Journal of Management Science and Application

2022, Journal of Management Sciences and Applications (JOMSA) is an electronic journal of the Faculty of Management and Administration at the University of National and World Economy - Sofia, Bulgaria. The journal is committed to publishing scientific empirical and theoretical research articles that h...

Journal of Management Sciences and Applications (JOMSA) is an electronic journal of the Faculty of Management and Administration at the University of National and World Economy - Sofia, Bulgaria. The journal is committed to publishing scientific empirical and theoretical research articles that have a major impact on governance, administration, regional development and marketing. The journal encourages new ideas or perspectives on existing research. The publications are published twice a year in November and May. The journal publishes a wide range of topics in the fields of Management sciences, Strategic planning, Methodological research and Theoretical paradigms. Manuscripts that are suitable for publication in the Journal of Management Sciences and Applications may also include Regional policy, Entrepreneurship, Human resource management, Organizational behavior, Organizational theory and Earth sciences. Our task is the Journal of Management Sciences and Applications (JOMSA) to publish scientific empirical, theoretical and review articles of young scientists and distinguished specialists working in the field of Management and Administration around the world.

F JOURNAL OF MANAGEMENT SCIENCES AND APPLICATIONS ◄ ▲ ▼ ► VOLUME 2(2), 2023 ISSN: 2815-3030 FACULTY OF MANAGEMENT AND ADMINISTRATION UNIVERSITY OF NATIONAL AND WORLD ECONOMY JOURNAL OF MANAGEMENT SCIENCES AND APPLICATIONS VOLUME 2, ISSUE 2, 2023 ISSN: 2815-3030 HTTP://JOMSA.SCIENCE Journal of Management Sciences and Applications (JOMSA) is an electronic journal of the Faculty of Management and Administration at the University of National and World Economy - Sofia, Bulgaria. The journal is committed to publishing scientific empirical and theoretical research articles that have a major impact on governance, administration, regional development and marketing. The journal encourages new ideas or perspectives on existing research. The publications are published twice a year in November and May. The journal publishes a wide range of topics in the fields of Management sciences, Strategic planning, Methodological research and Theoretical paradigms. Manuscripts that are suitable for publication in the Journal of Management Sciences and Applications may also include Regional policy, Entrepreneurship, Human resource management, Organizational behavior, Organizational theory and Earth sciences. Copyright Notice All authors agree that the articles submitted for consideration to be published in Journal of Management Sciences and Applications have not been previously published, accepted for publication, and have not been sent to another journal for publication. All authors declare and undertake that all publication rights indefinitely belong to Journal of Management Sciences and Applications. Contact Faculty of Management and Administration University of National and World Economy Bulgaria Sofia, 1700, Student Town Office 3066 admin@jomsa.science Principal Contact Prof. D.Sc. Simeon Jelev Phone +359 2 8195 689 s.jelev@unwe.bg Support Contact Dr. Tsvetelina Berberova-Valcheva Phone +359 2 8195 674 tzberberova@unwe.bg CONTENTS EDITORIAL BOARD ....................................................................................................................................... 184 EXECUTIVE BOARD ...................................................................................................................................... 184 RELATIONSHIP BETWEEN FAMILY BACKGROUND AND ENTREPRENEURIAL INTENTIONS OF GRADUATES Noor Hyder .......................................................................................................................................................... 185 MODERN ECONOMIC GROWTH - CONDITIONS AND FACTORS OF DEVELOPMENT Tsvetelina Berberova-Valcheva, Kamen Petrov .................................................................................................. 206 FOREIGN AID IN NIGERIA: A DEPARTURE FROM ECONOMIC DEVELOPMENT IMPACT TO SOCIAL DEVELOPMENT IMPACT Chinedu Ofoma ................................................................................................................................................... 219 POVERTY IN BULGARIA: A GENERAL CHALLENGE Ralitsa Veleva...................................................................................................................................................... 233 ADMINISTRATION - STILL IN SEARCH OF SELF-DISCOVERY Daniela Krasteva ................................................................................................................................................ 241 IN SEARCH OF SOLUTIONS FOR EMPLOYEE MOTIVATION - FROM IDEAS AND GOOD PRACTICES TO WORKING MODELS Valentin Vasilev, Monika Icheva ........................................................................................................................ 248 THE CONFLICT: TYPES AND MODE OF ACTION Violeta Toncheva-Zlatkova ................................................................................................................................. 255 CHARISMA AS A FACTOR OF THE FORMATION OF LEADERS IN THE MUNICIPAL ADMINISTRATION ON THE TERRITORY OF THE REPUBLIC OF BULGARIA Loreta Traykova .................................................................................................................................................. 265 FEATURES IN THE DEVELOPMENT OF URBAN SYSTEMS AND OUR ENVIRONMENT IN THE CONTEXT OF GEO-URBAN DEVELOPMENT Mihaela Georgieva .............................................................................................................................................. 274 ANALYSIS OF THE POLICY AND MODELS FOR FORESTRY DEVELOPMENT IN BULGARIA Ruslan Kolarov ................................................................................................................................................... 281 DIAGNOSTICS OF BUSINESS PROCESSES IN WINE-GROWING ENTERPRISES IN THE SOUTHCENTRAL REGION Grigor Pavlov ..................................................................................................................................................... 290 METHODOLOGICAL APPROACH TO MEASURE THE CONTRIBUTION OF LANDSCAPE IN SERVICES PROVIDED BY RURAL TOURISM Georgi Borisov, Haik Garabedian ....................................................................................................................... 299 IMPACT OF AGRI-ENVIRONMENTAL ECOSYSTEM SERVICES ON FARM LANDSCAPES Svetlozar Ivanov, Bojura Fidanska ...................................................................................................................... 310 SPATIAL-GEOGRAPHIC FEATURES OF THE DEVELOPED REGION "KRAISHTE" IN THE WESTERN PARTS OF BULGARIA Plamen Patarchanov ............................................................................................................................................ 318 THE NEED FOR MODERNISATION OF NATIONAL, REGIONAL AND LOCAL INFRASTRUCTURE IN THE GRAVITY ZONE OF PLOVDIV AND PAZARDZHIK Tsvyatko Tolev ................................................................................................................................................... 329 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 183 EDITORIAL BOARD INTERNATIONAL EDITORIAL BOARD Prof. Dr. Sc. Simeon Zhelev (UNWE, Sofia) – Chairman of the International Editorial Board Assoc. Prof. Dr. Aleksandar Valkov (UNWE, Sofia)–Vice ChairmanAssoc. Prof. Dr. Nikolay Tsonkov (UNWE, Sofia) – Vice Chairman Prof. Dr. Hristo Katrandjiev (UNWE, Sofia) – Vice Chairman Asoc.Prof. Dr. Juan Esteban YupanquiVillalobos (Peru) Asoc. Prof. Dr. Rezear Kolaj (Albania) Assoc. Prof. Dr. Angel Marchev (UNWE, Sofia) Assoc. Prof. Dr. Denitsa Gorchilova (UNWE, Sofia) Assoc. Prof. Dr. Emilia Patarchanova (SWU, Blagoevgrad) Assoc. Prof. Dr. Eng. Ivaylo Ivanov (UASG, Sofia) Assoc. Prof. Dr. Georgi Nikolov (UNWE, Sofia) Assoc. Prof. Sc. Petar Borisov (AU, Plovdiv) Dr. Aleksandra Borowicz(Poland) Dr. Fidan Qerimi (Albania) Dr. Ira Gjika (Albania) Dr. Vincent Weli (Niger) Prof. Dr. Alla M. Kolomiets (Ukraina) Prof. Dr. Dejan Mirakovski (North Macedonia) Prof. Dr. Dusan Cogoljevic (Serbia) Prof. Dr. Gazmend Qorraj (Kosovo) Prof. Dr. Alex Svidersky (Kazakhstan) Prof. Dr. Ing. Prof. Nikolay Mihaylov (UASG, Sofia) Prof. Dr. Jari Stenvall (Finland) Prof. Dr. Jose Luiz Garcia Lopez (Spain) Prof. Dr. Kamen Petrov (UNWE, Sofia) Prof. Dr. Kliment Naidenov (SU, Sofia) Prof. Dr. Margarita Bogdanova (TAE, Svishtov) Prof. Dr. Milos Pavlovic (Serbia) Prof. Dr. Mukhiddin Juliev (Uzbekistan) Prof. Dr. Nadia Mironova (UNWE, Sofia) Prof. Dr. Natasa Miteva (North Macedonia) Prof. Dr. Olena Isaikina (Ukraina) Prof. Dr. Orhan Kocak (Turkey) Prof. Dr. Rosita Zvirgzdiņa (Latvia) Prof. Dr. Sreten Miladinoski (North Macedonia) Prof. Dr. Tsvetana Stoyanova (UNWE, Sofia) Prof. Dr. Elizabeta Mitreva (North Macedonia) Prof. Sc. Elżbieta Kawecka-Wyrzykowska (Poland) EXECUTIVE BOARD Prof. Dr. Sc. Simeon Jelev–Chairman Chief Assist. Dr. Ralitsa Veleva –Еditor-inchief Chief Assist. Dr. Krasimira Valcheva –Vice Editor-in-chief Assoc. Prof. Dr. Aleksandar Valkov – Responsible Еditor Chief Assist. Dr.Tsvetelina BerberovaValcheva –Scientific Secretary Assoc. Prof. Dr. Angel Marchev Assoc. Prof. Dr. Denitsa Gorchilova Prof. Dr. Hristo