Economics Ecology Socium

Corporate Social Responsibility and Strategic Management of Business Development in Small and Medium-Sized Enterprises

Philip Stoyanov — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. Corporate social responsibility has recently evolved from a concept into a comprehensive, meaningful, and in-depth policy, with the help of business organisations becoming a responsible element of society. Although it enjoys increased interest at the global and European levels, corporate social responsibility (CSR) is still not a widespread practice in the policies of Bulgarian micro, small, and medium-sized enterprises.

Aim and tasks. The aim is to identify the main specific features of the implementation of CSR in Bulgarian conditions, as well as the attitudes of management towards a stronger advocacy of various CSR initiatives, both internal and external to the company.

Results. This study is based on data from a survey conducted among representatives of Bulgarian micro, small, and medium-sized enterprises operating in different sectors of the economy. The analysis of the data from a survey of 205 companies shows that CSR is perceived mainly as a tool for improving the image and meeting the expectations of customers and partners. Taking care of employees is the most common practice (45%), while initiatives aimed at the community and environment remains more limited and often episodic. Most companies do not have a formal CSR policy (41.5%), with top management leading the way in introducing CSR initiatives. It was found that attitudes towards CSR were positive. However, a lack of institutional incentives and limited resources hinders the more systematic integration of socially responsible practices. Top management (51%) initiates CSR in Bulgarian companies, making it more fragmented than strategically integrated. Most respondents (72%) see CSR as a way to improve image, but 55% consider such investments difficult to justify. The main barrier to development is the lack of government support. This pattern, where 51% of initiatives come from managers, shows that CSR is an image rather than a strategic initiative. Although companies value reputational benefits (72% for image and 67% for expected customers), only 16% have specialised CSR departments. The main obstacle remains the lack of adequate government policy, with more than 50% of respondents agreeing.

Conclusions. CSR in Bulgaria is perceived mainly as a means of building a reputation, but its practical implementation remains limited by resource and institutional factors. A trend towards strengthening internal practices and readiness for broader integration of external initiatives under the pressure of the international market and regulation. In this sense, CSR in Bulgarian enterprises can be defined as a practice in the process of institutionalisation, the development of which requires both more active management commitment and the creation of a stimulating environment at the national level.

Assessing Strategic Planning in Postmodern Organizations: A Case Study in the Public Sector

Živilė Jezerskė, Rolandas Drejeris, Ilona Skačkauskienė — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. Different sectors of the economy adopt a dynamic approach to the role of strategic planning, presenting specific arguments for its application as a management tool and the rationale behind measuring its effectiveness. Research gaps remain, as justifying the relevance of strategic planning continues to be important for postmodern organisations.

Aim and tasks. This study presents an instrument for managers that allows them to evaluate the results of strategic planning and thereby justify the need for strategic planning. This study explores gaps in the current practice of strategic planning in the public sector and predicts opportunities for improving performance by focusing on public organisations.

Results. An empirical study was conducted at the level of a single-purpose public sector organisation. The empirical study was divided into three parts: studies of the desired and achieved state of the organisation’s performance quality, a set of rationally composed quantitative and qualitative research methods was selected for the latter, and finally, a synthesis of research results using the formula for assessing the maturity of strategic planning activities. The calculated average maturity score (2.71) of the managerial activity components in the chosen organisation indicates that its strategic planning maturity is at Level 3 (completed). To reach Level 4, the goals and tasks of the projects must be comprehensively aligned with the strategy, and project success should be measured based on compliance with the strategy concerning all stakeholders.

Conclusions. An empirical study of strategic planning in a public sector organisation based on an integral methodology showed that the process was at an average level of maturity. The need for a link between strategy and projects was identified as a relevant gap in the literature. This coherence facilitates effective risk management regarding the logical connection between tasks and their implementation, compliance with the implementation of goals with the norm, and the coincidence of the views of the organisation and its stakeholders on the quality of activities. Key issues include the mission’s formal nature, bureaucratisation of the process, and stakeholders’ poor awareness of project results. To move to the highest level, full strategy and project synchronisation and assessment of their success through the prism of stakeholder satisfaction are necessary.

