21.04.2022

ENTREPRENEURSHIP: HOW DO FAMILY COMPANIES SUCCEED IN BULGARIA?

The long-term perspective of management is the key factor for the success of family companies in Bulgaria according to ¾ from the owners of family businesses in our country. The entrepreneurship and adaptability of the founders, as well as the long-term focus on the high quality of the products are the next most important criteria that determine the success of family companies. 100% of the participants share the statement that it is prestigious to be part of a family business.

This is shown by the data from a survey of EY Bulgaria among family business owners, conducted recently in Bulgaria. It includes first and second generation family business owners from various industries. Between 3 and 5 people from each family are involved in each of the businesses.

In Bulgaria, most family companies were established in the 1990s. They are already actively managed by second-generation owners, whose age is close to that of businesses. According to the data of the National Statistical Institute, by the end of 2020 the companies in Bulgaria that self-identify as a family business represent about 25% of all active enterprises in the country.

"At EY, we are working on various programs to support family companies in their quest to develop sustainably and long-term in both the Bulgarian and international markets. We already have many successful examples of family businesses that have gone through various crises and become market leaders. We have selected some of these inspiring stories in the third edition of the Book of Family Business in Bulgaria, because we believe that family business can be the backbone of the Bulgarian economy in the long run," said Diana Nikolaeva, partner and head of „Strategy and Deals“ In EY Bulgaria.

"Based on our experience, I can say that no matter what business opportunities they have and whatever business proposals they receive, family companies always strive to keep the core business and property within the family." According to her, this gives the Bulgarian economy a core of sustainable businesses, which in most cases always remain Bulgarian property with well-established relationships with local communities.

83% of respondents in the survey deny the likelihood that the family will sell the main operating company, but at the same time 2/3 of them say that in the future they would look for a partner to further develop their business. Only 17% believe that there is a high probability that the family will make the main company public to the next generation of owners.

EY experts' observations show that family-owned companies often retain company management within the family. Interestingly, however, most of them lack a clear "family constitution" to show how business will be run over time. 75% of businesses admit that family members and the next generation are not fully prepared for continuity, but initial talks are already underway in the family. The remaining 25% believe that they are prepared to some extent, relying on the assistance of external advisers.

Undoubtedly, the most important skill and quality for involving the younger generation in the family business is leadership. It was mentioned by every 9 out of 10 participants in the study. Preservation of family values ​​is highlighted by 82%, and development strategy, management skills and entrepreneurship are ranked immediately after in the rankings.

The growth of business in Bulgaria and the increasingly active presence in international markets go hand in hand in the business goals of family companies in our country. 73% of the participants in the survey say that they already operate outside the country.

Despite the challenging economic environment, the family companies are optimistic about the development of their business and expect in the next 12 months growth in their revenues and the number of employees. In the short term, they plan to invest in research and development of new products and services, production capacity and human capital.

To improve the efficiency of companies in recent years, owners have introduced improvements in management processes, including digitalization. The other main investment was focused on policies to retain employees and start working with more external consultants.

The biggest challenge for business development and a catalyst for significant changes in the first place is the shortage of qualified staff (91%) and rising costs of wages and raw materials - 73%.

The COVID-19 pandemic has affected family businesses to varying degrees, depending on the field in which they operate. However, the measures taken by them to deal with the situation are similar, shared by 2/3 of the companies - adapting financial plans and increasing the focus on the culture of solidarity and empathy in the organization.

21.04.2022

WITH HIGHER SALARIES THEY ARE LOOKING FOR STAFF FOR THE SEA

On the eve of the summer season, the tourism industry is still short of staff. The greatest demand is for maids, cooks, waiters and bartenders. Deficit positions also imply more attractive pay.

The hotel and restaurant industry is among the economic activities with the largest increase in wages by the end of 2021. Statisticians note an increase of 19 percent. The main reason is the chronic shortage of staff that has accompanied the sector for several years. With the exit of the COVID pandemic, this famine intensified.

"This year, the announcement of jobs in the field of tourism began earlier. As early as the end of February, we started receiving applications from employers who announced vacancies for hiring, although in May - early May or early June," said Severina Savova - Director of the Labor Office in Dobrich.

On the North Black Sea coast, cleaning and maintenance staff are most in demand.

"This year we are recruiting maids, waiters, cooks, bartenders. We will motivate them with good attitude, normal salaries and work in a good team. For example, an assistant chef starts from 1000 - 1100 and up", adds Rumen Mihaylov, manager of the hotel in the "White Lagoon".

"There were ads in the range of BGN 1,500, 1,800 based on what we have announced and still declared by employers," Savova added.