Katrandjiev Prof. Dr. Kamen Petrov Chief Assist. Dr. Ivaylo Iliev Chief asst. Dr. Eng. Hristo Grozdanov Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 184 Noor Hyder PhD Lahore School of Economics, Pakistan RELATIONSHIP BETWEEN FAMILY BACKGROUND AND ENTREPRENEURIAL INTENTIONS OF GRADUATES e-mail: noorhyder205@gmail.com ORCID: https://orcid.org/0009-00019343-9682 Published First Online: 19.12.2023 Pages: 185-205 DOI: https://doi.org/10.37075/JOM SA.2023.2.01 ABSTRACT Entrepreneurship is all about risk taking, initiative, independence and creativeness. Entrepreneurs are known for creating new jobs by opening new businesses which ultimately becomes a base for the boost of economy. Entrepreneurship means creation and implementation of new innovative ideas. This can only be done if one has the passion, energy and vision to turn the idea of change into reality by bring the solutions to those problems which are not solved yet. Any creative person can become an entrepreneur. In this paper we are trying to analyze the relation between the family background and entrepreneurial intention of university students of Lahore. We have gathered the information regarding the family background of students and their intentions to start a business, trying to conclude the relationship between them. For this purpose, 250 questionnaires were filled from students of different universities of Lahore. KEYWORDS: entrepreneurial intentions, entrepreneurship, family background, perception, risks JEL: D19, L26, L31 INTRODUCTION There is a huge importance of entrepreneurship for any country, especially during the current times when the number of jobs is very less as compared to several candidates for the jobs. Entrepreneurship plays a vital role in the boost of the country. Aparicio Sebastian, (2016) acknowledged that an entrepreneurship is crucial to individual and national economic development as it has a tendency to provide a number of opportunities to drive extensive financial benefits which will conclusively provide the independence. For centuries, entrepreneurship has been comprehended as a prominent grantor of sustained economic growth and development, innovation and most importantly employment (Meyer & Meyer, 2017). Entrepreneurship can play an important role in making a country economically well strengthened. Entrepreneurship means business creation and development of innovative ideas to meet the need of the market. In 2017 Meyer Natanya viewed entrepreneurship as the major component of economic functioning as its addresses the flaws within the economies, directly or indirectly contributing to the market of supply and demand. That is the reason why entrepreneurship has the power to enhance the economic growth and development of the country. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 185 The family has the biggest influence on one's life. Moreover, family is an important part of one's life as it is the place where one opens his eyes for the first time. Family shapes your thinking. If family especially parents are educated or know the importance of education in life they will try to give the best education to their children. Parents and family have a strong impact on one life. According to Matthews & Moser, (1996) the most prominent reason behind the students following entrepreneurial career is because of the parental role model. The value system of a family generally shapes a person mind and thinking. As per Krueger, (1993) it is analytically proven that the children with family of business background are most likely to start their own business in the future. Ananda Setiawan, (2020) argued that Education in a family also contributes to better economic proficiency and advocates an opportunity to select to be an entrepreneur in the future. Even if a person is taking formal education but one's family is always with him or her in the home, it is very likely that family members especially parents will discuss various topics with their children or even amongst themselves. Children hear all these conversations and they develop a picture of these conversations and began to think in a particular direction as their parents because they think that whatever their parents are saying is correct they have the experience. It is just like a family member, parents of a toddler speak English all the time in front of the toddler eventually that toddler will be speaking the same language, it does not matter how many more languages he will learn to speak in his life later. Florian B. Zapkaua, (2015) speculated that the parents or families can play an important role in preparing their children for their future careers by nurturing in the environment that can produce effective workers with the entrepreneurial mind as parents develop the foundations of their children. As the family of doctors usually produces more doctors, lawyer family’s decedents are usually lawyers but it is not a hard and fast rule. Many examples of entrepreneurs can be seen whose parents are not entrepreneurs themselves but are successful entrepreneurs themselves. Being an entrepreneur means that one needs to be always ready to face a loss. A person needs to put his livelihood and reputation at the stake in order to be an enterprising individual (Sam Prince, 2019). People usually abstain from putting money into the business because they don't know the next moment, they may have to face the loss as compared to jobs where people are sure that at the end of the month they will get their salaries. Ben Roy Do and Alaleh Davari (2017) argued that an individual's attention and experience towards the planned entrepreneurial behavior is guided by his or her focused mentality which is known entrepreneurial intention. EI represents the first fundamental step in creating a business; entrepreneurship indeed could be described as a process defined in four stages. First of all, a person having entrepreneurial intention should fundamentally have one business idea, secondly, it must contain an option of entrepreneurial choice; thirdly, it requires a planning project phase; lastly, a new business should be created, which is followed by entrepreneurial success and this entrepreneurial success is the key for the development of an enterprise (Molino, 2016). Intention to be an entrepreneur or start one own business is all because of certain experiences which lead a person to think of being an entrepreneur. It might be because of influences like family or friends, someone in the family may be an entrepreneur, or maybe someone in the friend's circle is an entrepreneur. This causes the person to experience what it would be like to be an entrepreneur from the experience of entrepreneurs themselves. This also help individual to experience both negative and positive aspects of being an entrepreneur. Qing Miao (2015) asserted that the literature usually focusses on positive personality traits while studying entrepreneurial intentions, negative traits are also important for being an entrepreneur. These traits are known as the dark traits, which includes machiavellianism, narcissism, and being psychopath. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 186 PROBLEM STATEMENT With rapid increase in population, resources are depleting. Similarly, jobs are less and candidates for these posts are very large in number. There is a need to encourage students to start their own businesses or startups. For this purpose, first we need to define the factors which can encourage students to be an entrepreneur. In this paper we will be testing whether or not family background has any role in developing entrepreneurial intentions among the university students. Our problem statement will be “Relationship between family background and entrepreneurial intentions of graduates”. AIM OF THE STUDY The primary aim of this study is to evaluate the impact of family background on the entrepreneurial intentions of higher education students or those individuals who have recently graduated from the universities of Lahore. SIGNIFICANCE OF THE STUDY This paper will contribute to filling the gap in the literature by identifying, how the family background is impacting the entrepreneurial intentions of university students. Although the relationship between family background and entrepreneurial intentions in students of various countries has been studied, no such studies have taken place in Pakistan, so, this paper will fill that study gap. METHODOLOGY Data will be collected with the help of questionnaires from universities of Lahore. LITERATURE REVIEW As per Kent, Vesper and Calvin (1892) Entrepreneurship starts when an individual or a group starts a new enterprise, they act as a major agent of change in the society leading to a wider cultural shifts. As origin of entrepreneurship is a French word, which shows that it originates from France. The person who is involve in exchange of profit especially when the circumstances are vague; vague circumstances means that there is uncertainty in the prices of goods by the time these goods reach their final consumption. This vagueness is caused because the goods are brought at certain prices and then sold at different prices mostly these new prices are higher because profit also has to be taken out from these new prices of goods. This concept can be broadened by putting. The production and distribution are the crux if anyone wants to be an entrepreneur. Contrasting the French version, the English classical economists saw entrepreneurs as suppliers of financial capital. Hendrawijaya, (2019) commented that the