Financing Small and Medium-Sized Enterprises in Bulgaria from the European Union Pre-Accession Funds

A central aspect of the economic and political life in Bulgaria before the EU accession is the development of an active and competitive private sector. Small and medium-sized business contributes to accelerating economic development, employment, improving the competitive environment, promoting private initiative, etc. A considerable part of small and medium-sized enterprises (SME) in Bulgaria do not meet requirements concerning competitiveness on European markets. Possibilities to launch new techniques and technologies, access to foreign financing, export orientation, state stimuli, etc. play a major role for removing above shortcomings. The object of the study is the small and medium-sized enterprises in Bulgaria (excluding agricultural). The subject of the study is SME external financing in Bulgaria, incl. through instruments for financial support from EU pre-accession funds as an additional source of capital. Conclusions are made about possibilities for efficient financing of enterprises through EU pre-accession funds and improving the absorption of funds.