Regional expansion in CEE: Opportunities for Bulgarian enterprises
iBanFirst Regional Business Summit “How can CEE companies expand internationally?”
Regional expansion in CEE
The modern business world offers many opportunities to expand the activities of enterprises internationally. In this context, Central and Eastern Europe is being built as a region with great potential for Bulgarian enterprises that are looking for new horizons for development. The advantages that this expansion can offer were a main topic of discussion during the second edition of the Regional Summit in Bucharest: “How can companies from Central and Eastern Europe grow internationally?”. The event was held on May 25 with the support of global financial services provider iBanFirst and regional communication agency Pi2 PR in front of over 2,000 online and live viewers. Media partners of the event this year were Manager, Ziarul Financiar (Romania) and Portfolio (Hungary).
Regional expansion in CEE: The advantages and challenges of optimistic entrepreneurs
Central and Eastern Europe offers a dynamic and innovative economy that is developing rapidly. This region is attractive for investment and business expansion, providing extensive opportunities for cooperation with local enterprises. Bulgarian companies can take advantage of these potential partnerships to increase their productivity and efficiency while benefiting from the innovation and technological resources of the region.
Svetlozar Dimitrov, co-founder and managing partner of euShipments, shares that euShipments covers all destinations in the European Union and the United Kingdom thanks to such partnerships. “In every country we ship to, we have local partners, such as Sameday in Bulgaria and Romania. Based on the partnerships and integrations we have made, an online store only works with euShipments, but can use solutions from the entire partner portfolio in Europe .Our customers negotiate an operating model, price and integration only with euShipments and integrate their platforms only with us.”
On the other hand, expanding companies across borders does not come without risks, especially at the level of exchange rates. Pierre-Antoine Dusulier, founder and CEO of iBanFirst, explained that when expanding a business in another country, the volatility of the exchange rate must be taken into account. “If you want to do business in other countries where the exchange rate is unstable, you can conclude a contract with a margin of 10%, but if the exchange rate also changes by 10%, you will practically not make money. When there is a crisis, there is instability in the foreign exchange market, and that means customers need our services. When there is volatility, you have to protect yourself,” he added.
Regional expansion in CEE: The attraction of capital in the region and what are the prospects
Julia Sohajda, managing partner at Vespucci Partners, explained during the discussion that the technology companies that Vespucci Partners invested in and that developed in this region had a competitive advantage in the US market at a time when US competitors of these companies were forced to cut staff and reduce growth rates accordingly.
“We have been in this business for 10 years. Initially, we focused on Bulgaria, but we are increasingly focusing on the region. In these tough times, usually companies with money come in and start buying market share, smaller players who can provide added value in terms of technology, people and costs.” shared Alvin Gurry, co-founder and CEO of Invenio Partners.
Ivaylo Gospodinov, managing partner of BlackPeak Capital, also shared his experience. “We invest in 5 countries in the region, including Romania. We invest in more mature companies that have reached the point of growth and operate in a stable market. We strive to find those business models that are current and have the potential to become leaders in their fields. The size of the investment ticket varies between 5 and 15 million euros. We strive to be hands-on investors and work with companies to achieve their goals together.”
Regional expansion in CEE: Growing a business in today’s economic environment
Among the panelists in today’s business opportunity discussion were Alexander Alexiev, founder and CEO of SAT Health, and George Moroyanu, co-founder and CEO of Flip.
“The difference in legislation and the language barrier are challenges when expanding to another market. The easiest way is through partnership. If you go alone, it will take two or three times longer,” says Alexander Alexiev.
George Moroyanu adds that companies need geographic expertise to achieve long-term success. “We consider Central and Eastern Europe as a common market in which we can expand, but we need to understand the specifics of each individual market. We are happy to have local specialists and partners.”
A long-term perspective is also proving to be essential, especially in sectors such as construction, where recruiting qualified staff is a challenge. However, technological advances have made the process of expansion easier and cheaper while allowing for faster growth.
Regional expansion in CEE
Expanding operations in Central and Eastern Europe offers significant advantages for Bulgarian companies. The geographical proximity to the western markets, the dynamic economy, similar values and culture, as well as the opportunities to diversify the business portfolio make this region extremely attractive for the expansion of Bulgarian companies. This potential can contribute to sustainable growth and development of the Bulgarian economy.
Regional expansion in CEE
With a trusted partner like iBanFirst, businesses can safely focus on expanding their business. The global financial services provider is there for its customers and partners to facilitate their international payments and ensure the protection of their profit margins against exchange rate volatility and market volatility. “Each company is different and has its own risk profile, but we can hedge most of the market volatility,” says Johan Gabriels, Regional Director of iBanFirst.
“The idea behind iBanFirst is to create a volume in which we have the interest of global banks to provide us with liquidity, and we can offer SMEs the same prices that multinational companies benefit from. When working with Saxo Bank, Pierre-Antoine noticed that the margins were very low when doing foreign exchange transactions, but when it came to payments to SMEs, the costs increased significantly. That’s why we develop products that we offer to corporations and SMEs”, he adds.
This article was published on Manager.bg.