The consultancy company Ernst & Young Bulgaria, leader in the field of audit, tax and financial advice and transactions, has issued a second Book of Family Business in Bulgaria. The volume presents the stories of the ten most successful family businesses in Bulgaria. It is a great honour and recognition for us, at INTRAMA, to be a part of this EY project. Mr. Emil Karanikolov, Minister of Economy, is the book patron.
The companies, whose stories have been told in the book, have had the chance to first page through the edition at the event, especially organized for the purpose in Sofia.
In the years of a modern market economy, Bulgaria successfully establishes sustainable family businesses as many of them are already being run by a second, sometimes third family generation. EY Bulgaria selects ten of the most successful family businesses in Bulgaria to show the good examples in Bulgarian economy and raise awareness of family business. The companies, included in the second edition of the Book of Family Business, operate in various industries, they are very often market leaders, they have shown a significant growth over time and are ambitious to develop on the foreign markets.
Nikolay Garnev, Managing partner EY Bulgaria, comments:
“Family business is like any other but it first and foremost counts on the family in order to grow, expand and become sustainable. The ten stories in the book prove that, despite its short history, contemporary family business in Bulgaria is tradition-based while generating innovations at the same time. Generations are strongly related and the founders’ lessons do not remain in vain. As a result, the coming generations succeed in bringing the companies to a future, which is completely different from their predecessors’ time being. I am happy that we, at EY, continue to support the family companies in their zeal for stable and longtime development.”
How have the companies been selected?
Each of the family businesses, included in the Book, satisfies a range of criteria:
- Family is the dominant business owner; it is responsible for the business development strategy.
- Family intends to pass the business on to the next generation.
- Business shows significant growth in time.
- Business is ambitious to develop on the foreign markets.
- The business head office is located in Bulgaria.
Innovations, culture and good family management – key to success
According to an EY survey conducted among 589 of the largest family companies worldwide (2018), successful family-owned companies develop a company culture of innovations and philosophy, which encourages flexibility and values fresh differing reasoning. Such a culture has the capacity for creation and taking advantage of the new. And it is most valued that successful family companies pass this type of culture across generations.
The culture of innovations can be felt and observed in all the companies, included in the second edition of the Book. It is strongly expressed in the next generation; its representatives think big and look for examples and experts from around the world to help them apply good practices to the companies in Bulgaria. Daring thinking and yearning for growing the business and professionally run it are typical for the new generation of entrepreneurs. They search perspectives on larger and more demanding foreign markets developing higher value-added products.
Good family business – how relatives build a team
Good family governing addresses the factors, which are vital to the family company success: planning for the future, consistency control and conflict management. These three components are usually defined by the so-called “family constitution” that formulates the company philosophy, goals and values.
The family constitution sets points of reference for the future generations, brings entrepreneur families together and draws them to the right direction. The stories of the most successful world’s family companies demonstrate that proceeding to the family constitution is a stage of business development and families should not fear launching the process. This agreement, like any other, is reached in confidence, effective and open communication, cooperation and eagerness to lead their companies forward into the future.
The companies in the Book of Family Business: АG Capital, Agrotime, Aquatech, Diavena, Dimitar Madzharov – 2, Enyo Bonchev, INTRAMA, Karmela 2000, NEDELYA pastry shops, Suiko.