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CONCEPT
High investment-led economic growth, good micro and macro indicators of the Bulgarian economy, as well as positive changes in the business climate in the country led to the development of attractive conditions for investments resulting in their substantial increase in the last three years. At the same time pre-EU legislative reforms and improvements of the business conditions have created frequent changes in the legal framework, causing ambiguity and uncertainty for investors. Stakeholders, including investors, foreign governments and multilateral institutions, increasingly require high quality current information for decision-making than that which is presently available. This is one of the conclusions from a sociological survey performed by Alpha Research on the Market for Business Information and Specialized Research in Bulgaria. The survey points out that there is a void in the existing consulting services – a guide for investors providing directions and objectivity among the multitude of information and resources. The recommendation to this end is to develop an information product that summarizes the existing information in an optimally accessible and objective way and refers to the necessary sources. According to the survey of the Bulgarian information market there are a number of business consulting organizations and NGOs active in providing market intelligence in Bulgaria, ranging from established professional services firms to smaller players specializing in law, construction, real estate, market research etc. Although the numbers of these providers is growing and their product range is broadening, their end products often miss the mark in terms of satisfying the end-user’s specific demand for quality, content and currency. Bulgaria still has a weak “brand” identify in international markets which does not adequately connote the country’s investment worthiness. Bulgaria has an urgent need for a virtual guide-book that gives investors direct access to the sources and providers of qualitative information and services in Bulgaria. BIIN aims to become this guide-book. Bulgaria offers significant opportunities for foreign investment. Annual FDI volume grew 12 per cent to $900 million in 2002, increased more than 50% to $1.4 billion in 2003 and is expected to exceed $2 billion this year. Gross fixed investment has continued to increase year-on-year reaching the stable 22% of GDP. However, in spite of these successes, Bulgaria has not reached its full investment potential because a number of investment projects in Bulgaria have failed or have been curtailed, in large part, for reasons of inadequate planning, incompetent advisory services or lack of reliable business and legal information. Most, if not all of these non-successes, could have been averted had investors had access to accurate and reliable information and services on a timely basis. Increased investment flows generated by economic stability and attractive business climate will convert into more success stories if legitimate investors have practical and credible investment tools and sources to differentiate legitimate from speculative opportunities and service providers. The idea for creating BIIN has resulted
from a number of consultations with potential investors who highlight
the lack of а reference point in the flow of information and services
as the main barrier in the realization of investment projects in
the country.
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