GIS-Based Assessment Model of Resilient Management and Monitoring of Water Resources

Radoslav Kostev — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. The management and efficient use of water resources is a crucial and extremely acute problem. This study focuses on geographic information systems (GIS) as a tool for the resilient management and monitoring of water resources. The objective was to create and implement a GIS-based model for managing and monitoring water resources by developing a system of indicators. This model presents future scenarios for Bulgaria based on the assessment of indicators for resilient management and the efficient use of water resources.

Aim and tasks. This study aims to develop and implement a GIS-based model that integrates technical, economic, social, and environmental indicators for the resilient management and monitoring of water resources in Bulgaria. This study focuses on opportunities to improve the effective management and rational allocation of water resources in Bulgaria using geographic information systems.

Results. A comprehensive system of indicators for assessing sustainable water management in Bulgaria was developed, considering economic, technical, social, and environmental criteria. The calculation of the composite index showed a low level of efficiency, and the main problems were water losses during transportation of up to 55-60%, a reduction in investments in wastewater disposal by 40% (2016-2023) and a low level of reuse of treated wastewater. The GIS-based model revealed significant territorial differences in the state of water resources and consumption in Bulgaria. Key problems include high losses in the water supply network, water use for hydropower, and poor water infrastructure, which affect the resilience of water management. Irrational consumption and storage may lead to serious water supply issues in key regions of the country.

Conclusions. Geographic information systems enable the improvement of water resource management by integrating and processing large amounts of data. In response to the identified research questions, the current state of Bulgaria’s water sector was analysed and assessed. The key factors affecting the sustainable management and use of water resources and territorial imbalances in rational water use were identified. Developing a comprehensive strategy that includes infrastructure modernisation, introducing water-saving technologies and improved management efficiency can overcome structural problems in the water sector and prevent water resource shortages.

Market Analysis and Entrepreneurial Development of Dairy Farms in the Agricultural Sector

Volodymyr Mosiiuk, Mykola Misiuk, Maryna Zakhodym, Yaroslav Susharnyk — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. The development of entrepreneurship in the dairy industry can ensure food security, increase budget revenues by increasing the volume of dairy product exports, and create jobs in post-war Ukraine. Since the dairy business involves production, processing, storage, logistics, and sales of dairy products, this opens up vast opportunities for developing diverse entrepreneurial activities involving workers with different qualification levels.

Aim and tasks. This study aims to analyse market conditions and substantiate the directions of entrepreneurial development of dairy production entities in Ukraine in the post-war period. It further seeks to forecast the dairy market indicators of Ukraine using the ARMA approach, assess the significance of changes in dairy market indicators in the first post-war years, and substantiate the barriers to entrepreneurial activity of dairy business entities.

Results. The adaptive method of step-by-step refinement of the forecast indicator specified a reduction in imports in 2027 compared to 2024 by 10.7%, provided that domestic demand grew by 7.76% and exports increased by 26.3%. The share of cattle in small farms in 2027 will be 3.5% less than that in 2021, and the share of cows will be 1.1% less. A gradual increase improves the prerequisites for entrepreneurial activity in livestock farming and milk production profitability. This is confirmed by forecast data on the growth of average milk yield from 0.85% to 4.2% by farm size for the first post-war years, since the growth of milk yield is one of the factors increasing the profitability of dairy enterprises.

Conclusions. With the growing volumes of supplies for processing from large enterprises, there is a tendency to reduce supplies from small farms, which increases the differentiation of dairy farms in terms of the volume of coverage of external and internal markets. When defining promising areas, obstacles to the entrepreneurial activity of dairy business entities were identified. This indicates that the specified activity should be aimed at the glocalisation of production and sales. This will provide an opportunity to use sales in external markets and operational manoeuvring in markets as a tool for regulating production volumes. This indicates that cooperation contributes to solving the problems of providing workers and intensifying the development of human capital in agricultural production, which is currently hindered by a small share (18%) of dairy farms in the cooperation process.

