.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 10 The companies’ turnover for the period 2008 – 2011 (Base 2007=100 %)

Year Number

of

companies

with

decreased

turnover

Number of

companies

with

preserved

turnover

Number

of

companies

with

increased

turnover

Didn’t

indicate

Ratio between

the companies

with decreasing

and increasing

turnover

Average

value of

change in

turnover

(median

value) in %

2008 4 1 12 4 3,00 110,0

2009 5 1 12 3 2,40 106,5

2010 8 1 11 1 1,38 106,0

2011 7 1 10 3 1,43 103,5

Source: survey

Concerning the studied companies, the analysis of the data, related to certain trends in

the turnover changes for the period 2008 – 2011, makes possible to indicate the following:

One of the companies has stable trend to increasing the turnover and surpassing the base

of 2007

In eight of the companies, although with variations, the turnover is over or at the level

of 2007

In one company the turnover trends to increase, but its values during the studied period

are under the base level.

For six of the companies the trend is to stable decrease the turnover in relation to 2007

In the case of three of the companies there is no certain trend, but the turnover is

variable during the monitored 4 years.

On graph 4 are given the trends of change in the companies’ turnover, having decreased

under the level of 2007 and for those, having increased the turnover over the years.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Graph 4 Average change in turnover of the studied companies by years (in %)

Source: Sociological survey and own calculations

* Blue – Average turnover fall/ Light blue – Average turnover growth

It may be indicated that in the group of companies with “positive” turnover, for the

years 2009 – 2010 is shown slight trend to increasing the values. For the group of companies

under the level of 2007 there is no certain trend.

In addition to the information, collected from the sociological survey, data have been

collected from the Trade Register at the Registry Agency, the Ministry of Justice and an

analysis have been done of the financial condition of the SME, taken part in that study. This

approach has been chosen, as there are no data for the financial condition of the sector as a

whole.

The analysis of the financial situation of companies from sector “Printing and

reproduction of recorded media” has been carried out on the basis of the following groups of

financial and operative indicators.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Profitability indicators

Effectiveness indicators

Financial stability/independence indicators

Liquidity indicators

The analysis has been done on the basis of data from the financial statements of 19

export-orientated SME of the sector, where the exit data for the analysis are shown in the

following table:

Table 11 Exit data for the analysis of the financial condition of 19 companies from sector

“Printing and reproduction of recorded media”, (thousands BGN)

2007 2008 2009 20101

ASSETS 100,030 162988 167309 113702

Fixed assets 65430 115445 122768 88282

Current assets - total, incl.: 33039 45378 42481 24874

Inventories 5589 10436 11368 4320

Receivables 17435 21490 19436 14129

Cash and cash equivalents 8568 7466 6242 4149

LIABILITIES 100030 162988 167309 113702

Shareholders’ equity 44937 60716 54204 45013

Non-current liabilities 29323 55720 65574 38618

Current liabilities 25770 46552 47531 30074

Short-term liabilities 25755 46361 47422 30027

Trade and other payables (suppliers

and clients)

12205 16267 25570 16162

TOTAL REVENUES 88265 113514 102037 56832

Net sales revenues: 85788 107989 96663 53685

TOTAL EXPENSES 80153 106247 102913 56749

Profit before taxation 8112 7267 -876 83

Source: Sociological survey and own calculations

The given data analysis shows the following:

1 Concerning 6 of the studied total of 19 companies, there are no data available for 2010, due to which the

given below conclusions are made for the period 2007 – 2009

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” For the period 2007 – 2009 there is almost two-fold increase in the assets of the

analyzed companies

The current assets are increasing more moderately than the fixed assets

The increase in incomes for 2008 and 2009 relative to 2007 is respectively 28,6% and

15,6%

In 2009 for the total of 19 companies has been reported an accounting loss, while in the

previous two year the profit amounts between 8 and 7 millions BGN in total for the 19

companies. This is due to the higher fall in incomes in 2009 relative to 2008 (11,2%), in

comparison to the fall in expenses for the same period (3,23%).

In 2008 and 2009 the liabilities have increased in relation to 2007, as a result of increase

both of long-term and short-term liabilities.

1. Profitability indicators

The profitability indicators are considered also as indicators for profitableness and

rentability. Thus is established the effectiveness in using the resources or the incomes by the

companies. The indexes of profitability are positive quantities when the financial outcome is

profit, and negative – when the financial result is loss.

In analyzing the companies’ profitableness the following indicators have been used:

Index of profitability of income from sales

The index of profitability of income from sales shows what is the quantity financial

outcome, realized due to the realization of one income unit or, in other words, how many BGN

(lev) income/loss has brought 1 BGN from the net incomes. The index is calculated using the

following formula:

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Index of profitability of income from sales=Profit before taxation/Net sales incomes

The indicator values for the analyzed SMEs are given in the following table:

Table 12 Index of profitability of income from sales

2007 2008 2009 2010

Analyzed 19 SMEs 0,0830 0,0619 -0,0108 0,0008

Within the analyzed period the coefficient of profitability of income from sales is

influenced by the visible fall in incomes in 2009 relative to 2008.

Index of profitability of equity

The index of profitability of equity shows how much profit/loss has realized 1 BGN of

the own capital, respectively, what is the share of the current profit/loss in the equity. This

index is among the indicators used when analysis for investment in given company. The index

is calculated using the following formula:

Index of profitability of equity = Profit before taxation/Equity


Table 13 Indexes of profitability of equity

2007 2008 2009 2010

Analyzed 19 SMEs 0,1584 0,1100 -0,0193 0,0010

In 2008 the rentability of the equity capital decreases in relation to 2007, partially due to

the decrease in the profit before taxation (accounting profit) and to the increase in the own

capital in 2008. In 2009 due to the reported loss for the analyzed SMEs, the value of the

coefficient is negative.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Index of assets capitalization

The index of assets capitalization shows what the financial outcome, resulting from the

use of real assets was. The index is calculated using the following formula:

Index of assets capitalization = Financial outcome/Total assets


Table 14 Indexes of capitalization of the assets

2007 2008 2009 2010

Analyzed 19 SMEs 0.0711 0.0410 -0.0063 0.0004


The values of the coefficient of asset capitalization decreases in 2008 relative to 2007

mainly due to the increase in assets, while the financial outcome endures small decrease.

2. Effectiveness indicators

The effectiveness indicators represent quantity characteristics of the ratio between the

company’s revenues and expenses. These show what economic effects the companies realize

with the help of one unit income or one unit expense.

Classic effectiveness indicators are the index of effectiveness of the expenses and the

index of revenue effectiveness. These are reciprocal and the difference between them is in the

quantity of the indexes and the direction of their change. Due to this reason in the present

analysis is used the index of revenue effectiveness. It shows what expenses are made for 1

BGN of income and is calculated using the following formula:

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Revenue Effectiveness Index = Total expenses/Total revenue


Table 15 Indexes of revenue effectiveness

2007 2008 2009 2010

Analyzed 19 SMEs 0,9081 0,9360 1,0086 0,9985


Due to the negative financial outcome the coefficient of effectiveness of the incomes in 2009 is

over one.

3. Financial stability/independence indicators

The indicators for financial independence give quantity characteristic of the level of

company’s financial independence from creditors. These show the ratio between the own

equity and the total amount of all sources of funding for the company.

Index of financial independence

The index of financial independence gives quantity characteristic of the level of

company’s financial independence from the creditors. If the index is under one, there is

exceeding of debts relative to own equity and vice versa. It is calculated using the following

formula:

Index of financial independence = Equity / Liabilities


Table 16 Indexes of financial independence

2007 2008 2009 2010

Analyzed 19 SMEs 0,8157 0,5937 0,4792 0,6553


of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” There is an essential decrease in the financial independence in 2007 to 2009, due to the

increase in borrowings from credit institutions. In 2010 there is an increase in the financial

independence due to the decrease in the liabilities of the companies in question.

Index of indebtedness

This index shows the level of dependence of the company from its creditors for

arranging its debts. Usually it is under 1 and shows the proportion of debts reported per 1 BGN

own equity. The index is calculated using the following formula:

Index of indebtedness = Liabilities/Equity


Table 17 Indexes of indebtedness

2007 2008 2009 2010

Analyzed 19 SMEs 1.2260 1.6844 2.0867 1.5260


The values of the coefficient of indebtedness of the 19 analyzed SMEs of sector

“Printing and reproduction of recorded media” demonstrate strong dependence on external

funding sources.

4. Liquidity indicator

The index of liquidity shows the company’s capability to redeem its current liabilities.

The liquidity of the 15 companies has been studied using the following indicators:

Index of general liquidity

The index shows to what extent the current liabilities have been covered by assets and is

calculated using the following formula:

Index of general liquidity = Current assets / Current liabilities

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Index of quick liquidity

The index is calculated using the following formula:

Index of quick liquidity= Cur.receiv.+ cur.invest.+cash / Current payables

Index of immediate liquidity


Index of immediate liquidity = Current receivables +cash / Current payables

Index of absolute liquidity


Index of absolute liquidity = Cash / Current payables

The values of the indicator for the analyzed SMEs are given in the following table:

Table 18 Indexes of liquidity

2007 2008 2009 2010

Coefficient of general liquidity

Analyzed 19 SMEs 1.2821 0.9748 0.8938 0.8271

Coefficient of quick liquidity

Analyzed 19 SMEs 1.0658 0.7537 0.6561 0.6845

Coefficient of immediate liquidity

Analyzed 19 SMEs 1.0096 0.6246 0.5415 0.6087

Coefficient of absolute liquidity

Analyzed 19 SMEs 0.3327 0.1610 0.1316 0.1382

The higher the value of the liquidity coefficients, the bigger the readiness of the

company to face its debts. A value under one is an indicator for the impossibility of the

company to pay its current payables, if they are to be pay at once. In such a situation the

company would probably use alternative sources of funding (for example a loan). The

coefficient of general liquidity of the analyzed companies is under one for the major part of the

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” analyzed period (2008 – 2010), where its value is constantly going down, i.e. it decreases the

companies’ capability to cover their debts. The way of calculating the rest of the coefficients of

liquidity suggests their lower values.

The analysis of the coefficient of absolute liquidity, characterizing the company

solvency, in case the maturity of current payables is close to the balance date, shows the limited

capabilities of the analyzed companies.

In fine, the following summary conclusions regarding the condition of the SMEs in

sector “Printing and reproduction of recorded media” can be made:

The SMEs in sector “Printing and reproduction of recorded media” ensure about 2,4%

of the employment, approximately 2,76% of the turnover and around 3,58% of the value added

in the SMEs in the manufacturing industry. That shows that the sector has unused potential for

development and increase in turnover and value added.

The labour productivity in the SMEs in the sector is higher than the average for the

manufacturing industry, but almost twice lower than the leading sector for 2009 and 2010 –

manufacture of pharmaceutical products and pharmaceutical preparations.

In inter-sector aspect the Printing sub-sector is determining for the appearance of the

entire branch. It creates the higher employment, value added and turnover. On the other side the

labour productivity is higher in the “Reproduction of recorded media” sub-sector.

There is an uneven distribution of the companies and the employed by regions in sector

“Printing and reproduction of recorded media”. The concentration of companies and employed

is the highest in the South-western region, followed by the South central region, and the lowest

in the North-western region.

The dynamics of the manufactured production and companies turnover in the field of

printing and reproduction of recorded media, measured by the index of productivity and

turnover, doesn’t show any clear trend within the period 2001 – 2010 for the period 2001-2003

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” are observed relatively constant values, followed by essential growth in 2005 and oscillating

movement in the following years. The decreasing trend in the last three years of the period

indicates that the global financial and economic crisis influences the dynamics of the

production in the sector.

For the period 2007 – 2010 for SMEs, included in the sociological survey, there is a

decrease in sales incomes (especially in 2009)

The questioned SMEs are strongly dependant on external funding sources.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” EXPORT ORIENTATION OF THE SECTOR

The analysis of the export orientation of sector “Publishing, printing and reproduction”

in Bulgaria is organized in a way to give answer to the following questions:

1. What is the place of export within the sector in general and of the small and

medium-sized enterprises for the industry and the manufacturing industry in Bulgaria.

2. What is the development of the export within the sector for the period 2009 –

2010.

3. What is the dynamics of the export of the SMEs in the sector for the period 2009

– 2010

4. What is the place of the export of the various groups, according to CEA-2008 in

the frame of the total export of the sector.

As in the above given information for the domestic market, we are going to show the

graphical expression of the domestic market turnover indexes.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Graph 5 Indexes of the turnover of the sector on the external market for 2000 – 2011

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Индекси на оборота на външния пазар 2000-2011

Datasource: NIS

Excluding the sharp fall in 2003, there are some similar trends for a gradual, although

unstable growth of the exported production.

The Bulgarian companies of the sector are exporting their production for approximately

70 countries worldwide.

The following graph 7 is presenting the development for the last decade of our current

leading partners for the sector.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Graph 6 Top 5 of the Bulgarian export markets for the sector (2001 – 2010 data in thousand

EUR)

Source: MTC

For the reasons of lack of information from the NIS for the total export by sectors, the

dynamics of the total export of goods by sectors has been prepared on the basis of the

information, available in the International trade centre (table 19). Due to the fact that for the

goods classification in the ITC is used the Combine nomenclature (2010), all four division

positions have been analyzed and correlated to the adequate class under CEA 2008, in order to

make possible the comparison to data, given by the NSI. Notwithstanding this “distribution”, it

is possible to have certain discrepancies between the export volume values for the

corresponding sector according to ITC data with the official data of NSI (because of possible

discrepancy in some of the six-digit codes), but from the point of view of the objectives of the

analysis this discrepancy shall be insignificant.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 19 Dynamics of the export by sectors, 2001 – 2010

Sect

or

num

ber Export from Bulgaria 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

thousands

BGN

1

Manufacture of motor

vehicles, except cars 644297,7 904893,0 817561,4 1050215,7 1199256,1 1297381,9 1434796,1 2379559,2 2404247,4 2953443,6

2

Manufacture of metal

products, except

machinery and

equipment 150226,7 144940,5 141343,9 140430,5 162754,3 174695,0 217350,3 209699,1 157279,2 180504,0

3

Manufacture of radio,

television and

telecommunication

equipment 340105,5 409171,9 493301,6 581648,7 589545,0 701292,8 803214,5 738479,1 560334,7 614506,7

4

Total for the 18

sectors

2435681,

3 2691711,0 3068584,8 3190831,3 3159990,7 3320430,1 3321842,9 3034999,1 2598558,5 2741347,6

5 Total export from BG 244250,9 275738,1 309562,9 364164,7 458864,1 579484,6 702892,1 662774,9 575682,6 785503,3

6



7


products, except

machinery and

equipment 258748,7 265124,7 293742,9 301229,7 334480,7 514661,0 614248,3 633728,5 562709,0 688931,9

8


television and

telecommunication

equipment 700231,9 767646,2 800179,7 948099,8 1154034,7 1390424,5 1931544,2 2181999,2 1537950,9 1925968,4

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Sect

or

num


9

Total for the 18

sectors 68484,0 114332,5 153731,1 150824,0 205425,3 303755,3 359473,4 395080,3 392529,1 479543,1


11



12


products, except

machinery and

equipment 192265,1 220109,1 245501,8 288059,3 285975,5 311237,9 380906,0 274022,1 259803,1 359102,0

13


television and

telecommunication

equipment 120607,2 129009,0 170598,0 196676,6 200373,1 191179,5 237182,0 264951,0 134306,5 303874,6

14

Total for the 18

sectors 86524,4 124681,4 161768,1 196365,2 221591,5 237477,5 273462,2 256685,4 206577,8 237082,0


16



17


products, except

machinery and

equipment 525909,1 508218,1 539211,9 748526,9 851665,2 1256090,9 1615683,5 1508280,3 1107334,1 1427109,8

of 127






BG161РО003 – 4.2.01-0001 “Promotion



or

num


18


television and

telecommunication

equipment 89242,5 155225,2 170705,2 186213,9 473170,9 514533,2 421408,3 528136,6 490199,3 464114,5

Total for the 18

sectors

7249814,

1 8086503,1 8943717,2 10036294,7 11488100,0 13314569,6 15644188,4 17038992,9 14418026,3 17766714,6

Total export from BG

11155564

,1 11886800,6 13026809,9 15613700,2 18436113,4 23511655,4 26503711,3 29889710,1 23143142,6 30353296,3

Structure (Share of the sector in the country export, %)

1

Manufacture of food

products 5,78 7,61 6,28 6,73 6,50 5,52 5,41 7,96 10,39 9,73

2

Manufacture of

beverages 1,35 1,22 1,09 0,90 0,88 0,74 0,82 0,70 0,68 0,59

3

Manufacture of textile

and textile products,

except wearing

apparel 3,05 3,44 3,79 3,73 3,20 2,98 3,03 2,47 2,42 2,02

4

Manufacture of

wearing apparel, incl.

