15.10.2020

Over 25% of small and medium-sized companies in our country have difficulty finding staff

More than a quarter (25%) of small and medium enterprises (SMEs) in Bulgaria have difficulties in finding staff and managers. This is shown by data from a joint study of the European Commission and the European Central Bank (ECB) for 2019, quoted by the executive director of the Fund of Funds (FF) Alexander Georgiev.

Next as a problem is finding customers or markets. About 13% of the companies in our country answered that the regulations are also an obstacle to their activity. Only in fourth place is access to finance. The trend is similar for companies in the European Union (EU), where finding a staff is the biggest challenge. However, access to financial resources ranks only sixth, as it is a problem for only 7% of companies. In terms of sources of funding, there is not much difference between us and the EU. Most often money is taken from credit lines, bank loans or leases.

Between 45-50% of companies in the EU have indicated that these are the forms of financing they are looking for. In fourth place are trade credits and grants, followed by other forms of loans, and in last place are capital investments, which are sought by about 11 percent of entrepreneurs in the EU. For comparison, in our country only 4% of SMEs find this type of investment suitable for their activity. According to Georgiev, this type of financing should be more popular among domestic entrepreneurs. At the moment, the Fund of Funds offers 4 funds, which is over 55.4 million euros of resources. "This is money that can be invested in companies," said the fund's executive director. Work is already underway on a fifth fund, through which another 39m euros will be offered on the market.

In order to promote capital investments, the Bulgarian Stock Exchange and the Fund of Funds signed a Memorandum to encourage investment in prosperous Bulgarian companies. The document covers initiatives to promote, train and encourage domestic companies to raise capital to invest in their growth. "Our efforts are in two directions - to develop new forms of financing suitable for startups and innovative Bulgarian companies that would not receive credit from commercial banks, and to increase the financial culture of entrepreneurs," said Georgiev. "We believe in the potential of Bulgarian companies which have a unique capacity for innovation, job creation and ultimately stimulating the economic prosperity of Bulgaria", commented the Executive Director of the BSE Dr. Manyu Moravenov.

The initiative is also supported by the Ministry of Finance, as the principal of both institutions. "We are aware that the situation is not one of the easiest at the moment for the financial markets, although the crisis started in a different area than in 2009, now it has started in the health sector," said Deputy Finance Minister Marinela Petrova. According to her, however, now is the right time for such an endeavor.