Boyko Takov is an Executive Director of Bulgarian SME Promotion Agency half of the Bulgarian Ministry of Economy. He is an Assistant Professor at the University of National and World Economy and Higher School of Insurance and Finance. He can also be Board Member of The International Network for Small and Medium Enterprises (INSME) and Head of Bulgarian National Contact Point for the OECD Guidelines for Multinational Enterprises. He gave an unique interview for Novinite.com on the matter of SMEs and their significance in Bulgaria’s financial system.
Mr. Takov, your annual evaluation of the state of SMEs (small and medium-sized enterprises) in Bulgaria has just lately been printed, what’s your opinion?
I might say that SMEs are in a good condition. I’ll share with you some conclusions and info from our annual evaluation of the state of SMEs in Bulgaria. Nearly 75% of the employed in the financial system work in SMEs, which is a pattern with out important change over the years. It may be famous right here that SMEs are extra susceptible given the numerous crises we’re going by means of. The decline in employment in 2020 is extra distinct exactly with them. After the decline of almost 20% in 2020 of newly registered corporations, now in 2021, there is a rise in newly established corporations.
Speaking of export, after the decline in 2020, now in 2021, based on preliminary information, we’ve got not solely caught up, however we’ve got even proven higher outcomes than 2019, which was one of the years with the highest ranges ever. It must be famous right here that SMEs are accountable for roughly 50% of the worth of exports, which has additionally remained a pattern over the years. SMEs dominate in imports, with 60% of their worth being resulting from small and medium-sized enterprises.
All these info present as soon as once more the significance of SMEs, as particular consideration must be given to the proven fact that over 90% of them are Micro-enterprises. Undoubtedly, SMEs are extra versatile and may alter extra rapidly to a disaster, which helps the entire financial system, on condition that about 98% of it’s composed of SMEs.
What are the most critical challenges going through SMEs in the present state of affairs?
What we’re seeing, and I might say is basic between corporations, is that they want working capital. Other apparent difficulties for SMEs are the lack of adequate workers, together with certified staff, provide difficulties resulting from restrictions on worldwide commerce and the free motion of items, and the cancellation of buyer orders.
Of course, discovering new companions and coming into new markets is an actual problem, given all the restrictions imposed by COVID 19. I might add just a few extra challenges that inevitably face SMEs, similar to all points of digitalization, cybersecurity, the transition to a round financial system, advertising abilities, branding. A problem for Bulgarian SMEs is the alternative to hitch the provide chains, particularly the ones already damaged, and never solely that, many of them are at present being constructed.
In this line of thought, what’s going to the SME Agency do concerning such challenges?
We have deliberate many initiatives in the completely different instructions listed above, however in basic, they’re in the area of trainings, enterprise consciousness of numerous alternatives, upgrading the abilities of managers and staff in SMEs. In basic, softer measures, that are essential in these dynamic instances and which, in mixture with funding ones, are the proper method to develop SMEs. Unfortunately, in the previous two years, resulting from the pandemic, loads of funds that needed to go alongside completely different traces in investing and upgrading corporations have been used for liquidity help. As an Agency, we’ve got a deal with the internationalization of SMEs and can proceed to work in this course and to help them, as this is a chance for the progress of our financial system.
What traits do you discover worldwide?
Economies are rising, exports are additionally rising, inflation will slowly start to fall, and unemployment ranges may also be decrease. Of course, COVID 19 will proceed to be the largest danger to the international financial system. In this context, on-line commerce will proceed to develop, and dealing residence workplace for the corporations may also stay a long-lasting pattern, the place doable, of course. Office areas will likely be extra versatile, permitting staff to decide on how and the place to work, which can give alternatives for collaboration and can enhance productiveness. Future workplaces will put further emphasis on sustainability and the adoption of sensible applied sciences to enhance staff’ bodily and psychological well being. Supply chains will more and more recuperate, however with logistics pressures, and likewise shortening them may also stay a pattern. Companies will make investments increasingly more in options associated to inexperienced transformation and sustainable dwelling. Anything as a service or so-referred to as XaaS will more and more enter amongst SMEs, and their usefulness is but to be assessed by the corporations in our nation.
And lastly, you hosted the seventeenth annual assembly of INSME and have become a member of the board of the group, what occurred and what’s subsequent?
BSMEPA Exec. Dir. Boyko Takov turns into Board Member of the International Network of SMEs
The International Network for Small and Medium Enterprises is a good platform for exchanging experiences, sharing good practices and partnerships between its members. INSME‘s mission is to convey collectively worldwide policymakers, intermediaries, practitioners, researchers, and their networks working in the fields of innovation, expertise switch, and entrepreneurship. Working beneath the auspices of the OECD offers a fantastic alternative to share vital data and traits in the improvement of economies and firms in explicit. This is the place to thank the President of the group, Mr. Sergio Arzeni, the General Secretary, Mr. Giovanni Zazzerini, and the total workforce and board for the honor and belief I’ve been given. I can share one of the first steps is in the course of supporting Bulgarian SMEs is a coaching and mentoring program EXPO 2, half of the Export Hub Bulgaria, the place confirmed specialists from the INSME community will share their expertise and contacts for 15 Bulgarian corporations in discovering new worldwide markets. The program begins in January and after its quarterly period, we can share concrete outcomes. Otherwise, the Agency and I intend to be energetic members of this worldwide community, to take and share expertise with colleagues and, of course, collectively to contribute to the energetic help of SMEs.
/Novinite.com