Management of Plastic Waste Processing and Recycling in Water Pollution Reduction

Nikolay Dolchinkov — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. Plastic decomposition is an exceptionally protracted process, requiring urgent measures to reduce environmental pollution, including that of water resources. Current solutions include increasing measures to sort and recycle plastic waste and developing biodegradable and environmentally friendly substitutes. Although plastic is recyclable, not all types are easily recycled. Therefore, most significant efforts are needed to find sustainable solutions. This highlights the importance of analysing the current situation regarding plastic waste and developing specific measures to reduce pollution.

Aim and tasks. This study aims to analyse the concern of increasing plastic waste in Bulgaria and to develop strategies for its reduction. In particular, measures to reduce the consumption of plastic products, introduce separate waste collection, and recycle and reuse valuable raw materials are considered, emphasising the contribution of these actions to reducing water resource pollution.

Results. This study analysed two main pollution control areas: limiting plastic use and introducing rapidly degradable materials. These approaches do not exclude but complement each other. This study confirms that using biodegradable polymers such as PLA, PHA, and PBS has significant environmental benefits despite their cost and the disadvantages of production technologies. Effective solutions to pollution problems have been shown to require legislative measures and innovations, raising public awareness, and developing a culture of separate waste collection. The research and analysis revealed ways to reduce the pollution of water bodies with plastic and polyethene waste. The effects of this waste on the development of humanity have been examined, and options for solving these problems on a global scale have been proposed.

Conclusions. Plastic products and packaging have a significant negative impact on the environment, including reducing pollution of water and marine ecosystems. It is necessary to improve the efficiency of plastic waste management and recycling. Analysis of these data on the pollution of water bodies and adjacent territories showed the need to develop a system for monitoring and collecting information on pollution, including in hard-to-reach areas. To reduce this impact, it is important to combine limiting plastic consumption and using rapidly degradable bioplastics with the active implementation of recycling and reuse programs.

Acquired Helplessness Syndrome in Monofunctional Systems Experiencing Multicrisis: Mechanisms Overcoming Challenges in Resilient Circular Economy

Viktoriia Mykytenko, Nataliia Sheludko, Veronika Khudolei, Nomeda Dobrovolskienė — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. This study examines the issue of acquired helplessness syndrome (AHS) in monofunctional socio-ecological-economic systems, which are formed due to external armed aggression. The lack of integrated solutions covering demographic, social, economic, ecological, psychological, and institutional aspects limits the effectiveness of regeneration processes, reduces territorial competitiveness, and hinders development.

Aim and tasks. This study aims to develop an integrated conceptual and methodological model for overcoming AHS by combining circular economy tools, the resilience paradigm, and cognitive rehabilitation approaches.

Results. The analysis revealed interrelated demographic, economic, environmental, social, institutional, and psychological determinants of AHS that form sustainable barriers and risks to the restoration and modernisation of monofunctional systems (MFS). Using expert assessment and a matrix of relationships, the weighting coefficients of the influence of key determinant groups on socio-ecological-economic regeneration and rehabilitation were quantitatively assessed. Critical barriers, threats, and risks underlying the manifestations of SPB in MFS were identified. This approach made it possible to develop practical mechanisms for stabilisation and recovery, integrated into a holistic conceptual model, to form adaptive strategies for spatial development in a multi-crisis situation. A universal algorithm for restoring the stability of the MFS is proposed, ensuring competitiveness, adaptability, and inclusive territorial development, consistent with international post-crisis recovery practices.

Conclusions. The study confirmed that overcoming the AHS in monofunctional socio-ecological-economic systems requires integrating demographic, socio-ecological-economic, psychological, and institutional components into a single management system. The developed model and algorithm can serve as a universal methodological tool for the adaptation of various types of territorial entities in the future. The proposals contribute to restoring the cognitive and social activities of local communities and increasing their resilience to multidimensional threats. Prospects for further research are related to testing model solutions in various regional contexts, assessing their effectiveness, and developing digital tools to support management decisions in the regenerative development and rehabilitation of MFS.