leather clothes,

tanning and dressing

of leather 21,83 22,64 23,56 20,44 17,14 14,12 12,53 10,15 11,23 9,03

5

Manufacture of rubber

and plastics products 2,19 2,32 2,38 2,33 2,49 2,46 2,65 2,22 2,49 2,59

6

Manufacture of

chemical and

pharmaceutical

products 8,55 7,16 6,83 5,91 6,78 5,62 6,70 7,16 6,93 7,06

of 127






BG161РО003 – 4.2.01-0001 “Promotion



or

num


7

Manufacture of non-

metallic and mineral

products 2,32 2,23 2,25 1,93 1,81 2,19 2,32 2,12 2,43 2,27

8

Manufacture of

machinery, equipment

and household

appliances 6,28 6,46 6,14 6,07 6,26 5,91 7,29 7,30 6,65 6,35

9

Manufacture of

medical, precise and

optical apparatus and

instruments 0,61 0,96 1,18 0,97 1,11 1,29 1,36 1,32 1,70 1,58

10

Manufacture of office

equipment and

computers 0,43 0,59 0,75 0,78 0,82 0,80 0,86 0,91 0,99 0,93

11

Manufacture of

electric machinery and

apparatus 3,22 3,42 4,18 3,83 3,81 3,83 4,35 4,44 5,73 5,85

12

Manufacture of wood

and products of wood,

except furniture 1,72 1,85 1,88 1,84 1,55 1,32 1,44 0,92 1,12 1,18

13

Manufacture of pulp,

paper and paperboard 1,08 1,09 1,31 1,26 1,09 0,81 0,89 0,89 0,58 1,00

14

Manufacture of

furniture 0,78 1,05 1,24 1,26 1,20 1,01 1,03 0,86 0,89 0,78

15

Publishing, printing

and reproduction

0,04 0,05 0,08 0,05 0,05 0,05 0,08 0,09 0,08 0,05

of 127






BG161РО003 – 4.2.01-0001 “Promotion



or

num


16



17


products, except

machinery and

equipment 4,71 4,28 4,14 4,79 4,62 5,34 6,10 5,05 4,78 4,70

18


television and

telecommunication

equipment 0,80 1,31 1,31 1,19 2,57 2,19 1,59 1,77 2,12 1,53

Total for the 18

sectors 64,99 68,03 68,66 64,28 62,31 56,63 59,03 57,01 62,30 58,53

Total export from BG 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00

Base index, 2001=100

1

Manufacture of food

products 100,00 140,45 126,89 163,00 186,13 201,36 222,69 369,33 373,16 458,40

2

Manufacture of

beverages 100,00 96,48 94,09 93,48 108,34 116,29 144,68 139,59 104,69 120,15

3

Manufacture of textile

and textile products,

except wearing

apparel 100,00 120,31 145,04 171,02 173,34 206,20 236,17 217,13 164,75 180,68

4

Manufacture of

wearing apparel, incl.

leather clothes,

tanning and dressing

of leather 100,00 110,51 125,98 131,00 129,74 136,32 136,38 124,61 106,69 112,55

5 Manufacture of rubber 100,00 112,89 126,74 149,09 187,87 237,25 287,77 271,35 235,69 321,60

of 127






BG161РО003 – 4.2.01-0001 “Promotion



or

num


and plastics products

6

Manufacture of

chemical and

pharmaceutical

products 100,00 89,22 93,35 96,80 131,16 138,64 186,25 224,32 168,16 224,89

7

Manufacture of non-

metallic and mineral

products 100,00 102,46 113,52 116,42 129,27 198,90 237,39 244,92 217,47 266,26

8

Manufacture of

machinery, equipment

and household

appliances 100,00 109,63 114,27 135,40 164,81 198,57 275,84 311,61 219,63 275,05

9

Manufacture of

medical, precise and

optical apparatus and

instruments 100,00 166,95 224,48 220,23 299,96 443,54 524,90 576,89 573,17 700,23

10

Manufacture of office

equipment and

computers 100,00 148,79 206,33 256,46 319,58 398,15 479,48 571,27 481,14 593,65

11

Manufacture of

electric machinery and

apparatus 100,00 113,09 151,63 166,44 195,19 250,25 321,09 368,85 369,23 493,68

12

Manufacture of wood

and products of wood,

except furniture 100,00 114,48 127,69 149,82 148,74 161,88 198,11 142,52 135,13 186,77

13

Manufacture of pulp,

paper and paperboard 100,00 106,97 141,45 163,07 166,14 158,51 196,66 219,68 111,36 251,95

14 Manufacture of 100,00 144,10 186,96 226,95 256,10 274,46 316,05 296,66 238,75 274,01

of 127






BG161РО003 – 4.2.01-0001 “Promotion



or

num


furniture

15

Publishing, printing

and reproduction

100,00 150,73 242,11 183,76 222,90 272,69 527,54 617,07 425,89 354,43

16



17


products, except

machinery and

equipment 100,00 96,64 102,53 142,33 161,94 238,84 307,22 286,79 210,56 271,36

18


television and

telecommunication

equipment 100,00 173,94 191,28 208,66 530,21 576,56 472,21 591,80 549,29 520,06

Total for the 18

sectors 100,00 111,54 123,36 138,44 158,46 183,65 215,79 235,03 198,87 245,06

Total export from BG 100,00 106,55 116,77 139,96 165,26 210,76 237,58 267,94 207,46 272,09

Source: International trade centre

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” The analysis of the given data shows the following:

In 2010 the export of the analyzed sectors as a share of the total export of Bulgaria is at

one of the lowest levels of the ten-year period in question.

The volume of the realized export in 2010 is the biggest for sector „Manufacture of

food products”, ranking it at fist place by share of the total export of Bulgaria.

Out of the 18 studied sectors, 10 have increased the share of their expert in relation to

the total export of Bulgaria for 2010 and respectively in the case of eight sectors has been

registered a decrease.

Sectors „Manufacture of motor vehicles, except cars” and „Manufacture of medical,

precise and optical apparatus and instruments” improve most strongly their positioning for the

period 2001 – 2010 by share in the total country export among the rest of the analyzed sectors,

while sector “Manufacture of beverages” losses the most places in the ranking.

Out of the studied sectors 13 show increase in the export volume faster than the average

rate for the 18 sectors. As the total country export grows faster than the export of the 18 sectors,

in the case of ten sectors the realized export is increasing faster than the average for the

country.

The highest growth in the export volume in value expression has been registered by

sector “Manufacture of motor vehicles, except cars”- over 13 times relative to 2001.

The highest growth in 2010 relative to 2009 has been registered by sector “Manufacture

of pulp, paper, paperboards and products” – over 2 times.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 20 Indicators for the condition of the export of the SMEs in the manufacturing

industry

Groups of companies Export share in the

total export of

SMEs in the

manufacturing

industry (%)

Change in

export

2010/2009

Export volume per

1 employed (BGN)

2009 2010 2009 2010

Manufacture of food products 4,32 3,00 92,43 13867 13428

Manufacture of beverages 0,34 0,16 61,35 9933 6325

Manufacture of textiles and textile products,

except wearing apparel

0,57 0,34 79,33 18701 16139

Manufacture of wearing apparel 6,18 4,36 93,83 16896 17649

Manufacture of leather, manufacture of

footwear and other related products

1,15 0,96 110,87 20217 23182

Manufacture of wood and of products of

wood and cork, except furniture;

manufacture of articles of straw and plaiting

materials

0,50 0,27 72,51 8030 6198

Manufacture of paper, paperboard and

products thereof

0,27 0,13 64,38 8282 6233

Printing and reproduction of recorded media 0,16 0,10 85,97 4040 3449

Manufacture of chemicals and chemical

products

1,26 0,70 74,07 32860 25165

Manufacture of basic pharmaceutical

products and pharmaceutical preparations

0,10 0,07 88,16 13785 11410

Manufacture of rubber and plastics products 1,43 1,12 104,29 15586 17860

Manufacture of other non-metallic mineral

products

0,41 0,29 94,52 4928 5768

Manufacture of fabricated metal products,

except machinery and equipment

1,36 1,09 106,77 7667 9490

Manufacture of computer and

communication equipment, electronic and

optical products

1,05 0,52 66,50 43944 30410

Manufacture of radio, television and

telecommunication equipment and apparatus

0,08 0,05 92,24 18173 14242

Manufacture of electrical equipment 1,00 0,74 98,08 23978 27133

Manufacture of machinery and equipment

n.e.c.

0,96 0,81 112,23 13024 15408

Manufacture of motor vehicles, except cars 0,27 0,18 88,12 26492 25793

Manufacture of furniture 0,49 0,42 114,73 5187 6764

Source: NIS

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” The analysis of the date from the table gives ground to make the following conclusion:

The SMEs of sector “Printing and reproduction of recorded media” take 17th place

among the studied 18 sectors by share of the export in the entire country export of the analyzed

period. However in 2010 this share is lower than in 2009, as the export in the sector falls.

In terms of the indicator “volume of the export per 1 employed” sector “Printing and

reproduction of recorded media” takes last place among the analyzed sectors. At first place is

the manufacture of computer and communication equipment, electronic and optical products.

The comparison of the obtained results with the index of the turnover on the

international market shows the following:

Table 21 Index of the turnover of the international market for the period 2001 – 2010 (to

the month of December of the corresponding year, where the permanent base is 2005)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

International market

Industry - general 64,2 55,0 73,5 69,3 91,5 112,2 120,6 139,3 97,0 110,3 176,9

Processing industry 60,4 53,7 73,0 68,5 91,9 110,1 119,8 140,0 98,3 113,8 180,0

Printing and

reproduction of

recorded media 34,4 71,5 128,7 32,3 49,1 98,1 70,2 100,3 144,3 114,3 101,0

(Source: NSI)

The sales incomes on the international market in sector “Printing and reproduction of

recorded media” are increasing steadily from 2000 to 2002. In the following two years there is

there is sharp decrease and again an increase in 2005, and again with same cyclic recurrence,

peaking in 2008. Since then there is decrease in the turnover on international market in the

sector. To compare – in 2008 in total for the industry and the manufacturing industry there is an

essential decrease in the turnover on the international market, coinciding with the beginning of

the world financial crisis. However, in the following years the general trend for the industry is

ascending, contrary to the printing sector.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Table 22 Indicators for the condition of the export in the frame of sector “Printing and

reproduction of recorded media”

Product Export

(thousands

BGN)

Export

(thousands

BGN)

Structure of

the export (%)

Change in

export

(%)

2009 2010 2009 2010 2010/2009

Printed books, brochures, leaflets and

similar matters

1525.14 3119.24 13.95 27.83 204.52%

Other printed matter, including pictures

and photographs

2085.14 2378.21 19.07 21.22 114.06%

Newspapers, journals and periodicals 3403.05 1893.99 31.12 16.90 55.66%

Maps, hydrographic and similar cards,

incl. atlases and wall maps, etc.

1295.68 1210.19 11.85 10.80 93.40%

Calendars, incl. calendar blocks 1659.94 1167.27 15.18 10.42 70.32%

Plans and drawing for architectural,

engineering, industrial or trade purposes

119.75 481.22 1.10 4.29 401.85%

Children drawing or colouring books 267.45 247.01 2.45 2.20 92.36%

Unused postage stamps, check blanks,

banknotes, security papers

143.41 124.26 1.31 1.11 86.65%

Transfer paintings and decals 42.31 36.9 0.39 0.33 87.21%

Printed or illustrated Post cards, printed

greeting cards

70.27 23.35 0.64 0.21 33.23%

Printed music books or music

manuscripts

0 0 0.00 0.00 0.00%

Source: International trade centre (ITC)

In 2011 we have additional improvement of the indicators, and on the next table could

be followed the dynamics for the passed 5 years:

Table 23 Dynamics of the export in the frame of sector “Printing and reproduction of

recorded media”

Product Export

2007

(thous.

EUR)

Export

2008

(thous.

EUR)

Export

2009

(thous.

EUR)

Export

2010

(thous.

EUR)

Export 2011

(thous. EUR)

Printed books, brochures, leaflets and similar

matters

2,322.1 1,665.83 1,525.14 3,119.24 5,612.29

Other printed matter, including pictures and

photographs

2,792.64 2,387.62 2,085.14 2,378.21 4,128.27

Newspapers, journals and periodicals 6,064.59 6,926.35 3,403.05 1,893.99 1,757.57

Maps, hydrographic and similar cards, incl. 1,219.78 1,743.31 1,659.94 1,167.27 1,234.17

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Product Export

2007

(thous.

EUR)

Export

2008

(thous.

EUR)

Export

2009

(thous.

EUR)

Export

2010

(thous.

EUR)

Export 2011

(thous. EUR)

atlases and wall maps, etc.

Calendars, incl. calendar blocks 403.43 1,538.06 143.41 124.26 951.3

Plans and drawing for architectural,

engineering, industrial or trade purposes

122.56 142.05 1,295.68 1,210.19 845.04

Children drawing or colouring books 20.43 106.03 267.45 247.01 62.46

Unused postage stamps, check blanks,

banknotes, security papers

512.86 25.15 119.75 481.22 38.77

Transfer paintings and decals 12.4 118.26 42.31 36.9 37.33

Printed or illustrated Post cards, printed

greeting cards

106.51 179.43 70.27 23.35 28.72

Printed music books or music manuscripts 0.73 0 0 0 0


Because of lack of data about the export of both groups (18.1. Printing and 18.2.

Reproduction of recorded media) within division 18 “Printing and reproduction of recorded

media”, the information in the above table has been taken from the International trade centre

for the Bulgarian export of products from the corresponding group 49 of the Combined

nomenclature.

Most essential share in the export for 2010 is observed in printed books, brochures,

leaflets and similar matters. In 2009 the leading export products in the sector have been the

newspapers and the magazines.

According to data of the sociological survey more than ¼ (28,6%) of the studied

companies don’t establish cooperation with foreign partners. Two types are practiced in the

rest: export (71,4) and import (23,8%). (The question allows various answers; therefore the sum

of the percents surpasses 100).

During the whole studied five-year period (2007 – 2011) the direct export is

predominating in the companies – these are individually exporting their production. Only 4

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” companies have intermediary export (through other companies or trade organizations), where

three of them do not export directly and one has “mixed type” of export – the export is

individual and through intermediaries. As the indirect export does not affects directly the

studied companies, in the analysis below it won’t be examined. What is special for the

registered information is that three of them have future export and one has refused to give its

export shares. One of the studied companies has episodic export around 2% only in 2008.

Given specifics should be taken into account when interpreting the data for the companies’

direct export.

In table 24 is given the average share of direct export for the studied companies of the

branch for the years 2007 – 2011.

Table 24 Average share of direct export by years

Year 2007 2008 2009 2010 2011

Average share

% (median)

4,0 5,0 5,0 5,0 5,0

Source: Onsite sociological survey

The data in table 25 indicate that the average per cent of the direct export is

significantly low – it doesn’t surpass 5 points and it is stable at that level for the whole period

from 2008 to 2011. These low values find their explanation when is to make an analysis of the

data, given in table 25.

Table 25 Number of companies according to the share of individual export for the period

2007 - 2011

Year Share of the export

No export Up to 30 % 31 – 60 % 61 – 99 % 100 % Didn’t

answer

2007 8 8 2 1 0 2

2008 6 11 1 1 1 1

2009 7 10 1 1 1 1

2010 7 10 1 1 1 1

2011 7 9 1 1 1 2

Source: Onsite sociological survey

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” Based on the given in table 25 data, the following may be indicated:

The structure of the companies, according to the share of their direct export is

unfavourable, for the following reasons: 1) for the studied period prevails the number of

companies, exporting up to 30% of their production (i.e. those with the lowest export share); 2)

at next place come the companies that have not exported at all during the corresponding year;

3) in the groups with higher export shares enters 1 company for the corresponding year. As a

whole the ratio between the number of companies, exporting over 30% and the companies,

exporting to 30% is unfavourable. In other words, the companies with higher export shares are

relatively small number.

It should be pointed expressly one essential peculiarity for the exporters’ group with a

share up to 30%. It is to say that in the group, companies with export over 10% is a rarity – for

each of the years these are only 1 per year and for 2009 there is even no such company. The

basic part of the companies has export shares varying between 1 and 10%.

For the period the number of companies with zero export is maintained to one and the

same level – each year around 1/3 of the studied companies haven’t succeed to export. If we

add thereto the too law export shares of the companies with export of over 30% it comes clear

why the average export values do not surpass 5 point for the period 2007 – 2011.

Only three of the studied companies have stable export for the whole period, where for

one of them the share is approximately 50% of the production and for the rest two it is 100% or

close to that value.

In conclusion, the following summary conclusions regarding the export orientation of

sector „Publishing, printing and reproduction” can be made:

In terms of the export realized in 2010, the sector is ranked on last place among

the 18 analyzed sectors by share of the total export of Bulgaria;

After almost six-fold growth of the export turnover for the sector in 2008

relative to the starting 2001, in 2010 it decreases significantly and marks an increase in

relation to 2001 of 3,54 times.

In 2010 relative to 2009 the export marks approximately 17% fall.

of 127






BG161РО003 – 4.2.01-0001 “Promotion


Bulgarian Enterprises” PRODUCTS AND SERVICES WITH EXPORT POTENTIAL AND

ADVANTAGES

The commodity groups, manufactured and exported in sector “Printing and

reproduction of recorded media” are given in table 26.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 26 Export of printing materials from Bulgaria during the period 2001 - 2010 (thousand EUR)

Product 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Printed books,

brochures, leaflets and

similar matters

814,21 1437,78 1649,18 1529,92 2085,29 2493,98 2322,1 1665,83 1525,14 3119,24 5612,29

Other printed matter,

including pictures and

photographs

663,63 672,37 848,88 1101,41 1835,57 2045,82 2792,64 2387,62 2085,14 2378,21 4128,27

Newspapers, journals

and periodicals

713,82 1872,28 3195,89 1597,45 1045,46 1792,68 6064,59 6926,35 3403,05 1893,99 1757,57

Maps, hydrographic and

similar cards, incl.

atlases and wall maps,

etc.

