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Analysis of the Situation and Factors for Development of SMEs in Bulgaria: SMEs in the Crisis Context

Main objective of the analysis is to examine the present situation of the SME sector, the potential of development of the enterprises, and to describe the key effects from the state policies.Situation of the SME sector is investigated for the period of 2005-2011. Main statistical data covers the period of 2005-2009. Research indicators are complemented with national representative survey among SMEs carried out in the beginning of 2011. For the purposes of analysis, data from other surveys are used, along with statistical records and reports related to SME in EU-27. In addition, some parts of the analysis resume contemporary business paradigms treating various aspects of SME development.Analysis is focused on the key factors for sustainable development and competitiveness. For each factor, a specific methodology is elaborated and indeces are constructed. The latter give an opportunity for a general view over the processes passing through Bulgarian enterprises. The methodology allows comparison between diffent segments of SME as well reveal of their internal dynamics.Research on the main question, namely effects of the economic crisis over SME sector, is conducted through specification of econometric models, which are based on modern theories about competitiveness. As a result, mechanisms of affecting different groups of enterprises are extrapolated in correlation with level of enterprise competitiveness. It is the base, on which the most sustainable and least affected by the crisis enterprises are identified. It is exactly the enterprises with the largest potential to lead the sector through the crisis if shortterm state aid was addressed to them.