EMCC European Monitoring Centre on Change

Bulgaria: ERM comparative analytical report on ‘Emerging forms of entrepreneurship’

  • Observatory: EMCC
  • Topic:
  • Published on: 21 March 2011



About
Country:
Bulgaria
Author:
Lyuben Tomev
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

In Bulgaria, the debate is not aimed at different emerging forms of entrepreneurship, but in general to the creation of better conditions for starting a business, for self-employment. In this sense it is impossible clearly to distinguish problems in various forms, that are not known to the public, media and accordingly there is lack of statistics data or any other registers. To clarify the notion concerning the sole property company and self-employment in Bulgaria is based on the definition in the Commercial Code and the statistical definition of the National Statistical Institute (NSI). Under the Commercial Code ’as a sole trader can register any physical person with residence in the country ... on request, stating: the name and particulars of the person and the company objects, registered office and head office’. The definition of the NSI are self-employed persons who themselves or in association with others engaged in economic activities, work-free (private) in practice, work on lease or provide themselves other activities, not employing others. It follows that the legal form may be a sole trader or a public company, while status in employment (as an employer or self) is determined solely by the presence or absence of hired workers in the company. Used for the purposes of this study five forms of entrepreneurship can only conditionally analysed by us, because so far only occasionally are mentioned some of their characteristics.

QUESTIONNAIRE

Part I: Public/policy discussion

General policy discussions and policy approach

Do the public/policy discussions specifically deal with the different forms of business activities, since when and for how long?

Table 1: Presence of the different emerging forms of entrepreneurship in the public debate
 

Yes, continuously since xx year? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate yes where it applies)

Yes, has been on the public agenda, but since xx year it is no longer part of the agenda (Please indicate year)

No, it has never been part of the public agenda

(Please indicate X where it applies)

One-person enterprises /self-employed

1990

     
Part-time entrepreneurs  

Yes

   
Parallel entrepreneurs  

Yes

   
Serial entrepreneurs  

Yes

   
Business transfers and successions    

2000

 

For each of the entrepreneurship/business activities covered by policy discussions, which policy domains are they covered in? Please indicate with an ’X‘ where relevant.

Table 2: Policy domains engaged in the policy discussion of the emerging forms of entrepreneurship
 

Labour policies

Educational policies

Economic/Industrial policies

Innovation policies

Regional policies

Other (please specify)

One-person enterprises /self-employed

X

 

X

     
Part-time entrepreneurs  

X

 

X

   
Parallel entrepreneurs    

X

 

X

 
Serial entrepreneurs      

X

   
Business transfers and successions    

X

   

Privatisation

(MBO)

In which media and forum do the public debate and policy discussions about the different types of entrepreneurship take place?

Please indicate whether they are implicitly (e.g. publications are covering entrepreneurs in general with implicit implications for the different forms of entrepreneurs/business activities) covered and/or explicitly mentioned (for instance parallel entrepreneurs are explicitly mentioned in publications) in these publications

Table 3: Media and forums discussing the emerging forms of entrepreneurship
 

Public media such as newspapers and magazines incl. electronic media

Policy documents and analysis

Proposed legislation and/or business support schemes

Others, please specify

One-person enterprises/self-employed

X

 

X

 
Part-time entrepreneurs

X

     
Parallel entrepreneurs

X

     
Serial entrepreneurs

X

     
Business transfers and successions

X

X

X

 

Specific topics to describe the different types of entrepreneurship

What has motivated the public debate?

Please specify for each of the five forms of entrepreneurship:

Table 4: What has motivated the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Motivator

One-person enterprises/self-employed

Create legal prerequisites and conditions more favourable for the development of private business

Part-time entrepreneurs

Using the skills and abilities of students to work and apply the results of its research activities in student or student companies

Parallel entrepreneurs

Promoting the successful business strategies to diversify the business and reduce risks

Serial entrepreneurs

Serial entrepreneurs 'business angels' mentioned as a good example of innovation and funding to support starting business

Business transfers and successions

That was one used during the transition form of privatisation (MBO)

What has been the focus of the policy discussion?