43,5 124,75 140,45 54,67 67,45 26,27 122,56 142,05 1295,68 1210,19 1234,17

Calendars, incl.

calendar blocks

25,65 76,12 328,6 442,17 512,29 1224,3 1219,78 1743,31 1659,94 1167,27 951,3

Plans and drawing for

architectural,

engineering, industrial or

trade purposes

297,8 138,49 117,48 110,14 456,89 343,09 512,86 25,15 119,75 481,22 845,04

Children drawing or

colouring books

12,27 23,26 19,43 12,86 76,28 9,55 20,43 106,03 267,45 247,01 62,46

Unused postage stamps,

check blanks, banknotes,

security papers

308,95 148,01 210,23 405,19 539,59 259,51 403,43 1538,06 143,41 124,26 38,77

Transfer paintings and

decals

15,61 31,72 180,2 135,06 122,85 48,56 12,4 118,26 42,31 36,9 37,33

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Product 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Printed or illustrated

Post cards, printed

greeting cards

24,54 127,92 124,55 61,9 89,93 66,87 106,51 179,43 70,27 23,35 28,72

Printed music books or

music manuscripts

1,12 1,06 0 0 0,8 1,59 0,73 0 0 0 0

Total 2922 4655 6816 5452 6832 8311 13845 15374 10936 11207 15379


of 127






BG161РО003 – 4.2.01-0001 “Promotion



The selection of commodity groups with export advantages has been done on the bases

of two criteria, in particular higher relative share in the export of the corresponding commodity

group, in combination with growth during the studied period. These criteria were applied for

the sector as a whole, as the official statistical information for the SMEs isn’t available. The

application of the selected criteria, considering the date of the International trade centre (ITC),

gave ground to determine the first 5 commodity groups of the abovementioned, having export

advantages.

The data show that the biggest export share in the sector in 2010 is held by groups:

4901 Printed Books, brochures, leaflets and similar printed matter – 27,83%;

4911: Other printed matter, including pictures and photographs – 21,22%;

4902: Newspaper, magazines and periodicals

4905: Map, hydrographic or similar charts of all kinds, including atlas, wall

maps, etc. – 10,8%%;

4910: Calendars of any kind, including calendar blocks – 10,42%.

The lowest share have correspondingly: printed or illustrated postcards, greeting cards –

0,21% and printed music books or music manuscripts – 0%.

The export of chosen 5 commodity groups in 2010 amount to 9 768,9 thousand EUR or

19 106 thousands BGN, and the total export of the SMEs, manufacturing printing matters for

the same year accounts for 21 918,65 thousands BGN.

Printed books, brochures, leaflets and similar printed matter

The main exporters, the export dynamics and the positioning of our country for this

commodity group according to the data of the ITC, are given in the tables below:

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 27 Ranking of the exporters of printed books, brochures, leaflets and similar

printed matter for the period 2001 – 2010 (thousand EUR)

No. to

2010

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 12142234 11849097 11043916 11107783 11872069 12462423 12949254 12559738 11500007 12227592

1 USA 2270373 2094323 1778046 1657316 1803701 1892380 1922057 1854329 1859817 2019129

2 UK 1845444 1887966 1823545 1904995 1995257 2012881 2162197 1897045 1772959 1873315

3 Germany 1279631 1368889 1187608 1146852 1362140 1383416 1365202 1254089 1114987 1136949

4 Hong Kong,

China

755467 716927 650596 705792 773533 898745 914685 949141 807223 959554

5 China 287262 324852 316294 365426 429347 531846 640754 719337 688632 819270

… … … … … … … … … … … …

73 Bulgaria 814 1438 1649 1530 2085 2494 2322 1666 1525 3119

Source: ITC

Bulgaria takes 73rd place in the world export of printed books, brochures, leaflets and

similar printed matter with a share, accounting for 0,025%.

Table 28 Dynamics of the export of printed books, brochures, leaflets and similar printed

matter for the period 2001 – 2010 (%, 2001=100)

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 100 98 91 91 98 103 107 103 95 101

USA 100 92 78 73 79 83 85 82 82 89

UK 100 102 99 103 108 109 117 103 96 102

Germany 100 107 93 90 106 108 107 98 87 89

Hong

Kong,

China 100 95 86 93 102 119 121 126 107 127

China 100 113 110 127 149 185 223 250 240 285

… … … … … … … … … … …

Bulgaria 100 177 203 188 256 306 285 205 187 383

Source: ITC

In comparison to the leading 5 exporters of this commodity group, the export of

Bulgaria is increasing with far more faster rates.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 29 Positioning of Bulgaria in the world export of printed books, brochures, leaflets

and similar printed matter for the period 2001 – 2010

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Position in world

export

83 75 70 73 73 71 74 78 83 74

Source: ITC

Bulgaria marks the highest position (70) in 2003. Follows a decrease, being the worst

period in 2009 (83d place); but in 2010 there is again an improvement (74th place), with almost

four-fold increase of the export relative to 2001.

Table 30 Share of the Bulgarian export in the export of the leading exporter in worldwide

for 2010 (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 0.04% 0.07% 0.09% 0.09% 0.12% 0.13% 0.12% 0.09% 0.08% 0.15%

Source: ITC

The better positioning of our country among the exporters is related also to the increase

in the share of the Bulgarian export relative to the export of the top exporter.

Other printed matter, including pictures and photographs



Table 31 Ranking of the exporters of “Other printed matter, including pictures and

photographs”, for the period 2001 – 2010 (thousand EUR)

No. to

2010

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 7239874 7310326 7014739 7181123 7808980 8208578 8564104 8731030 7609588 8736880

1 Germany 1352179 1494770 1339253 1369543 1585359 1701414 1808035 1821526 1637447 1699496

2 USA 912636 791480 654459 692660 784315 916657 903614 924420 792318 878396

3 The

Netherlan

ds

285535 264250 273579 294802 313182 361238 365170 368015 376164 516846

4 The Czech

Republic

248862 292836 413866 424144 404526 439551 543093 644900 546716 508033

5 Belgium 479531 460913 549740 521859 531998 498975 525057 529363 445649 504528

… … … … … … … … … … … …

71 Bulgaria 664 672 849 1101 1836 2046 2793 2388 2085 2378

Source: ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Bulgaria takes 71st place in the world export of other printed matter, including pictures

and photographs with a share, accounting for 0,027%.

Table 32 Dynamics of the export of other printed matter, including pictures and

photographs for the period 2001 – 2010 (%,2001=100)

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 100 101 97 99 108 113 118 121 105 121

Germany 100 111 99 101 117 126 134 135 121 126

USA 100 87 72 76 86 100 99 101 87 96

The

Netherlands 100 93 96 103 110 127 128 129 132 181

The Czech

Republic 100 118 166 170 163 177 218 259 220 204

Belgium 100 96 115 109 111 104 109 110 93 105

… … … … … … … … … … …

Bulgaria 100 101 128 166 277 308 421 360 314 358

Source: ITC

The export of the main 5 exporters have different variation rate relative to 2001. Stands

out the largest total growth in the fourth country in 2010 – The Czech Republic, accounting for

double increase for the observed period. The USA, being second by export in this commodity

group for 2010, maintain their positions, although the decrease in comparison to the starting

year. The export of Bulgaria is developing quite dynamically during the ten-year period,

marking a growth of over three times and a half.

Table 33 Position of Bulgaria in the world export of other printed matter, including

pictures and photographs for the period 2001 – 2010

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Position in world

export 70 69 68 67 68 66 67 68 71 71

Source: ITC

The place of Bulgaria in world export is relatively constant, but we should take into

account that the volumes in value expression are increasing.

of 127






BG161РО003 – 4.2.01-0001 “Promotion




for 2010 (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 0.05% 0.04% 0.06% 0.08% 0.12% 0.12% 0.15% 0.13% 0.13% 0.14%

Source: ITC

The increasing share of our country in relation to the export of the leading exporter

worldwide is determined by the faster growth rate of the Bulgarian export.

Newspaper, journals and periodicals



Table 35 Ranking of the exporters of “Newspaper, journals and periodicals”, for the period

2001 – 2010 (thousand EUR)

No. Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 4717566 4710157 4628380 4724346 4779363 4918155 4890837 4759773 4293268 4494031

1 USA 1044820 941379 911303 874909 951795 1016808 933362 864981 801073 906319

2 Germany 735866 781055 761112 802901 886077 865523 857593 846063 752140 769986

3 UK 646002 773174 805450 909853 706394 625167 652172 596388 532630 505833

4 France 429308 389810 398728 405766 407302 388628 391225 413330 443277 432621

5 Belgium 136505 154972 157272 153737 152326 170780 205119 223588 215304 232464

… … … … … … … … … … … …

56 Bulgaria 714 1872 3196 1597 1045 1793 6065 6926 3403 1894

Source:ITC

Bulgaria takes 56th place in the world export of other printed matter, including pictures


of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 36 Dynamics of the export of Newspaper, journals and periodicals for the period

2001 – 2010 (%,2001=100)

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 100 100 98 100 101 104 104 101 91 95

USA 100 90 87 84 91 97 89 83 77 87

Germany 100 106 103 109 120 118 117 115 102 105

UK 100 120 125 141 109 97 101 92 82 78

France 100 91 93 95 95 91 91 96 103 101

Belgium 100 114 115 113 112 125 150 164 158 170

… … … … … … … … … … …

Bulgaria 100 262 448 224 146 251 849 970 477 265

Source:ITC

The export of Bulgaria in this commodity group marks an essential growth in 2007 and

2008 relative to 2001. But only within the following two years it falls more then three times.

Concerning the leading five exports attracts the attention the ascending development of the

export of Belgium, while for the rest there is any trend to determine.

Table 37 Position of Bulgaria in the world export Newspaper, journals and periodicals for

the period 2001 – 2010

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Position in

world export 58 50 42 54 63 57 41 40 49 56

Source:ITC

The increasing volumes of the export of this commodity group in 2007 and 2008 lead to

the more foregoing position of Bulgaria for the period in question.


for 2010 (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 0.07% 0.20% 0.35% 0.18% 0.11% 0.18% 0.65% 0.80% 0.42% 0.21%

Source:ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The more essential increase of the export in 2007 and 2008 leads to the increase of the

share of the Bulgarian export in the export of the leading exporter worldwide – USA, but still

remains insignificant compared to him.

Maps, hydrographic or similar charts of all kinds, including atlas, wall maps,

etc.



Table 39 Ranking of the exporters of “Map, hydrographic or similar charts of all kinds,

including atlas, wall maps, etc.”, for the period 2001 – 2010 (thousand EUR)

No.

To

2010

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 202766 192223 187336 197808 207350 218619 245726 235024 216816 207463

1 UK 44403 37809 44823 42037 48366 56078 65133 58243 51748 64350

2 Germany 12886 13240 18104 28638 29341 32376 49737 44814 40495 25040

3 Italy 24520 27546 26012 31228 26067 27448 30419 32865 24332 22994

4 China 1298 4998 2968 1475 2879 8323 8704 10265 10744 16010

5 USA 15200 14146 13286 15887 15055 12647 10291 12723 10742 10631

… …

17 Bulgaria 43 125 140 55 67 26 123 142 1296 1210

Source:ITC



Table 40 Dynamics of the export of Map, hydrographic or similar charts of all kinds,

including atlas, wall maps, etc. for the period 2001 – 2010 (%,2001=100)

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 100 95 92 98 102 108 121 116 107 102

UK 100 85 101 95 109 126 147 131 117 145

Germany 100 103 140 222 228 251 386 348 314 194

Italy 100 112 106 127 106 112 124 134 99 94

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

China 100 385 229 114 222 641 671 791 828 1233

USA 100 93 87 105 99 83 68 84 71 70

… … … … … … … … … … …

Bulgaria 100 291 326 128 156 60 286 330 3014 2814

Source:ITC

The data for the export dynamics show an essential increase of the Bulgarian export of

this commodity group – over 30 times in 2009 and over 28 times in 2010 relative to 2001. Out

of the first five countries – exporters, only China (4th place) marks more dynamic export

increase.

Table 41 Positioning of Bulgaria in the world export Map, hydrographic or similar charts

of all kinds, including atlas, wall maps, etc. for the period 2001 – 2010

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Position in

world export

52 45 42 56 60 68 46 45 18 17

Source:ITC

The increasing volume of the export leads to the better positioning of the country

among the exports for this commodity group in 2009 and 2010. In 2010 it even improves its

position, although the slight decrease of the export, due to the low export growth worldwide.


for 2010 (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 0.10% 0.33% 0.31% 0.13% 0.14% 0.05% 0.19% 0.24% 2.50% 1.88%

Source:ITC

The multi-fold increase of the Bulgarian export for this commodity group is the reason

for its more essential share relative to that of the leading country – UK, in 2010 and more

notably in 2009.

Calendars of any kind, including calendar blocks

of 127






BG161РО003 – 4.2.01-0001 “Promotion





Table 43 Ranking of the exporters of “Calendars of any kind, including calendar blocks”,

for the period 2001 – 2010 (thousand EUR)

No. to

2010

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 347657 339712 325061 341379 375119 366754 340720 318291 315533 346523

1 China 26243 28559 25904 33784 42706 53369 63069 73631 68209 81246

2 Germany 57603 56065 57120 58360 58175 57774 52825 44688 42926 50388

3 Republic of

Korea

21743 18817 19308 17947 21886 24738 19748 18822 18918 25361

4 USA 39975 36751 32719 34396 34199 35418 29673 26494 21314 23577

5 The

Netherlands

4915 4017 3967 3281 4276 5358 4476 3564 26781 23170

… … … … … … … … … … … …

30 Bulgaria 26 76 329 442 512 1224 1220 1743 1660 1167

Source:ITC



Table 44 Dynamics of the export of Calendars of any kind, including calendar blocks for

the period 2001 – 2010 (%, 2001=100)

Exporters 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total 100 98 94 98 108 105 98 92 91 100

China 100 109 99 129 163 203 240 281 260 310

Germany 100 97 99 101 101 100 92 78 75 87

Republic

of Korea 100 87 89 83 101 114 91 87 87 117

USA 100 92 82 86 86 89 74 66 53 59

China 100 82 81 67 87 109 91 73 545 471

… … … … … … … … … … …

Bulgaria 100 292 1265 1700 1969 4708 4692 6704 6385 4488

Source:ITC

Year 2008 is the best for the Bulgarian export for this commodity group within the

analyzed period, where the dynamics is clearly defined with over 67 times increase relative to

of 127






BG161РО003 – 4.2.01-0001 “Promotion



2001. In 2010 the increase is over 44 times. China, holding the leading position in 2010 also

marks a positive increase trend slightly over 3 times.

Table 45 Position of Bulgaria in the world export calendars of any kind, including calendar

blocks for the period 2001 – 2010

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Position in world

export

74 58 41 43 41 33 32 27 27 30

Source:ITC

Thanks to the clearly defined dynamics in export, Bulgaria improves its position for the

analyzed period, as it is highest in 2008 and 2009 – 27th place.


for 2010 (%)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 0.10% 0.27% 1.27% 1.31% 1.20% 2.29% 1.93% 2.37% 2.43% 1.44%

Source:ITC

The multi-fold increase of the Bulgarian export for this commodity group is the reason

for it’s more essential share relative to that of the leading country – China, in 2008 and 2009, as

well as during the last 2010, although to a less extent.

FACTORS, DETERMINING THE SUCCESS OF THE EXPORT (according to a

sociological survey)

In table 47 below are given the respondents’ evaluations regarding the factors, related to

the company’s success in the export of goods and services.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 47 Evaluations of the respondents regarding the level of importance of the factors,

related to the export success (in %)

Important factors Evaluation

Very important Important Not important

Low labour cost 52,4 33,3 14,3

High qualification of the

personnel

71,4 28,6 0,0

High technological level 85,7 14,3 0,0

Own R&D base 30,0 60,0 10,0

Personnel, experienced in

export activity

66,7 33,3 0,0

Logistic support from the

state in exporting

55,0 40,0 5,0

Source: Survey

In the evaluations of the questioned, given in table 45, we may still observe the high

priority of the technical and technological modernizations and the need of “highly qualified”

personnel. The high technological level (85,7%); high qualification of workers and employees

(71,4%) and personnel, experienced in foreign trade (66,7%) are the undisputable favourites

among the factors, ensuring export success. Moreover, none of the respondents considers the

given factors as not being important for the successful export. Relatively less important seem

“law labour cost”, as these have share with the lowest total value in the first two scale levels

(very important and important).

In fine, the following summarizing conclusions regarding the goods and services with

export advantages and potential, manufacture by the SMEs in sector “Printing and reproduction

of recorded media” may be made:

The commodity group with the best performance in the sector is group “Printed books,

brochures, leaflets and similar printed matter”, holding 74th place in the world export in 2010.

