This project is co-financed by the European fund for Regional Development through Operational programme “ Development of the competitiveness of the Bulgarian economy” 2007 - 2013 Export Strategy For Sector „MANUFACTURE OF MACHINERY, EQUIPMENT AND HOME APPLIANCES” Bulgarian Small and Medium Enterprises Promotion Agency 2012 Operational programme “ Development of the competitiveness of the Bulgarian economy” 2007-2013, Priority axis 4.2. “Promoting the internationalisation of the Bulgarian enterprises” Project № BG161РО003 – 4.2.01- 0001 “Promotion Of The Internationalization Of The Bulgarian Enterprises”
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This project is co-financed by the European fund for Regional Development through Operational programme “ Development of the competitiveness of the Bulgarian economy” 2007 - 2013
Export Strategy
For Sector
„MANUFACTURE OF
MACHINERY,
EQUIPMENT AND
HOME APPLIANCES”
Bulgarian Small and Medium Enterprises
Promotion Agency
2012
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
2
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
This document was developed under project № BG161РО003 – 4.2.01-0001
“PROMOTION OF THE INTERNATIONALIZATION OF THE BULGARIAN
ENTERPRISES”.
Beneficiary: Executive agency for promotion of small and medium
enterprises
This document was developed with the financial support of Operational
programme “Development of the competitiveness of the Bulgarian economy”
2007-2013 co-financed by the European fund for Regional Development. The
overall responsibility of the document’s content lies with the Executive agency
for promotion of small and medium enterprises and under no circumstances it
can be accepted that this document reflects the official statement of the European
Union and the Contract authority.
3
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
This project is co-financed by the European fund for Regional Development through Operational programme “ Development of the competitiveness of the Bulgarian economy” 2007 - 2013
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Graph 4 Value of the Bulgarian export – motor trucks, electrical trucks and other trucks /2001 –
2010 / (in thousand EUR)
Source: NSI
Former market positions of Bulgarian mastodon “Balkancar” of about 60,000 and more
handling and lifting trucks exported on the Russian market can never be recovered by the
SMEs from sector. And it is found out, as a result of in-depth research, that namely the
Bulgarian market niche is occupied by Chinese manufacturers, and the Russian market
constantly needs such "absorption". Especially here, the Bulgarian SMEs could hardly
overcome the powerful Chinese State companies, which are supported in a number of ways by
the Chinese country, on the one hand, and by the preferential duties the Russian state had
created for former Bulgarian enterprises in this sector. Therefore, one of the strategic objectives
is to restore the so-called “Bon-ton” in diplomacy between Bulgaria and Russia and to set new
market coordinates of the economic relations.
The given graph shows that each year the value of the export of the export of air
conditioning machines for the entire period from 2001 to 2010 is continuously growing, to
reach from nearly half a million euro to almost 30 million euro for the last two reported years.
54
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Graph 5 Value of Bulgarian export – air conditioning machines /2001 – 2010/ ( in thousand
EUR)
Source: NSI
Somewhat more slowly, but gradually upwards moves the export of washing
machines. On the attached graph can be seen that if ten years ago exports amounted to just over
7 EUR (million), then in the year of accession to EU-27 the value of exports increased almost
three times and a half, and for the period 2001 - 2010 the value of the export categorically has
tripled. This is one of the most dynamically developing fields of Bulgarian exports in this
sector and with great potential for development.
55
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Graph 6 Value of the Bulgarian export – washing machines /2001 – 2010 / (thousand EUR)
Source: NSI
Analogous to the situation of the washing machines export is the situation of the
exporters of laundries and other household laundry equipment, the value of which is also
constantly growing since the beginning of the decade. For comparison, the lowest value has
been recorded in 2002 - 181,000 EUR; to the year of joining the EU-27 this value increased 16
and a half times, and by 2010 this figure has grown to almost 26 times to almost 4.8 million
EUR. As in the case of the other export lines in the sector the country's accession to the EU-27
has a relatively “ground-breaking” role for the market participants, but exports in this direction
is quickly recovering its positions and continues to conquer new market spaces. Dynamics
since the accession of the country is slightly delayed because for the period 2007 - 2010 the
export in this area has grown by only one and a half, but in average for the decade - the values
are very high, where the “turbulent” years, as evidenced by the following
graph, were before 2007.
56
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Graph 7 Value of the Bulgarian export – laundries and other laundry-type washing machinery
/2001 – 2010 / (in thousand EUR)
Source: NSI
In contrast to the previous chart is the illustration of the value of exports of sewing
machines in Bulgaria. At the beginning of the decade the value of exports varies between
650,000 and 850,000 euros, where the first breakthrough of the “psychological” barrier of 1
million EUR is in 2004. In the years immediately before the accession of the country the value
of exports falls below 1 million EUR, but then slowly regains its position as the new record
level of 1.5 million EUR is reached in 2009.
In the last reported year - 2010, the export value is below 2004, where the fluctuations
in the export of sewing machines are at extremely short intervals of time - from one to two
years at the maximum, which creates some uncertainty among the market participants.
However, we must not forget, that the market for wearing apparel in the country has
also developed very rapidly and much of the Bulgarian SMEs especially here focused on
servicing the Bulgarian counterparts.
57
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Graph 8 Value of the Bulgarian export – sewing machines /2001 – 2010/ (in thousand EUR)
Source: NSI
Regarding the value of the Bulgarian exports of boilers for central heating, it is found
that from the beginning of the decade to the country's accession to the EU-27 the value of
exports has been constantly decreasing. Only in 2007 and 2008 is passed the 1 million EUR
again, then again in 2009 and 2010 these values fall dramatically.
Graph 9 Value of the Bulgarian export – central heating boilers /2001 – 2010 / (in thousand
EUR)
Source: NSI
58
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
At this stage the export is at the levels of 2004 and, in fact, many of the Bulgarian
manufacturers of boilers and similar appliances are seriously troubled, where the prospects of
recovery from this economic crisis are referred to after two or three years.