Entrepreneurship is categorized into four main categories namely small businesses (it can be any type of business running by even one person), scalable startups (these types of businesses are repeatable and scalable), large companies (these companies have innovative ideas giving customers a lot of different products) and social entrepreneurs (These types of companies make products that are profitable for themselves as well as benefit to the world). Street vendors are also prospering nowadays; this is also a form Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 187 of entrepreneurship. Street vendors have become an integral part of consumer behavior in meeting their needs and wants. Entrepreneurial education helps an individual to build such skills and gives knowledge that helps to think out of the box and develop innovative services and products. Today, unfortunately critical thinking and skill development are lacking in entrepreneurial education. Education today has become only to analyze the memorizing ability of students rather than understanding and grasping what education is teaching us. Today’s need is to develop our minds and think critically and start asking questions like, why and how. This can be done if we focus mainly on research base projects, more and more research can not only help to understand what has happened and what is happening but also opens new doors to new things, phenomena, etc. Entrepreneurship is all about adopting and innovative human spirit for the cause of improving mankind for which new corporations are formed, giving a lot of job opportunities along with the innovation and creativity which causes the breakthrough but entrepreneurship is really about giving something for human kind (Heidi M. Neck, 2014). But the question that arises here is starting own business means investing a lot of fortune and still there are huge chances of financial loss. But now some studies teach oneself how to deal with the business including supply chain management, marketing, sales, finance, etc. Entrepreneur education should be expressed as the expansion of the entrepreneurship itself (Sexton, 1984). Entrepreneurial education is something which cannot be taught like most of other subjects by giving lectures but what is happening is that teaching styles of entrepreneurial education is the discussion about feasibility plans, case studies and regular lectures. In 2018 Carla Marque suggested that what is important here is to understand that for better results in entrepreneurial education learning by doing styles is the most effective form of learning and this learning is for the life time which cannot be forgotten. We can learn how to be entrepreneurs only by being entrepreneurs - it's like a doctor know all the theory but he has never practiced giving an injection, he will never be a good doctor until and unless he properly practices giving an injection, etc. detection of variety of business opportunities is the beginning of changes in the business surroundings. These gestures within the surroundings have been experimentally allied with extended entrepreneurial action (Raymond J. Jones, 2019). Another aspect of entrepreneurship is the role of females in entrepreneurship. For the boom of society and economic development women's entrepreneurship is the decisive factor (JafariSadeghi, 2020). According to statistics time, females consist of about 49.58% of the world population. Such a huge percentage of females means they can contribute a lot in every field of life, even in the early days of Islam females like Hazrat Khadija were doing business. Islam has always encouraged women to be a business person, especially emphasizing trading. Samia Nasreen in 2018 analyze that for any economy, entrepreneurship is treated as an essential tool of prosperity procreation and job formation additionally financial strength, which is an important factor for economic development in Asia. Entrepreneurship is such an important part of the economy but no major work in the development of entrepreneurs have been done until the last few years when the government has started to realize the importance of entrepreneurship in Pakistan because of limited jobs and unemployment issue in the country. According to the Global Entrepreneurship Development Institute, Pakistan ranks 122 out of 137 countries— the second-lowest score in Asia– the Pacific and also well behind in all countries of Middle East and North Africa. As the number of graduates are being increasing each year the number of jobs has being fall short for all these graduates. Now it is high time that entrepreneurship should be started practicing in Pakistan which can decrease unemployment by creating new jobs for people. Entrepreneurs can support the country's economy by generating new wealth. Their unique ideas Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 188 and innovations not only improve the lives of the people in the society but also provides solutions to the problems which are not being solved yet. People are eager to start a business but they lack mentorship and proper guidance for starting a business. Ollifi and Onyeke (2014) remarked that getting financial support is not a big problem, people can easily find it with only condition is that one has the innovative and impressive idea which the investors find worth investing their fortune in. An overview was conducted in 199 nations in which dignitaries of 941 commerce schools over the world were met. The beat seven criteria for positioning any business person program courses were advertised, staff distribution, effect on the community, graduated class abuses, developments, graduated class startup, and outreach to researchers (Karl H. Vasper, 1997). Hindrances are the barriers that come along the way. These hindrances are the cause because which people, particularly youngsters remain confused and stressed about how to start a new venture. When Pakistan came into being all the resources of the country were under the government and the concept that government knows the best was prevailing, army thought it was best for the country and thus as elite and professional migrants were in government they were in charge of all the resources. Incentives were given for investment in the business and this strategy damaged entrepreneurial activities in the country. Instead of business enterprise, approach arranged for financial specialists and ventures got to be the standard. Motivating forces were advertised to draw in venture. Such motivating forces included authorized restraining infrastructures in secured markets, cheap arrive and credit, and subsidized inputs (Haque, 2007). Intentions are deciding behavior and are the develop of utilize when it comes to the examination of person choice making, it appears apparent that much of what we consider ‘entrepreneurial’ movement is intention arranged behavior (Middermann, 2020). Nguyen, (2017) stated that the Entrepreneurial intention is characterized as one’s eagerness in undertaking the entrepreneurial action, or in other words gotten to be self-employed. Agreeably entrepreneurial intentions are recognized as a student's crave to lock in business enterprise after graduation or a crave to work (Adekiya, 2016). In 2012 Laspita. S demonstrated that the existing writing characterizes entrepreneurial career intentions as related to beginning an entrepreneurial career, such as making a modern firm or taking over an existing firm. Usually, people think of doing something because they want to do that thing and they know they can start and finish that thing successfully this is perceived desirability. A later meta-analysis approved seen allure and seen possibility as the main drivers of entrepreneurial intentions (Schlaegel, 2014). Angga Martha Mahendra1(2017) pointed out that the Entrepreneurial intention is self-encouragement, as a commitment of inner and outside components, permitting the development of entrepreneurial eagerly. According to Emilia Herman (2017) earlier ponders have found that EIs of people can be decided by diverse variables (natural or relevant variables and individual foundation variables), which can have a positive or negative impact, a coordinate or circuitous impact, separately. Environmental factors can include the easiness of starting a business, rules and regulations, and guidance for starting a business. Personal background factors may be having a family business, having entrepreneurs or individuals who are experts in doing the type of business which you are trying to pursue. Entrepreneurial intentions represent the percentage of individuals who expect to start a business within the next three years. Intent to start a business is an important measure of potential entrepreneurship in a society because it correlates positively with the TEA (Total early-stage entrepreneurial activity) rate. Bird Barbara in 1988 identified that entrepreneurial intentions are the entrepreneur's state of intellect that coordinates consideration, encounter, and activity towards a trade concept set the frame and course of organizations their inceptions. Intentions are like an outline that gives the heading to go in a specific course. These intentions and concepts can offer assistance that can help beginning plan to do something within the case of entrepreneurial intentions, these intentions don't empower one to begin something of one claim self but how to support it for the long term. Intentions to Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 189 start a particular entrepreneurial venture