Assessment of Factors Influencing Market Leadership and Innovation of FinTech Companies in the Digital economy

Kiril Anguelov, Tsvetana Stoyanova — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. The fintech industry has focused on its potential, as it has rethought the possibilities and put the provision of financial services in a digitally developed world on a completely different level. The digital transformation of financial services, made possible by the rapid development of new technologies that ensure reliable transactions, has boosted the growth of FinTech companies.

Aim and tasks. The study aims to comprehensively assess the determinants of the ability of FinTech companies to achieve market leadership, sustain innovation activity, and ensure regulatory compliance in the context of the financial sector’s digital transformation.

Results. The expert survey developed a standardised codebook to evaluate 15 FinTech companies grouped into three clusters, resulting in a composite index and validating hypotheses about the factors determining growth. The regulatory environment (RE, 0.148), trust and security (TS, 0.139), and access to finance (AF, 0.117) form the core determinants, followed by technological infrastructure (TI, 0.111) and team quality (TQ, 0.108), and the remaining factors have lower relative weights (<0.09). The inter-firm differences are mainly explained by the performance on the regulatory-trust and financial-technology determinants, and the sensitivity analysis shows that a 1-point (0–5) increase in RE/TS/AF increases the index by approximately +0.030/+0.028/+0.023, which quantitatively confirms their leading roles. A comparative analysis of the cohorts showed that the leaders (C1–C7) demonstrated high results (≥4 points on 9–10 factors out of 10) and significant superiority in technology infrastructure (TI) and team quality (TQ). At the same time, the remaining groups of companies had more fragmented profiles with pronounced weaknesses.

Conclusions. FinTech growth relies on a core of regulatory stability (RE), trust and security (TS), and access to finance (AF), complemented by technological infrastructure (TI) and team quality (TQ). Predictable regulation, access to capital, high-security standards, and targeted partnerships maximise the chance of “gazelle” or “unicorn” growth. A predictable regulatory environment and access to investment capital play a key role in accelerating the growth of the FinTech ecosystem. FinTech management should prioritise investments in technology infrastructure, developing highly skilled teams, creating targeted partnerships and ecosystems (PEs), and developing scalability and international expansion (SIEs) to transform high-growth companies into leaders.

Trendwatching-Driven Modelling and Management of Structural Labour Market Imbalances

Yuliia Herasymenko, Olha Komelina, Yuliia Hrybovska, Ilya Pakhomov — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. In the context of the crisis of the Ukrainian economy, which was significantly exacerbated by labour market imbalances, institutional structures and businesses need to promptly identify asymmetries of labour market factors and relevant results of trendwatching of the market situation. Simultaneously, trendwatching is significantly complicated by uncertainty and sharp changes in the main indicators of demand and supply in the Ukrainian labour market. This necessitates the development of a new mathematical model of trendwatching that is suitable for use in the specifics of the labour market and its application in forecasting the indicators of the specified market.

Aim and tasks. This study aims to develop new mathematical tools for trendwatching, adapted to the conditions of Ukraine, and their use for assessing and forecasting labour market indicators.

Results. Forecasting the impact of the main factors on the labour market of Ukraine, contributing to the increase in wages in the IT industry, using the developed mathematical model, indicated that the impact of uncertainty is significant, from 5% to 20%. The differences in the average monthly wage by industry tend to grow, and the forecast data for 2025 will be 1.53 times greater than the indicator for 2021. This indicates that not only the magnitude (by two or more times) but also the directions of the demand-supply vectors change per quarter, even in critical infrastructure sectors. Simultaneously, a significant loss of high-quality human resources is indicated due to the outflow of highly qualified workers abroad.

Conclusions. The labour market trendwatching indicated that the difference in the rate of change in the number of resumes in the period 2023-2024 is 12.79 times greater than the rate of change in the number of vacancies, with a concomitant low level of convergence of the nonlinear trends of the specified indicators, which is evidence of a significant gap in the demand and supply of employee competencies. This is confirmed by a significant (1.5 times higher than the EU) unemployment rate among people with higher education levels. A significant slope ratio of the linear trend of the ratio of the standard deviation of the average monthly salary by industry to its average value in the economy (4.382) confirms the trend of increasing discrepancies in the personnel shortage by industry and the post-war period. Simultaneously, a trend towards an increase in job offers with increasing wages was detected, indicating a tendency in Ukraine to abandon the policy of cheap labour.