The analysis of the most exported products that have successful marketing realisation
onto foreign markets shows two relatively recognizable trends: either deterioration of the
production, respectively, export positions, or clear cycle recurrence of “influx” and “reflux” in
different areas, where the cycle recurrence is about one or two consecutive years, due primarily
to the execution of certain larger or smaller orders. It is this uncertainty and lack of rhythm that
causes serious problems in forecasting and organizing of the activities of the SMEs from the
sector. Inability to clearly define the short and medium term objectives at company level
through the instruments of forecasting and planning, is creating unpredictable consequences for
the sector and the export, as traditional business relationships are destroyed, distorting the
regularity of payments on the line companies - companies (or known also as “business-to-
business”) and on the line companies-workers.
In addition to machinery and equipment should be mentioned that according to EU
statistical nomenclature the household appliances are included in group 29.7р and can be
perfectly traded on international markets. This group includes a wide manufacturing range
of various products such as:
Domestic electric appliances – like refrigerators, freezers, washing machines;
Domestic electro-thermic appliances
Non-electric domestic cooking equipment;
The main users of these products are primarily households. Therefore, innovations
that are implemented in the production of these products are focused mainly on efficiency in
households and their impact on the environment. Here, for example, are taken into
account factors such as electricity consumption, water consumption, change in habits, and even
change in lifestyle. Because of the direct and almost daily contact of the people with this type
of equipment, it is necessary to make more and more improvements in design, ergonomics,
materials and other products characteristics.
On EU-27 level there about 5,200 companies, engaged in manufacturing of home
appliances, with annual turnover in 2006 only from the sale of these products accounted for
52.7 billion EUR, and generated value added value for 12.7 billion EUR. This value
corresponds to 6.6% of the total added value, created by all companies, engaged in the field.
59
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Of course, the nomenclature of the home appliances does not exhaust the full list of
potential solutions available for export, as the Bulgarian manufacturers of machinery and
equipment have also something to offer abroad at competitive prices.
COMPETITIVENESS OF THE EXPORT OF GOODS ON INTERNATIONAL
MARKETS
This chapter goes through the main export markets of our country for each group of
goods, identified as having export advantages and potential.
The next tables shows the leading trade partners of Bulgaria by groups of goods in
sector “Manufacture of machinery, equipment and home appliances” for a 10 year period.
60
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Table 24 Leading partners in export by groups of goods in sector “Manufacture of machinery, equipment and home appliances with general and
Leading products in the export of Bulgaria for Kazakhstan in 2010:
– Pharmaceuticals;
– Horse, asses, mule or hinnies meat, fresh, chilled or frozen.
– Medical, surgical, dental or vets instruments and devices;
– Apparatus – switches, fuses, voltage limiters,
– Cranes, container-processing (surrounding) tucks and crane trucks.
Leading products in the export of Bulgaria for Kazakhstan in 2010:
– Petroleum gas and other gaseous hydrocarbons;
– Mineral and chemical nitric fertilizers;
– Mineral and chemical fertilizers, containing nitrogen, phosphorus and
potassium; other type of fertilizers;
– Constructions and parts thereof – bridges and bridge elements, towers, piles,
stands, columns;
87
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
– Constructions and parts thereof – water-gates, scaffoldings, roofs, doors and
windows.
Our country has the potential to increase the export to Kazakhstan in a number of goods
and services: technology lines for fruits and vegetables processing; pre-cast units, liquid pumps,
electric batteries; trucks – lifting equipment; machinery and apparatus; calculators and
accounting machinery; lamps, construction and tourist services; pharmaceuticals, hair styling
preparations; mouth preparations; furniture; wood products; ready-made sauces; fruit juices;
frozen vegetables mixes; canned food, etc.
88
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
SWOT AND PESTEL ANALYSIS – SECTOR “MANUFACTURE OF
MACHINERY, EQUIPMENT AND HOME APPLIANCES”
The SWOT analysis is an instrument by which it is possible to identify the strengths,
weaknesses, opportunities and threats with regard to a certain policy or activity. This is an
acronym from the first letters of the respective words in English /Strengths, Weaknesses,
Opportunities, Threats/.
The LOED analysis is an instrument by which we can identify in what way the positive
effect of the analyzed policy can be increased and in what way the negative effects can be
countered. The word is an acronym from letters of the words in English – upgrading,
overcoming, employment, defence.
Table 35 SWOT and LOED Analyses
S.W.O.T L.O.E.D
Strengths:
1. Bulgaria is member of EU-27 and the
SMEs from the sector may use the rights
and privileges for the manufacture and
trade of machinery, equipment and home
appliances
2. The SMEs have access to specialized EU
funds for implementation of programmes
for enhancing their competitiveness
3. The SMEs from the sector have already
created infrastructure facility for
performing specific manufacture activities.
4. The sector SMEs are operating in the
condition of expanding market, having
better price/quality ratio
5. The Bulgarian SME of the sector have
traditional and sustainable market positions
6. Bulgaria has lower criminality rate in
relation to other EU members.
7. The Bulgarian legislation is constantly
Loading:
1. Popularization of the image of the SMEs
from the sector.
2. Taking advantage to a greater extent of
European funds by the sector SMEs.
3. Creation of better administrative
mechanism for serving the sector SMEs.
4. Introduction of rules and regulations for
faster integration of the sector SMEs for
entering international markets.
5. Incorporation of foreign partners for
popularization of the Bulgarian production
abroad
6. Restoration of the positions of the trade
attaches at the Bulgarian diplomatic
services and their engagement in
defending the sector SMEs interests.
7. Creation of coordinated policies for the
support of certain standards in terms of
production quality
89
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
being updated and the European directives
and legal regulations are being introduced.
8. Bulgaria can make use of the already
elaborated EU guidelines,
recommendations and directives, regarding
this category persons
9. The country geographic situation is
favourable for export realization
8. Creation of specialized clusters of SMEs
from the sector, that are to make and
maintain analytical and information
database and to perform information
provision.
Weaknesses:
1. Shortage of operating capital for the
Bulgarian SMEs from the sector
2. Shortage of financial resources for
modernization of the managerial processes
at company and cluster level
3. Shortage of investment capital for
investment and R&D.
4. Many of the sector companies are
deindustrialized or having lower
technology level.