The salaries of the waiters can reach up to BGN 2,000, Savova clarifies, and everything is a matter of negotiation. Employers in large complexes are also trying to attract maids with attractive pay.

"This year the salary is BGN 1,350 gross, which is a normal salary for Bulgaria at the moment," Mihaylov added.

The remuneration of BGN 1,500 purely for a maid is not a chimera, the Albena Resort says.

"It is very important that people are familiar with the offer in detail, ie whether it is a six-day working week, how many hours and what exactly is included in the work, so that such a salary can be received - of course, it should is made", commented Velina Gyumova, senior sales manager at Albena Resort.

Such attractive payment is not expected in smaller accommodation facilities.

"Normal salaries for maids are somewhere around BGN 800 net, and of course there may be additional bonuses that will be associated with food vouchers," added the manager of a hotel in Balchik Plamen Kozarev.

Most of the ads for seasonal workers in tourism include food vouchers of BGN 80 per month, free transport to the workplace or accommodation at the employer's base. In recent years, the lack of staff in our country has been compensated by imported labor. This summer, businesses will also rely on Ukrainian refugees.

21.04.2022

WHAT AMOUNT PER HECTARE WILL FARMERS RECEIVE THIS YEAR

This year, farmers will receive BGN 121.63 per hectare under the so-called Green direct payments, according to the Ministry of Agriculture.

The money is directed to farmers who follow practices that are favorable for the climate and the environment.

The area established for support under the scheme is nearly 3.804 million hectares. This year's rate is BGN 10 per hectare lower than last year, the money is expected to reach farmers by the end of this month.

According to the indicative schedule of the Agriculture Fund, the support under the protein crop and cotton schemes must be paid by the end of April.

21.04.2022

HOW CAN WORK EXPERIENCE BE PROVEN IF THERE IS NO DATA IN THE NSSI

If there is no data about the person in the payrolls submitted to the NSSI, a certificate UP-17 is issued, which will serve before the court to establish work and insurance experience in court.

The certificate is issued on the basis of an application submitted to the Territorial Division of the NSSI in a form that can be found in the "Forms" section of the NSSI website, the experts explain.

It can also be obtained on the spot in the Territorial Division of the National Social Security Institute or a regional archive center.

The application is submitted in person or through an authorized person, and the power of attorney does not need to be notarized if the authorized person is a parent, spouse or child.

The power of attorney must indicate the kinship.

The application can be submitted to any branch of the National Social Security Institute or a regional archive center, regardless of where the payrolls are stored, as well as electronically.

 

HOW TO OBTAIN A CERTIFICATE OF INSURANCE EXPERIENCE

Certificates of insurance experience/income are issued by the NSSI free of charge, within 30 days.

Certificates are received:

- in person or by an authorized person. The power of attorney does not need to be notarized if the authorized person is a parent, spouse or child. The power of attorney must indicate the kinship;

- through a licensed postal operator - when the application is not signed and in case of doubt whether it comes from the citizen indicated in it, the administrative body requires its confirmation with handwritten or electronic signature within three days from the notification. In case of non-confirmation in time, the proceedings on the submitted application shall be terminated.

- electronically to the specified e-mail address.

 

HOW TO GET A CERTIFICATE FOR LACK OF DEBT

An application for a certificate of presence or absence of obligations may be submitted by a natural or legal person entered in the register of the NRA. Certificate of the presence or absence of obligations can be obtained online in the Electronic Services Portal of the NRA.

How and where to apply

The request for issuance of the document can be submitted on site at a NRA office, through a licensed postal operator or through the NRA Electronic Services Portal, accessible with classified electronic signature (QES) or personal identification code (PIC), issued by the Revenue Agency with the runway the service is available only for individuals, including as sole proprietors, self-insured persons and owners of an enterprise organized in a craft way).

This service is provided by the relevant competent TD of the NRA.

If you have a qualified electronic signature, in order to use the service, the following must be submitted:

- Application for submission of documents electronically and use of electronic services provided by the NRA with QES to an obligated person and confirmed full/partial access to the services of the NRA, or

- Application for submission of documents electronically and use of electronic services provided by the NRA with QES to an authorized person with requested and confirmed full/partial access to the service "Request for issuance of documents".

To make the PIC service available, an application should have been submitted with the requested use of the service "Submission of declarations, documents or data".

When submitting the request for issuance of documents on paper, a check of the representative power of the person and logical control for the correctness of filling in the form is performed. An incoming number is issued. It proceeds to perform actions for processing the request.

Do we owe fees?

The NRA does not collect fees for the services offered.

