1. ICT - SME challenges in the global economy epoch ASTEL Annual Conference ‘Digital Democracy’ May 08th, 2008 Sofia, Bulgaria

2. 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

3. 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:

4. 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:

5. 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

6. 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 EnvironmentCluster Fills the Gap: FORENTIN

7. 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

8. 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!

10. 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:

11. 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:

12. 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:

13. Thank You!