Social Economy in Europe: Bulgaria
Table of contents
Note: The data presented in this table derive from the OECD country factsheets and the European Commission DG GROW studies. Variations in scope, methodology and most recent available years may lead to differences in the headline figures across countries and with other sources.
Source: Data for Bulgaria relates to 2021 (CIRIEC; Euricse; European Innovation Council and SMEs Executive Agency (European Commission); Spatial Foresight, 2024[1]), except data on the SSE value added (relating to 2019) (OECD CFS, 2023[2]) and on the involvement with any social economy organisation as a volunteer relating to 2020-2025 (European Commission, 2025[3]).
The policy for the social and solidarity economy in Bulgaria is implemented under the remit of the Law on Social and Solidarity Economy Enterprises (2019). In addition, a number of legislative and strategic frameworks exist in Bulgaria to define and support the social and solidarity economy (SSE), such as the Act on Co-operatives (1999) and the Act on Non-Profit Legal Entities (2000).
Institutions
The Ministry of Labour and Social Policy (MLSP) oversees the policy of the social and solidarity economy. As the social economy contributes to a wide range of policy areas, some overlap exits with other ministries, such as the Ministry of Economy and Industry, the Ministry of Finance, the Ministry of Education and Science and the Ministry of Health. Nonetheless, the primary responsibility for legislation, funding and strategy rests with the MLSP.
Additionally, the Economic and Social Council (ESC), an independent consultative body, established under the Law for the Economic and Social Council (2001), represents the interests of organised civil society. The Council which benefits from public funding, is a forum for consultation on economic and social policies and for promoting the participation of the civil society organisations in the economic and social life in the country (Economic and Social Council, n.d.[4]).
Competence
A number of legislative and strategic frameworks exist in Bulgaria to define and support the social and solidarity economy (SSE). Prior to the development of the concept of SSE, a few acts were established to govern the activities of specific social economy organisations. This includes the Act on Public Cultural Associations (1996), Act on Co-operatives (1999), and the Act on Non-Profit Legal Entities (2000). In 2012, the Council of Ministers adopted the National Concept for Social Economy which has recently been formally legislated in the Law on Social and Solidarity Economy Enterprises, which was promulgated in 2018 and was amended and effective as of 2019.
Bulgaria adopted its National Recovery and Resilience Plan in 2022. The Plan builds on the national development programme BULGARIA 2030 which proposes solutions for medium-term growth by setting strategic objectives, such as accelerated economic development, demographic upswing and reduced inequalities. It is primarily a funding mechanism and is complemented by the Social Economy Action Plan (2022-23) (Republic of Bulgaria, 2022[5]). Other governmental strategies, such as the Strategic Plan for the Ministry of Labour and Social Affairs (2022-2025) and the Employment Strategy (2021-2030) mention social economy development, particularly in the area of job creation and social entrepreneurship.
Under the National Recovery and Resilience Plan (NRRP), the project "Development of the Social Economy" aims to modernise social and solidarity enterprises. The project has planned financial resources of over EUR 12.3 million (24 million leva) under the Recovery and Resilience Mechanism, with a total budget of nearly EUR 13.6 million (26.7 million leva) (Republic of Bulgaria, n.d.[6]). It aims to support SSE enterprises in digital transformation, to create networks and partnerships and to provide training. It includes a digital platform to facilitate visibility, awareness and communication and establishes six regional centres for further support subnational networks of social enterprises (Republic of Bulgaria, n.d.[7]).
Other initiatives of the MLSP include organising competitions related to the SSE. Most recently, the Annual National Award for Social Innovation was hosted in support of the social economy (Republic of Bulgaria, 2024[8]). This builds on a tradition of annual awards to recognise social activities such as the 2022 annual award competition in the field of corporate social responsibility; "Socially Responsible Strategic Management" (Republic of Bulgaria, 2022[9]).