Please specify for each of the five forms of entrepreneurship:

Table 5: The policy focus in the public debate within each of the emerging forms of entrepreneurship

Type of Entrepreneurship

Policy focus

One-person enterprises/self-employed

Regulation of business conditions or preventing illegal activities and deception

Ease the administrative burden of establishing (registration) a new company, running a company or closing/winding down a company due to bankruptcy or transferring ownership to a new owner, etc.

Part-time entrepreneurs

Raising entrepreneurial spirit among certain population groups, e.g. youth

Education – awareness raising and training to improve business skills and competences

Parallel entrepreneurs

Promoting entrepreneurship

Counselling and information dissemination, e.g. business planning, information campaigns

Serial entrepreneurs

Research and development such as supporting commercialisation of R&D through spinoffs partnerships, proof of concepts, IPR, etc.

Access to finance – improving access to finance through grants, loans or equity capital

Business transfers and successions

Privatisation

Has the public discussion resulted in a concrete outcome/impact?

No:

Yes:

Please specify for each of the five forms of entrepreneurship:

Table 6: Outcome or impact of the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Outcome/Impact

One-person enterprises/self-employed

Yes, the administrative procedures for business registration were reduced, tax incentives were introduced

Part-time entrepreneurs

Yes, the good practice quickly spread and a registered company in schools and universities is becoming popular. There were two forums ‘Rising Stars’ organised by JUNIOR ACHIEVEMENT BULGARIA

Parallel entrepreneurs

No

Serial entrepreneurs

Yes, were held the first regional forums (Plovdiv, Varna), which discussed the problems of starting business and financing of innovation. A Bulgarian network of ‘business angels’ was established

Business transfers and successions

The public debate has contributed to give a clearer assessment of the public of the MBO in the process of privatisation - to reveal good and bad practices

Overall assessment

Within the last couple of years, to which extent has the public and policy discussion been more focused on the following different types of entrepreneurship compared to the business policy/entrepreneurship debate in general?

Table 7: Increased focus at the emerging forms of entrepreneurship?
 

To a low degree To a high degree

 

1

2

3

4

5

One-person enterprises/self-employed    

X

   
Part-time entrepreneurs  

X

     
Parallel entrepreneurs  

X

     
Serial entrepreneurs  

X

     
Business transfers and successions

X

       

Please list the main sources of information in the search for the above

- Newspapers ‘Pari’, ‘Trud’

- Annual Report on SMEs in Bulgaria 2008 http://www.mi.government.bg/ind/econ.html

- Law for SMEs of Bulgaria ( http://www.mi.government.bg/ind/econ.html )

- http://www.newbusiness.bg

- http://bban.eu/bg/entrepreneurs

- http://startup-bg.org

Part II: Standardised structural data – NOT AVAILABLE STANDARDISED DATA FOR THE SPECIFIED EMERGING FORMS OF ENTREPRENEURSHIP!

Which standardised business statistics are available covering the different forms of entrepreneurship/business activities (explicitly or implicitly, i.e. also data that could be used to describe these forms of entrepreneurship without being published with this specific objective/heading)?

National statistical offices Only data for self-employed from the Labour Force Survey (quarterly and annually) from 2003 till now. For example the last available data for 1-st Quarter of 2010:

NUMBER OF EMPLOYED PEOPLE ACCORDING THEIR EMPLOYMENT STATUS AND GENDER (THOUSANDS)

Employed

Total

Male

Female

Total

3 011.3

1 591.8

1 419.5

Employers

103.1

73.6

29.5

Self-employed

236.8

149.4

87.5

Employees

2 641.1

1 358.9

1 282.3

In private enterprises

1 899.5

1 059.4

840.1

In public enterprises

741.7

299.5

442.2

Unpaid family workers

30.2

10.0

20.2

Source: National Statistical Institute (www.nsi.bg)

Data from social security: Can be used data for self insured persons of the National Social Security Institute (NSSI), but can not get cuts on these emerging forms of entrepreneurship, with the exception of self-employed.

