Team «ABC» Selected EE country - BulgariaTeam leader -Valeriya Mikhaylova (Russia-Germany)Dani Bechev (Bulgaria - Germany) TU-Ilmenau (Germany)
- 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 areimplementing more and more reforms to improve their businessclimate. According to http://www.doingbusiness.org, in 2011 88%of the countries in EE implemented at least 1 institutional orregulatory reform. Such measures afford making business in thisregion easier. Moreover, in the past 8 years EE is a leader in thenumber of reforms protecting investors and increasing the ease ofpaying taxes. So, these are Long-Run Trends. EE is developing quitefast in spite of the world financial crisis. There are tendencies ofcooperation between the countries of the region and integration in the global markets. Although there are some commontendencies for the whole region, the countries of EE have manydifferences and advantages.That´s why I want to start from a concrete example. And it will be Bulgaria.
The region of EE is not economically so well-developed as the countries ofOECD(for example low GDP) but there are many advantages that could be usedfor making business.+ Since 2007 Bulgaria is a EU member. This membership will probably improve theeconomic development of the country and deminish the gap between Bulgariaand 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 issituated at the crossroads between Europe and Asia, which could give someopportunities 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 the2nd place in the Region of Southern Europe and this position is better than ofmany other countries. Nowadays Bulgaria is attracting investors because some ofits competetive advantages: business costs, natural resources, cheap and skilledlabourforce and good geographic location.+Bulgaria has well-developed educational system. Here are may specialists inelectronics, physics and other fields of science
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.
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.
• 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.