This position is close to the highest for the sector (70th in 2003);

Commodity group “Maps, hydrographic and similar cards, incl. atlases and wall maps,

etc.” holds the higher place in world export (17th) out of the five analyzed commodity groups

of the sector;

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The questioned companies indicate as highly proprietary the technical and technological

modernizations and the need of “highly qualified” personnel. According to the respondents,

these are the factors, ensuring the export success.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



COMPETITIVENESS OF THE EXPORT OF GOODS AND SERVICES

TO FOREIGN MARKETS

We are going to examine the main export markets of our country for each of the

commodity groups, identified as possessing export advantages and potential (see page 62).

According to data of the ITC, the volume of the Bulgarian export for the whole group

49 “Printed books, journals, pictures, etc.” is given in the table below:

Table 48 Volume of the Bulgarian export for group 49“Printed books, journals, pictures,

etc., 2006 – 2010, thousand EUR

Importers Export

2006

Export

2007

Export

2008

Export

2009

Export

2010

Export

2006-2010

Total 8311.42 13845.04 15374.45 10936.23 11206.52 59673.66

Rumania 1219.53 2815.26 6197.09 2506.76 1071.63 13810.27

France 2112.68 1932.53 2085.86 2521.82 3422.73 12075.62

Greece 1039.62 1361.3 1380.38 2560.54 3035.65 9377.49

Serbia 384.49 1205.91 915.49 443.85 564.81 3514.55

Russia 144.88 549.34 127.77 264.59 554.26 1640.84

Germany 519.81 302.03 112.82 261.72 443.56 1639.94

UK 270.65 68.58 371.09 506.23 268.85 1485.4

The

Netherlands

148.06 261.17 470.32 166.35 250.02 1295.92

USA 375.73 206.46 251.47 180.69 249.27 1263.62

The Czech

Republic

35.03 53.99 11.55 37.29 164.92 302.78

Bosnia and

Herzegovina

10.35 2.92 4.08 9.32 124.26 150.93

Albania 177.52 444.28 264.39 149.14 112.96 1148.29

Austria 247.57 315.89 222.93 87.48 103.92 977.79

Source: ITC

The main export of the country in the EU is directed to Rumania, France, Greece,

Germany and the UK.

Out of the EU, main markets are Serbia, Russia, USA, Bosnia and Herzegovina and

Albania.

Below is given the export of the determined in chapter 3 commodity groups with

highest export potential.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Printed books, brochures, leaflets and similar matter

The main 10 importers worldwide constitute approximately 56% of the total import of

printed books, brochures, leaflets and similar matter.

Table 49 Main 10 importers for 2010

Importers Import, 2010 Structure, %

Total 12841268 100.00

USA 1508875 11.75

UK 1069967 8.33

Canada 1030382 8.02

France 701821 5.47

Hong Kong, China 599290 4.67

Germany 500508 3.90

Switzerland 472715 3.68

Austria 452267 3.52

Australia 400871 3.12

Belgium 400708 3.12

Source: ITC

In 2010 the main markets for Bulgaria are:

in the EU are France, Greece, Rumania, UK and Belgium,

outside the EU – USA, Albania, Norway, Russia, Serbia.

The first five competitors and their share on world markets in the EU of Bulgaria in

2009 – 2010, are given below (the ranking of the countries is made to 2010):

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 50 Main competitors on the EU markets, where the Bulgarian export is the biggest,

2009 – 2010

France

BG Export for 2010 – 1796,84 thousand EUR2

2009 2010

1 Italy 17.80% 20.01%

2 Belgium 14.50% 14.04%

3 UK 13.39% 11.20%

4 Germany 12.44% 11.16%

5 China 8.76% 10.99%

… … … …

23 Bulgaria 0.10% 0.21%

Greece

BG Export for 2010 – 1331,44 thousand EUR

2009 2010

1 UK 33.51% 31.43%

2 Israel 17.66% 21.56%

3 Germany 15.06% 10.29%

4 Spain 1.62% 8.31%

5 Italy 4.92% 5.78%

… … … …

9 Bulgaria 1.83% 2.08%

Rumania


2009 2010

1 Hungary 31.08% 38.69%

2 Italy 35.04% 33.59%

3 Germany 6.04% 6.03%

4 UK 7.61% 5.20%

5 Serbia 0.29% 2.63%

… … … …

1

9 Bulgaria

0.60% 0.24%

UK


2009 2010

1 USA 36.32% 37.01%

2 China 11.78% 12.90%

3 Hong Kong,

China

10.91% 12.74%

4 Germany 9.80% 8.92%

5 Singapore 4.15% 3.93%

… … … …

60 Bulgaria 0.0048% 0.0064%

2 The data for the Bulgarian export are according to the export statistics of the ITC. It is different than the

import statistics, due to a number of reasons, the most important of which are: different trade systems (for

examples inclusion or exclusion of free zones), ways of measuring the quantity (for example gross or net), lag time

for the reported periods, re-export, etc.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Belgium


2009 2010

1 France 40.43% 42.59%

2 The Netherlands 30.37% 31.16%

3 UK 7.45% 7.11%

4 China 4.98% 4.07%

5 Germany 3.12% 3.54%

… … … …

4

5 Bulgaria

0.01% 0.01%

Source: ITC

The analysis of the data shows that:

Bulgaria is having more essential positions in the export of printed books,

brochures, leaflets and similar matter on the Greece market, that is due mainly to the

proximity of both countries;

The export of Bulgaria as part of the total import of the leading country partner

for this group (France) is insignificant in percentage ratio, and on the other side, this is

the highest volume, exported by our country.

In the given below table are showed the first five competitors and their share on

the main markets for Bulgaria outside the EU in 2009 – 2010 (the ranking of the

countries is made to 2010).

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 51 Main competitors out of the EU markets, where the Bulgarian export is the

biggest, 2009 – 2010

Russia

BG Export for 2010 .- 513,6 thousand EUR

2009 2010

1 Germany 31.33% 19.61%

2 Italy 29.51% 14.78%

3 China 7.02% 14.37%

4 Ukraine 5.73% 7.31%

5 UK 3.81% 5.05%

… … … …

29 Bulgaria 0.03% 0.22%

USA


2009 2010

1 China 40.11% 43.20%

2 Canada 14.81% 12.32%

3 UK 10.67% 11.06%

4 Singapore 5.21% 4.37%

5 Hong Kong,

China

4.27% 3.92%

… … … …

84 Bulgaria 0.0020% 0.0013%

Albania


2009 2010

1 Greece 21.21% 20.88%

2 Serbia 7.20% 15.92%

3 UK 16.37% 14.63%

4 Turkey 6.86% 8.83%

5 Germany 3.14% 7.86%

… … … …

12 Bulgaria 3.19% 1.50%

Norway


2009 2010

1 UK 18.97% 20.23%

2 Sweden 15.17% 16.80%

3 Germany 10.73% 9.70%

4 Denmark 15.30% 9.28%

5 Latvia 5.58% 7.75%

… … … …

35 Bulgaria 0.03% 0.03%

Serbia


2009 2010

1 UK 23.74% 22.47%

2 China 15.83% 11.63%

3 Italy 2.93% 10.94%

4 Slovenia 7.73% 8.49%

5 Croatia 7.15% 6.64%

… … … …

35 Bulgaria 0.02% 0.04%

Source: ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The analysis of the data shows that the biggest market of Bulgarian export for this

commodity group out of the EU is Russia, where we are relatively well presented as trade

partners in the branch ranking.

Other printed matter, including pictures and photographs

The main 10 importer worldwide constitute around 58% of the total import of other

printed matter, including pictures and photographs.



Total 7841798 100,00

USA 954436 12.17%

France 628599 8.02%

Germany 617235 7.87%

Switzerland 492860 6.29%

Canada 432270 5.51%

UK 387047 4.94%

The Czech Republic 333477 4.25%

The Netherlands 267936 3.42%

Belgium 241966 3.09%

Japan 216356 2.76%

Source: ITC

The main markets of Bulgaria are:

In the EU – France, Greece, Germany, Austria and Italy,

outside the EU – Russia, Serbia, USA, Switzerland and Macedonia.

In the table, given below, are shown the first five competitors and their share on the

main for Bulgaria markets in the EU within 2009 – 2010 (the ranking of the countries is made

to 2010)

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 53 Main competitors on the EU markets, where the export of Bulgaria is the highest,

2009 – 2010

France


2009 2010

1 Germany 26.87% 27.05%

2 Belgium 20.21% 17.80%

3 Italy 16.50% 14.21%

4 USA 4.01% 5.38%

5 Spain 6.90% 4.95%

… … … …

65 Bulgaria 0.0055% 0.0035%

Greece


2009 2010

1 Germany 22.08% 23.28%

2 Italy 20.62% 16.08%

3 The

Netherlands

3.48% 13.99%

4 France 14.21% 5.74%

5 China 6.46% 4.95%

… … … …

16 Bulgaria 1.65% 1.22%

Italy


2009 2010

1 Germany 31.95% 33.49%

2 USA 16.87% 11.63%

3 France 11.14% 11.40%

4 UK 7.30% 7.56%


… … … …

26 Bulgaria 0.05% 0.11%

Germany


The Czech Republic 2009 2010

1 France 44.00% 34.81%


3 Italy 6.50% 7.15%

4 Austria 3.50% 6.86%

5 … 5.87% 6.34%

… Bulgaria … …

49 The Czech Republic 0.01% 0.02%

Austria


2009 2010

1 Germany 50.63% 46.62%

2 Slovenia 18.15% 20.15%

3 The Czech

Republic

8.91% 11.51%

4 Hungary 3.79% 4.01%

5 Switzerland 4.62% 3.81%

… … … …

54 Bulgaria 0.0058% 0.0047%

Source: ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The analysis of the data shows, that

For 2010 the biggest export of Bulgaria for goods of this commodity group is

addressed to France.

In the case of 4 out of the 5 export partners for Bulgaria, Germany is the leading

country-exporter.

Out of its five biggest markets, Bulgaria holds best position on the Greek market.

In the below table are shown the first five competitors and their share on the main for

Bulgaria markets outside the EU within the period 2009 – 2010.


biggest, 2009 – 2010

Russia


2009 2010

1 Poland 17.58% 22.27%

2 Germany 21.03% 21.44%

3 Finland 18.96% 15.66%

4 Italy 6.02% 7.95%

5 China 4.15% 5.09%

… … … …

47 Bulgaria 0.01% 0.02%

Serbia

BG Export for 2010 – 320,81 thousand

EUR

2009 2010

1 Germany 26.93% 17.16%


3 Poland 9.69% 11.36%

4 Italy 5.08% 9.27%

5 Croatia 6.05% 7.02%

…

25 Bulgaria 0.46% 0.31%

USA


2009 2010

1 Canada 32.52% 31.57%

2 China 29.36% 30.17%

3 Mexico 8.51% 8.60%

4 Germany 6.28% 6.78%

5 UK 3.73% 3.34%

… … … …

46 Bulgaria 0.02% 0.02%

Switzerland


2009 2010

1 Germany 61.44% 59.62%

2 Italy 6.60% 8.58%

3 France 8.01% 7.76%

4 Austria 8.43% 7.06%

5 The

Netherlands

2.76% 3.08%

… … … …

58 Bulgaria 0.0142% 0.0043%

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Macedonia

BG Export for 2009– 24,85 thousand EUR

2009 2010

1 Sweden 16.55% No data

2 Serbia 15.73% No data

3 Poland 12.70% No data

4 Germany 10.17% No data

5 Italy 6.28% No data

… … … …

14 Bulgaria 1,67% No data

Source: ITC


Although Russia is the biggest market of Bulgaria out of the EU for this commodity

group, the share of the Bulgarian export relative to the rest of the importers in Russia is

insignificant and our country still ranks on 47th place in terms of this indicator with 0,02%.

Our export to Serbia and Macedonia is ranked on a relatively front positions

(respectively 25th

and 14th

), but also keeps staying under or less than 1% of the respective

market.

Newspaper, journals and periodicals

The main 10 importers worldwide constitute around 35,5% of the total import of

newspapers, journals and periodicals.



Total 4907185 100,00

Canada 769522 0.16

Germany 427414 0.09

France 391946 0.08

Switzerland 314450 0.06

Belgium 259405 0.05

Ireland 168025 0.03

China 162076 0.03

Russia 160953 0.03

UK 145468 0.03

Spain 141598 0.03

Source: ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Out of the indicted countries, only Germany represents an essential export market for

Bulgaria. The main markets of the country are:

in the EU - Rumania, Greece, Germany, The Netherlands, The Czech Republic,

outside the EU – Serbia, Georgia, Macedonia.

In table 56 are presented the first five competitors and their share on the world markets

for Bulgaria in the EU for the period 2009 – 2010.


2009 – 2010

Rumania


2009 2010

1 Italy 35.51% 33.25%

2 Hungary 8.62% 15.49%

3 France 4.10% 7.89%

4 Poland 1.21% 7.70%

5 UK 2.93% 6.28%

… … … …

8 Bulgaria 6.00% 5.49%

Greece


2009 2010

1 Germany 18.86% 19.51%

2 UK 18.80% 18.62%

3 Turkey 7.73% 11.62%

4 France 9.24% 9.85%

5 USA 9.03% 8.41%

… … … …

11 Bulgaria 1.61% 1.64%

Germany


2009 2010

1 Poland 37.79% 39.60%

2 France 16.68% 16.85%


4 UK 10.17% 10.69%

5 Austria 6.90% 7.18%

… … … …

45 Bulgaria 0.0054% 0.0019%

The Netherlands


2009 2010

1 Belgium 23.19% 38.61%

2 Germany 26.53% 20.93%

3 UK 25.12% 17.30%

4 USA 11.03% 10.93%

5 France 4.37% 4.68%

… … … …

13 Bulgaria 0.17% 0.15%

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The Czech Republic

BG Export for 2010. – 54,22 thousand EUR

2009 2010

1 Slovakia 42.37% 40.58%

2 Poland 16.77% 27.78%

3 Germany 26.33% 18.30%

4 UK 3.36% 4.19%

5 Spain 4.07% 4.02%

… … … …

15 Bulgaria 0.17% 0.10%

Source: ITC


Bulgaria has better positions in the export of products of this group in Rumania,

holding 8th

place.

Similar volume has the country export in Greece, holding also relatively front position

– 11th

place. To the rest of the export markets Bulgaria holds quite rear positions with low share

percent of the share in the import of the corresponding market.

of 127






BG161РО003 – 4.2.01-0001 “Promotion




biggest, 2009 – 2010

Serbia


2009 2010

1 Greece 38.85% 23.65%

2 Croatia 13.57% 16.40%

3 Slovenia 11.67% 13.95%

4 Bulgaria 1.59% 9.61%

5 Rumania 0.00% 7.61%

Georgia


2009 2010

1 Russia 31.35% 45.58%

2 Turkey 33.32% 34.68%

3 Germany 6.10% 9.65%

4 Austria 1.56% 4.23%

5 Azerbaijan 7.33% 2.74%

6 Bulgaria 15.77% 1.56%

Macedonia


2009 2010

1 Serbia 72.36% No data

2 Slovenia 18.89% No data

3 Croatia 6.82% No data

4 Germany 1.08% No data

5 Bulgaria 0.58% No data

Source: ITC

The data shows that:

The biggest market out of the EU for goods of this group for Bulgaria is Serbia, where

our country is placed on 4th

position in 2010.

Concerning the import in the other two countries – Georgia and Macedonia – it has also

front positions, but the absolute volumes here are significantly smaller.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Maps, hydrographic or similar charts of all kinds, including atlas, wall maps, etc.

The main 10 importers worldwide constitute around 53% of the total import of




Total 207692 100,00

USA 19246 9.27%

Singapore 15760 7.59%

Germany 13418 6.46%

France 12069 5.81%

Greece 10073 4.85%

Japan 9006 4.34%

The Netherlands 8464 4.08%

Belgium 7928 3.82%

Italy 7827 3.77%

Ireland 7702 3.71%

Source: ITC

Out of the listed 10 leading importers for this commodity groups Greece, Germany,

Belgium, The Netherlands, Italy and France fall also among the top ten markets for Bulgaria.

Respectively the main markets of the country are:

in the EU - Greece, Germany, UK, Belgium and the Netherlands,

out of the EU – Russia, Canada.

In the table 59 below are presented the first five competitors and their share on the

world markets for Bulgaria in the EU for the period 2009 – 2010 (the ranking of the countries

is made to 2010).

of 127






BG161РО003 – 4.2.01-0001 “Promotion




2009 – 2010

Greece


EUR

2009 2010

1 UK 81.01% 85.65%

2 Malta 0.00% 5.39%

3 Italy 11.33% 3.61%

4 China 3.56% 1.82%

5 Germany 1.63% 1.34%

… … … …

11 Bulgaria 0.11% 0.10%

Germany


2009 2010

1 UK 20.80% 24.44%

2 China 21.95% 23.54%

3 Italy 15.51% 18.83%


5 The Czech

Republic

6.97% 6.41%

… … … …

15 Bulgaria 0.30% 0.29%

UK


2009 2010

1 USA 23.43% 29.06%

2 China 9.29% 22.88%

3 Italy 10.58% 15.76%

4 Hong

Kong,

China

2.59% 8.94%

5 Germany 19.87% 6.20%

… … … …

17 Bulgaria 0.17% 0.34%

Belgium


2009 2010

1 UK 31.53% 38.37%

2 France 32.27% 38.05%


4 Germany 5.06% 3.12%

5 China 5.19% 2.77%

… … … …

19 Bulgaria 0.00% 0.14%

The Netherlands

BG Export for 2010. – 5,27 thousand EUR

2009 2010

1 Italy 26.03% 24.92%

2 UK 21.83% 24.49%

3 Germany 19.89% 22.73%

4 Belgium 11.69% 10.44%

5 China 7.69% 4.68%

… … … …

30 Bulgaria 0.17% 0.06%

Source:ITC

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The analysis shows that:

United Kingdom is the biggest importer of the listed markets, where another country

with strong performance is China.

