Business
Business Profile
Bulgaria is among one of the most industrialised former Eastern Bloc countries. The main industries based in Sofia are machinery, including farm machinery and car assembly, as well as textiles and food products. The city was also the centre of former Soviet Bloc high-tech industry and excels in electronics, particularly computers, software development and the creation of some very nasty viruses, due to the underemployment of young workers.
The Bulgarian government is keen to attract foreign investors and has passed new laws to protect and assist foreign businesses, attracted primarily by a highly qualified, computer literate and cheap labour force. However, recent instability and continuous changes of government have made new investors reluctant. The World Bank and the European Bank for Reconstruction & Development have offices in Sofia, as do the business consultants PriceWaterhouse-Coopers, KPMG and Ernst & Young. The main business districts in Sofia are located on Vitosha Boulevard and in the Sveta Nedelya area.
The country is working hard to align its laws with European Union Standards, in the hope of gaining EU membership, although this looks a long way off. Officially the business environment in Sofia and in Bulgaria as a whole is improving – GDP growth was 5% in 2000 and unemployment in the city was one of the lowest at the end of 2000, standing at just 5.5%. Nevertheless, Bulgaria's inflation and unemployment rates are still high – 10.1% inflation and 18% unemployment in 2002. The official standard monthly salary is Lv248 per month and there is negative population growth, due to a ‘brain drain’ of skilled young workers.
Business Etiquette
Due to their long legacy of occupation by foreign powers, Bulgarian business people are reserved and often highly suspicious of an outsider’s intentions until the proper introductions and contacts have been established. Business visitors should request meetings well in advance – in writing or by fax – and arm themselves with documents detailing interest and position. People in the higher ranks are likely to be former Communist party members and thus stiff officiousness should be prepared for. Bulgarians also pride themselves on their IT development and visitors will be expected to scrutinise the company’s website before questions are entertained. Dress code is standard suit and tie for men, while women are allowed to dress more daringly – short skirts and plunged necklines are not thought ill of. English is generally well understood, although employing an interpreter will help business visitors minimise the risk of misunderstandings. It is important that visitors should note that that nodding of the head means ‘no’, while shaking the head means ‘yes’.
Standard office hours are 0900-1800. Arrangements should be kept and punctuality is important. Bureaucracy tends to be slow and complicated, so patience is essential. However, after-hours socialising with Bulgarians is lively indeed, with a prodigious intake of food and alcohol – foreigners are advised not to attempt to keep up. Inviting business contacts to lunch or dinner is a common practice. Lunch usually begins at noon and dinner at 1900 or later. Favourite topics of conversation are sports, new economic and political changes. Gifts of expensive foreign whisky are almost always appreciated.
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