5. Problems related to the age, educational
and other structure of the personnel
6. Shortage of new cadres, dominating
foreign languages and new skills and
competences.
7. Lack of unified complete system for who
is operating on the Bulgarian market and
what are the authentic production facilities
of the SMEs
8. Low level of market reaction due to lack of
fresh capital resources and long production
cycle.
9. External orders are usually having many
specialized requirements and short
execution deadlines, slowing down the
market reaction.
10. Lack of statistical report about the
commitment of the sector with other
sectors and consumer demand
11. In many cases the SME are “fighting”
for clients
12. Lack of adequate on-site surveys for
the sector SMEs integration in clusters
13. Resistance for cooperation of the SME
managers with the State authorities.
14. Low competitiveness of the
manufactured production due to the
Overcoming:
1. Structuring of programmes at state,
regional and municipal level for improving
the administrative attendance of the sector
SMEs
2. Lobby for legislative amendments to
promote innovations and the introduction
of new technologies and solutions in the
sector companies.
3. To create special centres for working with
foreign clients to the ends of promoting
the export of the sector companies.
4. The unified information portal for the
sector SMEs needs is to be regularly
updated, similar to such portals in
Germany, UK, and USA.
5. Making of information brochures/leaflets/,
etc. in different languages, as to facilitate
the access to information of foreign users
regarding the opportunities and potential
of the SMEs from the sector.
6. Start of representative national
sociological surveys in interval of about 5
years regarding the active sector SMEs.
7. Start of drafting annual report on the state
of the sector and the impact of the
implemented export-related encouraging
measures and policies
90
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
laborious, material consuming and energy
consuming production.
15. Predominating export of articles with
low value added.
16. Lack of experience of the SMEs in the
elaboration of export marketing strategies.
17. Lack of financial support for the
SMEs actions in defence of the intellectual
and industrial property.
Opportunities:
1. To introduce EU “good manufacturing
practices” in relation to the policies for
administrative attendance of sector SMEs
2. Usage of national and international
benchmark criteria for comparability of the
sector results.
3. Initiation of clusters for overall
performance on international markets
4. To undertake active actions for
introduction of precise criteria for
accounting the manufacture production,
the marketing and sales channels,
production cost, etc.
Employment:
1. To carry out policy for successful
negotiation of partnership with foreign
market participants (fairs, expo-centres,
call-centres, e-mails)
2. To carry out active policy for inclusion of
the SMEs in the formulation of the
encouraging measures for the sector
companies.
3. To carry out regular campaigns in relation
to the export potential and achievements of
the Bulgarian sector.
4. To carry out active communication policy
for popularization of the activity and
potential for export of the sector.
Threats:
1. Lack of adequate target axis for ensuring
financial funds and projects for upgrade of
the sector SMEs.
2. Outsourcing activities prevent the
development of own leading brands and
serve external interests
3. Division of the sector SMEs into various
“fighting” business units
4. Amortization of the inventory and aging of
the work force in the SMEs from the sector
Defence:
1. Celebration of popularizing campaigns for
the government policy in the field of
manufacture of Bulgarian machinery,
equipment and home appliances.
2. Creation of specialized funds for support
of R&D units in technology leaders in the
sector.
3. Creation of working system for
accountancy and follow-up of the
movement and economic activity of the
sector SMEs.
4. Creation of balanced initiatives for
information exchange among the
manufacturers from the sector and the
foreign partners.
The following table gives the PESTEL-analysis.
91
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
Table 36 PESTEL-analysis
Political factors Economic Factors
Bulgaria is a parliamentary republic
and a full-fledged member of the EU
The revenue policy is based on taxes,
charges and others and the main
division is: state and municipal
As a member of the EU, Bulgaria is
part of the structure of international
trade and an active agent of the
common European market
For the protection of consumers are in
effect various laws and are established
various committees
Political stability in the country is a
main priority of the ruling majority
Safety and competition promotion are
starting points in the encouragement
of the commercial activity
Despite the global financial instability,
Bulgaria manages to maintain levels
of sustainable development and a
positive economic growth
The interest rate is determined by the
Central bank (BNB) and has a
tendency to reduce; as of 01.11.2011 it
was 0.22%.
The state promotes employment and,
by attracting foreign investments, it
creates new jobs and unemployed
cadres prequalification programs
The income taxation is done with
"flat" rate amounting to 10%.
The Bulgarian currency is in a state of
currency board with the euro in
quotation of 1.95583 BGN per 1 euro
The financial policy implemented by
the state manages to keep the inflation
in the range of its normal values
The trust of the consumers is facing a
serious test, as the regulation and
quality management system needs a
higher effectiveness.
Social factors Technological factors
The cultural and demographic
detachment of Bulgaria involves a
variety of daily and cultural
differences between the broad
representation of ethnicities.
Nevertheless, the integration of these
ethnicities is successful
Relatively aging of the population and
a negative growth (-0.6% for 2010). A
positive growth was reported in the
period between 1960 and 1990 which
then became negative and reached its
lowest levels in 1990 and 2001 almost
reaching -2.0%. Statistics like this one
clearly reproduce the influence of the
political factors on the social and
demographic structure of society
At national level it is observed an
expressed labour mobility and a
Scientific research in Bulgaria has a
rich tradition and experience.
Industry operates and is organized by
technological activities, which
determines the need for knowing and
examining them.
Bulgaria is among the world leaders
with regard to its researchers, who
have given the world numerous
discoveries, inventions and innovative
technologies. Few of them reach the
community due to the fact that they
cannot find investors in the country.
The exchange of technology with the
rest of the world has marked its
beginning since the early years of the
last century. With the construction of
the modern state, these technologies
play a significant role in the
92
Operational programme “ Development of the
competitiveness of the Bulgarian economy” 2007-2013,
Priority axis 4.2. “Promoting the internationalisation of the
Bulgarian enterprises” Project № BG161РО003 – 4.2.01-
0001 “Promotion Of The Internationalization Of The
Bulgarian Enterprises”
certain part of the specialists find
professional realization abroad and in
particular – within the EU. This shows
how the mechanisms of the
community work and how the labour
market creates demand and supply
outside the borders of a country.