Common for the five countries, the share of Bulgaria of the total import thereto is

under 0,5%, where the more front position in import the country holds in Germany. .

Most essential in terms of values is the export of Bulgaria for Greece.

In the table below are presented the first five competitors and their share on the world

markets for Bulgaria out of the EU for the period 2009 – 2010


biggest, 2009 – 2010

Russia


2009 2010

1 Italy 35.51% 33.25%

2 Hungary 8.62% 15.49%

3 France 4.10% 7.89%

4 Poland 1.21% 7.70%

5 UK 2.93% 6.28%

… … … …

8 Bulgaria 6.00% 5.49%

Canada


2009 2010

1 Germany 18.86% 19.51%

2 UK 18.80% 18.62%

3 Turkey 7.73% 11.62%

4 France 9.24% 9.85%

5 USA 9.03% 8.41%

… … … …

11 Bulgaria 1.61% 1.64%

Source: ITC

It is obvious that

Out of the EU the largest export of Bulgaria goes to Russia and Canada.

The total country export for this commodity group is addressed mainly to the EU

countries.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Calendars of any kind, including calendar blocks

The main 10 importers worldwide constitute around 71% of the total import of




Total 386081 100,00

USA 107284 27.79%

Canada 26440 6.85%

Germany 25111 6.50%

Japan 20072 5.20%

Switzerland 19511 5.05%

UK 18788 4.87%

Hong Kong, China 17271 4.47%

Austria 15961 4.13%

France 12854 3.33%

Australia 10953 2.84%

Source: ITC

In 2010 Bulgaria exports to all of the given states (without Canada, Hong Kong and

Australia), but the main markets are:

in the EU – France, Greece, Austria and Rumania,

outside the EU – Albania, USA, Switzerland, Serbia and Macedonia (the export for all

that countries is insignificant and won’t be examined below).

In the table below are presented the first five competitors and their share on the world

markets for Bulgaria in the EU for the period 2009 – 2010.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 62 Competitors in the EU markets, where the Bulgarian export is the biggest, 2009 –

2010

France


2009 2010

1 China 36.21% 32.19%

2 Italy 10.79% 13.74%

3 Germany 13.71% 10.97%

4 Bulgaria 11.32% 7.72%

5 Belgium 5.11% 7.13%

Greece


2009 2010

1 Italy 22.14% 23.38%

2 India 27.05% 20.58%

3 Germany 9.42% 12.00%

4 Turkey 20.53% 11.26%

5 Croatia 0.00% 6.22%

… … … …

8 Bulgaria 1.88% 3.42%

Austria


2009 2010

1 Germany 64.68% 63.80%

2 Italy 16.00% 17.84%

3 Hungary 4.11% 4.76%

4 Indonesia 0.80% 2.96%

5 China 2.34% 2.66%

… … … …

35 Bulgaria 0.02% 0.06%

Rumania


2009 2010

1 Germany 35.72% 42.59%

2 The Czech

Republic

1.79% 7.97%

3 Poland 4.94% 5.53%

4 Hungary 14.15% 4.97%

5 Belgium 3.92% 4.50%

… … … …

13 Bulgaria 2.47% 1.97%

Source: ITC

The data show that:

Bulgaria is one of the leading importers of calendars, including calendar blocks

at the French market. It holds 8th place on the Greek market.

In the table below are presented the top five competitors and their share on the world

markets for Bulgaria out of the EU for the period 2009 – 2010.

of 127






BG161РО003 – 4.2.01-0001 “Promotion




biggest, 2009 – 2010

Source: ITC

The analysis shows that:

Albania is an important export market for the Bulgarian goods from this commodity

group and our country is ranked 10th among all importers.

Although its remoteness, the USA are the second biggest export market out of the EU.

However the percentage expression of the Bulgarian export is insignificant on the background

of other big exporters in the USA - China, Republic of Korea and Canada.

The information from the carried out sociological survey makes possible to follow the

main export destinations of the companies and the approximate share, the regions hold in the

Albania


EUR

2009 2010

1 Turkey 13.08% 40.89%

2 Italy 19.41% 18.67%

3 China 13.50% 13.78%

4 Germany 15.19% 5.34%

5 Slovenia 4.64% 3.11%

… … … …

10 Bulgaria 8.01% 1.78%

USA


2009 2010

1 China 48.16% 50.39%

2 Republic of

Korea

14.90% 18.88%

3 Canada 18.35% 16.40%

4 Mexico 4.41% 4.57%

5 Hong Kong,

China

4.29% 2.36%

… … … …

36 Bulgaria 0.00% 0.01%

Switzerland


2009 2010

1 Germany 74.84% 75.81%

2 Italy 10.20% 9.74%

3 Austria 4.36% 4.82%

4 France 2.72% 2.33%

5 Belgium 0.70% 1.12%

… … … …

28 Bulgaria 0.04% 0.03%

Serbia


2009 2010

1 Germany 41.59% 47.71%

2 Italy 7.71% 9.64%

3 Austria 4.67% 6.26%

4 Rumania 0.00% 5.54%

5 Croatia 6.07% 5.30%

… … … …

15 Bulgaria 1.17% 0.96%

of 127






BG161РО003 – 4.2.01-0001 “Promotion



whole market totality. Graph 7 shows the distribution of the international markets, where the

branch companies are realizing their production.

Graph 7 Export markets of the studied companies (in %)

*USA – 2,63; Others – 2,63; Middle East – 2,63; Other EU countries – 5,25; EU countries –

73,68; Balkan states out of EU – 13,16

The graph clearly shows that main destination is the EU, holding 73,68%. Front

positions at this more generally defined region hold Rumania, France, Greece and Germany

(these have been indicated from most companies in the given ranking). Second come the

Balkan countries, non-EU members – mainly Serbia. The rest of the destinations have share of

around or fewer than 5%. More than 1/3 (34,2%) of the export destinations of the companies

are for Balkan countries (in and out of the EU). This represents a serious challenge for the

sector companies, as one of their main competitors on the international markets are namely the

countries from our region.

On the below graph are showed the export share of the studied companies and the

number of markets these are related to.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Graph 8 Percentage distribution of the export by number of export markets

*number of markets/export percentage: up to 30%, 31-60%, 61-99%, 100%

The number of markets where the export is up to 30% is the biggest. Only in the case of

7 of them surpass 10%. In the case of the rest 20 markets the export share of the studied

companies is under this border-line (it accounts from 1 to 10%). In the next export intervals the

number of markets is almost equal. Moreover, in summary, the markets with export over 30%

are almost 4-fold less than the number of those, where the export is up to 30% of the goods.

Main competitors on world markets for the studied companies are the EU Member

States. Predominantly those of Western Europe (43,3%), followed by the Balkan countries

(29,8%) and almost with same share (26,9%) come the Central European countries. At the first

places among the competitors from Western Europe are Germany and France. Main rival in the

Balkan region is Greece, and of the Central European countries – Poland and the Czech

Republic.

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Among the countries out of the EU main competitor of the Bulgarian enterprises is

Turkey (45,0%). Follow China (25,0%) and Russia (15,0%). The other competitive countries

(Serbia, Taiwan, and Ukraine) are indicated by a small number of respondents. The data on the

analysis make possible to indicate at least two more things:

A relatively small number of competitive countries out of Europe has been

indicated, what could mean that these export destinations are not well-known. As

mentioned above, the export markets out of our continent are fewer than 10 % (see

figure 4).

Turkey is not an export market for the Bulgarian companies, but their main

competitor, which is dangerous, as it is within our region and could easily remove the

Bulgarian companies from other Balkan countries or to take faster the existing niches.

The protectionism policy of Turkey for the export of the Turkish companies is well-

known.

The questioned managers indicate a number of advantages, their competitors have. It

could be said that these are due mainly for the following reasons: 1) National export and import

policy; 2) Modern technologies and lower productivity costs; 3) Higher quality of the goods; 4)

Traditions and experience in export activity; 5) Lower export prices – here mainly and banally

is mentioned China. Some interesting opinions regarding the advantages of the competitors to

the Bulgarian companies may be quoted. “EU countries are exporters for many years and know

very well the markets, as regarding the necessities volume, as well as regarding the prices”;

“The European countries have long-term contracts with big companies”; “They have patented

technologies”. In other words, the “rivals” advantages are related exactly with those factors, the

questioned managers evaluate as highly critical and with big priority for the Bulgarian

companies.

The “portfolio” of the perspective markets and the assessment of their perspective,

according to the companies’ managers, is too unfolded. For that reason it is difficult to present

these data in a more summarized way. In Table 64 are shown the respondents’ opinion for the

various markets

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Table 64 Reasons for the export markets perspective

Perspective market Reasons to be perspective

European market High product consumption

USA We are working with them

Russia Due to volume

EU-Spain, France Higher standard and production volume

Serbia Low transport cost

Finland Our prices are good for their markets

Sweden More profitable prices

EU We are convinced that our country will change its

policy

Balkan countries They like the quality and the prices

Serbia Closer as region

Rumania Proximity, population size

Serbia Low transport cost

Moldova Bulgarians live there

Rumania We are working with them

Russia Big, insatiable market

Greece Because of the proximity to Bulgaria

Rumania Because of the volume

Scandinavian countries High Standard and production volume

Rumania Low transport cost

Sweden Our prices are good for their markets

Finland More profitable prices

Macedonia Quality, price, convenient transport

Rumania Low transport cost

Rumania We have contacted them

Ukraine Bulgarians live there

France High cost price of French products

France Good prices

Belgium High Standard and production volume

Belgium They are buying bigger quantities

Rumania lower transport costs

Macedonia Profitable prices

Greece Economic conjuncture

of 127






BG161РО003 – 4.2.01-0001 “Promotion



Perspective market Reasons to be perspective

Serbia Bulgarians live there

Russia, Ukraine, Moldova Huge market

Macedonia Bulgarians live there

UK High cost price of the products

The opinion of the respondents regarding the changes in the export of the studied

companies in the next 5 years is given in Table 65.

Table 65 Changes in the company export in the next 5 years (in %)

The analysis shows that 66,7% of the companies’ managers are optimistic and consider

that they are going to have better export position in the next 5 years. The major part of them

(47,6%) think that, although slowly, the export will grow. Another 14,3% expect their export to

grow fast. There are no pessimists. For 9,5 % of the companies the starting of export is

upcoming. However the share of the respondents, who cannot estimate what will happen is

relatively high (23,8%), i.e. there is certain uncertainty in the future of the export.

In fine, the following summarizing conclusions regarding the competitiveness of the

export of goods in sector „Publishing, printing and reproduction” can be made:

The main external markets for the companies of the sector are the EU member states.

Their main trade partners and clients are: Rumania, France, Greece, Germany and the UK.

Out of the EU their main markets are Serbia, Russia, USA, Bosnia and Herzegovina and

Albania.

What will change %

It will grow fast 14,3

It will grow, but slowly 47,6

It will stay at the present level 4,8

It will decrease, but slowly 0,0

It will decrease quickly 0,0

We are going to start exporting 9,5

Can’t say exactly 23,8

of 127






BG161РО003 – 4.2.01-0001 “Promotion



The position of Bulgaria among the main suppliers of given market are strongly

dependant on its dimension – identical volume ranks the country at different places in the

various countries.

The export of Bulgaria of printed books, brochures, leaflets and similar matters for

Greece ranks our country at 9th place among all exporters to this market.

In value expression France is the biggest market for Bulgaria regarding printed books,

brochures, leaflets and similar matters.

Albania is showing up as good market for our country out of the EU – commodity

groups “printed books, brochures, leaflets and similar matters” and “calendars, incl. calendar

blocks”.

Bulgaria has good export positions in the field of newspapers, journals and periodicals

in Rumania, holding 8th place of all importers.

of 127

Operational programme “Development of the competitiveness

of the Bulgarian economy” 2007-2013, Priority axis

4.2. “Promoting the internationalisation of the Bulgarian

enterprises” Project № BG161РО003 – 4.2.01-0001 “Promotion Of the Internationalization of the Bulgarian

Enterprises”

BARRIERS TO THE SMALL AND MEDIUM-SIZED ENTERPRISES

FOR INTERNATIONALIZATION AND MEASURES AND

PERSPECTIVES FOR EXPORT PROMOTION AND DEVELOPMENT

The internalization is one of the ten main principles of Small Business Act (SBA) – the

main document of the European Committee regarding the policy to SMEs in EU developed in

2008 – and it includes all different groups of activities related to connections with foreign

markets that one company starts at accomplishing its economic activity. The global dynamics

regarding the political and macro-economic circumstances results in internalization and in our

days it includes not only goods and services for foreign countries but also a great number of

other activities – direct foreign investments, formation of partnerships with foreign companies,

recruiting foreign experts as sub-contractors, participation in international networks and

others. The external trade relationships are characterized with big differentiation and individual

approach. This strategy aims at improving the export process of the Bulgarian SMEs in the

sector, but internationalization is seen as narrower concept, covering only the export of

products.

The analysis of the barriers to the export activity of the SMEs from sector “Publishing,

printing and reproduction” have been elaborated on the basis of the information, obtained from

the sociological survey.

Barrier to the internationalization of the SMEs of the sector

The managers of the studied companies have evaluated the level of seriousness of the

main barriers (obstacles) for the export as for their company, as well as for the sector as a

whole for the period 2007 – 2011.

of 127





Enterprises”

Table 66 Evaluation of the level of seriousness of the main barriers (obstacles) for the

export of the companies and for the sector as a whole for the period 2007 – 2011 (in %)

Barriers (obstacles) Level of seriousness of the barriers (obstacles)

Very

serious and

serious

obstacle

Very serious

and serious

obstacle

Very serious

and serious

obstacle

Very serious

and serious

obstacle

For the

company For the sector

For the

company

For the

sector

1. High production cost of goods and

services 19,0 21,1 81,0 78,9

2. High export-realization cost 38,1 38,9 61,9 61,1

3. Not enough high quality of goods

and services 20,0 36,8 80,0 63,1

4. Lack of qualified personnel, ensuring

quality 40,0 42,1 60,0 57,9

5. Lack of experience in foreign trade 57,1 57,9 42,9 42,1

6. Language barriers 38,1 26,3 61,9 73,7

7. Unfavourable business environment

in Bulgaria 57,1 52,6 42,9 47,4

8. High risk of the various external

markets 61,9 63,2 38,1 36,8

9. Custom and non-custom restriction

of other countries 9,5 21,1 90,5 78,9

10. Lack of support by the Bulgarian

state for the export 52,6 73,7 47,3 26,4


The evaluated by the respondents’ barriers to the export may be divided with certain

conventionality in three groups:

barriers, related to the technique-technological level (indicator 1, 2 and 3);

human-related obstacles (4, 5 and 6);

obstacles, arising from the actions (or omissions) of the State and its structures (7, 8, 9

and 10).

The data analysis makes possible to indicate the following.

of 127





Enterprises”

First, according to the respondents evaluations, the major part of the barriers follow in

the scope of “Not very serious and not an obstacle”. This is valid the most for factors, related in

the first two conditional groups. There, only the barrier “lack of experience with foreign

activity” has been related to the factors, having serious or very serious character.

Second, the barriers from the third conditional group (except “custom or non-custom

restrictions of other states”) are in the scope of “very serious and serious obstacles” to export

activity.

Third, for almost all of the listed obstacles, the companies shares and for the sector as a

whole have approximately equal values. There are three exclusions – for the factors “not

enough high quality of goods and services”, “custom or non-custom restrictions” and “lack of

support by the Bulgarian state for the export”- the values for the sector are significantly higher

than those of the company. “Language barriers” are less serious at branch level, than for the

studied companies.

Fourth, as it has already been mentioned, the most serious barriers for the export as of

the companies, as well as for the sector are those of the third conditional group. To them is

added one obstacle from the second conditional group (the human factor) – “lack of experience

in foreign trade”. For the studied companies the most serious barrier (at first place) comes the

“higher risk of the various external markets”. From the point of view of the sector, at first place

is the “lack of support by the Bulgarian state for the export”.

Measures for supporting the SMEs and promoting the export

The respondents’ opinion for prioritizing the measures for supporting the small and

medium-sized enterprises from the sector until 2013 and in the following framework period

(2014 – 2020) is shown in Table 67.

of 127





Enterprises”

Table 67 Prioritizing of the measures for supporting the small and medium-sized

enterprises

Priority Extremely high and

high priority

Average priority Low priority and no

priority

until

2013

2014 -

2020

Until

2013

2014 -

2020

Until

2013

2014 -

2020

Encouraging the export

of the companies 85,7 90,5 9,5 9,5 4,8 0,0

Support for

technological

modernization of the

companies

90,5 95,2 9,5 4,8 0,0 0,0

Support for meeting the

EU standards 85,0 81,0 5,0 9,5 10,0 9,5

Funding of innovation

projects 76,2 81,0 23,8 19,0 0,0 0,0

Training and

promoting the

qualification of the

employed in SMEs

71,4 76,2 23,8 19,0 4,8 4,8

Attraction of direct

foreign investments 57,1 57,1 33,3 38,1 9,6 4,8

Business co-operation

and participation in

clusters

33,3 33,3 42,9 38,1 23,8 28,6

Consultant and IT

services 38,1 42,9 42,9 42,9 19,0 14,3

Improvement of the

access to funding 90,5 85,7 4,8 4,8 4,8 9,5


The analysis of the data of Table 67 let us indicate the following more important

moments, related to the priority measures for supporting the small and medium-sized business

of the sector until 2013 and for the following frame period (2014 – 2020).

