The attitudes and feelings of the business are already towards timid optimism, combined with the experience gained and the adaptation of the business to the new conditions that COVID has imposed in public and economic life. This was said by Maria Mincheva, Vice Chairman of BIA for Bloomberg TV Bulgaria. There are positive expectations for the future.
"Although timid, there is a reversal of the trend. About 80% of respondents represent the services and trade sector. That is, those who are most willing to share their views are those most affected by the pandemic. All sectors and from all regions of the country are covered."
As a macroeconomic picture, there is a decline in those who report a deterioration in the business environment compared to last year. 2020 was extremely negative in terms of business response, said the guest. "This year the numbers are high again, with more than 70% deteriorating, but compared to last year's nearly 90%, this is an indicator that businesses are starting to see the light at the end of the tunnel."
Some of the difficulties they are experiencing are related to the pandemic, but others continue to accumulate, Mincheva was categorical. "The lack of working capital is mentioned by a number of companies, micro and small, about 80% as a major obstacle. Those that are traditionally present as difficulties are the lack of access to labor (about 80% indicate the lack of narrow specialists and executives), bureaucracy, corruption and an inefficient judiciary. These continue to be extremely negative comments."
"The situation of the companies shows a timid improvement and investment activity is still not returning. Last year, many companies stopped their investment plans or made investments to change the working environment so as to adapt to the constraints imposed by COVID. A significant part they continue to hold back investment plans, but there has been a slight increase in investment intentions. The good news is that there are fewer companies claiming to have overdue outstanding receivables."
Compared to 2020, there is an increase in the number of companies that have benefited from anti-crisis measures, Mincheva added. "However, about a quarter of respondents say these measures are not applicable to them. In both years, more than 80% say they face heavy bureaucracy, with slow deadlines."
"This was one of our main criticisms that in order for a support to be anti-crisis, it must reach those in need quickly. These processes must be optimized and digitized. This is a business appeal for decades. If we had e-government, a big some of the problems would not exist or would be much smaller."
Mrs. Mincheva commented on the plans to increase the minimum wage: "We need to look at the big picture. Indeed, the caretaker government presented a draft budget that did not contain any policies, except for new additional social costs. We often hear comments such as to: "If a business does not have BGN 50 to pay for the minimum wage, what kind of business is it? It has no place in the market. "In fact, things are a little more complicated. We need to look at how raising the minimum wage affects employment, economic development, inflation, etc. Our concern is that an unjustified increase in the minimum wage." It would be a pro-inflationary factor. Our aim is to have a mechanism that takes into account, in addition to social criteria, economic development. No such mechanism has been developed so far."