has some impact on the human psychological side. Edgar Izquierdo in 2011 remarked that the psychologists have demonstrated that intentions are the most excellent indicators of any arranged or planned behavior, especially when the behavior was uncommon, difficult to watch, or includes unusual time lags. Humans are complex machines, their mind thinking procedures are a quite complex variety of different aspects that needs to study to make an understanding of human intentions, for this quite a reason one of the best theories which psychologists recommend and study is The Theory of Planned Behavior which needs to be referred to have somewhat depth understanding of human intentions. The theory of Planned behavior was first started as a theory of reasoned action in1980 which predicts individual intentions to behave in a particular manner at a specific time and place. This theory explains those behaviors over which people can exert self-control. The main component of this model is behavioral intentions, these behavioral intentions are influenced by the particular behavior and the possible outcomes that it will have. With the help of this theory individual’s behavior and their intentions are explained in this paper. THEORETICAL FRAMEWORK Hypothesis Development H1. Family income has an effect on the entrepreneurial intentions of the graduates. H2. Family business has a positive effect on the entrepreneurial intentions of the graduates. H3. Family support has a positive effect on the entrepreneurial intentions of the graduates. Methodology Proposed Research Model The proposed research model is planted on the theory of planned behavior (Hyder & Amir, 2023) and with the help of this theory we will test how family background effects the entrepreneurial intentions among the university students. In order to drive the pertinent results of the study, research epistemology is used. The concept of epistemology regards with what are the appropriate conditions of knowledge. Ester-by smith and Richard Thorpe (2002) regarded epistemology as the methods of study of knowledge. It is established on four patterns namely Positivism, Constructivism, Critical Theory and Realism. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 190 Comet (1868) stated that the real knowledge is based on observed facts only. He stressed upon observational facts. Smith, Thorpe and Lowe (2002) further emphasize positivism a type of knowledge which is measured quantitatively. According to Andy Tolmie and Mujis (2011) positivism explains the relationship of cause and effect so it is most suitable for the discipline like Law. Constructivism is based on the idea that people build their own knowledge with the help of the knowledge they already possess. It is a study like ethnography, study of scientific study of people and culture. This type of knowledge cannot be used in the process of business research because the researchers perceive the world according to their perception of the things around them. (Perry J. Brown, 1998). Positivism approach is used in the study because it is convenient approach to explain cause and effect. This approach involves using the already done studies on the related issues and using the results of those researches or studies in our current research process (Depew, 1995). RESEARCH DESIGN The prime purpose of this research was to find the impact of family background on entrepreneurial intentions among the university students. There are various approaches of data collection; like Descriptive survey and Relational surveys. Descriptive survey collects information about the ongoing situation while the relational surveys gather information about the relationship between the outcome and the given variables (Hyder & Amir, 2023). In the case of this current study we have used relational survey as we are trying to find the effect or relationship between family background and students entrepreneurial intentions. The questionnaire was taken from the combination of questions from previously done survey of McStay 2008 (Dell, 2008): Devenport 2011 (A, 2011) and Seiger et al 2011 (Sieger, 2011) that has being used in other countries like Singapore, Australia and Switzerland to measure individual intentions to become an entrepreneur. QUANTITATIVE RESEARCH Quantitative research is done in this paper and data is collected through questionnaires (Hyder, 2023). For analyzing the collected data, statistical tools were used. The research type of this study is cross sectional. As the data collected from the respondents through the surveys was taken at one point in time. The unit of analysis for this paper were university students of Lahore. SAMPLE SIZE It is not possible to collect the data from the whole population due to time constraints therefore a sample is selected which represents the entire population. In our case of study population is entire students of University of Lahore, Forman Christian College, Lahore School of Economics and Lahore University of Management Sciences. The sample size consists of 250 respondents (Hyder & Amir, 2023). RESEARCH INSTRUMENTS The scale given in the questionnaire was in English language, simple language was used so that anyone can easily understand what is asked from them in the questionnaire (Hyder, 2023). 5 point Likert scale and 2 point Likert scale were given for the responses. The questionnaire was Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 191 carefully prepared and then were distributed to the respondent. Questionnaires were distributed by reaching to the students personally. DATA ANALYSIS METHOD For testing and statistical analysis of the hypothesis, SPSS (Statistical Package for Social Sciences) software was used (Hyder, 2023). Test like correlation analysis, regression analysis was conducted to check hypothesis. RESULTS The prime objective of this study was to find which factors effects the entrepreneurial intentions of the university students. In this section, quantitative data which was collected using questionnaires is analyzed using SPSS software and regression analysis (Hyder, 2023) is used to conclude the hypothesis. RESULTS OF DEMOGRAPHICS 1. Gender of respondents. Gender of respondents Valid Male Female Total Frequency 114 136 250 Percent 45.6 54.4 100.0 Valid Percent 45.6 54.4 100.0 Cumulative Percent 45.6 100.0 Out of 250 respondents, male respondents were 114 which makes 45.6% of all the respondents of our study. On the other hand, remaining 54.4% of the respondents were 136 females. 2. Education of the respondents. Education of respondent Valid Bachelors Masters Total Frequency 206 44 250 Percent 82.4 17.6 100.0 Valid Percent 82.4 17.6 100.0 Cumulative Percent 82.4 100.0 The study was conducted on university students so two level of education were given in questionnaire, first one Bachelors and second one Masters. Out of 250 respondents, students from the bachelors were 206 which is 82.4% of the total respondents and 44 students were of Masters level who makes up 17.6% of the total respondents. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 192 1. Age of the respondents. Age of respondent Valid 18 19 20 21 22 23 24 25 26 27 28 29 Total Frequency 21 33 20 27 32 30 35 16 12 8 12 4 250 Percent 8.4 13.2 8.0 10.8 12.8 12.0 14.0 6.4 4.8 3.2 4.8 1.6 100.0 Valid Percent 8.4 13.2 8.0 10.8 12.8 12.0 14.0 6.4 4.8 3.2 4.8 1.6 100.0 Cumulative Percent 8.4 21.6 29.6 40.4 53.2 65.2 79.2 85.6 90.4 93.6 98.4 100.0 Age ranges from 18 years to 29 years. Maximum respondents were of the age 24 years which were 35 and these were 14 % of our total respondents. Minimum number of respondents i.e. 4 respondents were of age 29 years who were 1.6% of our total respondents. RESULTS OF HYPOTHESIS For testing our hypothesis two types of tests will be conducted first is correlation analysis and regression analysis. H1. Family income has an effect on the entrepreneurial intentions of the students. Correlation Analysis. Correlations Income of the respondent'sPearson Correlation family Sig. (2-tailed) N I intend to start my own Pearson Correlation business rather than work forSig. (2-tailed) someone else. N Income of respondent's family 1 250 -.006 .922 250 I intend to start my own the business rather than work for someone else. -.006 .922 250 1 250 In the above correlation table Pearson correlation is -0.006 or -0.6% correlated that means income of the respondent’s family is not correlated or negatively correlated with entrepreneurial intentions of students. As 2 tailed is 0.922 which is greater than 0.05 so it is not statistically significant. REGRESSION ANALYSIS. Model Summary Adjusted R Std. Error of the Model R R Square Square Estimate a 1 .006 .000 -.004 .462 a. Predictors: (Constant), Income of the respondent's family Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 193 In the table above R shows the correlation between income of the respondent’s family and entrepreneurial intention of the students. Adjusted R square is - 0.004, which means -0.4 % impact or variance in dependent variable i.e. entrepreneurial intention can be explained by the income of the respondent family. ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression .002 1 .002 .010 .922b Residual 52.894 248 .213 Total 52.896 249 a. Dependent Variable: I intend to start my own business rather than work for someone else. b. Predictors: (Constant), Income of the respondent's family Significance value is 0.922 which is greater than 0.05. As indicated results shows there is no significant change in entrepreneurial intentions of students due to their family income. Coefficientsa Unstandardized Coefficients B Std. Error 1.318 .150 Standardized Coefficients Beta Model t 1 (Constant) 8.816 Income of the respondent's -.004 .041 -.006 -.097 family a. Dependent Variable: I intend to start my own business rather than work for someone else. Sig. .000 .922 Coefficient table shows that beta value is -0.006, which means that the change in income of the respondent family or independent variable by one unit will bring about the change in dependent variable i.e. Entrepreneurial intentions by-0.006 or - 0.6%. Furthermore, negative beta value indicates negative or no relationship between the income of the respondent’s family and entrepreneurial intentions of the student or respondent. H2. Family business exposure has a positive effect on the entrepreneurial intentions of the students. Correlation Analysis Correlations Have your parents ever startedPearson Correlation their own business? Sig. (2-tailed) N I intend to start my own Pearson Correlation business rather than work for Sig. (2-tailed) someone else. N Have your I intend to start parents ever my own business started their own rather than work business? for someone else. 1 .078 .217 250 250 .078 1 .217 250 250 In the above correlation table Pearson correlation is 0.078 or 7.8 % correlated that means the family business exposure is not correlated with entrepreneurial intentions of students, although Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 194 the correlation between the two variables is positive but correlation is very less, so weak correlation exists between these two variables. REGRESSION ANALYSIS Model Summary Adjusted R Std. Error of the Model R R Square Square Estimate a 1 .078 .006 .002 .460 a. Predictors: (Constant), Have your parents ever started their own business? In the table above R shows the correlation between the family business exposure and entrepreneurial intention of the students. By looking at adjusted R square we can conclude that 0.002 or 0.2% impact or variance in dependent variable i.e. entrepreneurial intention can be explained by the family business exposure which is very less although it is positive. ANOVAa Model Sum of Squares Df Mean Square F Sig. 1 Regression .325 1 .325 1.532 .217b Residual 52.571 248 .212 Total 52.896 249 a. Dependent Variable: I intend to start my own business rather than work for someone else. b. Predictors: (Constant), Have your parents ever started their own business? The significance value is 0.217 which is greater than 0.05. As indicated results shows there is no significant change in entrepreneurial intentions of students due to their family business exposure. Coefficientsa Unstandardized Coefficients B Std. Error 1.202 .088 Standardized Coefficients Beta Model t 1 (Constant) 13.730 Have your parents ever started .075 .061 .078 1.238 their own business? a. Dependent Variable: I intend to start my own business rather than work for someone else. Sig. .000 .217 Coefficient table shows that beta value is 0.061, which means that the change in independent variable by one unit will bring about the change in dependent variable i.e. Entrepreneurial intentions by 0.061 or 6.1%. Positive beta value explains the positive relation between the two variables. H3. Family support has a positive effect on the entrepreneurial intentions of the students. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 195 CORRELATION ANALYSIS Correlations My family and friends supportPearson Correlation me to start my own business. Sig. (2-tailed) N I intend to start my own Pearson Correlation business rather than work for Sig. (2-tailed) someone else. N My family and I intend to start friends support my own business me to start my rather than work own business. for someone else. 1 .115 .070 250 250 .115 1 .070 250 250 In the above correlation table Pearson correlation is 0.115 or 11.5% correlated that mean that family support to start a business is very little correlated with entrepreneurial intentions of students, although the correlation between the two variables is positive but correlation is very less, so weak correlation exists between these two variables. REGRESSION ANALYSIS Model Summary Adjusted R Std. Error of the Model R R Square Square Estimate a 1 .115 .013 .009 .459 a. Predictors: (Constant), My family and friends support me to start my own business. In the table above R shows the correlation between the family and friends support to start a business and entrepreneurial intention of the students. By looking at adjusted R square we can say that 0.009 or 0.9% impact or variance in dependent variable i.e. Entrepreneurial intention can be explained by the family and friends support to start own business which is very less although it is positive. ANOVAa Model 1 Sum of Squares df Mean Square F Sig. Regression .695 1 .695 3.303 .070b Residual 52.201 248 .210 Total 52.896 249 a. Dependent Variable: I intend to start my own business rather than work for someone else. b. Predictors: (Constant), My family and friends support me to start my own business. By looking at the anova table we can see that the significance value is 0.070 which is greater than 0.05. As indicated results shows there is no significant change in entrepreneurial intentions of students due to the family and friends support to start their own business. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 196 Coefficientsa Model 1 (Constant) Unstandardized Coefficients Standardized Coefficients B Std. Error Beta 1.198 .065 My family and friends support .050 me to start my own business. .027 .115 t Sig. 18.372 .000 1.817 .070 a. Dependent Variable: I intend to start my own business rather than work for someone else. Coefficient table shows that beta value is 0.115, which means that the change in respondent family business exposure or independent variable by one unit will bring about the change in dependent variable i.e. Entrepreneurial intentions by 0.115 or 11.5%. Positive beta value explains the positive relation between the two variables but the relationship is weak. Results of the hypothesis No. 1. Hypothesis H1 Description Family income has an effect on the entrepreneurial intentions of the students. Results. Rejected 2. H2 Rejected 3. H3 Family business exposure has a positive effect on the entrepreneurial intentions of the students. Family support has a positive effect on the entrepreneurial intentions of the students. Rejected RESULTS All hypothesis proposed for this study was rejected. There could be many reasons for that firstly samples were taken only from universities of Lahore. According to Maria Minniti (2014) young people have greater tendency to be an entrepreneur than older people. Furthermore, as entrepreneurship have a lot of risks, taking risks at young age is much easier as young people usually don't have much responsibility as compared to old ones. Family Income, Family Support and Family Business don't affect the entrepreneurial intentions of the students in this area. The reason of rejection of these hypothesis may be that data is gathered only from the business or management sciences graduates. If data could be gathered from students of different departments universities, the results may differ from the current results. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 197 Recommendations and Future Research The study conducted could be more precise and people could be benefited from it if following few points could be considered:  Data could be gathered from students of all departments.  The research could be expanding to other cities of Pakistan as well.  Longitudinal study, which means data can be collected at different points in time for more accurate results.  As for the government, more platforms like Planet M should be opened so that students could be encouraged to take part in entrepreneurship.  Pakistan is facing terrorism as well as energy deprivation and political instability which definitely has an impact on the business environment in the country people from other countries may be reluctant to invest in the business of Pakistan. 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Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 205 Tsvetelina Berberova-Valcheva Kamen Petrov Tsvetelina BerberovaValcheva MODERN ECONOMIC GROWTH - CONDITIONS AND FACTORS OF DEVELOPMENT Chief Assistant Dr. Regional Development Department, Faculty of Management and Administration, UNWE, Sofia, Bulgaria e-mail: tzberberova@unwe.bg ORCID: https://orcid.org/0000-00025843-8799 Kamen Petrov Professor Dr. Regional Development Department, Faculty of Management and Administration, UNWE, Sofia, Bulgaria ABSTRACT The focus of this paper is on economic growth and the conditions that influence its importance for the regional economy. We define its framework, philosophy and possibilities to influence the development processes of individual territories. Also important are the conditions and growth factors, which are discussed separately. Endogenous and exogenous factors of territorial and spatial development are given a special place in the exposition. The concepts and features of spatial and territorial development are discussed in terms of the functioning of the national economy and the measurement of growth. Special attention is paid to the factors and conditions that, in theoretical order, form the model of regional economic growth. Comparative analysis of processes and phenomena that bring out the specifics and peculiarities of regional economic growth and its significance for regional development is made. In