The living standard in Bulgaria is a
social category subject to a thorough
examination and multifactor analysis.
The level of net income is relatively
low, unlike that of ownership of real
estate.
Entrepreneurship in Bulgaria is the
reason for the implementation of many
projects, including the absorption of
funds from European fund paths
The issue of education in Bulgaria is a
topic of utmost priority. The state
provides free elementary, primary and
secondary education; higher education
also being financially supported for
the most part.
construction of each unit.
The life cycle of the products, as well
as their going out of use, becomes
shorter and shorter with the opening of
markets and the invasion of newer and
more energy-efficient products.
Both in political and in purely
technical aspect, the global energy
saving policy is also applied in
Bulgaria. It includes the construction
of alternative energy sources that
should reduce the levels of harmful
emissions and generate lower levels of
cost for the end user.
Regarding to the information
technologies and the Internet, the
country is among the European leaders
in the field of their introduction, use
and development.
Environmental factors Legal environment factors
It is being worked on strategies for
wastewater treatment and construction
of incinerators for waste incineration.
Planned urbanization and cultivation
of gardens, parks and ponds.
Bulgaria is a statutory Republic and
the fundamental law is the
Constitution.
Bulgaria’s judicial system is a direct
expression of the judiciary branch and
it is divided into different levels and
instances for the purpose of being
more accessible to people.
Of all the rights, the one of private
property is the starting point for most
of the changes after the transition to a
market economy.
Bulgaria is a country with established
legal system that allows its citizens
position and protection.
93
OBJECTIVES AND STRATEGY TO PROMOTE THE EXPORT OF THE
SECTOR SMALL AND MEDIUM SIZE ENTERPRISES
Economic activity „Manufacture of machinery, equipment and home appliances” is
one of the strong segments of the Bulgarian economy under the condition that is taken into
account the available infrastructure of Bulgarian companies and their production workshops,
inherited from the past. Regarding their innovation however, this is an activity, lagging behind
in terms of many indicator from the leading European manufacturers. For example, in Germany
this is the sector, second in terms of innovation in the German economy.
The listed concrete objectives are indicative and are formulated on the basis of carried
out in-depth surveys of the economic conjuncture and interests for export-orientation of the
SMEs, engaged in this economic activity.
Concrete objectives at macro level:
1. To strictly follow the present budget cycle, the elaborated European programmes for
promoting the competitiveness of the small and medium-size enterprises in the country.
2. In the following EU programme cycle 2014-2020 to be laid down measure for easier
application for the so called “European” funds for SMEs, operating actively in this
economic activity.
3. In the following next years should be updated and modernize the introduced rules and
standards, related to the sector, as well as to created specialized structure for promotion
and introduction of the contemporary standards by the Bulgarian SMEs from the sector.
4. To organize unified system for promotion of the Bulgarian production on external
markets through common advertising campaigns, participation in international
exhibitions and promotion of the establishment of closer relations between the
Bulgarian universities and the R&D units in the sector SMEs.
94
Concrete objectives at mezzo level:
1. Short-term – within two to three years to be created a system for submission and
processing of the companies’ feedback to unified analytical centre, in charge of
promoting the export by the Bulgarian manufacturers from the sector.
2. „Mapping” of the market participants on the good will principle and their inclusion in
programmes for information exchange and market researches.
3. Creation of platform for regular organization of the market participants from the branch
(conferences, round tables, forums and alike).
Concrete measures at micro level:
1. Stopping the processes of release of the sector work force.
2. Encourage the companies to organize their own information, according to the EU
programmes for financial support and co-financing, as well as to promote the possibility
for applying under the project axis of the various programmes.
3. Keep the level of the salaries in the sector for the crisis period in order to keep the
present personnel in the sector SMEs structures.
4. Introduce organizational changes in the job descriptions and duties of the available
human resources with view to improving the labour effectiveness and the
transformation to forms of flexible employment, instead of “cutting off” the social
privileges and working places.
The specific objectives of the plan implementation are divided into three main specific
objectives.
Specific objective-1
To build and proceed to the successful functioning of information and normative base
for the promotion of export of SMEs from the sector “Manufacture of machinery, equipment
and home appliances”. This specific objective is divided into the following sub-objectives:
1. Drafting and updating of sector development strategy.
2. Updating the strategy for promotion of the export of SMEs from the sector.
3. Creating a profile of an export-oriented enterprise.
95
4. Creating an adequate database for SMEs to help the management decision making
for the sector.
Specific objective-2
To increase the qualification of the employed in the SMEs from sector “Manufacture of
machinery, equipment and home appliances”, focusing on the trade personnel and the units,
engaged in foreign trade at micro level.
1. Creation and implementation of programmes for improvement of the qualification of
export specialists in SMEs.
2. Creation and implementation of training program for participation in international
exhibitions.
Specific objective-3
To support the activities of the enterprises and their access to foreign markets and
partners.
1. Financial support for enterprise certification for quality management, environmental
management, and introduction of a modern system for safe and healthy working
conditions.
2. Increase of the weight of the evaluation for the export orientation of the enterprises in
the overall assessment for receiving of financial support.
3. Support for the creation/further development of organizations/clusters for promotion of
the export by SMEs.
4. Transmission of the services for organization of the Bulgarian participation in fairs,
exhibitions and other advertising events to the respective branch organizations, under
established clear rules for equality in the selection of the participants.
5. Creation of a mechanism for financial support for the participation of foreign partners in
local fairs and exhibitions.
96
STRATEGY FOR PROMOTING THE SECTOR SMEs EXPORT
In order to achieve the set objectives different alternatives for development are possible.
Here, two main scenarios were evaluated, in particular:
1. Keeping the present structure of the public institutions, supporting the business,
especially the existing relationship between them and the export orientated SMEs
from sector ¨Manufacture of machinery, equipment and home appliances”.
2. Change in the structure and transfer of functions for supporting the SMEs
towards units and forms, related to funding projects with EU funds and the State
budget according to the model of the Operational programmes or the Programme
for development of the rural regions.
