Small and medium-sized enterprises in Bulgaria need predictable policies, focused support and access to training to meet the growing demands for sustainable and responsible management. This became clear during the joint discussion organized by the Bulgarian Industrial Capital Association (BICA) and UniCredit Bulbank, dedicated to the challenges and opportunities facing companies in the process of adapting to the new requirements for sustainability and digitalization.
The event, which took place at the University of Economics - Varna, brought together representatives of business, local authorities, the academic community and non-governmental organizations to discuss new regulations in the field of sustainability, as well as the necessary actions by companies and institutions.
Assoc. Prof. Dr. Milena Angelova, Secretary General of the Bulgarian Chamber of Commerce and Industry and SME Ambassador for Bulgaria, presented the current regulatory framework related to the European Green Deal, including the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). She emphasized that although many of the requirements will become mandatory at a later stage, it is important for SMEs to start now with voluntary reporting and internal capacity building. According to her, a stable business environment, coordinated institutional support and adequate financing are critical for a successful transition to sustainability.
"A study by SME United shows that 83% of SMEs understand that sustainability is important, but only 8% are able to take it into account, due to complex regulations and requirements. For 75 percent, the requirements for actions to achieve sustainability and their reporting and the associated administrative burdens are too high and create various difficulties in their activities. This also puts them in a more disadvantageous position than their competitors from third countries, to which these requirements do not apply. In order to meet the requirements of the policy adopted by the EU to accelerate the transition to a sustainable economy, huge investments are needed. The EC estimates them at over 800 billion euros in additional resources needed annually," said Assoc. Prof. Angelova.
According to her, for the sustainable transition to be achievable for small and medium-sized enterprises, reporting requirements need to be simple, proportionate and geared towards managing change. This includes adopting a voluntary European standard with minimal administrative burden, ensuring transitional periods and clarity on auditing, as well as avoiding double reporting. Other proposals included the creation of an easy-to-use online CO₂ calculator and a comprehensive simplification of administrative processes through e-governance, a single point of entry and effective coordination between institutions, within a stable and predictable regulatory environment tailored to the needs of SMEs.
During the event, BICA Executive Director Dobrin Ivanov presented the results of a national survey covering Bulgarian companies from various sectors. The survey is part of project BG05SFPR002-1.005-0004 "A comprehensive approach to ensuring motivated qualified human resources", co-financed by ESF+ through the Human Resources Development Programme 2021-2027, which BICA is implementing. It aims to improve the knowledge and skills necessary for the green and digital transition.
"Small and medium-sized enterprises are the engine of the European economy, accounting for over 99% of businesses in the EU. Their total economic contribution for 2023 is 4.839 trillion euros. Against the background of these data, over 85% of SMEs face specific challenges - limited resources, access to green financing and lack of expertise. They need partnership with the state, financing institutions and educational and technology providers," said the Executive Director of BICA.
Mr. Ivanov outlined the key green skills that small and medium-sized enterprises in Bulgaria will need to develop to meet the upcoming regulations and requirements of the green and digital transformation. He emphasized that companies should not just switch to sustainable technologies, but also build internal capacity to manage the change – including experts in energy efficiency, carbon footprint, sustainable supply chains and circular economy. According to him, there is a serious shortage of such competencies in Bulgaria and called for joint efforts between business, educational institutions and the state to develop practical training and flexible retraining programs.
In conclusion, Dobrin Ivanov advised SMEs in Bulgaria not to rush to implement the heavy ESG regulations, as the EU's sustainability policy may turn out to be the most unsustainable policy of the Union and it is highly likely that the requirements for SMEs will be significantly eased or repealed.
The participants in the event united around the need for more and more accessible information for small businesses and training to build ESG capacity in companies. For an easier transition to sustainable development, banks have a key role not only as financing institutions, but also as partners in consulting and promoting sustainable practices.
Earlier in the day, the representatives of the BICA also took part in the international scientific and practical conference on the topic "Accounting and Control: Traditions and New Challenges in Creating Value and Sustainability", organized by the Department of Accounting at the University of Economics - Varna in partnership with the Regional Organization of IDES - Varna.
