17.12.2021

2021 THROUGH THE EYES OF BUSINESS

BIA presented the results of its traditional online survey of members of the Chamber, conducted in the period November 8 - December 8, 2021 among 817 micro, small, medium and large enterprises across the country and from all sectors of the economy.

The survey is being conducted for the 17th consecutive year, and the aim is to examine the state of business in the current macroeconomic conditions. The main topics are related to the impact of political processes internationally and nationally on business in Bulgaria, as well as business planning for the next calendar year. This year, special emphasis is placed on the impact of the covid crisis on business.

For the last decade, 2020 was the year full of business negativity - both as an assessment of the current situation and as a vision for the future. A year later, there is a timid attempt to push from the bottom. This year, the pessimism is most pronounced regarding the expectations for a drastic rise in the prices of energy resources and raw materials, inflation - both nationally and globally.

Concerns in business are rooted mainly in the ongoing (and in the foreseeable future) covid crisis, as well as in the political turbulence in our country, which leads to instability and ambiguity, inability to be predictable and planning.

The general feeling is that the support measures are insufficient and slow. Therefore, it is not surprising that less than half of the companies have benefited from some of the anti-crisis measures - especially those to support employment. Real measures to support corporate liquidity are missing or not attractive and well-known enough.

As a result, businesses are doing the (un) possible to save jobs and market positions, incl. by adapting costs, transforming production, using digital technologies, developing online sales, telecommuting, flexible working hours, holidays and staff optimization.

The covid crisis has created a shortage of working capital in almost 80% of enterprises. This, combined with years of problems with bureaucracy, regulatory and administrative burdens, an unstable regulatory environment, corruption and inefficient judiciary, puts heavy pressure on any business venture.

In the conditions of unclear perspectives, mainly related to the development of the medical crisis and the accompanying interruptions in the supply chains, shortage of raw materials and energy resources, the business remains highly pessimistic, so its expectations and plans for the future are too cautious, subject to pragmatism.