The criteria to evaluate these scenarios are:
1. Possibility for the selected scenario to be realized within the frame of a 5-year
period.
2. Possibility to solve the issues related the supporting export orientated SMEs in
other EU countries.
3. Evaluation of the efficiency of the activities, related to supporting the business,
implemented by created to this exact end structures or by existing programmes,
granting support under the project principle.
The carried out analysis shows that:
The transition from the now existing system to a new one, on a project principle, will
require a period larger than 5 years. At the same time, now existing rules for the period
up to 2013 it is practically impossible, as the priorities and the main activities in the
operational programmes are clearly defined. For the next programme period 2014-2020
such an approach, if possible, is to be laid down in the negotiation process, but in fact
97
several years will be necessary its actual initiation, in the same way the OP in all EU
countries started for the period 2007-2013;
The selected in Bulgaria scheme through BSMEPA is preferred from the major part of
EU countries, where the success level is different in different countries, but there is no
trend of changes in the near future;
The reported difficulties in the business projects realization within operational
programmes, as for example “Competitiveness” show that the efficiency of promoting
export orientated SMEs, notwithstanding the critics at the moment due to lack of funds
and good focusing, is the relatively much better level than the results reached by the
business through project orientated measures.
Considering the above conclusions, the first alternative was chosen, namely –
drafting of Export strategy for the SMEs from sector “Manufacture of machinery,
equipment and home appliances” to be based on the understanding that al measures to be
undertaken will fall in the frame of the now existing structures within their actual
capacities.
In terms of the strategic perspective, the chosen alternative will require both general
measures for the whole system to support the SME, as for example increase of the
institutions capacity, introduction of clear and measurable indicators and criteria for
evaluation of their work efficiency and support to the business, etc. as well as specific
changes, related in particular to the “Manufacture of machinery, equipment and home
appliances”, as for example export orientated work approach. As far as this was not an object
of analysis and study of the present strategy document, it would be probably a part of the
elaboration of the institutional strategy of the corresponding public administrations.
The present Export strategy for the SMEs from sector “Manufacture of machinery,
equipment and home appliances” provides for the following principle steps, related to
improving the support of export orientated SME:
Creation of the base for adequate and professional management of the processes of
supporting the export orientated SMEs through determining their possible scope –
number and characteristics of the export orientated SME, usage of the information
98
from the drafted profile, as well as of information from the business regarding the
precise formulation of the business needs of support, and of the created to this end
institutions, as well as through other forms, as for example the project principle,
creation of a model for successful communication with business to be supported.
Elaboration of the necessary programmes, policies and measure for support the
SMEs to export into foreign markets, through measures, designed to markets where to
keep or expand the existing positions, joint work with units, disposing of direct
possibilities to support export (for example foreign trade representatives and MEET),
as well as measures, having routine nature (for example), participation in fairs,
missions, visits, etc.;
Measures, designed to certain deficits in export orientated SMEs, barriers for their
development in the field of export, as for example: support for the technology
modernisation of the SME in relation to improving their export positions, support for
creating export companies to help SMEs export; creation of State guarantees for
export insurance for SMEs, to complement and develop the now existing forms,
advertising campaigns for improving the image of the Bulgarian business, etc
Measures, designed to increasing the capacity of the SMEs, mainly through different
educational programmes.
Considering the deadlines of the Export strategy for the SMEs from sector “Manufacture
of machinery, equipment and home appliances” the foreseen steps are realistic and would lead
to real results in supporting the export.
Important precondition for the realization of the set strategy is also the presence of
political will to ensure the necessary resources for its implementation.
Due to the short-term 5-year horizon of the Strategy in the Action plan, the measures are
precisely formulated and divided into micro (enterprises), mezzo (branch organizations) and
macro (public institutions) level.
The foreseen funds are exemplary and tailored according to the actual possibility to
increase the BSMEPA budget. The prognosis for funds coming from Operational programmes
99
through the next programme period is too conditional, as there are no definitely adopted rules
by the EU. At the same time it is extremely important that BSMEPA and MEET to defend just
requirements for increasing the funds for development of the SMEs that are the backbone of
each economy.
Important precondition for the realization of the set strategy is also the presence of
political will to ensure the necessary resources for its implementation.
When drafting the present strategy the leading good European practices and the
experience of partners, organizations and institutions, having direct of indirect relations to the
development of the small and medium business, were observed.
Enclosed is a detail plan for the above described strategic development of the sector.
ACTION PLAN – SECTOR “MANUFACTURE OF MACHINERY, EQUIPMENT AND HOME APPLIANCES”
Table 37 Action Plan for Implementation of the Export Strategy of the Sector
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
Specific objective 1 :
Creation and successful functioning of the information and normative base for the promotion of the export of SMEs from the sector
1.1. Preparation and updating
of a sector development
strategy
2014 MEET 40 000 Operational
Programme
“Competitiveness”
Developed and adopted at the
national level Strategy and
Action Plan, in accordance
with the determined schedule
Adopted by the CM
National Sector
Development Strategy and
Action Plan to it, which is
implemented;
Provided funds for the
implementation of the plan
by years;
The set objectives are
achieved
1.1.1. Provision of the necessary
information, including
participation in sociological
research and focus groups
2013 Companies/
NSI/Branch
organizations
Created database, supporting
the development of the
strategy and the Action Plan
Developed analysis of the
sector and draft of the
Action Plan
1.1.2. Organization and
coordination of the development
and formalization process of the
strategy and the action plan, as
well as the process of their
2014 MEET Developed Strategy draft and
Action Plan, in accordance
with the determined schedule
Adopted by the CM
National Sector
Development Strategy and
Action Plan to it, which is
implemented;
101
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
implementation Provided funds for the
implementation of the plan
by years; The set objectives
are achieved
1.2. Updating the strategy
for promotion of the export
of SMEs from the sector
2014 BSMEPA 20 000 Operational
Programme
“Competitiveness”
Updated strategy for
promotion of the export of
SMEs from the sector and
updated Action Plan to it,
adopted at national level
Action Plan that is
implemented in
accordance with the
schedule set in the
Strategy
Available funds for the
implementation
Achievement of the
strategy objectives
1.2.1. Provision of the necessary
information, including
participation in sociological
research and focus groups
2014 Companies,
NSI, Branch
organizations
Updated database for SMEs Updated analysis of the
sector development
1.2.2. Organization and
coordination of the updating
process of the strategy and the
action plan, as well as the
process of their implementation
2014 BSMEPA Action Plan that is
implemented in accordance
with the schedule set in the
Strategy. Achievement of
the strategy objectives.
