site.btaBusiness Environment in Bulgaria Improving, Deficits Present in Key Areas, Survey Concludes

The business environment in Bulgaria is improving, but there are still deficits in key areas such as legislation, tax and social security system, public procurement and unfair competition, the nationally representative survey of the business climate in Bulgaria in 2024, conducted by the Estat agency on behalf of the Modern Trade Association (MTA), concluded Tuesday.

The survey was conducted between December 3, 2024 and January 20, 2025 among 397 enterprises and 193 commercial companies.

It shows that the Business Climate Index in Bulgaria, developed as a tool for assessing and analyzing the state of the business environment in Bulgaria, has been on an upward trend since April 2022, and in 2024 is approaching the highest measured values (10.91 in the fourth quarter of 2007). The index in the trade sector is 14.49.

According to the data, 64% of all companies believe their situation will improve or be good and remain the same in the fourth quarter of 2024. 62% of respondents in the Trade sector also believe so. 9% of companies assume that their condition will get worse, 8% are those companies in the Trade sector.

However, the survey concludes that the business cannot rely on the state in times of crisis. There is a lack of stability and consistency in legislative initiatives. 52% of respondents do not think that the government encourages business development. 50% disagree with the view that the government supports Bulgarian business in times of crisis. 80% think that starting a business in Bulgaria is difficult, the poll shows.

Regarding inspections by regulatory authorities and regulators last year, the survey reports that 70% of firms in the trade sector had inspections, 8 on average. According to the calculations, an inspection involves an average of 2 people, takes 17 hours of work and costs companies the average amount of BGN 805.

Respondents also pointed out that the share of companies in the sector with problems filling vacancies is growing. Hiring shop floor staff takes the longest time - an average of 4 weeks, although 52% of the companies indicated that they offer various benefits to their employees.