Deadline for issuance

    Up to 7 days from the receipt of the request;

    up to 14 days from the receipt of the request, in cases where it is submitted through a different from the competent TD of the NRA.

Result of the service

Issuance of a certificate for the presence or absence of obligations. In the absence of grounds for issuing a certificate, a Decision for refusal shall be issued.

How to get the document

The certificate of presence or absence of obligation shall be served:

- personally to the person;

- to a person authorized by a notarized power of attorney in the presence of obligations;

- to an authorized person in the absence of obligations;

- to a person explicitly indicated in the request by the obligated person before the revenue authority;

- after presenting an act of the court;

- electronically by e-mail, specified in the request by an obligated person, in the form of an electronic document signed with QES;

- electronically to the institution requesting it, for which purpose the person must have explicitly indicated in the request for issuance of documents an e-mail address to which the document signed by the revenue authority with electronic signature should be sent.

20.04.2022

OVER 653 THOUSAND PEOPLE WITH DISABILITIES RECEIVE MONTHLY FINANCIAL SUPPORT

An average of 653,503 people received monthly financial support under the Law on People with Disabilities in the period January-March 2022. This is shown by the data of the Agency for Social Assistance at the Ministry of Labor and Social Policy. Adults with permanent disabilities (with an established type and degree of disability or a degree of permanently reduced working capacity of 50 or over 50%) are entitled to such support.

The amount of aid is a percentage of the poverty line according to the degree of disability and is updated annually according to its amount. In 2022, it increased to BGN 413, which led to a nearly 12% increase in monthly financial support for people with disabilities.

The highest amount is received by people with more than 90 percent degree of disability with the right to foreign assistance, who receive a social disability pension. They receive BGN 235.41 monthly financial support under the Law on People with Disabilities. For people with more than 90 percent degree of disability with certain foreign aid, who receive a disability pension due to general illness or due to an accident at work or occupational disease, its amount is BGN 123.90. People with more than 90 percent degree of disability receive a monthly financial support of BGN 103.25 per month. For people with 71 to 90 percent degree of disability its amount is BGN 61.95, and for people with 50 to 70.99 degree of disability - BGN 28.91.

The expenses for payment of monthly financial support in the first quarter of 2022 are BGN 121,215,805 - more than BGN 6 million more compared to the same period last year.

20.04.2022

ENTREPRENEURSHIP: HOW PARTNER RELATIONSHIPS HELP THE SUCCESS OF ALL PARTICIPATING COMPANIES

Strategic partnerships can be vital to the success and goals of a campaign and its creators. Partnerships with other organizations or companies have the potential to focus on a specific cause or end goal, to form alliances between organizations that do not normally work together, and to keep the approach to the case much more consistent.

Your partners can work for your campaign, while contributing with their own contacts, skills, team and activities, allowing the end goal to expand its impact while also gaining access to new audiences.

When you partner, everyone contributes with their strongest side

Realizing the importance of building partnerships is not difficult, but understanding how to build them is crucial. Partnerships with other organizations or companies take time and effort, but if managed well, they can help you achieve your goals more efficiently and with fewer resources. Remember that when building partnerships, your organization should focus on quality, not quantity. They need to be formed strategically, based on the value they bring to your organization and customers.

"Working with organizations or companies that do not complement your own mission or values ​​usually does not add value to anyone. As with any relationship, transparency and recognition of each other's strengths are fundamental to success. When both sides provide their own valuable in the form of unique proposals for the end user, both sides can enrich and raise the goal for which the partnership was formed. Therefore, it will work only if your goals and visions are consistent", commented on the approach Anita Bedin, Chairman of the Bulgarian Society for Public Relations.

When the project allows it, look for a long-term partnership. It takes a long time to find a great partner, so once you've put in the effort and managed to create successful campaigns together that both parties are proud of, don't break up, but look for ways to build on what you've already created.

Focus on the goal of the partnership

It is crucial for any partnership to ensure that both parties have an equal reading of the goals and desired results. When only one party is excited about the end result, it is an indication that there was no proper communication. Managing expectations and maintaining regular communication throughout the campaign are essential to the success of a long-term partnership.

Make sure your audiences correspond and make sure that both sides bring something different to the equation. Partnership in the name of the partnership itself, without knowing how you implement it or who you are talking to, is likely to lead to poor performance. Success consists in making sure that it is real and authentic. Often companies make the mistake of looking for partnerships that complement their own product instead of the ultimate goal of a campaign or project.

Create a proposal that supports both parties

Because partnership is a form of unlocking a new audience, make sure you don't have access to just that. In other words - find partners who are different enough to provide you with contact with potential new customers.