conclusion, relevant conclusions and recommendations are made regarding the importance of regional economic growth for the development of regions and national spaces. KEYWORDS: growth, development, space, territory, region, strategy, governance and model JEL: J11, K23, R11, R53 e-mail: kpetrov@unwe.bg ORCID: https://orcid.org/0000-00026295-0664 INTRODUCTION In the modern development of a number of countries, the economic regime has been adopted by the government or legislated as the main economic and political objective. Its purpose is to promote Published First Online: stability of general price development and to achieve a higher level 19.12.2023 of employment of the working population. In the microeconomic framework drawn for each subsequent year, the governments of all Pages: 206-218 countries set the desired rate of GDP growth. On the basis of the DOI: one-year expectations, projections and growth rates of gross output https://doi.org/10.37075/JOMS in the near and longer term are outlined. Hence, growth takes on A.2023.2.02 simultaneously and equally the role of a short-term objective and a long-term fundamental, overarching goal of economic development. Pursuing a policy of growth as a direct objective means taking its realization as the fundamental, long-term, ultimate goal of economic development. In this sense, the objective of growth is usually identified with a general increase in economic welfare, in the standard of living of the population thanks to the growth of real GDP. According to EUROSTAT data, our country has a relatively low standard of living, as GDP per capita (in purchasing power standards) was generally below two-thirds of the EU average. This situation is most noticeable in the North and South-East, where the highest mortality rate in the EU (1 854 deaths per 100 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 206 000 inhabitants) and the lowest level of GDP per capita is recorded, at around 39% of the EU average (European Union, 2023, p. 43). As an indirect, mediating objective, economic growth fulfils several different functions. Real GDP growth is seen as contributing to the positive dynamics of individual aggregates and to the resolution of significant macroeconomic problems. One of the most important indirect functions of the growth target is to achieve higher or full employment of the available workforce. The employment rate has been rising for the last 3 years after an initial decline since the onset of the Corona crisis and from 52.7% in 2020 to 53.2% in 2022 (NSI, 2023). Higher production means additional jobs, a drop in the unemployment rate. The objective is fully in line with the principle role of the labor factor, it emphasizes the involuntary forms of unemployment and the need to reduce them to a minimum acceptable level. Another implicit function relates to the need for an equitable distribution of income in society, which increases in conditions of growth in the economy. The Gini coefficient over the last three years has been declining for our country and from 40 in 2019/2018 to 38.4 in the 2022/2021 reference year, but in the North West Planning Region over the same period it has increased from 36.7 to 40.0 in 2022/2021 and the South West Region has the highest values where there is a decline over the same period from 44.0 in 2029/2018 to 39.4 in 2022/2021 (NSI, 2023). In addressing this significant universal contemporary problem, it is considered that redistribution of income increments meets less resistance in society than is the resistance to redistribution of an income that is constant in magnitude. As a result, growth models are shifting from inferring constants to framing rising GDP growth rates as a necessary condition for growth (Mladenova, 2022). Of more limited importance is a third indirect function related to the possibility of demonstrating the superiority of one's own economic system through accelerated economic growth. Within the framework of the still existing differences in the efficiency of the economies in highly developed and developing countries, the emphasis is on the size of the market and the greater chances of exporting goods in industrial countries, creating opportunities for distribution and receiving more financial and other types of aid from the more backward countries. Thus, the impact of the more significant economic growth that has taken place in some countries is being reinforced. It spreads to other less developed countries and encompasses the world economy as a whole. 1. ECONOMIC GROWTH AND ITS CRITICAL NOTES According to the Encyclopaedia Britannica, "Economic growth, the process by which a nation's wealth increases over time" (Cornwall, 2023). The relatively rapid rates of growth realized in most countries in the 1960s, which led to the growth target, are now difficult to match. As the stage of steady and continuous growth passed, a reserved and discredited attitude towards economic growth as the main objective began to take shape in the 1980s. Some countries are growing faster than others and many scholars are trying to find a mathematical way of relating some measure of output, such as GNP, to inputs and other h to explain the changes, but as Ivic also says "The increase in output per capita in economic theory is expressed as economic growth, without which no economic development, but does not have any economic growth to be a function of economic development" (Ivic, 2015). The critique of the goal of higher economic growth unfolds from two real perspective positions. The first critical strand is orientated towards the problem of continuous economic growth, in which output for each successive year at comparable prices exceeds its magnitude in the transition year and this ratio is maintained over a relatively long period. A process of realised growth of this kind over an extended period is in principle not possible. Its manifestation is not evident in the actual measurement of growth rates in the modern economy. The idea of exponential growth contradicts the decline in growth rates observed in almost all developed Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 207 countries in the 1990s, as well as its marked unsustainability, the conjuncture dynamics of the gross product. The second critical strand concerns the problem of commodity scarcity and environmental damage, which are among the most significant secondary and corollary consequences of growth. This perspective also gives rise to a reserved attitude towards the determination of high and increasing rates of economic growth. According to some scholars, however, studies have shown that certain nations with a wealth of natural resources have had incredibly slow rates of economic growth (Gylfason, 2000) (Song, Xie, Shahbaz, & Yao, 2023). The critical attitude towards growth as a goal presupposes the ever closer connection of the local with the global modelling of the economy. It is not intended to negate the importance of the growth target entirely, but it imposes substantial adjustments in the requirements for specific numerical values of the required current and projected growth rates. Changes in the rates as a component of the growth objective derive to a large extent from the contradictory influence of the indirect objectives, from the expansion of the field of indirect state regulation of the economy. The modification of the objectives and the corresponding functions of the various directions of the implemented government policy are reflected on the short- and long-term growth trajectory. In a number of cases, the short-term instability of the process or the temporary lowering of its rates is not possible or preferred to be overcome, even though upward economic development is aimed at in the long term. Whether the current trend will persist, the deviations will deepen and turn into a sign of an economic downturn depends on the strength of the combined manifestation of traditional and random factors. 2. GROWTH CONDITIONS AND FACTORS Economic growth is presupposed by the action of many different in nature, origin and type of factors, by some previously formed, objectively set or subjectively consciously provoked conditions. Their manifestation is differentiation in strength, degree and direction of impact on the economy and closely interrelated. By acting as causes or drivers of growth, they can actually both stimulate and localize, constrain macroeconomic activity, so as to predetermine cyclicality in the economy. The action of conditions and factors is joint and diversely combined, they are elements of one system, not a mechanical assembly. It is very important for the modern and especially for the broader view of growth that some conditions and factors can be predicted, guided and indirectly controlled, while others are unpredictable. Hausmann and others argue that growth spurts tend to be highly unpredictable: most growth spurts are unrelated to the standard determinants, and most cases of economic reform do not lead to growth spurts (Hausmann, Pritchett, & Rodrik, 2005). Some of the factors are appropriate and desirable, and some appear unexpectedly, sometimes by chance. Along with the constantly acting, intrinsic, permanent factors of growth, it is influenced by many partial, incidental, contingent and highly fluctuating factors. This polyvariance in different directions is a consequence of the complex factor conditioning of growth, of the existence of direct and reverse connections between the economic system and its specific factors. For the purposes of any analysis of growth, the factors should, as far as possible, be regarded as relatively autonomous, independent of the influence exerted on them by the previous and current magnitude and dynamics of gross output. This approach allows them to be included in the compiled mathematical models as independent variables in order to express their own direct impact on the final production results. Limiting research to direct relationships and neglecting the reverse influence is especially imperative when the factors represent economic processes and phenomena, intermediate production results, resulting relative indicators. They can be attributed with equal grounds to the system of growth factors or to the economic system, but in the specific case the factor system is preferred. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 208 In economic theory there is a unity of relation of the need to perform factor analysis of growth. Klenow and Rodriguez Clare (1997) reviewed the development of existing research on theoretical and empirical economic growth (Klenow & Rodriguez-Clare, 1997). However, its place in any study can be both introductory, starting, and concluding, with the character of conclusion and summary. When the principle scheme, the general contours of the factor system consisting of elements and subelements are outlined, it plays the role of a preliminary level of analysis. The specific way and degree of action of individual factors, studied through the means of mathematical modelling based on empirical data, are intended to reveal the sources of the established increase in the volume of production. Therefore, the fundamental need to form a system of growth factors can be realised specifically, and lately its meaning is not so purely theoretical, but mostly practical. Mixed purpose presupposes broad gradual entry into the details, type and rates of growth. Therefore, factor analysis is present in all modern studies, regardless of their ultimate goal and selected indicators; its place is not only a starting point but a final one. The early theories contained almost no analysis of the factors affecting growth, at least not as preconditions for it. They are considered within extremely narrow limits, in most cases as a consequence and primarily in terms of their own growth-induced change. The absence of a comprehensive factor analysis is in accordance with the quantitative dynamics of a limited number of macroeconomic indicators, then placed at the center of the growth theory. But it is fully consistent with the prevailing view of optimized economic growth, the impossibility of overproduction or underproduction, when the conditions for full employment of the available labor and capital resources are met. In earlier theories, growth was equated with production, optimal was equivalent to potential, actual was identical to what was desired by macroeconomic actors (sectors). In recent years, governments have changed their focus from providing capital to innovation systems. The main characteristic of this emerging economy is the shift from a "global production network" to a "global innovation network" (Li & Zhang, 2020). In response to the impossibility of clearly, absolutely distinguishing the quantitative characteristic from the qualitative condition of the factors in the theory, there is a gradual transition from identification to distinguishing the conditions from the factors of growth. The complexity of this problem, reinforced by the peculiar role and the inconstant, changing action of the factors, predetermines its permanence and relevance. In most of the early theories, no criterion was derived to separate the conditions from the factors, they were mixed up and considered collectively as causes contributing to the realization of the growth process. Subordinated to the goal of proving or rejecting the presence of growth in the economy, and later to establish its rates, they do not emphasize the factor conditioning of growth. In the first factor analyses, as essential arguments for identifying the conditions with the factors and their joint development, their similar content, their deep interpenetration, the continuous process of successive transformation of some conditions into factors, and vice versa, are emphasized. The significance of the problem increases in parallel with the changes in the parameters and characteristics of growth, in the scales of production. The set of prerequisites for growth gradually expands in scope, the role of conditions sometimes acquires an important, although often secondary, indirect importance. The irregularity in the course of the modern growth process, its implementation not only with positive but also with negative rates, combined less often with significant collapses in production, directs more and more attention to separate analyses of conditions and factors. A conditional dividing line begins to be drawn between them, since they may be similar in essence and content, but they are not completely identical. In the characterization of the conditions, relatively separated from the factors, two theoretical directions are distinguished. One direction can be assessed as more extreme because it emphasizes the specific national (domestic and socio-economic), international, historical, geographical and natural conditions. Their separation from the factors is consistent with a Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 209 general outline of the environment, the objective prerequisites, the environment in which growth takes place. At the next step in the system of conditions for the realization of economic growth, an arrangement of its main and additional elements is carried out. As a distinguishing feature, the determining role of the conditions in relation to production in general or in particular its growth, pace and predominant type is applied. This theoretical direction is closer to traditional views on growth, because it starts from the assumption that conditions are favorable and factors make the continuous growth of GDP possible. Expectations arise that in case of admissible deterioration of conditions, the factors will neutralize the negative effect, prevent fluctuations in GDP, and growth will remain generally stable. However, the application of the approach requires a complex assessment of the conjuncture, the achieved level of development, the peculiarities and the open nature of modern economies. Unfavorable macroeconomic and political environment, global oil and financial shocks can slow down growth in some countries and accelerate it in other regions. It is not excluded that they deepen and turn the temporary lowering of its rates into crisis impulses, into a long-term decline. On the face of it, the insignificant conditions in such a case will predetermine a downward movement of real GDP, the more prolonged and widespread of which may turn them into a source of recession in the economy. The interest in distinguishing the conditions from the factors became active especially after the shocks that shook the world economy in the 1970s, which caused a number of structural, technological and institutional changes, as a result of which there was a transition to a new type of economic growth (Stoichev, 2005). The other theoretical direction is more moderate and accepts the formation of the system of conditions as a kind of preparatory stage preceding the production process. In a similar sense, the same elements refer once to conditions and a second time to factors, since, after being incorporated into production, the given conditions become factors of growth. As a distinguishing feature, therefore, the movement, the functioning of the conditions in the farm, abstracted naturally from the creation, modification and development of the elements of the system itself, is mainly applied. If one relies on the conditions as pre-prepared, secured, necessary prerequisites for growth, the factors will consist of analogous constituent parts, but already in actual operation. The creation of the conditions will precede and to some extent presuppose their becoming factors in given circumstances. Hence, it is reasonable to expect stable economic growth, without large amplitudes and significant fluctuations in GDP growth rates. Delineating such a system of conditions is initially associated with uncertainty and indeterminacy. It can be taken as inherent rather to predictions and forecasts, but not to actual growth analyses, which are mostly regression. Realization of the system's capabilities in reality implies many conditions and is not unambiguous. Thus, for example, the criteria used in the theory do not contradict the probability that a part or all of the elements of the conditions will not be activated or will turn into obstacles (impulses) for growth. At the same time, the reverse spillover and transformation of factors into conditions, which is often found in long-term analyzes of economic growth as a rule, is neglected. The probabilistic nature of the system resembles more the potential possibilities of production, refers again to the concept of production capacity and corresponds less to the actual manifestation of the conditions under which economic growth is achieved. As soon as the conditions are ensured, mandatory, the rates of growth should also be high and constantly increasing, but in reality they are fluctuating. The structuring of the systems of conditions and factors of growth and cycle aims to arrange them by varieties, in groups, in subsets. In each group, the rule of gradation of subordination is