First, the respondents are unanimous that almost all the listed measures are of great

importance for the sector development. Definitely the evaluations in the “extremely high and

high priority” range are predominating. As a whole, there are no essential differences in the

opinion regarding the priority measures until 2013 and the following period (2014 – 2020).

However, there is certain exchange of two close places in the ranking of some measures, for

example, for the first period “encouraging the companies’ export” come at third place, and for

of 127





Enterprises”

the following period it comes to the second. According to the major part of the experts, for both

periods the ranking of the most important measures (from I to IV place) is the following:

Support for technological modernization of the companies (I place for both

periods)

Improvement of the access to funding (it shares I place for the first period with

the measure above and goes to III place for the second period);

Encouraging the export of the companies (III place for the first period and II

place for the second);

Support for compliance with the standards of the EU (IV place for both periods)

Second, comparing the levels of importance of the measures with equal ranking attracts

the attention that their importance is “drawn” to the positions “extremely high” and “high

priority” for the period 2014 - 2020. In other words, the respondents consider that in the future

for the indicated by them priority measures it will be necessary to ensure more money.

Third, it is important to indicate that the measure “Improvement of the access to

funding”, sharing the I place for the period until 2013, it drops down with 5 points its

importance for the future framework period, “falling” to third place.

Fourth, comparing the relative shares of positive (extremely high and high priority) and

the negative (low priority and no priority) part of the scale for each of the given measures it is

obvious that the evaluations are focused in their positive part and the margin between this two

shares is clearly defined. In other words, according to the questioned, the indicated measures,

although different in rank, have their importance and would contribute to the existence and

development of the SMEs in the sector.

Fifth, the measures “Consultant and information services” and “Business co-operation

and participation in clusters” are marked as having lowest priority for both periods. This factors

are exception from the abovementioned, as their shares in the average level are higher.

of 127





Enterprises”

Less than 1/5 of the studied companies have received co-financing of the national

budget and European funds, or other donors. In both cases, these were grants under programme

“Competitiveness”, where one of the projects is about certification. There is one company,

received co-financing for 2 projects. It seems important the answer of one of the respondents,

who has indicated that “the company has won three projects, but none of them has been

funded.” At the background of the most important priority (support for the technological

modernization of the production), placed first, it may be indicated that co-financing received

only in 1/5 of the companies seem quite insufficient. The registered information doesn’t give

possibility to estimate whether the branch companies’ activity is not enough in searching for

co-financing and project development or the problem stems in the structure and donors,

participating in the business support.

Sources of information

The awareness of the analyzed companies on the export problems has been studied by

ranking of various sources of information the respondents use or doesn’t use in their

companies. The distribution of these evaluations is given in Table 69.

Table 68 Regularity of use of the sources of information (in %)

Sources of

information

Evaluation

Main

regular

source

Additional

regular source

Additional

irregular

source

Not used

as a source

BSMEPA 0,0 4,8 9,5 85,7

Branch

organization

9,5 4,8 14,3 71,4

Colleagues from

the sector in

Bulgaria

20,0 30,0 5,0 45,0

Colleagues from

the sector abroad

9,5 33,3 4,8 52,4

Own investigations 47,6 38,1 4,8 9,5

Internet 52,4 28,6 0,0 19,0


of 127





Enterprises”

It is clear that the managers of the studied companies prefer individually to collect the

necessary export information and count less on the information from the BSMEPA and the

branch organization. However, slightly under 15,0% have indicated that the information of

BSMEPA represents an additional source (regular or irregular). The share of persons (85,7%)

that doesn’t use this information at all is high. Also 71,4% of the exports doesn’t count on the

branch organization. The main constant sources of information are the own investigations

(47,6%) and Internet (52,4%). However, these share doesn’t seem enough to be well-informed

about the problems in export, although concerning approximately half of the companies.

Efficiency of the services, provided by BSMEPA

The evaluations regarding the effect of the services, provided by BSMEPA on the

export activity of the company, are given in the table below.

Table 69 Effect on the companies’ export of the services, provided by BSMEPA (in %)

Services, provided by BSMEPA High

effect

Average

effect

Low

effect

No effect

Foreign-trade information 6,7 26,7 26,7 40,0

Information about international and

regional markets

6,7 33,3 6,7 53,3

Organization of the participation in

international exhibitions and fairs

6,7 20,0 26,6 46,7

Organization of business forums in the

country and abroad

13,3 26,7 13,3 46,7

Organization of information campaigns 6,7 26,7 20,0 46,7

Information about international

tenders

6,7 33,3 6,7 53,3

Information about offers and queries

by foreign companies

13,3 13,3 13,3 60,1


(6 respondents haven’t answered to this question. Most of them do not use the BSMEPA service

and two have no contacts with it. In the table are given the percentage from valid answers)

The analysis of the data shows that at the highest (as services with high and average

effect) are estimated:

Organization of business forums in the country and abroad (40,0%)

of 127





Enterprises”

Information about international and regional markets (40,0%)

Information about international tenders (40,0%)

However, half of the respondents consider that the BSMEPA services have no effect on

the export of their companies – the shares in this part of the scale vary between 46,7% and

60,1%. An exclusion is the service “Foreign-trade information”, where the negative answers

are 40,0%. In other words, BSMEPA is to increase its activity and to strengthen its relations

with SMEs, in order to make popular in the future its activity and the small and medium-size

companies in Bulgaria to actually feel they are “taken care” by the competent State structures.

The additional information, mainly the studied companies do need is logistics (65,0% of

the answers). The mechanisms of international trade payments is an information, necessary for

35,0%. There are some other things listed, the respondents would like to know more: studies

about the conditions of the European markets in the field of printing; information from State

bodies – in which countries live Bulgarians, etc. Additional information need 25,0%. (The

question allows more than one answers.)

Only 33,3% of the questioned companies have clear and well grounded export strategy,

and 66,7% have no such. Critically low is the share of the companies, knowing what to do for

their export. Probably, they are to be timely supported for the development of well grounded

export strategies.

Part of the interviewed managers has estimated that they would like to share their

additional opinions, regarding the measure for supporting the SMEs and promoting the export.

We are literally quoting these opinions.

“The agency should analyze the needs of reaching the EU markets”.

“We need more foreign-trade information”.

“We need clear vision in medium-term for the development of our country and clearly

formulated priorities in short-term plan”.

“Business is made with money and State support”.

of 127





Enterprises”

“Higher attention to the small and medium-size business and organization of exhibitions

and fairs in Bulgaria”.

“To invite managers from the country and the branch, as well as specialists to exchange

information and to cooperate – to be organized by BSMEPA.”

“There is need of better cooperation between the branch organizations and the printing

companies”.

“There is need of better advertising of the products on the international market, fairs,

exhibitions – by branches”.

“What the State could make is to organize for the various companies’ partial financial

support, the way it is done partially for tourism”.

Factors, influencing the SMEs export

The experts of the studied companies have ranked certain factors, according to their

impact on the companies’ export, where 1 is the highest mark and 9 – the lowest. Relatively

highest (3,00) is the mark for factor “support for the participation to international fairs,

exhibitions and business forums”. At second place – with mark 3,50 – are financial services

and products (crediting, insurance, etc.). At third place – with mark 4,00 – are the factors

“communication with trade representatives” and “provision of information and consultant

services”. Other mentioned factors receive mark below the average (i.e. below 4,50). The

lowest possible (9,00) mark has received the factor “organization of trade missions abroad”.

Main conclusions regarding the barriers to the SMEs internationalization and the

necessary measures to encourage the export in sector „Publishing, printing and reproduction”:

The main conclusion regarding the barriers to the export of the companies from

the sector is that the most essential obstacles are related to external factors and mostly

with the high risk of the external markets. A serious barrier, related to the human factor,

is the lack of experience in foreign-trade.

of 127





Enterprises”

The companies clearly understand that to be competitive on the international

markets, they need to reach high technological level and high quality standards – the

most serious priority is given to measures, through which they are expecting to receive

financial assistance from the State namely in this direction.

Almost all priority measures for supporting the SMEs from the sector are

increasing their importance in the next programme period 2014-2020. It means that it

will be necessary to allocate more funds for the measures application to the ends of

developing the sector companies.

Most of the companies count on their own possibility to gather the necessary export

information. However, as a whole the companies are not using enough the available

information sources related to export, decreasing the level of their awareness.

of 127





Enterprises”

BBUUSSIINNEESSSS EENNVVIIRROONNMMEENNTT AANNTTII--CORRUPTION CCOOMMPPOONNEENNTTSS

The level of transparency and the corruption risk should be analyzed as crucial elements

in the assessment of the availability of favorable business environment for the SMEs

internalization in the sector – at a national level, as well as in the identified priority export

markets.

ІІ.. LLEEGGAALL RREEGGUULLAATTIIOONN OOFF TTHHEE AACCTTIIVVIITTIIEESS OOFF TTHHEE EEXXEECCUUTTIIVVEE

AAGGEENNCCYY FFOORR PPRROOMMOOTTIIOONN OOFF SSMMAALLLL AANNDD MMEEDDIIUUMM EENNTTEERRPPRRIISSEESS::

CCOORRRRUUPPTTIIOONN RRIISSKK AASSSSEESSSSMMEENNTT

1. HIERARCHY OF THE LEGAL FRAMEWORK

The work, organizational structure and functions of the Executive Agency for

promotion of Small and Medium Enterprises (the SME Agency) are laid down in the Law on

Small and Medium Enterprises, its Implementing Provisions and the Statute of the SME

Agency. Other secondary legislation and internal bylaws have been adopted as well. A

Regulation on the terms and conditions for awarding contracts under Art. 7(2) of the Law

(direct negotiation procedures) has been approved by Decree of the Council of Ministers. The

analysis reveals that the centre of regulatory gravity is shifted to second-level legislation and

the executive bodies are given extended powers to regulate this type of activity, at the expense

of the legislature.

2. STAKEHOLDERS AWARENESS OF THE AGENCY’S ACTIVITIES

Organizational arrangements are in place to ensure that the framework of procedures

and activities is accessible by a wide circle of users. The website of the SME Agency contains

all laws and regulations related with its work. Information is also available on the specific

activities and opportunities provided by the Agency. The information is regularly updated to

ensure better awareness of all stakeholders. It should be noted that these are only prerequisites

of 127





Enterprises”

for better awareness of the Agency by increasing its transparency, which in turn reduces the

chances for exacting potential corruptive pressures on the users of its services.

3. JUDICIAL REVIEW OF THE ACTS

The administrative acts issued by the SME Agency in exercising its powers and

performing its activities are subject to judicial review under the Administrative Procedure

Code.

4. ANTICORRUPTION MEASURES

4.1 GENERAL FRAMEWORK

The SME Agency has developed and put in place Internal rules for protection of

persons submitting reports regarding corruption (whistleblowers), abuse of power, trading in

influence and conflict of interest against staff members of the Agency, Internal rules regarding

provision of access to public information and Internal administrative arrangements for checks

undertaken by the Ombudsman.

It is envisaged a detailed procedure for registration and follow up of the received

reports, which afford maximum protection to the submitter of the report.

4.2 RULES FOR FOLLOWING UP THE REPORTS

The staff member alleged in the report can not continue dealing with the case, to which

the report relates. If the case has not been assigned to the alleged staff member, measures are

taken to restrict any access of the latter to information and materials related with the case.

The internal rules are contain detailed measures for protection of whistleblowers who

report alleged cases of corruption, abuse of power, trading in influence and conflict of interest.

4.3 REPORTING

While adequate regulatory provisions are in place for the work of the administrative

bodies and the mechanisms for prevention and combating corruption, and for protection of

whistleblowers, there is no feedback about the follow-up on the submitted complaints and

reports or the final outcomes of the inquiries made. Neither is there information about how

of 127





Enterprises”

many reports are confirmed, dismissed or referred to other competent authorities for further

investigation.

Making this feedback publicly available would let all stakeholders and organisations see

clearly the results from the activities aimed at assistance and promotion of small and medium

enterprises as well as the measures taken to prevent illicit acts of administrative officials in

carrying out these processes.

LLEEGGAALL RREEGGUULLAATTIIOONN OOFF TTHHEE AACCTTIIVVIITTIIEESS OOFF BBUULLGGAARRIIAANN EEXXPPOORRTT

IINNSSUURRAANNCCEE AAGGEENNCCYY EEAADD:: CCOORRRRUUPPTTIIOONN RRIISSKK AASSSSEESSSSMMEENNTT

1. LEGAL REGULATION OF THE ACTIVITIES

The Export Insurance Code governs the activities of the Agency related with the

performance of the specific functions entrusted to it by the State. Detailed arrangements of the

various types of insurance services are laid down in the Rules of Bulgarian Export Insurance

Agency EAD on the activities and procedures related with the conclusion of insurance

contracts and settlement of insurance claims. The detailed regulation envisages clear and

accessible procedures and reduces the scope for discretionary decisions of the administration.

2. STAKEHOLDER AWARENESS OF THE AGENCY’S ACTIVITIES

The procedural rules are available to a wide circle of users of the Agency’s services. All

laws and regulations related with its activities are posted on the website of the Agency.

Detailed information is available for the various procedures and the required documents. The

information is updated on regular basis to ensure better awareness of the stakeholders. It should

be noted that these are only guideline materials and the choice of a specific option for using the

export insurance services should be a matter of additional research.

3. JUDICIAL REVIEW OF THE AGENCY’S ACTIVITIES

The relationships between Bulgarian Export Insurance Agency EAD and its

counterparties do not occur at the plane of administrative law. They are governed by the rules

of the civil law.

of 127





Enterprises”

Any disputes or differences of opinion between the Agency and the insured party

related to settlement of claims under insurance contracts (policies) are resolved by negotiations.

If the parties fail to reach an agreement, the insured party or a third beneficiary, if so provided

for in the insurance contract, can contest the refusal for payment of insurance compensation or

the amount of the compensation before the Board of Directors. If the negotiations and the

subsequent decision on the contestation of the insured party or the third beneficiary do not lead

to resolution of the dispute, the party concerned can file for court action under the Civil

Procedure Code.

Pursuant to Art. 14(7) of the Export Insurance Act, the Bulgarian Court of Auditors

(National Audit Office) exercises specific control insofar as the financial operations related

with the activities of the Agency are at the expense of the State.

4. DIRECT ANTICORRUPTION MEASURES

The Rules of Bulgarian Export Insurance Agency EAD does not contain specific

arrangements for filing of complaints/reports regarding corruptive behaviour of staff members

of the Agency (whistleblowing). There are no specific provisions for protection of

whistleblowers who report suspected cases of abuse of power, trading in influence or conflict

of interest. Neither are there specific rules regarding the staff members alleged in these reports.

Despite the specific character of the Agency as a business/commercial entity, one should try to

look beyond the confines of the concept that anticorruption rules are a territory reserved for the

state administration only. The business sector also uses and applies such rules.

LLEEGGAALL RREEGGUULLAATTOONN OOFF TTHHEE AACCTTIIVVIITTIIEESS OOFF TTHHEE NNAATTIIOONNAALL CCUUSSTTOOMMSS

AAGGEENNCCYY:: CCOORRRRUUPPTTIIOONN RRIISSKK AASSSSEESSSSMMEENNTT

1. HIERARCHY OF THE LEGAL FRAMEWORK

Being a centralized administrative structure under the Minister of Finance, the National

Customs Agency (NCA) and its work are regulated by the Community and national legislation.

At supranational level, customs affairs are subject to a huge number of international and

customs conventions, treaties and agreements.

of 127





Enterprises”

A) The functions of the customs administration and the procedures liable to customs

control and supervision are regulated by one national law and a plethora of second-level

legislation, including rule books, ordinances, instructions and decrees. Numerous EC

Regulations on the working arrangements of the customs administration and the procedures

applicable to movements of goods within and outside the Community, including the Regulation

establishing the Community Customs Code, are directly applicable in Bulgaria and prevail on

the national legislation in case of conflict and divergence.

B) The work of the customs administration and the procedures liable to customs control

are also the subject matter of administrative acts issued by the Director General of NCA alone

or jointly with the heads of other agencies involved in the movement of the goods concerned.

C) The last level in the hierarchy of the legal instruments comprises the individual

decisions and other acts, which the customs officers directly responsible for the particular

movements or procedures take every day in respect to the operators concerned, however these

decisions and other acts do not apply to customs matters in their generality.

There is a balance between the acts issued by the customs administration and those

issued at higher levels. Since the customs procedures can be very diverse, the day-to-day work

involves numerous decisions, which the customs administration is expected to make. On the

other side, however, both the national laws (the Customs Act and its Implementing Rules) and

the EU acquis provide operational independence to customs officers in making these decisions,

which quite frequently results in unjustified decisions and impediments for the operators

concerned.

In a number of cases the highly detailed rules render the operators unable to fulfill the

statutory requirements in order to receive permission for the desired customs procedure or

arrangement.