NUMBER OF SELF-EMPLOYED IN BULGARIA - 2009 (in Thousands)

TOTAL

259.4

By place of residence:

• Urban

145.4

• Rural

113.9

By gender:

• Male

164.8

• Female

94.6

By age:

• 15-24

9.0

• 25-34

36.6

• 35-44

79.6

• 45-54

72.1

• 55-64

48.8

• 65 and over

13.4

By level of education:

• Higher:

47.6

- Degrees Bachelor, Master, Doctor

42.3

- Degree Specialist

5.3

• Upper secondary:

137.6

- Secondary vocational

93.4

- Secondary general

44.1

• Lower secondary

64.5

• Primary or lower

9.7

Source: LFS of the National Statistical Institute http://www.nsi.bg/otrasal-publikacia.php?n=226&otr=26

Table 8: Availability of business statistics about the emerging forms of entrepreneurship
 

Type of data available

Indicate access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Part-time entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

Survival rate of enterprises

       

Others, specify:

       
Parallel entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Serial entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Business transfers and successions

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       

Is it possible to crosstab or merge the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities with the company data specified in question 9 in a common database for analytical purpose?

No:

Yes:

Table 9: Availability of demographic statistics about the entrepreneur within the emerging forms of entrepreneurship
 

Type of data available

Indicated access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Part-time entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Parallel entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Serial entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Business transfers and successions Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        

Is the data freely accessible or does it require registration, payment and/or a special effort to access the data? Please explain the accessibility for each of the forms of entrepreneurs/business activities and datasets referred to above.

Table 10: List of statistical sources about the emerging forms of entrepreneurship

List data source/dataset

Explain the accessibility

No available data  
   
   
   
   

Part III: Research –to such type of research are not known, except for self- employed

Please describe studies and research available nationally for each of the forms of entrepreneurs/business activities.

Table 11: List of studies and research about the emerging forms of entrepreneurship
 

List the references (author’s name, title of publication etc, year of publication, organisation)

A short summary of the contents (e.g. topic covered, methodology applied)

One-person enterprises/self-employed

PhD. Pobeda Loukanova: ‘Self-employment in Bulgaria’, 2009, Institute of Economics at the Bulgarian Academy of Sciences

See:

http://www.iki.bas.bg/en/node/652

http://www.pari.bg/Print.aspx?PublicationId=7201eb18-b0c0-4cd9-a0c2-d0a87563d708

http://www.dw-world.de/dw/article/0,,5605972,00.html

Topic covered:

Analysis of the extend of self-employment in relation to economic growth;Development of self-employment sectors of the economy; Characterisation of changes in basic structures of self-employed men and women; Assessment of business factors for self-employment and Analysis of the magnitude of self-employment in relation to economic growth; Development of self-employment by sectors of the economy; Characterisation of changes in basic structures of self-employed men and women; Assessment of business factors for self-employment and starting their own business; Analysis of the effectiveness of policies to promote self-employment in the labour market; Analysis and evaluation of the social security schemes as a factor for self-employment and give reasons for trends of their changes. Results and conclusions: 50% are self-employed in the informal sector and not insured in full; Women are less active in terms of self-employment; 64% of self-employed are in agriculture;

After 2000 there are orientation to trade, repairers services, hotels and restaurants;

Self-employment is seen as a transitional form of employment, salvation in crisis; Targeted policies are needed for the realisation of self-employment as a winning business strategy. Methodology applied: analysis of objective data from NSSI

Part-time entrepreneurs    
Parallel entrepreneurs    
Serial entrepreneurs    
Business transfers and successions    

Lyuben Tomev, Institute for Social and Trade Union Research (ISTUR)

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