The Green Transition of Small and Medium Business in Bulgaria – Current Overview and Outlooks

Sonia Chipeva, Atanas Atanasov and Vania Ivanova

Economic Studies journal, 2024, issue 4, 164-178

Abstract: The conscious need of transition to an environmentally friendly way of society life on a global scale in recent years outlines a new direction in the development and activity of humanity. A number of documents at the global and European levels are a clear sign of countries' determination t change significantly their attitude to the natural resources use in order to limit climate change and global warming of the planet, to ensure an environmentally friendly way of life and activity and the long-term preservation and well-being of human civilization. Small and medium-sized businesses in Bulgaria are a huge potential resource that can be a powerful engine for realizing the ecological transformation of the country's economy. Current progress, financial ability and access to financial resources as well as the outlooks of small and medium companies in Bulgaria in the green transition are analyzed in this study. SMEs are classified in 3 clusters in terms of their progress in the transition process using TwoStep Cluster analysis with a set of indicators identified by authors. It has been established that despite the existing difficulties and the great inertia in the process of transition to an ecological economy of small and medium-sized companies in particular, more or less sustainable steps leading to the reduction of carbon emissions are observed, in the production of cleaner energy as well as elements of circularity in production processes and consumption. The transition appears to be taking place more quickly in medium-sized companies operating in manufacturing, logistics and transport, while small, mostly family-owned, companies with businesses in retail or service are progressing more slowly in this process. All the companies need of more serious and adequate support in the way of ecologization both by state regulations that to be applied clearly and transparently and by adequate financing.

JEL-codes: O13 O14 O16 Q01 Q42 Q50 Q56 (search for similar items in EconPapers)
Date: 2024
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