Institutions
Bulgaria is a highly centralised unitary state comprising of 28 districts (or oblasts). The districts have administrative and statistical functions. They do not have legislative competences. Sofia City has a special status as the capital of Bulgaria, acting both as a district and municipality (European Committee of the Regions, n.d.[10]).
Competence
Under the 2022 NRRP and the "Development of the Social Economy" project, six regional centres have been established to support the development of the SSE. These centres are Blagoevgrad, Burgas, Varna, Gabrovo, Lovech and Plovdic. They operate as regional hubs serving multiple cities while ensuring complete national coverage. Their main tasks include supporting the establishment of networks and delivering training, initiatives and partnerships to include social economy entities in the social and civil dialogue with state institutions, local authorities and local communities (Republic of Bulgaria, n.d.[6]). Additionally, they can work with municipalities to support social economy projects.
Institutions
The 28 oblasts are further divided into several municipalities (obshtini). The municipality is the only level at which self-government is exercised but there is limited evidence on the role of municipalities in the support and development of the SSE. There is a database on social enterprises at the municipal level (co-ordinated by the MLSP), however institutional frameworks or relevant bodies are not listed.
Competence
Regional centres contribute to visibility, networking and training for social enterprises through festivals, fairs and training workshops. In October 2024, the Regional Centre for Social Economy Development in Gabrovo, together with the Municipality of Sevlievo, organised a two-day presentation of social enterprises from the North Central Region (Republic of Bulgaria, 2024[11]). This follows the 2022 International Fair in Plovdiv (Republic of Bulgaria, 2022[12]). In October 2024, a two-day free workshop on the theme of "Sustainable Digital Business" brought together representatives of small and medium-sized businesses with experts in digitalisation and cybersecurity in Plovdiv (Republic of Bulgaria, 2024[13]).
However, in general, there is limited information about the nature and scale of competencies of regional centres. However, some centres have started to act. For example, in February 2024, the municipal council of Varna voted to approve a proposal to create a fund to support social enterprises, in particular projects submitted by registered social enterprises (Republic of Bulgaria, 2024[14]). The report suggests that after the decision entered into force, the Regional Centre in Varna would provide the Social Commission with a draft regulation of the fund, as well as a proposal for the structure of the project evaluation committee.
The primary responsibility for the social economy resides with a single ministry. Therefore, there is limited development of a national co-ordination mechanism involving regional and local authorities. The Economic and Social Council provides a platform for consultations with civil society. Main co-operation efforts are facilitated through networks that focus on specific types of organisations, as outlined below.
Across multiple public authorities and/or levels of government
There are no joint committees or national bodies which co-ordinate actions led by public authorities. However, some initiatives demonstrate collaboration across regional centres and between regional centres and municipalities. One example is the already cited Autumn Fair arranged collaboratively by the Regional Center for Social Economy Development in Gabrovo and the Municipality of Sevlievo (Republic of Bulgaria, 2024[11]). The fair featured the participation of several provinces, including Gabrovo, Veliko Tarnovo, Ruse, Razgrad and Silistra.
With social economy representatives
The Economic and Social Council brings together three groups of members to represent organised civil society interests in national policy. These groups include: 1) members appointed by governing bodies of representative organisations of employers, 2) members appointed by governing bodies of representative organisations of workers, and 3) members representing agricultural producers, co-operatives, craftsmen, women, ecology organisations, persons with disabilities, providers of social welfare etc, appointed by the Council of Ministers upon of the Minister of Economy, Energy and Tourism and the Minister of Labour and Social Policy (European Economic and Social Committee, 2017[15]).