1.3. Creating a profile of an
export-oriented enterprise
2013 BSMEPA/ME
ET
10 000 Operational
Programme
“Competitiveness”
Drawn up criteria for export
orientation of SMEs
Presence of the drawn up
criteria on the page of
BSMEPA
1.3.1. Participation in the
discussion of the proposed draft
of a profile of an export-oriented
enterprise
2013 Companies Discussed and supplemented
criteria for export orientation
of SMEs
Developed version of
criteria
102
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
1.3.3. Organization and
coordination of the process of
creation of a profile of an export-
oriented enterprise
2013 BSMEPA/
MEET
Prepared final version of
criteria for export orientation
of SMEs
Developed and formalized
criteria
1.4. Creating an adequate
database for SMEs assisting
management decision
making for the sector
2014 MEET, NSI 10 000 the budget of NSI Available and appropriately
processed information for the
development of the sector
and SMEs within it
Easy and unconditional
access to the information
for the development of the
sector and SMEs within it
1.4.1. Creation of an information
database system for foreign
markets, potential foreign
partners, international fairs,
exhibitions and other advertising
events,
2014 BSMEPA/
MEET
30 000 OPC Created and operating
information system
Number of enterprises
using the information
system
1.4.2. Provision of data for the
information system
2014 Companies Created database for the
information system
Database serving the export
activity of the companies
1.4.3. Provision of data and
analyses for the information
system
2014 Branch
organizations
Created database for the
information system
Database serving the export
activity of the companies.
1.4.4. Coordination and
organization of the process of
creation of an information
database system for foreign
markets, potential foreign
partners, international fairs,
exhibitions and other advertising
events
2014 BSMEPA/
MEET
Created and operating
information system
Number of enterprises
using the information
system
1.4.5. Maintenance of the
information database system for
Permanent BSMEPA/
MEET/Compa
10 000 per
year
The budget of the
departments
Permanently operating and
updated information system
Number of enterprises
satisfied with the quality of
103
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
foreign markets, potential foreign
partners, international fairs,
exhibitions and other advertising
events
nies/Branch
organizations
the information available
1.4.6. Coordination of the
process of maintenance of the
information database system for
foreign markets, potential foreign
partners, international fairs,
exhibitions and other advertising
events
Permanent BSMEPA/ME
ET
Permanently operating and
updated information system
Number of enterprises
satisfied with the quality of
the information available
1.4.7. Improving the awareness
of SMEs on the available funding
opportunities by national and
foreign financial sources
(excluding trade credits)
Permanent BSMEPA 5 000 per
year
The budget of the
department
Increase of the number of
enterprises applying for
financial support
Number of enterprises
applying for financial
support
1.4.8. Participation in organized
events for the popularization and
dissemination of information
about the available funding
opportunities by national and
foreign financial sources
Permanent companies
Number of developed and
applied projects for funding
of companies
Number of participants in
the events
1.4.9. Participation in and
dissemination of information
about organized events for the
popularization and dissemination
of information about the
available funding opportunities
by national and foreign financial
sources
Permanent Branch
organizations
Number of developed and
applied projects for funding
of companies
Number of participants in
the events
104
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
1.4.10. Organization and
coordination of the process of
information of SMEs on the
available funding opportunities
by national and foreign financial
sources (excluding trade credits)
Permanent BSMEPA Increase of the number of
enterprises applying for
financial support
Number of enterprises
applying for financial
support
1.4.11. Realization of
information activities for
popularization of the possibilities
for direct participation of the
SMEs in EU funding schemes,
different from Operational
programmes
Permanent Branch
organizations/
MEET/BSME
PA/sector
companies
Own funds, State
budget
1.4.12. Purchase and granting of
information about the identified
target markets by BSMEPA
Permanent BSMEPA Own funds,
Operational
programmes
Available and adequately
processed information about
the identified target markets
Easy and unconditional
access to information about
the identified target markets
Specific objective 2:
Increasing the qualification of the employees of SMEs within the sector, with focus on the trade cadres and the units engaged in foreign trade at the company level
2.1. Creation and
implementation of programs
for improvement of the
qualification of export
specialists in SMEs
2014 - 2020 BSMEPA,
Institutions of
Higher
Education,
Branch
organizations
50 000 per
year
Budget of
BSMEPA and
Operational
Programmes
Trained over 1000 export
specialists from SMEs for the
program period
Number of trained export
specialists.
2.1.1.Provision of information on
the needs for training and
participation in the trainings
2014 - 2020 Companies,
Branch
organizations
Number of companies that
have provided information
and participants for the
trainings
Number of companies that
have sent their specialists
for training
2.1.2. Creation of training Branch At least one created detailed Number of trained experts
105
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
programs and conduction of the
trainings
organizations,
Institutions of
Higher
Education
program for training of
foreign trade specialists from
companies
per year
2.1.3. Organization and
coordination of the process of
creation and implementation of
programs for the increase of the
qualification of export specialists
in SMEs
2014-2020 Institutions of
Higher
Education,
MEJS,
BSMEPA
Trained over 1000 export
specialists from SMEs for the
program period.
Number of trained export
specialists.
2.2. Creation and
implementation of a training
program for participation in
international fairs
2017 BSMEPA 20 000 per
year
Budget of
BSMEPA
Trained experts from a
minimum of 400 SMEs.
Number of companies that
have sent their specialists
for training.
2.2.1. Provision of information
on the needs for training and
participation in the trainings
2017 Companies Number of companies that
have provided information
and participants for the
trainings
Number of companies that
have sent their specialists
for training
2.2.2 Participation in the
establishment of training
programs and assistance in the
conduction of the trainings
2017 Branch
organizations
At least one created detailed
program for training
Number of trained experts
per year
2.2.3. Organization and
coordination of the process of
creation and implementation of
programs
2017 Institutions of
Higher
Education,
MEJS,
BSMEPA
Trained over 400 export
specialists from SMEs.
