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Survey Among Business Representatives from Montana Project “Stimulation of Economic Exchange in the Cross-Border Region Montana – Pirot”

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Survey Among Business Representatives from Montana Project “Stimulation of Economic Exchange in the Cross-Border Region Montana – Pirot” BULGARIA - SERBIA EUROPEAN UNION IPA CROSS-BORDER PROGRAMME Survey among business representatives from Montana Project “Stimulation of economic exchange in the cross-border region Montana – Pirot” Montana, Bulgaria 2014 The project is co-funded by EU trough the Bulgaria - Serbia IPA Cross-Border Programme, CCI Number 2007CB16IPO006 EUROPEAN UNION BULGARIA - SERBIA IPA CROSS-BORDER PROGRAMME PROJECT 2007CB161PO006.2011-2-245 STIMULATION OF ECONOMIC EXCHANGE IN THE CROSS-BORDER REGION MONTANA - PIROT Contents Main objectives of the survey ...................................................................................... 5 Methodology ............................................................................................................... 7 Overall presentation of the economic and business environment in the Municipality of Montana ............................................................................................ 12 Place in the national economy .................................................................................. 12 Sectorial structure of the economy ............................................................................ 14 Structure of the business units .................................................................................. 19 Workforce .................................................................................................................. 23 Investments ............................................................................................................... 24 Conditions for research and development ................................................................. 25 Profile of the key enterprises in Montana .................................................................. 28 Financial aspects of the enterprises .......................................................................... 28 Economic aspects of the enterprises ........................................................................ 36 Field of work .............................................................................................................. 40 Average number of employees in the enterprises ..................................................... 47 Export orientation ...................................................................................................... 48 Manufacturing and export ......................................................................................... 50 Main products and services ...................................................................................... 50 Competitive advantages ............................................................................................ 54 International markets................................................................................................. 56 Measures .................................................................................................................. 65 Conclusions .............................................................................................................. 69 The project is co-funded by EU trough the Bulgaria - Serbia IPA Cross-Border Programme, 1 of 70 CCI Number 2007CB16IPO006 EUROPEAN UNION BULGARIA - SERBIA IPA CROSS-BORDER PROGRAMME PROJECT 2007CB161PO006.2011-2-245 STIMULATION OF ECONOMIC EXCHANGE IN THE CROSS-BORDER REGION MONTANA - PIROT Tables Table 1 Main data for the economic development in NWR, 2010 ........................... 21 Table 2 Structure of the enterprises in Montana, 2010 ........................................... 23 Table 3 Main financial data for the key enterprises in the Municipality of Montana, 2010, thousand BGN .............................................................................. 30 Table 4 Main financial data for the key enterprises in the Municipality of Montana, 2011, thousand BGN .............................................................................. 30 Table 5 Main financial data for the key enterprises in the Municipality of Montana, 2012, thousand BGN .............................................................................. 30 Table 6 Grouping of the enterprises per financial year ........................................... 31 The project is co-funded by EU trough the Bulgaria - Serbia IPA Cross-Border Programme, 2 of 70 CCI Number 2007CB16IPO006 EUROPEAN UNION BULGARIA - SERBIA IPA CROSS-BORDER PROGRAMME PROJECT 2007CB161PO006.2011-2-245 STIMULATION OF ECONOMIC EXCHANGE IN THE CROSS-BORDER REGION MONTANA - PIROT Figures Figure 1 GDP at current prices (2006 – 2010), mln. BGN ....................................... 13 Figure 2 GDP per capita (2006 – 2010), BGN ........................................................ 13 Figure 3 GDP per capita, BGN, 2010 ...................................................................... 14 Figure 4 Sectorial distribution of the number of enterprises .................................... 14 Figure 5 Structure of the production in the Montana region, %, 2009 - 2010 .......... 15 Figure 6 Structure of the production of the manufacturing enterprises in the Montana region , %, 2010 ....................................................................................... 16 Figure 7 Dynamics of the GVA of the manufacturing industry in NWR, mln. BGN, 2006 - 2010 ............................................................................................................. 17 Figure 8 Dynamics of the GVA of the agriculture in NWR, mln. BGN, 2006 – 2010 ........................................................................................................................ 18 Figure 9 Dynamics of the GVA of the service sector in NWR, mln. BGN, 2006 - 2010 ........................................................................................................................ 19 Figure 10 Economic structure in NWR, %, 2010 ..................................................... 21 Figure 11 Net income per person and per employee, BGN, 2010 .......................... 22 Figure 12 Costs for R&D in the BWR, thousand BGN ............................................ 26 Figure 13 Employees working in R&D in NWR ....................................................... 27 Figure 14 Change in the turnover ........................................................................... 32 Figure 15 Return on assets for the chosen enterprises in the period 2010 - 2012 .. 34 Figure 16 Return on equity for the chosen enterprises in the period 2010 - 2012 .. 35 Figure 17 Dynamics of the revenues and costs of the chosen enterprises, thousand BGN, 2010 .............................................................................................. 36 Figure 18 Dynamics of the revenues and costs of the chosen enterprises, thousand BGN, 2011 .............................................................................................. 36 The project is co-funded by EU trough the Bulgaria - Serbia IPA Cross-Border Programme, 3 of 70 CCI Number 2007CB16IPO006 EUROPEAN UNION BULGARIA - SERBIA IPA CROSS-BORDER PROGRAMME PROJECT 2007CB161PO006.2011-2-245 STIMULATION OF ECONOMIC EXCHANGE IN THE CROSS-BORDER REGION MONTANA - PIROT Figure 19 Dynamics of the revenues and costs of the chosen enterprises, thousand BGN, 2012 .............................................................................................. 37 Figure 20 Change in the companies’ assets, % ...................................................... 39 Figure 21 Costs for salaries, thousand BGN ........................................................... 39 Figure 22 Average number of employees in the enterprises, 2012 ......................... 47 Figure 23 Location of the factories of Monbat AD ................................................... 57 The project is co-funded by EU trough the Bulgaria - Serbia IPA Cross-Border Programme, 4 of 70 CCI Number 2007CB16IPO006 EUROPEAN UNION BULGARIA - SERBIA IPA CROSS-BORDER PROGRAMME PROJECT 2007CB161PO006.2011-2-245 STIMULATION OF ECONOMIC EXCHANGE IN THE CROSS-BORDER REGION MONTANA - PIROT Main objectives of the survey The present survey is elaborated as part of the project “Stimulation of economic exchange in the cross-border region Montana – Pirot” implemented by NALILG Branch Montana as Lead Partner and the Municipality of Pirot as Project Partner under Bulgaria-Serbia IPA Cross Border Programme. The overall objective of this project is to increase the competitive advantages of the economic sector in the region and to improve its positions in the EU markets through developing an economic synergy and co-operation between the business representatives from Bulgarian–Serbian cross-border region and strengthening their competitiveness. The project is mainly related to improve the capacity of the region to deal with regional issues as partnership establishment, strengthening of institutional and business structures to respond to EU markets requirements and establishment of models for cooperation based on best practices and common needs. Through the development of economic and market analysis, the organization of business forums for shearing best practices and establishing business contacts, and the development of a strong institutional cooperation the project will support Bulgarian and Serbian enterprises from priority export sectors to enhance their competitiveness, their degree of internationalization and enter or expand their market positions. The project has 2 specific objectives: a) improvement of the partnership establishment in the cross-border region and creation of conditions for meeting the
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