The very detailed Community and national rules for the so called “simplified

procedures” in practice prevent their wide application as there are many requirements to the

of 127





Enterprises”

operators who wish to use them, so very few companies have obtained Approved Exporter or

Approved Economic Operator (AEO) status. Although electronic declaration procedures are

available, essentially they provide little facilitation to the clients of the customs administration

since the existing laws and regulations still require the (physical) presentation of various

documents.

2. STAKEHOLDER AWARENESS OF CUSTOMS ACTIVITIES

The legal rules governing the customs procedures are available to a wide circle of users

of the customs administration’s services. The NCA website contains all laws and regulations, at

national and EU level, concerning the movement of goods. The information is updated on

regular basis to ensure better awareness of all stakeholders. However, an issue that has to be

raised is the complexity of customs work and the difficulties involved in the practical

application of the various customs procedures, especially if they are pursued without the help

of customs brokers.

Regarding the details of the customs procedures, the Customs Act establishes the right

of free access to information and the conditions under which the customs administration may

issue Binding Tariff Information (BTI) and information about the origin of the goods.

3. JUDICIAL CONTROL ON THE ACTIVITIES OF THE AGENCY

The decisions issued by customs officers are individual administrative acts and

therefore must be supported with reasons. They can be appealed administratively or in court.

Despite the existence of explicit norms, the final decision as to whether the legal requirements

for issuing the act requested by the customs client are met or otherwise is in the discretion of

the administrative authority. This fact does not determine the final contents of the act, but it

costs financial and human resources and time for the customs client to appeal the act to a higher

administrative level or in court. However, the actionable administrative acts do not include the

numerous decisions to demand additional information or documents, which are left to the

discretion of the customs officers directly involved in the procedure. In essence, this may lead

to unreasoned demands aimed at achieving results which are not regulated by the law. The

preemption of these “decisions” must equally be the objective of regulatory, structural and

of 127





Enterprises”

functional changes aimed at reducing to reasonable limits the discretionary powers of customs

authorities. While the customs legislation contains very detailed rules for each and every

customs procedure, it nevertheless leaves leeway for discretionary decisions of the customs

officers, and this, rather than facilitating the users of the customs services and the customs

officers themselves, leads to displacement of focus and replacement of the objectives intended

by the law.

4. DIRECT ANTICORRUPTION MEASURES

4.1 GENERAL FRAMEWORK

The efforts to reform the customs administration and achieve higher integrity of

customs officers have lead to serious structural and staff changes, new rules for recruitment of

customs officers, new forms of job description sheets, and a new integrated IT system for

management of human resources. In order to achieve greater transparency in the work of the

administration, citizens transiting the border crossing points are asked to complete anonymous

questionnaires. New forms and methods for attestation of the staff members are introduced and

job candidates undergo psychological tests for determining their loyalty to the organization

(HCS – Integrity check).

4.2 SPECIFIC ANTICORRUPTION ACTIONS

There is a solid legal basis for prevention and countering illegal acts of customs

officers, which rests on the provisions of the Customs Act and is further elaborated by the

Minister of Finance in the Code of Ethics of the Customs Officer. There is also the Client

Charter, which fosters the statutory rights of stakeholders. The NCA website provides easy and

accessible information and office phones (email address) to anyone willing to report allegedly

illegal acts of customs officers. The administration disregards anonymous reports and does not

have specific measures for protection of persons reporting illegal acts of customs authorities,

however, notwithstanding the official position in respect to anonymous information, the Annual

Customs Report for 2011 does provide the total number of all investigated reports, including

the anonymous ones.

5. SPECIALISED UNITS AND THEIR FUNCTIONS

of 127





Enterprises”

The Inspectorate service of NCA, whose task is to ensure that staff members behave

appropriately and in compliance with the established rules, is now part of the Inspectorate Unit

of the Ministry of Finance. The Statute of NCA provides that recommendations and reports

containing allegations against staff members are responsibility of Directorate “Organisation and

management of human resources”, more specifically of its “Professional standards and internal

investigation” unit at the Central Customs Directorate (Head Office of Customs). The officers

of this Directorate have powers to undertake investigations, establish offenses and impose

administrative-penal liability for conflict of interest or other disciplinary offences, and these

powers are officially regulated. There are approved Guidelines for establishment of disciplinary

offenses and carrying out disciplinary procedures, and compliance officers/controllers have

received dedicated training.

6. REPORTING

Yet on the first pages of the Annual Report of NCA, which is published on the website

of the Agency, provide very detailed statistics regarding the detected offenses, the undertaken

disciplinary procedures and the imposed penalties. The information includes the number of

initiated cases and internal investigations, the law under which they were carried out (the Civil

Servants Act, the Conflict of Interest Prevention and Detection Act or the Customs Act) and the

findings/results of these checks and investigations: incompliance of staff members, conflict of

interest or other disciplinary offenses. The published information also includes details of

inquiries into the personal assets of staff members as well as the fact that some cases were

forwarded to the competent authorities of the National Revenue Agency (the tax service).

7. GENERAL CONCLUSION

The regulatory provisions on the functioning of the customs administration ensure

harmonized implementation of the administrative procedures; however the discretionary

powers afforded by certain provisions are conductive to elicitation of corruptive practices. The

“appropriate” legal environment, combined with legislation imposing multiple licensing

regimes, the control of which is mandated on the customs authorities, gives rise to

administrative hurdles that can be overcome not necessarily by legitimate means. The creation

of 127





Enterprises”

of conditions for wider usage of simplified procedures and the optimization of the

administrative capacity for application of these procedures would be a important step for

preemption of corruption.

ІІІІ.. AASSSSEESSSSMMEENNTT OOFF EEXXPPOORRTT--RREELLAATTEEDD CCOORRRRUUPPTTIIOONN RRIISSKKSS

The nature of production and the type of products intended for export presuppose the

availability of certain technological and market relations and dependencies. On one hand, part

of the activity is related to import, on the other hand, the markets for export of the products and

goods in the sector in their turn require certain integration within more integral processes,

realised on the external market. The processing nature of this activity is what most of all

determines the high significance of the factors, determining the yield, import and the status of

the sectors, using the products and goods, produced within this sector. Its relative subjectivity

to and inclusion in more complex production cycles forms a substantial part of the risks faced

by the activity of small and medium-sized enterprises which carry out such activity and seek to

realize export.

The corruption risk profile in this sector is determined by the nature of the markets for

which such production is exported, the existing export situation as well as the sustainability and

economic results of the enterprises which invest its end production in such products. The

relatively conservative nature of this market does not presuppose the putting of systematic

effort in innovation development, but does stress on the guarantees for maintaining quality.

Here, as well as in various other sectors, the corruption risk factors could be sought not

only in terms of administrative structures and existing networks of influence but also in the

relations among the companies themselves. The larger and better established suppliers of such

production are interested in preserving the status quo and could make use of their own positions

in order to exert pressure on newer and smaller potential participants in this export market.

Insofar as part of the products in their turn depends on the conditions of import of raw material

for their production, in this sector there are more complex interactions which determine the

specific profile of the corruption risks.

The crisis affects negatively the export of this type of products and with this increases

additionally the pressure for quality insurance and therefore for relative restriction of the

of 127





Enterprises”

number of potential participants. The stable partnerships built throughout the years determine

the common market chances of new or smaller potential exporters. The access to these internal

quasi-corporal quotas becomes harder and harder and thus the risk of corruption in private

business increases.

The issue of guaranteeing sustainability and high quality of products and goods in this

sector determines the higher relative weight of the internal subjective and objective factors in

the preparation and carrying out of the export activity. The chances of the entrepreneurs to

carry out export and establish themselves on the external markets depend on the extent to

which they are willing to invest in the professional qualification of their employees and the

control over the end production. Therefore, the main factors of corruption risk both in terms of

public institutions and in the sphere of inter-company relations may be determined as follows:

lack of competent personnel to perform the activity;

lack of internal rules and procedures to guarantee the interests of the

exporters/foreign importers;

lack of regulatory mechanisms and institutions with determined powers

and responsibilities in a regulatory environment;

At the same time, part of the producers and exporters of such products are exposed to

risks related to the dynamic change of requirements of external consumers, unsustainable or at

least highly susceptible to the market fluctuations of end products and services, the regulatory

environment as well as the lack of proportionality between internal and external production

quality standards.

In times of crisis with relatively limited export and taking into account the specific

nature of the products of this sector, there is a constant pressure to decrease prices at which

export activity is carried out. The reduction of profit and increase of insecurity in this sector

increase the inter-company competition and thus encourage those who would seek

opportunities to achieve market advantage through the use of corrupt means.

The possibilities for overcoming such risks are related both to higher degree of

standardization, provided through public regulation and to increasing the roles of corporate

representation and participation in the regulation of market relations and the guaranteeing of

free competition. In any case, the seeking of possible resolutions by the smaller companies

which carry out such activity from a relatively short period of time goes through the

of 127





Enterprises”

establishment of commercial relations with less renowned and established foreign partners,

which increases both the risks to the economic outcomes and the compromises with integrity in

the market behavior.

ІІІІІІ.. DDEESSIIGGNN AANNDD IIMMPPLLEEMMEENNTTAATTIIOONN OOFF EEXXPPOORRTT SSTTRRAATTEEGGIIEESS DDRRIIVVEENN BBYY

GGEENNEERRAALL AANNDD SSPPEECCIIFFIICC CCHHAARRAACCTTEERRIISSTTIICCSS OOFF TTHHEE EENNVVIIRROONNMMEENNTT

((CCOOMMPPAARRAATTIIVVEE IINNTTEERRNNAATTIIOONNAALL BBEENNCCHHMMAARRKKSS OOFF TTHHEE SSPPRREEAADD OOFF

CCOORRRRUUPPTTIIOONN AANNDD SSPPEECCIIFFIICC NNAATTIIOONNAALL CCHHAARRAACCTTEERRIISSTTIICCSS OOFF TTHHEE MMAAJJOORR

MMAARRKKEETTSS))

To ensure successful design and implementation of effective export strategies for

businesses in the sector, account should be taken, among other factors, of the characteristics of

environment in which these businesses plan to implement and achieve their business

programmes and targets. Accordingly, it is important take into consideration analytical

materials and data from international comparative surveys, which provide benchmarking

evaluations of:

The overall anticorruption context in which businesses and public institutions in

the individual countries and regions carry out their functions;

The efficiency of institutional efforts in combating corruption;

The sectors and institutions, which are found to exhibit most significant

deficiencies in terms of functional efficiency, operational transparency and extent to

which they have been affected by the spread of corruptive practices.

Three well recognized cross-national surveys of the international anticorruption

organization Transparency International can be used as tools for estimation of the spread of

corruption on global scale and the extent to which key national institutions and sectors have

been affected:

Corruption Perception Index

Transparency International’s Corruption Perception Index measures the level of

political and administrative corruption based on the judgments of representatives of the

business community, economic and political risk analysts across the globe, including polled

experts from the countries included in the survey. The Corruption Perception Index varies from

of 127





Enterprises”

10 (indicates low level of corruption and practical absence of corruptive pressure) to 0

(indicates an extremely high level of corruption enrooted in all institutions and spheres of

socio-economic activity), the midpoint 5 defines the line in the sand above which corruption is

not a system problem, while values lesser than 3 are critical as they mean that corruption in the

country concerned is ubiquitous. The survey can be used for making regional and sub regional

comparisons in order to give broad guidance to businesses as to which countries in a given

region present the highest corruption risk and accordingly offer the most inappropriate

business environment as a whole.

Global Corruption Barometer

The Global Corruption Barometer measures the spread of corruption across individual

sectors and institutions in the countries included in the survey. It reflects the perceptions of

citizens and their immediate experience from encounters with corruptive practices. GCB values

vary from 0 (for corruption-free sectors and institutions) to 5 (for heavily corrupted sectors and

institutions). This survey makes it possible to compare the levels to which the corruption has

permeated key sectors of social, economic and political life within the surveyed country and

respectively – the general environment for business realization is more unfavourable. In

addition to being a tool for sector analysis, the Barometer can be used as a basis for

development of anticorruption policies with clearly defined priorities. Businesses can use the

survey in order to flag those institutions and sectors of social, economic and political life,

which have greater deficiencies in their work and accordingly present a more serious

corruption risk.

Bribe Payers Index

The Bribe Payers Index tells us to what extent the companies in a given country are

prepared to offer and pay bribes in pursuance of their export strategies abroad. The Bribe

Payers Index varies from 10 (lack of willingness to offer and pay bribes) to 0 (high degree of

willingness to offer and pay bribes). The BPI encompasses a relatively limited number of

countries (28), but it should be stressed that these include the largest producing and exporting

countries in the world. Businesses can use this survey to gauge the willingness of their

of 127





Enterprises”

competitors, which operate abroad or contemplate expansions to new export markets, to offer

and pay bribes.

When designing and implementing export strategies in the “Manufacture of wood

and of products of wood, except furniture” sector, the following information on key

markets should be taken into account:

A) Markets in European Union Member States: Rumania, France, Greece,

Germany, UK

According to the Corruption Perception Index, in this sector there are two separate sub-

group of countries UK, Germany and France where the general business climate is more

favourable and the public institutions are applying the leading standards of efficient functioning

and successful corruption counteraction. The values of their indexes are: Germany – 8, UK –

7,8 points, France – 7.

At the export strategy realization in this sector should be considered the data of the World

corruption barometer, granting information for the sectors and institutions where the corruption

risk is the highest. On this basis it should be considered that in the indicated countries there is

the most significant political risk. There the risk of corruption is determined at first place by the

political factors and the distribution of corruption practices in the administration is led to the

minimum. Most serious is the risk of corruption pressure in France on behalf of the agricultural

services (8,1% of the citizens have paid a bribe during the last year), customs (5,4%) and more

efficient cooperation the business could expect by the fiscal and registry services, police and

judiciary (in the frame of 2% - to 3% are the cases of citizens having paid bribe in the last

year). The highest level of integrity of the work of the institutions and business could be

expected in the Germany. In Germany, in fact, there is lack of corruption pressure on the

business by Customs, fiscal services and Judiciary; the highest percentage of bribe payment is

at nationals and companies, having access to registry services (1,9%).

of 127





Enterprises”

In the UK the highest percentage of citizens having paid a bribe is those having been in

touch with customs (4,4%), agricultural services (4,2%), registry services (3,4%); lower is in

relation to fiscal services (1,2%) and police (0,9%).

The other group of countries – Italy, Rumania and Greece – are at the bottom of the

European ranking of the Corruption Perception Index, with values of 3,6 and 3,4.

Regarding Greece, another sector should be taken into account that is in loaded with

corruption practices – media. Together with the parliament, these are holding second place in

the ranking that should be considered when design and realization of media strategy by the

business implementing export strategies in the country. On the basis of the empirical data of the

World corruption barometer it should be considered that the more significant corruption

pressure could exist in the work of the customs (16,9% of the citizens have paid a bribe during

the last year), agricultural services (4,9%) and registry offices (4,4%). When implementing

their strategic plan for business development it should be considered the low level of readiness

for corruption pressure by fiscal services, police and judiciary representatives.

In Rumania along with political parties, one of the most seriously affected institutions is

the parliament. Data of the World Corruption Barometer show that in Rumania there is a

serious deficit in the parliaments work and it could be used as a channel of lobbying. The

payment of bribe in Rumania is most diffused in the following sectors: Rumania – police

(16,2%), judicial system (13,0%) and registry services (10,8%), agricultural services (6,4%),

customs (5,7%); where lower is the share of given bribe for fiscal services (3,2%).

B) Markets outside the European Union Member States: Serbia, Russia, USA,

Bosnia and Herzegovina and Albania

When designing and implementation of export strategies the fact should be considered

that this group varies a lot and in the analysis of the data thereof the general regional

approaches should be applied.

of 127





Enterprises”

However, in global scale, the data of the Corruption Perception Index show the

following ranking of the above given countries (listed by grade of non-proliferation of

corruption): USA (7,1), Serbia (3,3), Bosnia and Herzegovina (3,2), Albania (3,1) and Russia

(2,4).

From internally-national scale data of the World corruption barometer are revealing the

following picture. In the USA the most strongly expressed is the risk of politically patronized

corruption. Regarding the payment of bribe to the direct question “Have you paid a bribe in the

last 12 months” the answers of the respondents are indicating most serious pressure for bribe

payment in the customs (18,3%), agricultural services (12,5%), registry services (9%); judicial

system (8,4%), fiscal services (5,6%), police (5,7 %).

When designing and implementation of export strategies in Russia it should be

considered the fact that the risk of administrative corruption is significantly higher than the

politically determined risk: the most corrupted sectors are police and public administration,

followed by judiciary and parliament. To the direct question “Have you paid a bribe in the last

12 months” the answers of the respondents are indicating most serious pressure for bribe

payment in the –police (27,7), agricultural services (20,2%), Judiciary (17,7 %), customs (

10,9%) and registry services (8,6); relatively smaller is the share of bribes given to fiscal

services – 5,9%.

The political risk is leading in Serbia, where most affected by corruption are the

political parties, followed by public administration, judiciary and police. At the export strategy

development and realization should be considered the corruption pressure by the police

(14,5%), Judiciary (13%) and customs (12,4%). The registry services are to the contrary

exercising lesser pressure (3,4%).

