ABSTRACT
Small and medium sized enterprises (SMEs) in Bulgaria have already played a significant role in the national economy development. The most important problems SMEs are facing in transition countries derive from the shortage of financial support for start-up of the business, and also later for financing their main activities or funding the necessary investments for improving the firms’ competitiveness. In most transition countries the establishment of the necessary institutional, legal and business framework to support and facilitate the development of entrepreneurship is the main priority need for the government. It includes basic reforms such as changing registration and reporting procedures, and reforming the bank and tax systems, as taking steps to eliminate corruption, which seriously impedes the SMEs in the transition countries. The analysis of the current state of SME sector in Bulgaria draws attention to the fact that there are still many obstacles preventing SMEs from playing their important role in society and the economic life of the country.