Investment Risk Management in Major Stock Exchanges and SME Markets of Emerging Economies

Nehir Balci, Arikan Tarik Saygili — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. Small and medium enterprises (SMEs) are crucial in the economy by providing jobs, contributing to GDP, efficiently providing products and services where economies of scale are not needed and creating cash flows. However, SMEs encounter certain obstacles, with financial constraints being the major ones. SME markets have been perceived as another opportunity for SMEs to obtain external financing.

Aim and tasks. This study aims to analyse the interactions between major stock and SME markets in emerging economies, focusing on China, India, and Indonesia.

Results. The diagonal BEKK and DCC-GARCH models analyse the transitions between these stock markets. The study findings offer compelling evidence of dynamic conditional correlations across all markets and illustrate significant volatility spillovers among the SME markets. This correlation is evident both in the short and long periods. The evidence indicates that small- and medium-sized market volatility significantly affects larger markets. The findings reveal a substantial interplay between the major and SME stock markets in emerging economies, including China, India, and Indonesia. According to the diagonal BEKK and the DCC results, investors should not expect significant diversification benefits by including primary and SME market instruments in their portfolios. Investors should closely monitor the co-movements and transitions between these markets to optimise their portfolio diversification strategies.

Conclusions. Creating an environment and conditions that promote the growth of SMEs and improve resilience through specific fiscal alternatives, enhancing access to financing, and upgrading market infrastructure are essential. This study found substantial interplay between major and SME stock markets. Policymakers should be aware that SME market fluctuations influence larger stock exchanges and destabilise macroeconomic conditions, such as economic stability and growth. Therefore, regulatory actions that project the need and operational efficiency of stock market segments should be implemented to prevent adverse effects. For instance, transparency and risk management can stabilise SME stock markets to avoid volatility in larger markets.

Assessment of Soft Skills and Development of Human Resource Management in The Labour Market Competitiveness

Nevila Koçollari Furxhiu, Reis Mulita, Olha Luchaninova, Zhanna Harbar — Tue, 30 Sep 2025 00:00:00 +0000

Introduction. Soft skills are critical and directly affect job performance, adaptability, and the ability to innovate. Soft skills such as creativity, emotional intelligence, critical thinking, and interpersonal interaction increase adaptability to innovation. Readiness for continuous learning and retraining through soft skills is crucial for professional success and competitiveness in the labour market.

Aim and tasks. This study comprehensively examines the impact of soft skills on professional competitiveness in the labour market. It develops a multi-level system for assessing these skills, with recommendations for their development in human resource management.

Results. The study highlighted the most in-demand skills based on feedback from academics and employers: responsibility (18.2%), creativity (18.9%), communication skills (17.3%), self-organisation (17.2%), emotional intelligence (15.9%), and leadership (12.5%). The content analysis confirms a certain degree of research into job seekers’ demand for soft skills in the labour market. This emphasises its relevance in higher or professional education settings. The employee competitiveness index (ECI) is a composite indicator that integrates the key characteristics of soft skills and amounts to 0.75%. The structural model of the study allowed us to estimate the impact of soft skills on labour productivity both directly and through employment and market demand. In the model, soft skills accounted for 18% of the variance in employment and 30% in market demand, with both indicators exerting significant effects on productivity (β = 0.32 and β = 0.29, respectively).

Conclusions. The soft skills of modern specialists indicate their competitiveness in the labour market. The criteria and indicators of soft skills (communication, emotional intelligence, creativity and analytical thinking, flexibility and adaptability, self-organisation and productivity, leadership and management skills) are highlighted, emphasising the vectors for developing these skills. The presence of soft skills increases a specialist’s competitiveness and serves as an indicator of this competitiveness. The development of soft skills increases the competitiveness of employees and contributes to efficiency growth. However, a limitation was identified: some organisations were reluctant to disclose training results, which requires further study.