When designing and implementation of export strategies in Albania and in Bosnia and

Herzegovina, it should be considered, that most strongly determined is the risk of politically

patronized corruption, and in addition there are deficits in the field of the customs

administration.

of 127





Enterprises”

ESSENCE AND SUMMARY RESUTLS OF THE PESTEL AND SWOT

ANALYSIS

The process of conducting a SWOT analysis for the sector is guided y generally

established principles for this type of market research. The performer aims at determining the

specific internal strong and weak sides, as well as the external opportunities and threats for the

companies, operating in a field, part of the corresponding economic sector. The analysis serves

as a tool to summarize, systematize and reconsider the development trends. As a result of the

analysis the Performer will get clearly the advantages and disadvantages of the Bulgarian

manufacturing companies, as well as the market situation. Thus it will help the selection of

strategy for achieving the maximum effective way of development for the organizations. The

essence of the method lays on the idea to indicate the opportunities and threats of the external

environment, each of the organization, operating in the corresponding field will face, as well as

the strong and weak sides, tracing its activity.

The strengths of the organization cover those characteristics and factors, where the

company is successful or its given peculiarity, granting her additional opportunities. The

strength of the company could be the customs, significant experience, organizational resources

of importance or competitive opportunities, better goods, better technology, better client

attendance, better brand differentiation.

Weakness of the organization are set as lack of something important for the company

functioning or something it could not do in relation to other companies, or something putting it

into unfavourable conditions. The weak side, depending on how important it is for the

competitive fight, could make the company vulnerable or not.

The internal strengths of the company are determined as competitive assets, while its

internal weaknesses are competitive passives. In relation to the strategy design, the company

strengths are important, as these could be effectively used as basis for achieving competitive

advantage. In cases, where the strengths are insufficient to form a successful strategy, the

company management should create a basis, to ground its strategy on. At the same time, the

successful strategy should be directed to eliminating the weaknesses, making the company

vulnerable and a barrier for its activity. As a result of the analysis, decisions are taken, that are

of 127





Enterprises”

to combine the various analyzed factors. Lines will be outlined for possible actions for

combining the strengths with the favourable opportunities with view to economic growth and

the weaknesses and threats in the environment will be timely noticed and neutralized, to reduce

their negative impact on the results of the business activity.

The determination of the opportunities and threats should be done on the basis of in-

depth study of the external for the company environment. As a possibility is determined any

favourable trend, creating conditions if adequate reaction to increase the sales and profits or to

improve the market position of the company, its competitiveness, the level of its

internationalization. Potential opportunities for the company, as a result of the environment are

expansion of the product range for satisfying bigger consumer needs, the capability to use the

habits and technology know-how for the manufacture of new production, increase of the variety

of mutually related products, adding of accompanying products, vertical integration,

acceleration of the market growth, appearance of new technology, etc. Threats, on the other

side, represent unfavourable trends, that, if lack of adequate reaction, are leading to the

reduction of the company sales and profit. As potential external threats could be seen the

increase of the sale of good-substitute, slow increase of the demand on the market, high

dependence on the demand reduction and the stage of the life cycle of the business

development, increasing exigency by consumers and suppliers, unfavourable demographic

changes, etc.

The SWOT analysis results for economic activity “Publishing, printing and

reproduction” are confirmed by the carried out sociological surveys with executives and

managers of SMEs from the sector, as well as focus groups with experts, On the other side,

these are a reflection of an in-depth analysis of dynamic orders and statistics of the accessible

branch reports and data and are underlining the essential characteristics of the SMEs and the

economic activity in particular.

The systematically formed conclusions of the SWOT analysis are given in Table 35 (as

summary and in the basic Strategy for the SMEs of the sector), where the appropriate strengths

and weaknesses – and to the biggest extent and the threats – are based on the above sources.

The opportunities of each side are to the greatest extent defined as potential strategic

interferences, typical and innovative policies for promotion of the branch export potential,

where a number of them are taken from foreign good practices, shown actual possibilities for

of 127





Enterprises”

export development of the here analyzed sector of the manufacturing industry. Same

possibilities are to guide us to the formulation of concretely applicable proposals for policies

and specific measures for export potential promotion, especially in certain main groups. The

measures, developed by micro, meso and macro levels are given in the corresponding to the

Strategy Action plan.

PESTEL analysis of the macro environment

i. Political

The political factors in Bulgaria suggest relative stability during the last decade. Despite

the seemingly frequent change of government philosophy, this factor should be assessed

basically in accordance with government intervention in the real economy in the country. We

can affirm that the last couple of governments have to a large extent lead “right” and liberal

economic politics despite the specific interventions in other aspects of the country

development. The area which – according to managers, owners and those directly affected by

the industrial SME work – needs significant improvement is mainly the administrative services

area.

The electronic services and e-government as one of the first steps in facilitating the

business have long stood among the priorities of national and general European executive

authorities. The simplification of administrative requirements and procedures together with the

digital and decentralized access are equally looked for. These are the expectations of SME

towards the government (as an example – the introduction of the sufferance principle) rather

than a real support and grants from the national authorities.

As a whole Bulgarian political system, as we mentioned before, provided stability and

foreseeability in the long run which is extremely important for the investors and our perspective

business partners. In harmony with this stability and foreseeability Bulgaria has been accepted

as a full member of organizations such as NATO and European Union. This has undoubtedly

had a positive effect on terms for Bulgarian export development as a whole and on the

perspectives for SME realization on the international markets. The confidence in the entire

political frame in Bulgaria brought the conclusion of several long term contracts, frame

contraction agreement and export, resulted in improvement of the image and place of our

of 127





Enterprises”

industry – results that are impossible to be achieved by individual SME or even trade

organizations.

It should be mentioned, however, that the politics lacks tangible long term policy and

succession of reforms affecting the educational system. Vital areas such as the formation of

qualified working power form the base of the entire scientific and educational frame. And

while the pure production capacities could be secured with adequate and relatively well trained

specialists, the development of high-technology and innovative sector such as (C26)

“Production of computer and communication equipment, electronic and optical products” to

which the Manufacture of Radio, Television and Telecommunication Equipment belongs,

requires the training of engineers with good prospects for the future who shall be the basic

factor for the growth and development of sector enterprises. The ambitions for developing

private elaborations shall result in increased export potential. The improvements and

rationalizations in the manufacturing cycle shall provide for comparatively competitive

advantage of our manufacturing industry.

We shall mention also – last but not least – the need for a significant improvement in

the infrastructure condition in Bulgaria. As a country having potentially all possible logistic

methods for diversified export, the growth of quantitative and qualitative investments in

infrastructure improvement shall ensure additional export potential for the enterprises shall

decrease their production costs and shall reposition our image in a positive aspect towards a

reliable and high quality commercial partner.

ii. Economic

Among the purely economic factors we have to mention in the beginning financial

indicators such as interest rates, tax rates, inflation and GDP indices, exchange rates. Those of

them giving stability and comparatively long term growth planning potential are (currently) the

tax rates and exchange rates. During the last four years Bulgaria has enforced the flat income

tax ensuring certain competitive advantages to our producers. On the other hand our exchange

system is practically bound by all positive and negative trends of the Euro zone and its currency

due to fixed exchange rate (during the last 15 years, first to the German mark and then to the

Euro, after its official introduction). This, of course, may lead to positive as well as negative

results – strong Euro decreases competitiveness and makes export more difficult but also

of 127





Enterprises”

ensures cheap raw materials and energy on the world markets – and certainly provides a stable

long term frame to the sector specialists.

The factor with permanent negative influence on the production development in

Bulgaria and mainly on the medium and long term SME strategies are the high interest rates

holding back the overall enterprise growth. The most pronounced results may be observed

(apart from the SME as a whole) among the industry production relying on high technological

development characterized with frequent investments, production processes updating, the need

to allocate funds for R&D and for ensuring technological and technical advantage in these

extremely dynamic sectors. Due to this reason one of the most urgent problems Bulgarian SME

are facing – and in particular those working the C26 sector “Production of computer and

communication equipment, electronic and optical products” – providing access to flexible

alternatives for financial engineering allowing the enterprises to keep abreast with the new

technologies; funds allowing them to invest in their export potential improvement.

iii. Social

The social factors in Bulgaria have also been broadly examined. The average age of

Bulgarian population is growing and the country needs to sustain and increase the insurance

rates in order to support its social system. The above mentioned well educated and trained

working force and skilled specialists shall also have significant influence. According to the

present labor market trends (nearly 11% unemployment rate) the qualitative access to

competitive working force is not a problem for the business, but specialists who could enhance

the growth in competitive and export advantages may be hard to find.

iv. Technological. Innovations and sustainability factors.

It is clear that the technological factors are extremely important for the manufacturing

industry and in particular play leading part in high technological manufacturing sectors. The

new technologies create new product ranges and new manufacturing processes. The

improvement of present technologies give additional competition advantages, decreases costs,

energy needs, enhances and improves production. Trade and distribution itself are also

developing and improvements for global customers and the versatile business relations are

of 127





Enterprises”

influenced by internet trade (including wholesale), by flexible order personalization, modern

communication and promotion and placement opportunities.

The available new technologies and the development of next generations in

technological improvements should not be viewed only in the short term and as international

trade facilitation. Improved quality should be added to decreased costs but above all is the

striving to innovations and perfection. We have to underline that among the long term

commitments of Bulgaria before the European Union there is the prioritization of Europe 2020

strategy goals. One of the central topics in this key vision for the Euro zone development is the

investment of 3% of GDP in research and development as well as the access to “green” energy

sources improving with 20% the energy efficiency of our society (the bigger part of this energy

needs belong to the industry).

The national long term strategies are tightly bound with a similar EU vision. Where the

current condition shows lack of funds and imperfections in the mechanisms and regulatory

frames the interested parties should make common and intersectional efforts (government

agencies, trade association and individual efforts) and should strive for achieving and

introducing the leading (“flagman”) EC initiatives for achieving the Europe 2020 goals.

And if in more of the affected macro factors the objectives of this long term vision have

apparent significance, four of the seven afore mentioned leading initiatives for making

Bulgarian national level to correspond to the requirements of EU shall lead to the introduction

of significant technological changes in our society and the industry, of course.

“The innovation union” is meant to improve the frame conditions and access to funds

for development activities and innovations in order to strengthening the innovation chain which

is to stimulate the sector investment level in the entire EU.

“The youths in action” shows the striving for improvement of the indicators of the

European educational systems and for strengthening of the international attractiveness of the

European educational system. A similar frame shall improve beyond measure the innovative

and technical potential of our society and is something Bulgarian government should strive for

in order to support the long term small business development.

“Digital agenda for Europe” aims to accelerate the use of high speed internet and to

benefit from digitalization of the common market for end users and companies. This vision for

which the efforts of the small and medium business should be mentioned is very close to its

of 127





Enterprises”

general application in Bulgaria. In order to be achieved, a number of national operational and

European sector programs and initiative are made available.

“Resource efficient Europe” is the long term pursuit of society to diversify its energy

sources – with marked increase of the renewable sources, to decrease their use and improve

their efficiency. There is also the demand for planning, financing and investment in

technological improvements for achieving the above mentioned goals of energy stability and

efficiency.

There is also an entire thematic initiative named “Industrial policy for the globalized

epoch” aiming the improvement of the business environment especially for the micro, small

and medium enterprises representing the generally known spine of Europe’s economic feature

as well as the social realization of the bigger part of the active population. Frame agreements

and all-European initiatives are present: SME Charter, “Small Business Act”, Sector Programs

of “Enterprises and Industry” Directorate, prescriptions and objectives of the national

Operational Programs. The ultimate goal is support of the development of a strong and steadily

developing European industrial base globally competitive on the current markets. All interested

parties shall be committed as the achievement of such goals is ambitious and long term but

each step in this direction shall support SME of our industry and shall improve the perspectives

for their development and position of the global markets.

v. Environment

The arguments for stable positioning of the industry in the environment are among the

initial and traditionally more rarely mentioned arguments but with increasing importance and

currently occupying key positions in the macro environment analyses. The current

environmental conditions may influence the cyclic recurrence, the resource provision,

deliveries and other passing considerations of the business. The long term concern during the

last two decades, however, affects the climate changes and the effect of industry on the

environment.

High technology sectors are not affected to the extent to which tourism, agricultural and

extraction sector could be. But the overall social significance as well as the direct effects of

changes in consumption and resource provision makes national governments and

intergovernmental committees strive for development of ecologically stable production models

of 127





Enterprises”

and consumption. These factors shall more often be included in the laws, approved ecologic

regulations and taxes, logistic and industrial limitations. The trend may have some apparent and

immediate negative effects on Bulgarian and European industry competitiveness – and mainly

on SME with smaller capacity for resource allocation and setting their production to the

developed standards – but in the long run this shall ensure stable resource provision for the

same enterprises.

There should also be mentioned that this new ecological consciousness, as may often be

found in seemingly negative and restrictive tendencies, may be analyzed and perceived as a

significant change in consumer expectations and demand which may be a sign of the

emergence of new market opportunities for the enterprises that create their own products or

take appropriate position in accordance to the current developments and market trends.

vi. Legal factors. Law frame.

In case we need to outline one historical and comprehensive problem that the small and

medium business development in Bulgaria is facing, this should undoubtedly be the lack of

succession in the political and legal initiatives leading to the frequent approval of new and

change of existing laws and law groups having direct or indirect impact on small business. This

is also a factor with significant importance for the foreign investors and commercial partners.

But in case the overcoming of this problem may be limited to one thorough survey of the

existing legal regulations, the synchronization with the legal requirements demands the

frequent effort of Bulgarian SME in the form of resources and time.

Along this line there have been mentioned the executive authorities responsibilities for

simplifying of procedures and requirements – legal and administrative – in order to facilitate

SME having in mind the commitments for supporting SME and undertaking different forms of

stimulation. Despite work groups on parliamentary level, expert groups in the respective

directorates of the specific ministries, there are special advisory councils at the Council of

Ministers having direct impact on the development of SME in manufacturing industry and the

sector subject of our research: Administrative reform council, Advisory council for promotion

of small and medium enterprises, Interdepartmental advisory council for stable development,

Interdepartmental council on export insurance, National council for science and innovations,

(as well as a separate National Innovation Council), National advisory council for professional

of 127





Enterprises”

work force training, Council for intellectual property protection, Council for coordination of

European Union funds management; as well as councils with indirect but strategic impact on

the perspectives for Bulgarian SME and the entire industry development: councils for

promotion of employment, statistical activities, labor inspection, economic growth,

“international cooperation for development” and other. Their list includes member of the state

administration as well as representatives of some trade associations, finance and non-

government organizations, local authorities, etc. (For example, the Advisory council for

promotion of small and medium enterprises presided over by the Minister of Economy, Energy

and Tourism currently includes government officials from MF, MLSP, MEYS, BSMEPA,

Council for coordination of EU funds management, as well as representatives of banks, BIA,

BCCI, National municipality association, NGOs such as Center for economic development,

Market economy institute, Entrepreneurship development foundation.)

The combination of experts from different sectors and fields of the public and economic

life should be constantly assessed, reviewed and offered constructive changes and

improvements of the legal frame aiming the provision of stable and foreseeable base of

Bulgarian SME development and cooperation with the present and potential international

partners.

The law frame as one of the six macro factors of the present analysis is the most

comprehensive one. It affects not only specific departments and experts, end users, but also

influences the business environment formation for the development of Bulgarian industrial

SME. It is the macro factor which stretches on each one of the above listed basic parameters of

the conditions for Bulgarian stable and long term development: it has political, economic,

social, technological and ecological effects and consequences.

of 127





Enterprises”

BIBLIOGRAPHY AND STATISTICAL SOURCES

1) National programmes for reforms (2011 – 2015) of the Republic of Bulgaria (In

implementation of strategy Europe 2020) – CM of the RB, Sofia, 13th

April 2011.

2) Methodology for strategic planning in RB – Council for administrative reform at the CM

of the RB, Sofia, April 2010

3) Competitive performance and policies of the Member States – EC, document SEC (2010)

1272,Accompanying document to strategy “An Integrated Industrial Policy for the

Globalisation Era, Putting Competitiveness and Sustainability at Front State”

4) Industrial policy: strengthening the competitiveness – EC, Brussels, 14.10.2011; COM

(2011) 642 final

5) Small Business Act for Europe (Think small first) – EK, Brussels, 25.6.2008; COM

(2008) 394 final

6) Analysis of the condition and factors for development of the SME (The Bulgarian SME in

conditions of crisis) – NOEMA, BSMEPA, Sofia 2011

7) Classification of the economic activities (CEA 2008) – NIS, Sofia 2008

8) Classification of Economic Activities in the European Community (NACE)

9) Foundations of Economics – Gillespie, Andrew, 2 issue, Oxford University Press 2011

10) For the development of the present strategy the following statistical data and documents,

that are publicly available, have been consulted:

a. NIS

b. Eurostat

c. MEET

d. WTO (UN) and Comtrade database

e. International trade centre, Geneva

f. Data and publications of the BCC, BCTI, BCCMB

g. Information from the sociological survey carried out in the period 31 October

– 28 November 2011 with the management personnel of micro, small and

medium-size enterprises of the analyzed sector

h. Other official information and electronic sources

Operational programme “ Development of the competitiveness ... · of the competitiveness of the...

Documents

Transcript of Operational programme “ Development of the competitiveness ... · of the competitiveness of the...