Bulgaria has a long history of co-operatives with a tradition of organisations to support these entities. Two such organisations are the National Union of Labour and Production Co-operatives (NULPC) and the Central Co-operative Union -Bulgaria (COOP). These unite national-level labour and production co-operatives (TPC, TPKI), regional unions (RS) of TPC and other co-operative organisations. NULPC includes a specific function to encourage and support member’s social entrepreneurship initiatives as well as to organise European and regional forums for social entrepreneurship, co-operative festivals, conferences and round tables on the social and solidarity economy (NULPC, 2025[16]). Regional Centres also collaborate with co-operatives to facilitate knowledge sharing. For example, in November 2024, the Regional Centre for Social Economy of Gabrovo provided training for members of the National Consumer Co-operative of the Blind in Bulgaria (NCCB) (Republic of Bulgaria, 2024[17]).
Other bodies exist to focus on specific interests. For example, the National Federation of Employers of Disabled People (NFRI) focuses on advocacy, support and co-ordination of those with disabilities. They collaborate with national authorities to develop and enhance policies that facilitate the integration of persons with disabilities in the workforce (World Bank, 2022[18]). The Bulgarian Centre for Not-for-Profit Law (BCNL) is a support network active in enabling a thriving civil society. Those bodies provide advice, training and development expertise for organisations and are a part of the network of the International Centre for Not-for-Profit Law (ICNL) and the European Center for Not-for-Profit Law (ECNL). They advocate for non-profit rights at the national level by negotiating with national authorities. For instance, in 2002, the centre collaborated with the Ministry of Finance for the introduction of tax measures for NGOs (BCNL, 2003[19]).
Note: There is clear overlap between the activities of Regional Centres and Municipalities.
Source: See (Republic of Bulgaria, 2024[14]) for the example of Varna Municipal Council Funding Vote and (Republic of Bulgaria, 2022[12]) for the example of the International Fair in Plovdiv.
Support for the social and solidarity economy in Bulgaria is channelled through a framework which includes national and subnational actions, legal instruments and public-private initiatives. The 2012 National Concept for the Social Economy provides the strategic foundation, operationalised through biennial Action Plans and reinforced by the 2018 Social and Solidarity-Based Enterprises Act. Public sector support includes the National Recovery and Resilience Plan to enhance digitalisation and capacity-building, complemented by six regional centres. Access to finance is facilitated through instruments such as the Bulgarian Development Bank’s microfinance programmes and the National Guarantee Fund. The private sector also plays a pivotal role in advocacy and capacity-building.
Financial support
Bulgaria’s 2022 National Recovery and Resilience Plan allocated EUR 12.3 million to developing the social and solidarity economy. The plan focuses on supporting social enterprises to adopt digitalisation, through dedicated funding and awareness-raising activities. This has been supplemented by the social economy digital platform established by the Ministry of Labour and Social Policy, which increases the visibility of social economy-related activities in the country (Republic of Bulgaria, n.d.[7]).
Funding programmes for small and medium enterprises (SMEs) provided by the Bulgarian Development Bank are accessible to social economy entities. One of these programmes is BDB Microfinancing, an alternative way of financing start-ups, small businesses and agricultural producers through new financial models to ensure business sustainability (BDB Microfinancing, 2025[20]). The National Guarantee Fund is another initiative that facilitates financing access to start-ups and SMEs (National Guarantee Fund, 2025[21]).
The BCause Foundation runs a grant-making programme in the form of a competition, acting as a mediation channel between investors and organisations. This programme is complemented by a payroll-giving mechanism for charities (BCause, n.d.[22]). The Foundation also operates as the Bulgaria Information Centre for the Employment and Social Innovation Programme (EaSI), in partnership with the Ministry of Labour and Social Policy, providing information on the Programme (BCause, 2025[23]).
Visibility and recognition
Public institutions promote social economy visibility through awards and activities. For example, the Ministry of Labour and Social Policy has launched the “Social Innovation Awards”. The 2024 edition focused on raising the visibility of social enterprises (Republic of Bulgaria, 2024[8]). In 2022, the Ministry of Labour and Social Affairs and the National Union of Labour and Production Co-operatives co-organised the 10th European Forum of Social and Solidarity Economy Entities to showcase products and services of over 100 Bulgarian social enterprises, increasing their outreach and visibility.
