An innovative model for business financing in wine production
Development of markets and market relations always leads to enhanced competition and increased consumer demand, thus making quality one of the key factor in success and survival of any organization. An important prerequisite for improving quality is also having an opportunity for flexible financing of organizations. The study focuses on small and medium-sized wine producers, located in Southern Wine Region in Bulgaria. The main purpose is to identify the challenges these producers are facing, related to ensuring financial funds. We base our conclusions on the data from various official sources including the European Commission and Bulgarian National Agencies as well as our own data. The latter has been collected through questionnaires, spread among local wine producers at the beginning of July 2017. The selected approach confirmed some of the conclusions made in the official sources concerning the challenges faced by SMEs. Regarding the methodology we have concluded that it is better to reduce the number of questions or combine some of them. We also intend to start personal communication with managers of the companies in question. Also, we believe that in-depth interviews will help us understand better the circumstances behind the specific answers provided in the survey.
1. Ahmedova, S. (2014) Importance of Small and Medium-Sized Enterprises (SMEs) for the Sustainable Economic Development of the North Eastern Planning Region. Yarbook ot Technical University of Varna, 1, 148-152.
2. Angelova, М. & Pastarmadzhieva, D. (2017). Challenges and opportunities for flexible crediting of small and medium-sized enterprises in Bulgaria. Fundamental Sciences and Applications, 23, 167-170.
3. Borisov, P. & Radev, T. (2011). Regional analysis of specialization of vine growing in Bulgaria. Agricultural economics and management, 56(2), 31-39.
4. Borisov, P. Radev, T. & Nikolov, D. (2014). The Landscape as a Competitive Advantage for Wine TourismAnalysis of the competitiveness of the wine sector as an element of sustainable development,. Agricultural economics and management, 59(1), 28-37. Agricul
5. Council of Ministers of Republic of Bulgaria (2005). National Strategy for Development of Viticulture and Wine Production in the Republic of Bulgaria 2005-2025.
6. European Commission (2015). Bulgarian Rural Development Programme (RDP) 2014-2020.
7. European Commission (2017) Investment plan for Europe: € 40 million for SMEs in Bulgaria, https://ec.europa.eu/bulgaria/news/40-miliona-evro-za-msp-v-Balgaria-po-investicionnia-plan-za-evropa_bg Retrieved November 25, 2017.
8. European Commission. The reforms of the EU wine market https://ec.europa.eu/agriculture/wine/reforms_en Retrieved July 20, 2017.
9. European Commission. Wine. https://ec.europa.eu/agriculture/wine_en Retrieved July 20, 2017.
10. Fundovino https://www.fundovino.com/en.
11. Giudici, G. Guerini, M. & Rossi-Lamastra, C. (2013). Why crowdfunding projects can succeed: the role of proponents׳ individual and territorial social capital. SSRN Electronic Journal,. 1-20.
12. Gaeta, D. & Corsinovi, P. (2014). Economics, Governance, and Politics in the Wine Market: European Union Developments. London: Palgrave Macmillan.
13. Gavrila, V. (2009). Particularities of the vine and wine market,. Agricultural Economics and Rural Development, VI(2), 277–291.
14. Gierczak, M.M. et al. (2016). Crowdfunding: outlining the New Era of Fundraising,. In D. Brüntje, & O. Gajda (Eds.), Crowdfunding in Europe State of the Art in Theory and Practice (pp 7-23). Cham, Switzerand: Springer International Publishing AG.
15. Goranova, P. & Tsvetanova, E. (2018). Research on the Importnace of Wine Tourism for the Sustainable Development of Regional Wine Production Areas in Bulgaria (Danube and Thracian). Scientific Research Almanac, 25(II), 167-197.
16. Hemer, J. (2011). A Snapshot on Crowdfunding, Karlsruhe: Fraunhofer.
17. Ilieva, V. (2017) Cibank provides loans for another BGN 200 million under the COSME program http://www.capital.bg/biznes/finansi/2017/07/09/3004019_sibank_otpuska_zaemi_za_oshte_200_mln_lv_po_programa/ Retrieved November 25, 2017.
18. International Organization of Vine and Wine (2017). 2017 World Vitiviniculture Situation, OIV Statistical Report on World Vitiviniculture.
19. Lombardi P. et al (2016). Development and trade competitiveness of the European wine sector: A gravity analysis of intra-EU flows. Wine Economics and Policy, 5(1), 50-59.
20. Mariani, A. Annunziata, A. Carmela, M. & Nacchia, A.F. (2017). Crowdfunding and wine business: Some insights from Fundovino experience, Wine Economics and Policy, 6(1), 60-70.
21. Ministry of Economy (2017). Half a million leva per day reach the Bulgarian business thanks to the Operational Program "Innovation and Competitiveness". Retrieved November 28, 2017 from http://www.opcompetitiveness.bg/news.php?id=1228.
22. National Assembly of the Republic of Bulgaria (2005). State Gazette, vol. 67/16.08.2005.
23. National Assembly of the Republic of Bulgaria (2012). Annual report on the management of EU funds in Bulgaria.
24. OECD (2015) New Approaches to SME and Entrepreneurship Financing: Broadening the Range of Instruments, Paris.
25. Panteleeva, I. (2008). The Innovations in SMEs in Bulgaria. In M. Petrov (ed) The Innovations: European, National and Regional Policies (pp 338-370), Sofia: ARC Fund.
26. Porter, M. Е. (1990). The Competitive Advantage of Nations, New York: Free Press.
27. Schwienbacher, A. B. & Larralde, B. (2012). Crowdfunding of Entrepreneurial Ventures. In D. Cumming (Ed.), The Oxford Handbook of Entrepreneurial Finance, (pp 359-391). Oxford: Oxford University Press.
28. Slavova, G. & Peycheva, A. (2018). Sustainable Development of Wine Production in Bulgaria During the Period 2006-2016 Through Diversification Towards the Deevelopment of Wine Tourism. Paper presented at the a scientific conference „Regional Economics and
29. Smith, A. (2008). Globalization Within the European Wine Industry: Commercial Challenges but Producer Domination. In: B. Jullien & A. Smith (Eds) Industries and Globalization. Globalization and Governance, (65-91). London: Palgrave Macmillan.
30. Teijlingen, E. R. & Hundley, V. (2001). The importance of pilot studies, Social Research Update, 35.
31. Vasilev, Y. (2007). Financing and Lending of Small and Medium-sized Business in Bulgaria. Economic Bulletin of Donbas, 1, 162-170.