Two in three Bulgarian manufacturers (70.1 per cent) were heavily dependent on import of raw materials, a 2007 survey of the World Bank on Bulgaria reads, as quoted by Dnevnik daily. Bulgarian companies are just as heavily dependent on sales at home, with only 12.2 per cent of Bulgarian companies focusing mainly on exports, the survey reads.

The report is compiled drawing on the answers of 663 Bulgarian companies.

The main challenges to doing business in Bulgaria are the grey economy, political instability, inadequately trained workforce and corruption, according to the companies surveyed by the lender. Among other problems cited are access to financing, tax rates, the labour market and regulations.

According to the survey, the bulk of the recent growth of the Bulgarian economy comes from the easy access to loan financing. More than 40 per cent of Bulgarian companies have resorted to banks when financing their investments. The average for Eastern Europe and Central Asia region is 17.3 per cent and 16.5 per cent worldwide.

Another 46 per cent cover their operating expenses with bank loans, compared with 25.3 per cent in the region and 27.8 per cent globally.

This fact has made Bulgarian companies finely attuned to fluctuations on the banking market and would make them the first victims of a market burst, the report concluded.

Entrepreneurs do not see the Customs Agency as corrupt or problematic. Less than one per cent of Bulgarian companies have pointed to it as an obstacle. The same question produced 12.4 per cent positive answers in the region and 17.7 per cent worldwide.

Three in five entrepreneurs complained about unfair competition from the grey economy, as opposed to 46 per cent regionwide. Companies also lamented about the protracted issue of building permits (48 days) and connecting to the power grid (85 days).