Identify opportunities for cross-promotion. Joint communications with our strategic partners are such an integral part of the business that we must ensure continuous cooperation. When creating our communication plans, we look for ways to cross-promote so that we can offer even better solutions to our customers and audiences.

Continuity between partners inevitably leads to more influential campaigns and stronger alliances. This is another effective way for two or more countries to join forces and reach a wider audience. Such partnerships allow your business to collaborate with third parties with similar audiences for great mutual benefit.

20.04.2022

FOREIGN INVESTMENT IN BULGARIA DOUBLED IN THE FIRST TWO MONTHS OF THE YEAR

The net flow of direct investment in the country for the period January - February 2022 was positive in the amount of EUR 408.1 million, or 0.5% of the gross domestic product, increasing by EUR 205.6 million (101.5%) compared to the corresponding period of the previous year. This is shown by the preliminary data of the Bulgarian National Bank.

In February 2022 alone, the flow was positive and amounted to EUR 141 million, compared to a positive flow of EUR 146.6 million in February 2021.

Equity investments, which include transferred and withdrawn cash and in-kind contributions of non-residents to and from the capital and reserves of Bulgarian companies, as well as receipts and payments on real estate transactions in the country, are positive and amount to EUR 71.9 million for the first two months of the year.

It is 189 million euros higher than in January-February 2021, when it was negative at 117 million euros.

The net investment of non-residents in real estate amounted to EUR 2.6 million in the first two months of this year, with a positive net flow of EUR 0.5 million in January-February 2021.

According to preliminary data, the reinvested earnings, showing the share of foreign investors in the current profit or loss of companies, is positive and amounts to EUR 94.3 million compared to a positive value of EUR 409.4 million for January - February 2021.

The net flow of investments in debt instruments, which reflects the change in net liabilities between foreign-owned companies and foreign direct investors in financial, bond and trade loans, was positive and amounted to EUR 241.9 million, with a negative value of EUR 89.8 million for January - February 2021

The largest net positive flows of direct investment in the country for the first two months of this year came from Switzerland (143.5 million euros), Luxembourg (68.1 million euros) and Germany (67.4 million euros), and the largest net negative flows flows to Italy (EUR 22.6 million) and Belize (EUR 3.2 million).

BNB statistics also show that the net flow of direct investment of Bulgarian citizens and companies abroad in January-February 2022 amounted to EUR 44.7 million (0.1% of GDP, compared to EUR 40.6 million in January-February 2021).

20.04.2022

22,000 PEOPLE WILL START WORKING ON THE NATIONAL EMPLOYMENT PLAN IN 2022.

Nearly 22,000 unemployed will start working on programs and measures provided for in the National Action Plan for Employment in 2022, and 10,600 people will be included in training to become more competitive in the labor market. The document was approved at today's government meeting.

The planned number of subsidized jobs will increase by 7728 or 53% compared to 2021. The financing of the activities set in the Plan will be within BGN 123 million. As a result of its implementation, the unemployment rate is expected in 2022 to be 5%.

The remuneration of those included in subsidized full-time employment will be at least BGN 710 per month, which is the minimum wage in Bulgaria from April 1, 2022. In 2022, the subsidy provided by the state to employers for the payment of wages of unemployed persons employed under measures under the Employment Promotion Act is increased from BGN 550 to BGN 650 per month. When providing employment for an unemployed person with higher education, the monthly subsidy will be equal to BGN 700. The rest of the salary will be provided by the employer.

The remuneration of the young people included in the "Career Start" program is increasing (from BGN 800 to BGN 860), of the youth mediators to the municipalities (from BGN 830 to BGN 890), of the psychologists, from BGN 950 to 1010 BGN), to the case managers (from 900 to 960 BGN). The salaries of Roma mediators with secondary education will increase from BGN 750 to BGN 810, and of university graduates - from BGN 800 to BGN 890.

The funds that the unemployed can receive for transport costs for presentation to an employer in another settlement will increase from BGN 130 to BGN 142.

According to the two-year plan of the state enterprise Bulgarian-German Vocational Training Center, 2,077 unemployed people from different disadvantaged groups on the labor market will be trained. A total of 9,150 unemployed will be employed under regional employment programs in the 28 districts. BGN 5 million have been provided for the Beautiful Bulgaria project in 2022. The project will provide total employment for 250 people and training for 200 people. Under projects of the social partners, 6,269 unemployed people will take part in trainings for acquiring key competencies and professional qualification in professions in demand on the labor market.

