Last Friday, a number of non-governmental organisations and other institutions gathered for a round table discussion on the development of the Small and Medium-sized Enterprise (SME) sector in Bulgaria. The participants agreed that improved co-ordination between their respective organisations would spare valuable resources and channel their efforts in support of SMEs.

The Bulgarian Chamber of Commerce and Industry (BCCI) hosted the round table entitled "Co-operation in providing value added services to SMEs with a view to their adaptation to the requirements of the EU internal market." In attendance were representatives from the Agency for Small and Medium-sized Enterprises (ASME), the Bulgarian Association of Regional Development Agencies (BARDA), the Euro Info Centre, and the EU Club at the BCCI.

The purpose of the meeting was to provide a forum for the major organisations which are dealing with the SME sector in Bulgaria. Participants made presentations on their activities and goals, and suggested ways that would allow them to improve their operations.

During the talks, Irena Petrunova, executive director of the ASME, presented the government's strategy for the SME sector. "In 2001, the agency would focus its efforts on simplifying the administrative and legal procedures concerning SMEs, setting a regional network for encouraging enterprises and improving the information and consulting services offered to them," she said.

While most of the participants agreed with the government's priorities, some problems were pointed out. "We believe that the offering of a comprehensive set of services and solutions nationwide would boost the effectiveness of SME programs," said Stoyanka Petrova, executive director of BARDA. She added that the service offerings of SME organisations overlap in some regions, while elsewhere, no services are offered at all. Petrova mentioned that this leads to SME discrimination on a regional level.

BARDA representatives also stressed that concentrated effort is needed for improving SME access to financing. "The majority of our clients complain that the numerous education programs offered by SME organisations help little when it comes to securing loans," said Petrova.

The SME financing issue was touched by the EU Club representative but from a different perspective. "While we support the government's initiative to improve the legal framework where SMEs operate, we believe that financing matters must be outside its reach," said Thierry Lippert, chairman of the EU Club. "In this respect, the activities of the Encouragement Bank are likely to be viewed by the EU as a form of indirect government intervention in the sector."

By the end of the discussion, the parties agreed that each SME organisation had strong expertise in a particular field and that they would be most effective if they worked together.

According to data from the National Statistics Institute, in 1998, some 205,643 business entities in Bulgaria were in the SME category. The bulk of these companies, 164,362, were operating in the services sector. Another 34,020 were operating in the industrial sector, and the remaining 7,261 were involved with agriculture.