Number of companies that
have sent their specialists
for training
106
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
Specific objective-3 Support the activities of the enterprises and their access to foreign markets and partners.
3.1. Financial support for
enterprise certification of
quality management,
environmental management,
and introduction of a
modern system for safe and
healthy working conditions
permanent MEET 500 000 OPC Increased number of the
enterprises that have received
certificates
Number of enterprises that
have received certificates
3.1.1. Development of proposals
for funding activities on the
establishment of quality
management systems and putting
the systems into operation
permanent Companies Increased number of funding
proposals
Number of proposals
received
3.1.2. Assisting the assessment of
the proposals
According to
the schedule of
MEET
Intermediate
unit or other
structure in
the EU funds
management
system
Increased number of the
approved proposals for
funding
Number of proposals
approved
3.1.3. Management of the overall
process of financial support and
monitoring of the results
According to
the schedule of
MEET
MEET Increased number of the
enterprises that have received
certificates
Number of enterprises that
have received certificates
3.2. Increase of the influence
of the assessment for the
export orientation of the
enterprises in the overall
assessment for receiving of
2014 MEET/
CM
OP for business support is
oriented towards support to
SMEs, which have export
potential.
In the criteria for
assessment of the project
proposals is expressly
specified the export
potential.
107
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
financial support.
3.2.1. Active participation in the
development of the proposals for
increasing the influence of the
assessment of the export
orientation of enterprises in the
overall assessment of receiving
financial support
2014 Companies,
Branch
organizations
Accepted proposals for
change/ newly developed
program documents and rules
for their implementation
Published draft documents
3.2.2. Development of the
proposals for increasing the
influence of the assessment for
export orientation of enterprises
in the overall assessment of
receiving financial support.
2014 MEET OP for business support are
oriented towards support to
SMEs, which have export
potential..
In the criteria for
assessment of the project
proposals is expressly
specified the export
potential.
3.3. Support for the creation/
further development of
organizations/clusters for
promotion of the export
from SMEs
2017 BSMEPA, the
branch
organizations
100 000 per
year
The Operational
Programmes
Established export
organizations/ clusters to
support the export of the
enterprises.
At least 2 established
export clusters
3.3.1. Participation in export
clusters in the sector
Companies Extended opportunities for
export of the companies
Number of companies
participating in clusters
3.3.2. Participation in the
establishment and development
of export clusters.
Encouraging the participation of
SMEs in export clusters
Branch
organizations
Increased number of clusters
that support the activity of
the sector
Increased number of the
enterprises participating in
clusters
3.3.3. Assistance to the
establishment/further
development of organizations/
BSMEPA,
branch
organizations
Established export
organizations/ clusters to
support the export of the
At least 2 established
export clusters.
108
Objectives and Measures Implementatio
n deadline
Responsible
institutions
Necessary
financial
resources
Sources of funding Expected results Performance indicators
clusters for support to the export
from SMEs
enterprises.
3.5. Creation of a mechanism
for co-financing of trade
missions
2014 - 2020 BSMEPA, the
branch
organizations
30 000 per
year
The budget of
BSMEPA; Funds
from the branch
organizations
Concluded export contracts
thanks to the participation of
foreign trading partners.
Increase in each subsequent
year of the export contracts
concluded with invited
foreign trading partners.
3.5.1.Provision of information
about potential partners and
concluded contracts
Companies Concluded export contracts
thanks to the participation of
foreign trading partners.
Increase in each subsequent
year of the export contracts
concluded with invited
foreign trading partners.
3.5.2. Development of a project
for mechanism and support for
its implementation
Branch
organizations
Concluded export contracts
thanks to the participation of
foreign trading partners.
Increase in each subsequent
year of the export contracts
concluded with invited
foreign trading partners.
3.5.3. Coordination of the
process and support for its
implementation
BSMEPA Concluded export contracts
thanks to the participation of
foreign trading partners.
Increase in each subsequent
year of the export contracts
concluded with invited
foreign trading partners.
3.5.4. Development of a program
for work with the Bulgarian trade
representatives abroad in favour
of SMEs from the sector
2014 - 2020 BSMEPA/
MEET/
CM
Decision adopted at the CM
level and created and
operating program for work
of the trade representatives
Increase of the concluded
contracts for export of
products from the sector,
produced by SMEs, as a
result of the program
implementation
3.5.5. Improvement of the
mechanism of ensuring working
insurance of the export of SME
2014 BAEI 30 000 The budget of the
department, OP for
the next program
period
Increase of the number of
SMEs and the export volume
thanks to the state guarantees
Number of insured export
agreements of SME
The objectives to be implemented in the “Action plan” are divided in three panels –
short-term objective /2013/, mid-term objectives /2014/ and long-term objectives /2014-2020/,
coinciding with the following budget planning period of the EU.
Short-term objectives /2013/:
1. Update of the introduced technology norms, standards and requirements.
2. Creation of “road map” for approximation of the interests of the SMEs in the sector.
3. Introduction of organizational changes for mastering the processes of workforce release
and shortage of working positions.
4. Relieve of the regimes of operating of the bank warranties and bank crediting for the
sector
5. Correction of the market behaviour, considering the higher prices of the energy
distributors, including the price of the natural gas.
Mid-term objectives /2014/:
1. Creation and update of the decision-making system for promoting the Bulgarian
production abroad.
2. Creation of alliance for trade representation in the potentially most attractive markets
for the segment companies.
3. Creation of analytical reviews on regular basis for the sector development in the EU-27
as a whole and of other current and potential markets out of the EU, like the CIS
countries, the countries from the Arabian world, others.
4. Creation of economic clusters on the basis of certain market, trade, production or other
sign.
5. Creation of foreign language brochures for the cluster companies development.
6. Reorganization of individual information bases and assembly of the documents for
applying under EU projects from the next budget cycle.