Co-operative organisations play a key role in supporting and advocating for social economy entities. The two main organisations are the National Union of Labour and Production Co-operatives (NULPC) and the Central Co-operative Union of Bulgaria (COOP). Operating at the national level, they unite producer and labour co-operatives, regional unions and other co-operative organisations. The NULPC promotes social entrepreneurship and collaborates in organising activities and initiatives dedicated to the social economy (NULPC, 2025[16]). COOP oversees co-operative activities and supports them through training and projects. It also engages in European projects to raise the profile of co-operatives (COOP, n.d.[24]).
The Bulgarian Centre for Non-Profit Law is a public benefit foundation that advocates for the rights of non-governmental organisations (NGOs). One of the Centre’s main achievements has been to support tax exemptions for NGOs (Bulgarian Centre for non-profit Law, 2003[25]). Alongside their awareness-raising activities, the Centre offers tailored training and advice to NGOs (Bulgarian Centre for non-profit Law, 2025[26]).
Rinker Centre, established by the BCause Foundation, is a centre for entrepreneurship and training that promotes social entrepreneurship and the social economy. It delivers several programmes and competitions, including the “Social Enterprise Competition”, which supports innovative ideas and Bulgarian entrepreneurs (Rinker Centre, 2025[27]). The Centre also provides training on social enterprises, business plan development and consultation. Specific actions, such as accelerator programmes, aim to raise awareness on approaches and notions of the social economy and social entrepreneurship.
International initiatives such as the Social Entrepreneurship Summit help raise awareness of the social economy. The European Latin-American Network organises the Summit annually, and Sofia became the first European capital to host it in 2024. The event brought together stakeholders from various sectors, including academia, business, the public sector and the social economy. It presented a significant opportunity for Bulgarian social entrepreneurs to gain visibility and expand their activities’ reach (Elanet, 2024[28]).
The six regional centres channel support for social enterprises under Bulgaria’s National Recovery and Resilience Plan. Located in Blagoevgrad, Burgas, Varna, Gabrovo, Lovech and Plovdiv, the centres cover the whole country. They conduct training sessions and initiate partnerships to connect social entrepreneurs with public authorities (Republic of Bulgaria, n.d.[6]). They support social enterprises in digitalisation and awareness-raising through dedicated calls and initiatives. The centres also support subnational networks of social enterprises (Republic of Bulgaria, n.d.[7]), and collaborate with municipalities to promote social economy projects.
Recently, regional centres have started to initiate activities to support the social economy at the regional level. For example, the municipal council in Varna, located on the Black Sea coast in north-east Bulgaria, approved a proposal to create a fund for social enterprises (Republic of Bulgaria, 2024[14]). To raise awareness, the regional centre in Gabrovo and the municipality of Sevlievo organised a presentation on social enterprise activities in the North Central Region (Republic of Bulgaria, 2024[11]).
The Rinker Centre manages several regional programmes targeting the social economy. Its most significant initiative is a social entrepreneurship competition targeting specific regions, sectors or individuals. The competition provides a platform to support Bulgarian social entrepreneurs, as well as workshops on developing a business plan and mentorship for promising entrepreneurs, with ongoing support provided (Rinker Centre, 2025[27]).
Definition of public interest
The term “public benefit” is defined in the Non-profit Legal Entities Act and refers to activities that serve the public good, such as healthcare, education, science, culture, sports, technology, development of spiritual values, assistance to disadvantaged groups, protection of human rights or the environment, as well as other objectives specified in the law (Lex.bg, 2001[29]). Non-profits, including associations and foundations, can be registered as non-profit legal entities for public benefit.
Economic activities
Social enterprises, specialised enterprises and co-operatives for persons with disabilities, and non-profit legal entities for public benefit can engage in economic activities as long as they align with the entity’s social mission (Lex.bg, 2019[30]; Lex.bg, 2019[31]; Lex.bg, 2001[29]).
