1. Team «ABC»
Selected EE country - Bulgaria
Team leader -Valeriya Mikhaylova
(Russia-Germany)
Dani Bechev (Bulgaria - Germany)
TU-Ilmenau (Germany)
2. - We have been waiting for a long time watching how different
countries are developing. Now we are going to start real
business! We will do small steps in order to get much and will
start from one country in Eastern Europe (EE).
In recent years there is a tendency that countries of EE are
implementing more and more reforms to improve their business
climate. According to http://www.doingbusiness.org, in 2011 88%
of the countries in EE implemented at least 1 institutional or
regulatory reform. Such measures afford making business in this
region easier. Moreover, in the past 8 years EE is a leader in the
number of reforms protecting investors and increasing the ease of
paying taxes. So, these are Long-Run Trends. EE is developing quite
fast in spite of the world financial crisis. There are tendencies of
cooperation between the countries of the region and integration
in the global markets. Although there are some common
tendencies for the whole region, the countries of EE have many
differences and advantages.
That´s why I want to start from a concrete example.
And it will be Bulgaria.
3. The region of EE is not economically so well-developed as the countries of
OECD(for example low GDP) but there are many advantages that could be used
for making business.
+ Since 2007 Bulgaria is a EU member. This membership will probably improve the
economic development of the country and deminish the gap between Bulgaria
and other EU-States.
+ The cooperation bertween Bulgaria and other EU-Members is positiv for EU too.
For instance, about 60% of the Bulgarian trade is within EU-Borders. Bulgaria is
situated at the crossroads between Europe and Asia, which could give some
opportunities for the development of trade in the country
+ According to Eurostat, the unemployement in Bulgaria is lower then EU-Average.
This is quite important for conomic development and stability in the country.
+ In 2012 Bulgaria was on 74th place in the Global Competitiveness index. It is the
2nd place in the Region of Southern Europe and this position is better than of
many other countries. Nowadays Bulgaria is attracting investors because some of
its competetive advantages: business costs, natural resources, cheap and skilled
labourforce and good geographic location.
+Bulgaria has well-developed educational system. Here are may specialists in
electronics, physics and other fields of science
4.
5. BUT Bulgaria
• Is making easier to register property by offering
expedited procedures
• Is making easier to get credit by destributing data
on loans below 1% od income/capita
• Is helping to resolve insolvency
• In 2011/2012 simplified business registration
formalities and reduced the cost of registration
• Is providing strong minority investors protection
(Extent of disclosure index is 10 of 10)
• Has many opportunities because of ist human
capital (developing of labour market and skilled
workforce) in different industries. There are
several sectors which are perspective in this
country but we will concentrate only on one.
6.
7. Rose oil production
• Bulgaria is already one of world´s leaders in producing rose
oil. Growing roses requires special climat conditions. So not
each country can afford this. The biggest importers of rose
oil from Bulgaria are France, the USA and Japan. The
interest of other countries from Europe and Asia towards
rose oil is growing. We can say that in the future this
product will probably be in high demand.
• Rose oil has always been used in parfumery and cosmetics.
Nowadays it is more and more used in pharmacy and even
food industry. For example, rose oil is being used in
production of food supplements. Due to the fact that
Bulgaria is one of the few countries that can produce
qualitative rose oil, this product will be always popular with
producers from other industries who care about the quality
of their products´components.
8. • So, our company will act in the industry producing rose oil.
People have been producing it for a very long time and our
company will continue that. Our aim is to save the existed
knowledge and secrets of rose oil production and combine
this knowledge with innovative ideas. In our company
traditions will be saved and developed by innovations.
Bulgaria is the right country because here are enough
skilled workers who can help us with that. There are
institutes and special organizations that study the process
of producing rose oil. And the level of technical
development of this country may afford to develop the
technical side of producing rose oil.
• Our advantages will be high quality of the product and its
ecological compatibility. Rose oil is an ecologically clean
product. It will be quite important in the future as there are
too many unnatural products which are not qualitative and
can damage human´s health. Our production is eco-
friendly and it is a big plus for those who care about the
environment.
