Only 40% of Bulgarian companies rely on funds from Operational Programmes for their future development, according to a survey of the Bulgarian Chamber of Commerce and Industry (BCCI) held among 3,500 of its members. The survey was presented at a special briefing on 1 March by the President of the Chamber Tsvetan Simeonov and economic experts.
The survey aimed to determine the ways for achieving economic growth this year. “This percentage is quite insignificant,” said Tsvetan Simeonov. According to him, too high requirements and turnover thresholds are placed to small- and medium-sized enterprises, which makes them give up European funding and practically hampers their development.
“In order to apply for financing of projects under OP Competitiveness, a small business must prove a turnover of BGN 600,000 for the last there years, and a micro-enterprise – a turnover of BGN 300,000. In most cases, this is impossible,” commented Simeonov.
According to data of the survey, companies plan to achieve growth through three main activities - introduction and marketing of new products and services, stepping onto new markets and cost optimisation. The biggest share of companies - 79% - intend to offer new products; 75% will rely on new markets and 69% plan to optimise costs. Only 29% of the companies plan investments and innovations this year and 27% intend to buy buildings and equipment.
“For the first time in such a survey, there is not a single participant believing that the Government is doing its job well and no reforms are necessary,” said Tsvetan Simeonov. Some 46% of the business representatives share the opinion that reforms are needed in all spheres of public life. A total of 94% of the respondents say they have overdue payments from their business partners. Some 89% of the overdue receivables are under contracts with private companies, in 22% of the cases the delayed payments are by the State, and in 16% - by municipalities.
According to the survey, the three main measures which would improve the business climate are related to taxes and regulations. As most important requirement the business ranks not allowing an increase of direct taxes for companies and citizens. Each step towards their increase would cause insecurity and worsening of the business climate, would lower competitiveness and foreign investments, which dropped by 40% last year, as well as might decrease domestic consumption. Faster VAT recovery is also listed as one of the main priorities by businesses. Besides, entrepreneurs reckon that a reduction of administrative regulations is needed.