Analysis of the Situation of the Female Entrepreneurship in Bulgaria – Challenges and Opportunities

Dipl. Eng. Radka Stamenova

President of Meridian 22 Ltd.

Member of the Executive Board of the Bulgarian Chamber of Commerce and Industry

Gender equality is the focus of attention of the European Commission since the early 90's. The goal is to eliminate differences and promote equal opportunities of sexes in line with the objectives, laid down in the Treaty of EU concepts. The approach is through legislation, integration, positive action. The basic challenges are increasing employment of women, improving their position in the labor market, eliminating the social distance between the sexes.

Women in Bulgaria and the Labour Market in a Nutshell

• Women in Bulgaria are approximately 3 975 423 and represent51.5 percent of the population in the country;
• Bulgaria has dropped by the coefficient of employment compared to the average levels forcountries in the European Union;
• Small number of women are working part-time because of the low pay and insufficient demand;

• Bulgarian women constitute nearly 70% of unpaid family workers, 36.7% of self-employed and only 23% of employers;
• Occupational and sectoral segregation by sex in Bulgaria is similar to other European countries;
• there is an inequality in pay for women;
• Bulgarian women are better educated than men and more active in lifelong learning;
•Unemployment among women is higher than that for men;
• There is a greater risk of poverty, especially among elderly women and single mothers;

• It is hard for Bulgarian woman to combine professional with private and familylife.

Women's Rights in Bulgaria

Gender equality is a value established in the Bulgarian society, regulated by national legislation in line with the European requirements and the international agreements signed by the Republic of Bulgaria.

Gender equality in the labor market is an objective of the Employment Strategy for the period 2004-2010, developed on the basis of the priorities of the European Employment Strategy and the National Strategy for Continuing Vocational Training for 2005-2010.

In the Employment Strategy women are identified as a risk group in the labor market. Underlined is the need for developing and implementing programs and measures to reconcile work and family life through which to promote economic activity of women.

Women and Entrepreneurship

In the Аnnual Report on the Status and Development of Small and Medium Enterprises in Bulgaria and the Role of Women in the Bulgarian Small and Medium Enterprises was emphasized that the establishment and successful development of SMEs is related to promoting entrepreneurship and skills for development of own business as well as the importance of targeted training in entrepreneurship. Statistics show that the number of women entrepreneurs and managers in small and medium businesses grows sustainably.

The distribution by sectors - women entrepreneurs in Bulgaria run mostly small businesses in trade and services, as the number of consulting firms run by women significantly increases.

Positive trend is the use of computers and internet services by women entrepreneurs.

Access to finance - women who develop their own business in Bulgaria and the EU have a common problem - access to finance, especially start-ups. Over 62% of Bulgarian women entrepreneurs said they started the business with its own funds. The absence of credit history and enough confidence in women prevent further lending to businesses owned by women in EU countries. This raises the need to create organizations which support women's business, and to ensure special support from industry organizations.

Work at home - in Bulgaria the number of firms in which women - owners and managers can work from home online is negligible, while in other European countries is widespread and provides a full or partial working day for millions of employees.

Education and Training in Entrepreneurship

A key element of the policy for encouraging the creation and development of small and medium enterprises in the EU is the education and training in entrepreneurship.

In the The European Charter for Small and Medium Enterprises is recommended the entrepreneurship education and entrepreneurial skills to start from an earlier age. General knowledge about business and entrepreneurship can be taught at all educational levels in schools and thematic modules related to business, to be introduced in educational programs in high schools, colleges and universities. It is necessary to promote and support entrepreneurial endeavors of young people and develop appropriate training schemes for managers in small businesses.

Policy in education and training in entrepreneurship and promoting the entrepreneurial spirit of women in Bulgaria has been outlined by the Strategy for Human Resource Development and the National Strategy for Continuing Vocational Training for 2005-2010.

The main priorities which Bulgaria indicates in the fields of education, training and science are in the direction of:

• Providing quality in education to achieve a society of knowledge;
• Improving the conditions for access to education;
• Promoting lifelong learning;
• Introducing ICT in education;
• Optimizing extra-curricular activities.

Main Conclusions

The law formally guarantees gender equality and non discrimination, but in practice there are many imbalances, discriminatory practices in employment, lower wages for female labor, etc. Although better-educated, women have lessopportunities to find work in the specialty, to advance in the profession and career and to participate in decision-making in politics and economy.

Lifelong learning, continuous improvement of qualification and accumulation of new knowledge and skills are necessary conditions for successful realization of women's in the labor market.

To ensure economic growth and competitiveness of Bulgarian economy in line with the Lisbon Strategy for Developing of Human Capital, it is necessary to ensure women's adequate opportunities for lifelong learning.

What is important is the future policy of the country to ensure effective implementation of the legislative framework of the European Union for gender equality, the realization of genuine and effective "mainstream gender" (or integrated approach to equal treatment of men and women) in all policies including the one onspending the resources of the European Social Fund.

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