Bulgaria is ranked 44^th in the world in terms of entrepreneurship environment. Romania is two positions up, but at the same time states like Hungary, Italy, Croatia and Montenegro have been rated lower on the 2014 Global Entrepreneurship index. It is a product of the Global Entrepreneurship and Development Institute and, based on 14 criteria. It assesses the so-called business ecosystems within 130 countries across the globe. Entrepreneurship skills, sense of opportunities and innovative processes – those are the spheres with successful Bulgarian presence. The research says the Bulgarians should put efforts in the IT sphere, despite our idea of being good with technologies. The explanation of some experts is that currently we rely more on self-educated people there. According to an Industry Watch analysis the entrepreneurship system in Bulgaria has been rapidly developing over the past 5 years, but most of the newly established businesses are within the IT sphere. The research was released in the summer, ordered by the America for Bulgaria Foundation. The goal was the gaps in the ecosystem to be discovered, in order for the latter to be effectively supported by granting schemes. What are the main conclusions of the research? Here is what Mr. Georgi Stoev, a managing partner with Industry Watch for Bulgaria, said in an interview for Radio Bulgaria:

“The Bulgarian entrepreneur can rely on fairly nice access to funding, i.e. when you have a good idea, money always comes. The missing part lies in good mentors’ programs, an access to business angels, i.e. the entrepreneurship culture in Bulgaria is still developing as it was only recently born. There is a huge concentration of finances, of efforts in the high-tech industry, especially in IT, as well as a geographic concentration in Sofia. I.e. an entrepreneur from the town of Yambol, who develops for instance a prototype of new shoe soles, faces tougher access – he is far away from anything, happening in the heart of the ecosystem, his industry remains aside from the focus.”

The two main funds for encouragement of startups – LaunchHub and Eleven, are well-recognizable here, but they also invest mainly in IT companies and risk capital is not sufficient for traditional industries. Entrepreneurship educational programs are focused on the acquiring of technical skills, such as the writing of a business plan for instance, and not on the development of innovation, creativity and entrepreneurship culture. According to Georgi Stoev, young people should be encouraged to try new things, to make experiments and to be innovative, even if they fail. The next issue is the negative image of entrepreneurs in Bulgaria. “We don’t have emblematic figures, stories of success that should inspire young people, giving them hope for the sense and meaning of entrepreneurship”, Stoev says and adds:

“Our main recommendation is for targeting efforts at the creation of entrepreneurship culture, starting with the education of the kids, as it is too late in the university period. If we can, we should aim most of our efforts at schools and even kindergartens. We should also stimulate other industries, not only the software ones, directing part of our efforts outside Sofia, towards other university cities with young people. That would be a step into the right direction.”

Junior Achievement Bulgaria is an NGO that has been working for over 17 years in this country for the encouraging of the entrepreneurship spirit via different educational and practical activities for economic and financial literacy, business skills, leadership and strategies for success. According to Mrs. Vania Kastreva, deputy minister of education, the new draft bill for preschool and school education will also encourage the development of entrepreneurship among students.

English version: Zhivko Stanchev