The Bulgarian version of this paper can be found at: http://ssrn.com/abstract=2290692 The main goal of the analysis is to study the current state of the SME sector, the potential to develop the activities of the enterprises, as well as to estimate the effects of the SME competitiveness factors on their business performance in times of economic recovery. This goal is achieved through: 1. An analysis of the domestic and the external macroeconomic environment in which the Bulgarian SMEs operate. 2. An analysis of the status and the development of the SME sector in the last years, as well as an analysis of the sustainability of the sector with respect to its demographic development. 3. An analysis of the main factors for development and competitiveness of SMEs (access to financing, innovations, intellectual property, internationalization, and good practices). 4. An assessment of the effects of the factors for competitiveness of the sector on its economic performance, a SWOT analysis of the Bulgarian SMEs, as well an analysis of economic policies which could stimulate their development. The situation in the sector is reviewed mainly for the period 2009-2012. The standard statistical indicators of the sector as published by the NSI have been complemented with a nationally representative empirical survey of the SME carried out in March 2012. For the purposes of the analysis, data from other sources, as well as statistics and reports related to the SMEs in the EU, have also been used. The update of last year’s analysis itself tries to avoid repeating matter on topics related to processes developing over the medium and long run, and in which (almost) no major changes have occurred. Instead, new topics which are of key importance to the economic recovery and sustainability of the SME sector have been added. The period covered by the analysis coincides with the recovery of the world and European economies from the financial and economic crisis. Therefore, the economic recovery of the Bulgarian SMEs and their competitiveness are the main focus of the document. Besides this special topic, the update adds a new one (new both to last year’s analysis and to the country) related to the issue of sustainability of the SME sector, and more specifically family business inheritance
