Over 99% of all companies in Bulgaria are small and medium enterprises. They generate more than half of the gross domestic product and provide over two thirds of employment. However, these companies are practically invisible and their voices are not heard when making important economic decisions. They do not participate in the National Council for Tripartite Cooperation and do not even have representatives in the major employers’ organizations as Bulgarian Industrial Association and Bulgarian Chamber of Commerce and Industry.
This paradox exists in other parts of Europe, which, of course, in no way solves the problem. And, unlike our politicians, those in Brussels have long ago realized the importance of small and medium enterprises and seek ways to help them. In June 2008 Small Business Act (known as SBA) was created as legislative tool. For the first time a regulation framework sets out a comprehensive policy of the EU to small companies, but because of the huge bureaucracy its provisions have not yet been finalized and therefore do not apply. Meanwhile, some of them have become unnecessary.
Unfortunately, even if the European officials do their work quickly and efficiently with rewriting of directives, the situation of Bulgarian companies will not improve much. The reason is that they suffer much more from the national norms rather than from the European ones. Some of them are introduced without any need, and impose burdensome requirements on businesses. In the last year the general public has repeatedly been informed how the administrative burden for companies has declined. Accomplishments were reported facts were highlighted, but also much of the truth was not said. Namely, that regulatory regimes designated to be eliminates still syphon more than 100 million levs a year from businesses and citizens. Nobody said that the implementation of dozens of measures has been postponed, without any arguments.
There is a possible solution: all regulatory regimes can be entered in the general public register, and the authorities or bodies which have introduced them can describe the legality and appropriateness of their existence. Representatives of the Bulgarian Industrial Capital Association (BICA) insist that the number and the scope of regulatory regimes is to be limited to those arising from EU membership and to consider burden relief in terms of fees, deadlines, tacit consent and others. What should also not be ignored are the statutory penalties for agencies that have implemented or administered regimes in violation of the Law on Limiting Administrative Regulation and Administrative Control on Economic Activity. Hardly anyone will be surprised that so far in Bulgaria such fees have never been imposed.
Another Bulgarian contribution to the „crushing“ of the small businesses is the lack of link between the amount of the fees and costs of such services. Although the State Fees Act provides that they are cost-oriented, there are still some that in essence represent a hidden tax or not at all tied to the price of an administrative activity.
The BANKER