7. Increase of the level of computerization, automation and use of IT.
8. Development of plan for attracting investors.
9. Drafting a plan for improving the operating investors attendance
10. Drafting a strategy for improving the investment marketing
110
11. Ensuring crediting for patenting the innovations abroad
Long-term measures/2014-2020/:
1. Encouraging the improvement of the level of industrialization in the sector
through encouraging the technology innovation sin the sector SMEs and
communication policy
2. Encouraging the investment in human resources
3. Introduction of relieved financial conditions for the introduction of high-tech
solutions and trainings
4. Creation and branding of industrial cluster trademarks;
5. Segmentation and definition of target export markets, according to the prognosis
for world economic development at 2020.
The action plan is to be applied gradually and in good faith, synchronously between the
public institutions, stakeholders and manufacturers of the economic activity.
The control of the plan implementation may be coordinated at branch level or at the
level of state authority in case of majority consent of the market participants. Financial support
for the companies’ certification for quality management, environment management and
introduction of contemporary system for safety and health at work.
111
MONITORING AND CONTROL SYSTEM
For each strategic document it is of great importance: first - to be elaborated according to
predetermined goals, deadlines and resources; second - to show stability over the time and to
enforce the activities and effects built into it. To this end, it is advisable to monitor
(monitoring) and evaluate the implementation of the document and to identify appropriate
actions – to remedy and improve the activities set out therein.
Monitoring can be defined as: (a) an integral part of an on-going project management
(which is considered to be the realisation of an Export strategy for sector “Manufacture of
machinery, equipment and home appliances”, aiming to achieve any change – in this case,
improving the export activity of SMEs in the sector); (b) an instrument facilitating the control
over the management and the process of decision making; (c) a description of events and
conditions within a specified period of time; (d) systematic collection of reliable, up-to-date
and relevant information on the progress, changes and consequences of all programming action
taken. These essential features of the monitoring itself define it as one of the most important
components of the management of strategic documents, programs, projects, etc.
Assessment, in turn, is a systematic review of specific management activities to provide
information about the full range of short and long term effects on consumers. Programme
evaluation may include assessment of workload, operating procedures, or personnel, but its
main purpose remains the effect and impact of programme’s implementation (strategic
document).
Monitoring should therefore establish the status and monitor the progress in
implementing various components and subcomponents and thus - the Strategy as a whole.
Monitoring should also identify arising problems, the factors determining these problems and
suggest possible measures and solutions to these problems. The information obtained is
expected to be timely made available to the responsible authority (primarily MEET and
BSMEPA). The meaning of this is to enable those authorities and other relevant government
agencies, at their discretion, to take timely "corrective actions" to facilitate achieving the
strategy objectives.
112
It should be noted that while monitoring focuses on monitoring the: (a) actions taken
and resources expended, (b) results achieved, (c) process progress over the time, (d)
achievement of the effects, the assessment aims at identifying the extent to which the general
and specific objectives of the document are achieved, and also includes a systematic review of
specific management operations to provide information about the full range of short and long
term effects.
The main points that should be observed in connection with the implementation of this
strategy are:
- Adhering to the pre-set schedule of activities;
- Volume, rate and extend to which resources have been used;
- Results achieved;
- Achievement of objectives and strategic document impact.
When to monitor? - The goal of the current monitoring is to record the effects and the
deviations from the planned figures early enough so as to allow their correction before the
consequences of these effects become so serious that they can not be overcome. What should
not be forgotten is the need for monitoring to be performed frequently enough in order the
deviations from the set plan to be adjusted.
Based on this methodology, the monitoring and assessment, necessary for the fulfilment
of this Strategy, suggest the following succession of activities:
1. Selection of criteria and indicators for monitoring and assessment;
2. Monitoring the implementation;
3. Comparing results with the target state;
4. Proposing and taking corrective actions.
According to the adopted goals and measures set forth in the strategy, we propose the
following main indicators for monitoring and assessment:
Published criteria the SME and their production for initiating export are to
comply with;
Created accessible database for export orientated companies, where the
presence of given company into the database is included as a criteria when
113
making an assessment for granting funds to promote the export and the
competitiveness;
Number of entrances into specialized rubrics of the BSMEPA website and
received feedbacks;
Availability of update strategy for development of sector “Manufacture of
machinery, equipment and home appliances” and implementation of the
measures, included therein;
Created export unit in BSMEPA to support the sector SMEs in their export
activity;
Granting 5 additional points for export orientated enterprises when assessing
projects under OP “Competitiveness”;
Number of SME, having introduced systems for quality management, working
conditions and environment management (ISO 9001, ISO 14001 and others);
Number of patented articles by SMEs from the sector;
Number of companies exporters, using the guarantees for export insurance;
Number of participation by sector SMEs in international and national fairs and
exhibitions;
Created at least 3 clusters;
Increase in any following year of the signed export contracts with the invited
foreign trade partners;
Number of trained specialists in the sector;
At least 5 presentations per year in different countries – target markets, 1
information internet portal, 5 paid publications in foreign media per year;
100 specialist from the sector SMEs yearly have undergo a training on
participation in specialized exhibitions in the country and abroad;
Drafted 1 guide for promoting the export of the SMEs, reflecting the
possibilities for export and the condition of the market conjuncture, updated
once per year;
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Monthly brochure with information on international markets and two semi-
annual reports, containing in-depth market analysis, are to be presented to the
sector export orientated SMEs;
At least 2 seminars per year should be organized for presenting the specific
requirements for the defined key markets in and outside EU;
1 internet database with contact details of at least 200 potential partners from
all over the world, information about prices on international markets, trade
barriers, trends, etc.
Progress surveillance and monitoring shall be carried out by BSMEPA, which is the
“owner” of the Strategy, and it shall appoint an official, from its administration, which shall be
responsible for collecting information in order to facilitate the monitoring of the
implementation of measures and who shall report on an annual basis to the Executive Director
of the Agency.
The annual reports shall serve as interim evaluations of the fulfilment of the Strategy.
At the end of year 2020 it shall be prepared a final report covering the entire period of the
Strategy.
These reports are public. The results shall be disclosed to the public
115
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116
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