Family businesses in Bulgaria

Family business in Bulgaria plays an important role in the country’s economy. About 42% of all Bulgarian private companies are family companies and contribute approximately 19% to the country’s GDP. Generally, the turnover of family businesses over the total turnover of all companies in Bulgaria is 20%. The sphere of activity of most family businesses is management of hotels and restaurants, agriculture, construction, manufacturing and retail. A large part of these companies are micro and small enterprises.

Between 30 and 40% of the owners of micro, small and medium enterprises are aged between 60 and 70 years. Young people of up to 29 years of age are rather staying away from entrepreneurship, as the only young entrepreneurs are found in the IT sector. They are creating small businesses and offer a product with high added value.

According to various international surveys, only 40% of the family businesses survive the transition from first to second-generation owners, and for the third generation the indicator is even lower – 15%. It is important to build a mechanism for predicting, planning and ensuring smooth continuity. In most countries with a strong economy, traditions, values ​​and institutional support have been established to regulate and facilitate this process of “surrender of power”. On the other hand, Bulgaria still lacks national policies and practical instruments in this area.