site.btaDiscussion on Digital Transformation of Bulgarian Small, Medium Enterprises Held in Sofia

A professional discussion on the need for digital transformation of small and medium-sized enterprises was held at Sofia Tech Park on Thursday. The event was part of the conference exhibition entitled Digital Horizons: BGN 180 Million Direct Support for Business! Now!, organized by the Executive Agency for the Promotion of Small and Medium-sized Enterprises (EAPSME).

"Digital transformation is a topic that should not be discussed in the future. Digital transformation is very important for the development of small and medium-sized businesses, for improving competitiveness and sustainable development," Innovation and Growth Deputy Minister Krasimir Yakimov stated. "At the Ministry of Innovation and Growth, we are aware of the need for state support in this direction, and therefore we have already structured and opened a procedure for digitalization with a total budget of BGN 80 million for applications," he pointed out.

Yakimov noted that a procedure for the implementation of innovations and technologies from Industry 4.0 is also due to be opened soon and provided useful information in advance for businesses under the Fund of Funds. An investment fund will manage BGN 30 million of public resources, supplemented by private financing, he noted, adding that the funds will be available for Bulgarian startup companies. The Deputy Minister stressed that digital transformation should not be an activity reserved for large corporations and a luxury for SMEs, but should be aimed primarily at small and medium-sized businesses, as this is a process of strategic importance and an opportunity for company owners to optimize their costs, be more competitive and rely on sustainable growth of their investments.

EAPSME Executive Director Boyko Takov highlighted the function of the EAPSME and recalled the conclusions of a joint project with the World Bank, aimed at small and medium-sized companies from Bulgaria, Poland and Slovakia, which was completed in 2025, pointing out that the project has shown that business users of technical support are inclined to invest more in information technologies and in the modernization of their activities, as well as to make faster decisions. Takov noted an upcoming project for small and medium-sized businesses from Northern Bulgaria, characterized by an individual approach to the needs of companies. Digital transformation, in his words, is not a process with a beginning and an end, but a constant one.

Alexander Nenkov, Executive Director of the Management Board of the Fund of Funds (FoF), said that over the ten years of its existence, the fund has accumulated expert capacity, supporting and promoting the high-tech development of the Bulgarian economy. He defined the FoF as the largest investor in equity participation in start-ups and more advanced companies in the country. He emphasized that the FoF will launch an instrument representing a portfolio guarantee with a loss cap at the end of August, adding that these are BGN 100 million that they will provide to banks for guarantees.

"This means that with the added resource from the banks and us, guaranteeing 80% of the respective loan to the final recipient with our resource, the multiplication of these BGN 100 million to the final recipients can reach nearly BGN 500 million," Nenkov pointed out. He also announced the launch of another instrument from the FoF by the end of 2025, which will be equity for investments in companies with a riskier profile of their projects.

Iliya Krastev, Board Member of the Association for Innovation, Business Services and Technology, stated that if a business has not yet embarked on the path to its digital transformation, then it is already late. He defined the available financial instruments and measures as one of their last options and highlighted three conditions for accelerating the process of digital transformation in Bulgaria. First, he recommended that the traditional companies begin their transformation by familiarizing themselves with the products and services offered by free platforms in order to convince themselves that this process is to their benefit. Second, he called on public institutions to serve as an example for business, digitizing the services and registers they provide in turn. And finally, he called for interaction between the well-developed technological ecosystem in the country and business.

Krastev pointed out that Bulgaria is the leading technological hub in the Southeast European region, but in order to maintain its status, the country should pay attention to the specific skills of the workforce and quick access to the labor market for people with such qualifications, as well as the regulatory framework and existing infrastructure. He noted what is happening in Romania with the measures to control the excessive deficit in the country and the decision to change the tax framework as a warning for Bulgaria. "Currently, there are many companies that have operations in Romania that want to move to Bulgaria," Krastev said, adding that the digital revolution works to a much greater extent with capital that can be moved to another country.

Smilen Valov, Executive Director of the Employment Agency, presented the programmes the agency provides for improving the qualifications of employees and the available tools to promote youth employment. "Currently, there are active qualification and retraining schemes worth about BGN 420 million," he pointed out, adding that of these, over BGN 350 million are related to digitalization and digital competence training. "We have over 200,000 people who have taken their vouchers to study an initial or higher level of digital competences," he noted. Valov also announced the upcoming launch of a new programme for specific skills, which will meet the individual competency needs of each company's staff.