State and Barriers to the Digitalization of Small and Medium-Sized Enterprises in Bulgaria

In the year 2021, small and medium-sized enterprises (SMEs) constituted 99.81% of the total number of enterprises in Bulgaria. The number of individuals employed by SMEs accounted for 74.2% of the entire workforce. These enterprises contributed 66.5% of the overall economy’s added value, and this share has consistently been on the rise. Their development significantly influences the employment rate, overall economic growth, and the prosperity of our nation. Technological advancements and recent crises in recent years have spurred accelerated digitization across all spheres of public life, including business sector. It is increasingly penetrating SMEs in Bulgaria, albeit with a certain lag compared to the EU. There is no doubt that the digitization of SMEs serves as a crucial mechanism for achieving competitiveness and economic success, not only for the enterprises themselves, but also for our country as a whole. Given this context, the objective of this publication is to briefly present the summarized results of an analysis of the level of digitization of SMEs in Bulgaria and the examination of the key factors hindering its further development, serving as barriers to its progress. These findings can be valuable for guiding the efforts of managers and government entities in fostering the advancement of digitization in SMEs.