Factors Affecting Investment and Perceptions for the Bulgarian Market

Abstract

This paper presents the research findings of a dual-survey process designed to understand the level of potential investor trust in the Eastern European market of Bulgaria both before and after being given information on the daily working environment for small businesses. The first survey inventories several key aspects of issues facing small businesses in Bulgaria and was distributed to potential investors. They are surveyed twice, both before and after exposure to the results of an inventory of owner issues. The second survey of Bulgarian business people was used to inventory these owner issues. The current climate of transitional economies and European bailouts means uncertainty for all aspects of global business. By furthering understanding of perceptions of investors and actual Bulgarian business practices, this research attempted to ascertain if increased trust was possible and if increased trust would translate to willingness to create business partnerships. Both surveys utilized a Likert scale.  The potential investors surveyed were expatriates living in Sofia, Bulgaria and small business owners in the Mid-western United States. A second survey was given to Bulgarian small business owners.  This work served to identify currently held practices, issues and ideas encountered in the Bulgarian market. The initial survey of expatriates and small business owners showed a general lack of trust in, and understanding of, Bulgarian businesses, practices and their national context. After exposure to the inventoried results of the Bulgarian business environment, the surveyed individuals responded with increased levels of trust in multiple aspects of the Bulgarian business environment and a willingness to partner with, and invest in, these businesses.