ICT - SME challenges in the global economy epoch

ASTEL Annual Conference ‘Digital Democracy’

May 08th, 2008 Sofia, Bulgaria

Cluster Approach

Private initiative started in 2005 Platform for knowledge transfer and competitiveness

Bulgarian ICT Cluster

Improvement of state ICT polices and practices via PPP Improvement of the ICT market conditions and business capabilities Education, training and workforce development Branding, positioning and promotion

Main Strategic Directions of ICT Cluster Activities

SME: Who they are?

‘……Bulgarian ICT sector today represents more than 5000 companies which employ more than 90000 high skilled specialist…...’

– quotation from Mr. Plamen Vachkov – Chairman of SAICT, speech on CEBIT 2008

BAIT <200 BASSCOM <100 ASTEL <100 SEC <50 WEB association <100 and many others …

Officials: Organizations:

SME: Growth and sustainability?

Global competition Fast changing technologies Work force mobility and

companies culture changes Technologies versus Business Services versus Products

Innovation Effective management

Access to financing Access to qualified and skilled

human resources Access to international

markets Cost effective access to ICT

tools Friendly commercial and legal

framework Low level administrative load Stable legal system

Problems and Opportunities:

Factors and tools:

Innovation Initiatives

Introduction of the National Innovation Fund Support for hiring young specialists in SME Creation of Science / Technology Centers and Parks Optimization of the chain: Science – Technology – Innovation Entrepreneurship education Support for cluster creation and development Increase of FDI in the R&D area / centers Creation of University Centers for Entrepreneurs

Bulgarian National Strategy for Innovation – 2004/2006

SME and Financing

Lack of financial instruments for both Start ups and SME Absence of Business Angels and Venture Capitalists SMEs lack size to be traded on the Bulgarian Stock Exchange Lack of managerial and financial culture among entrepreneurs

Phase A (2007-2008): Creation of a Business Angel Club and preparation of a pipeline of Start ups and SMEs

Phase B (2009): Creation of a Hi-Tech Equity Investment Fund

Current ICT Market Environment

Cluster Fills the Gap: FORENTIN

What is done?

Assarel Invest Oriens Investment Expats and BA

INI Graphics Net, Darmstadt, Germany

CEED – Center for Entrepreneurship and Executive Development, Sofia

BIMT – Intel Technology Entrepreneurship Curriculum

Investment Partners Business Consulting

EOS: Opening international markets for small innovative firms

21 EOS consortium members from: Bulgaria, Cyprus, Finland, France, Italy, Germany, Spain, Switzerland, UK

EON Network: Business Innovation Centres, Hi-Tech Incubators, Science parks and Clusters

More than 30 associate partners More than 28 technology sectors,

including ICT Geography: Europe, Americas, Asia EC is opening SME support office in

Beijing!

SME Globalization?

Soft Landing: support for accommodation, assistance in organising meetings and networking, information service on location.

Networking: Services to connect entrepreneurs with investors, business angels, scientists, universities, clients and partners

Business Boosting: Boosting companies performances with the help of skilled human resources. Mentoring services to help entrepreneurs and business start- ups to obtain the advice, support and stimulation they need to confidently develop their business to local and international markets.

Services: Services:

Who attend the first Sofia IME event?

20 SME from Bulgarian ICT sector ICT Cluster from Croatia 3 institutional investors 1 Business Consulting Entity ExPats 2 EOS associated partners – HTBI

Varna and Gabrovo 1 independent HTBI from Burgas EEN local partners, EBN

Participants:

Bulgarian Telecom Cluster

Phare program: Support for Cluster Development in Bulgaria - Phase II

Project BG 2005/017-586.04.02 Established: March 2008

EcoCoMS Expert Vision Estel Open Integra 2C Trifonov SmartCom Bulgaria Triada Soft

Basics: Members:

Thank You!