20.04.2022

PROGRAM BG16RFOP002-6.002 RECOVERING SMES BY IMPROVING ENERGY EFFICIENCY

Directorate General for European Competitiveness Funds at the Ministry of Innovation and Growth - Managing Authority of the Operational Program "Innovation and Competitiveness" 2014-2020, announces a project selection procedure: BG16RFOP002-6.002 Recovering SMEs by improving energy efficiency.

The purpose of the procedure is to provide focused support to Bulgarian small and medium enterprises to recover from the economic consequences of the spread of the COVID-19 pandemic by improving their energy efficiency.

The total amount of the grant under the procedure is BGN 136,226,120 (EUR 69,651,309.16) from the European Regional Development Fund (ERDF) through the REACT-EU Instrument.

The minimum amount of the requested grant for an individual project is BGN 25,000, and the maximum - BGN 150,000. The maximum aid intensity under the current procedure is 50%.

Support shall be granted under the de minimis regime in accordance with Regulation (EU) № 1407/2013.

Under the procedure are eligible costs for acquisition of machinery, equipment, systems, construction and installation works, representing fixed assets included in the List of eligible categories of assets, as well as costs for consulting services for introduction and certification of energy management systems in enterprises according to the requirements of standard BDS EN ISO 50001 (Energy Management Systems) / EN ISO 50001.

The submission of the project proposal is done entirely electronically by filling in a simplified web-based application form and submitting the form and accompanying documents through the Information System for Management and Monitoring of EU Structural Instruments in Bulgaria (UMIS 2020) only using a valid Qualified electronic signature (QES), through the E-application module at the following Internet address: https://eumis2020.government.bg.

IMPORTANT: The starting date from which project proposals can be submitted is 10:00 on 03.05.2022.

The procedure has a deadline for submitting project proposals 16:30 on 23.05.2022.

Applicants may ask additional questions and request clarifications regarding the Conditions for application up to 14 (fourteen) days before the deadline for submission of project proposals. Additional questions can be asked in UMIS 2020 through the Electronic Application module, procedure BG16RFOP002-6.002 Recovering SMEs by improving energy efficiency.

The answers to the candidates' questions are published in UMIS 2020 and on the website of the Managing Authority (www.opic.bg) within 7 days of receiving them. Clarifications are given regarding the Conditions for application, which cannot contain an opinion on the quality of the project proposal and are mandatory for all applicants. No answers to questions asked by phone will be provided. Individual answers to questions asked by candidates in the procedure will not be sent.

The full package of documents on the procedure (Conditions for application, Conditions for implementation and annexes to them) is published in UMIS 2020: https://eumis2020.government.bg, on the website of the operational program: www.opic.bg, as well as on The single information portal for general information on the management of the Structural Funds and the Cohesion Fund of the European Union in the Republic of Bulgaria: www.eufunds.bg.

For more information and assistance in connection with project proposals you can contact the Consultancy Center - Berkovitsa.

20.04.2022

ROMANIA WILL EXTRACT GAS FROM NEW FIELDS

Romania expects to extract the first natural gas from its deposits on the Black Sea shelf in the middle of this year. This was revealed by the Prime Minister of our northern neighbor Nicolae Chuka in an interview with Radio Romania on Monday. "In the Black Sea, we have the opportunity to receive the first gas in the middle of this year," he said.

"Investments of (Black) Oil & Gas have already been made, they have already signed acceptance documents and it is possible to provide 1 billion cubic meters of gas per year through this project."

Romania-based Black Sea Oil & Gas is owned by Carlyle International Energy Partners and the European Bank for Reconstruction and Development.

"At the end of 2026 - beginning of 2027, there is a possibility of receiving the first gas in the perimeter of Neptun Deep," Chuka continued. Earlier, the oil and gas corporation ExxonMobil withdrew from the Black Sea natural gas project Neptun Deep due to unfavorable tax conditions, and its stake in the project was bought by the Romanian state-owned company Romgaz.

"At the same time, we will ensure the exploitation of gas fields in the national territory at great depths and this will provide gas from 2024," he said.

Efforts to speed up the start of exploitation of its own gas fields are being made by Romania against the backdrop of the Russian Federation's military operation in Ukraine and calls by the European Union to ensure the energy independence of EU member states from Russia. On April 15, the ruling coalition of parties in our northern neighbor submitted to parliament a draft of the so-called offshore law, which regulates the conditions for the development of gas fields in the Black Sea. The regulation provides favorable conditions for foreign companies that will participate in the operation and is considered an urgent issue.

"As for independence from gas supplies from the Russian Federation, we have decided that this law will ensure stability and legal predictability for the business environment in this area," Chuka explained.