Class A social enterprises, which must meet criteria related to social mission, inclusive governance and either profit reinvestment or inclusive employment must provide the Ministry of Labour and Social Policy with proof that they meet the criteria, while Class A+ social enterprises (which have more requirements related to the geographic concentration of impact, the size of reinvested profits and employment of vulnerable individuals) must do so every 2 years (Lex.bg, 2019[30]).
The Agency for Persons with Disabilities maintains a register of specialised enterprises and co-operatives for persons with disabilities. The Agency monitors and controls their activities (Lex.bg, 2019[31]).
A non-profit legal entity for public benefit has to prepare and publish an annual activity report with information on funds dedicated to essential activities, their connection with the organisation’s objectives and impact, grants and donations, and income from other fundraising activities, information about the donors and the financial result. A non-profit legal entity for public benefit must be audited by an independent auditor (Lex.bg, 2001[29]).
References
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[22] BCause (n.d.), Grant-making programmes, https://www.bcause.bg/en/grantmaking/grantmaking-programmes.html.
[19] BCNL (2003), Annual Report 2002, https://web.archive.org/web/20110727084503/http://minaloto.org/images/contentdocs/TransArchive/BCNL/Annual_2002_eng.pdf.
[20] BDB Microfinancing (2025), BDB Microfinancing - About us, https://www.mfi.bg/en/about-us-mfi/Summary-mfi/.
[26] Bulgarian Centre for non-profit Law (2025), Financial sustainability of NGOs, https://bcnl.org/en/category_trainings/financial-sustainability-of-ngos.
[25] Bulgarian Centre for non-profit Law (2003), Annual Report 2002, https://web.archive.org/web/20110727084503/http://minaloto.org/images/contentdocs/TransArchive/BCNL/Annual_2002_eng.pdf.
[1] CIRIEC; Euricse; European Innovation Council and SMEs Executive Agency (European Commission); Spatial Foresight (2024), Benchmarking the socio-economic performance of the EU social economy, https://doi.org/10.2826/880860.
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[29] Lex.bg (2001), ЗАКОН ЗА ЮРИДИЧЕСКИТЕ ЛИЦА С НЕСТОПАНСКА ЦЕЛ [NON-PROFIT LEGAL ENTITIES ACT], https://lex.bg/laws/ldoc/2134942720.
[32] Lex.bg (1998), ЗАКОН ЗА МЕСТНИТЕ ДАНЪЦИ И ТАКСИ [LOCAL TAXES AND FEES ACT], https://lex.bg/laws/ldoc/2134174720.
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[2] OECD CFS (2023), Bulgaria - Country Fact Sheet, https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/social-economy-and-social-innovation/country-fact-sheets/country-fact-sheet-bulgaria.pdf.
[14] Republic of Bulgaria (2024), Creation of a fund to support social enterprises in Varna, https://seconomy.mlsp.government.bg/7652-2-2/.
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← 1. The social economy status of an entity does not affect its VAT liability. The VAT Act exempts from VAT the provision of services under the Social Services Act, the delivery of social benefits under the Social Assistance Act, the compulsory and voluntary social, pension and health insurance, and mediation in international adoption under the Family Code (Lex.bg, 2007[34]).
← 2. Specialised enterprises and co-operatives for persons with disabilities can get a reimbursement of 50% of their insurance contributions, including social insurance, health insurance and additional compulsory pension insurance for employees with long-term disability. The reimbursed funds must be used for investments in rehabilitation and social integrations of persons with disabilities and their support staff (Lex.bg, 2019[31]).
← 3. Donations to non-profit legal entities for public benefit are exempt from a donation tax (Lex.bg, 1998[32]). Donations to social enterprises and co-operatives for persons with disabilities are subject to a donation tax.