followed, by which the subfactors are scaled in a descending sequence according to the strength of their action. In this way, the more important Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 210 factors are separated from the less significant factors, and the processes affecting the factors are also included in the analysis. However, any system of conditions or factors is elastic, has open boundaries, is subject to continuous adjustment and addition. In any particular period or national economy, the action of some factors may not manifest itself or be weak, while at the same time new factors appear or others of the existing ones become decisive. The changes occurring in the system of factors take a subordinate place in the analyzes and are sometimes completely underestimated. For growth as an inalienable part of the cyclical conjuncture this additional and neglected aspect should also be given greater importance. The factors should not only characterise the current performance indicators of the various production resources, but should also be evaluated as creating prerequisites for a subsequent increase in gross output. Considering changes in the relative share, degree and direction of impact of traditional objective resources forms expectations for positive or negative growth in the short term. A sharp decline in the participation of important factors in past periods may negatively affect the dynamics of indicators in the future. The activation of new or difficult-to-control factors also has a differentiated effect, not excluding longer shocks in the economy. The shifting structure of the factor system is one of the symptoms of the unsustainability of growth in the modern economy. 3. ENDOGENOUS AND EXOGENOUS FACTORS In recent years, there have been significant changes in the interaction and interconnected influence of endogenous and exogenous factors on growth and cycle characteristics. After the 1930s and even more so after the 1970s, growth was subject to gradually increasing exogenous impact. Exogenous factors are assigned a less and less complementary, secondary position, although their mostly indirect influence on growth is not denied. Financial and oil crises, military and social conflicts arise on a regional basis, but they cannot be contained quickly, nor can they be localized. They affect indirectly first the national parameters of economic development and subsequently on other countries, geographically distant and not involved in their emergence and development. By deepening and expanding their spread, they trigger recessionary shocks (respectively expansionary explosions) in the world economy as a whole. The growing role of exogenous factors does not succeed in completely displacing the endogenous prerequisites, the predominant importance of which remains. But gradually, their relative contribution to the realised rates of growth changes, and their influence on its general direction becomes more limited. As a result of the modified trends of the interrelated influence of exogenous and endogenous factors, the need for a joint, parallel and equal analysis of these two inseparable groups of growth factors stands out. The results of a study by Chirwa et al reveal that there is still no agreement on the dominant theoretical model of economic growth among economists that can fully account for differences in international productivity (Chirwa & Odhiambo, 2018). With the strengthening of the action of exogenous factors in relation to endogenous factor conditioning and growth rates, the possibilities for their relatively separate study are narrowing. New or existing sources of growth are emerging, which cannot be categorically distinguished as their external or internal factors. From such a point of view, it is necessary for their characteristics to be uniform, mixed, combining at the same time intrinsic and atypical processes and phenomena for the economy. The combined approach is increasingly being imposed as a new, perspective direction of factor analysis of growth, which is due to a large extent to the strengthening of the importance of the subjective factor. Evidence of the inseparability of the endogenous from the exogenous beginning can be found, for example, in the modern role of migration processes and especially in the functions of the state. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 211 Migration processes have a peripheral relation to growth. Over time, their intensity increases, so their indirect influence must be considered. Migration across national borders can change the available labor force, which decreases or increases depending on the ratio between emigration and immigration flows. The activation of these flows is both internally and externally conditioned. It is mainly presupposed by the current state of the national economy, but it also depends on the degree of development and the standard of living of the population in other countries, the opportunities for work according to the acquired qualification, the restrictions or encouragement of the inflow of foreign workers. Farhidi believes that by creating a feedback loop from population to the level of industrialization and GDP in this setting, the growth rate of GDP per capita is lower under the endogenous population scenario than exogenous population growth (Farhidi, 2023). Bilaterally assumed migration affects demographic and economic growth. In less developed countries, regions with military conflicts, economies in transition, its influence is stronger and must be considered. It is known that the total number of Bulgarian populations has been continuously decreasing in recent years, from almost 9 million in 1985 to only 6,519,789 people as of September 7, 2021. The decrease is mainly due to the deepening negative natural growth, but not least of the intensive emigration flows. The cardinal internal political changes, the economic crisis, the uncertainty and the high level of unemployment in our country after 1990 pushed many people to look for better opportunities to show their professional skills abroad. According to various estimates, some of them leave the country only temporarily, do not settle permanently and do not acquire citizenship in other countries. The external prerequisites in this case have not only a positive, but also a restrictive effect. Emigration processes are hindered by legislative restrictions introduced in some Western countries, as well as by international agreements concluded for the purpose. Therefore, regardless of the presence of national conditions that favour and facilitate emigration, externally predetermined factors reduce the actual number of Bulgarian emigrating. Due to the different relative share, the dynamics of the population and labour force continue to depend primarily on birth and death rates. Out of 29 NUTS level 2 regions across the EU, Bulgaria's six regions fall into the group of regions with the lowest participation rate in adult education and training - below 5.0% in 2022 (European Union, 2023, p. 67). The consistent and so far uncontrollable decrease in its total number has a negative impact on the labor market, the scale of consumer demand, and the values of the main macroeconomic indicators. Real GDP per capita is falling more slowly than the overall negative growth of real GDP. As a factor of growth and cyclicality, the state also stands out. On the one hand, as a political institution, the state regulates and directs market processes "from the outside" by applying the means of macroeconomic policy. Its indirect external influence does not necessarily require it to be classified as an independent factor of growth. It is universally inherent, permeating and predetermining both the level and the effect of all its other underlying factors. Therefore, government policy can be subdivided into subfactors with specific concrete content and meaning. The depreciation policy affects the capital, the educational and health policy - on the workforce, the foreign trade and scientific and technical policy - on the general conditions for the activity and sales of the companies. On the other hand, along with private entrepreneurship, a real state sector is also developing, through which the state participates directly in the macroeconomic circulation along with companies and households. Its market behavior is a reason for the state to be conditionally separated, to be considered as an important internal factor of growth (Pirimova, 2001). Therefore, the indirect and direct, external and internal influences on economic growth are simultaneously combined in one factor from different aspects. Their relative participation is specific and depends on the structure of the GDP created by forms of ownership, on the degree and strength of state intervention in the economy, on the priorities of the government's fiscal or Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 212 monetary policy. It allows the state to be classified as a predominantly exogenous or endogenous growth factor according to the specific features of a given economy. In the economies of Western countries, the share of the real state sector is relatively small. It does not remain constant, it fluctuates over the years, increasing during periods of negative growth and decreasing during positive GDP growth rates. However, in the long term, the public sector in these countries remains within roughly the same framework. With the limited scope of the state-organized production of goods and services, the external nature of the factor prevails. In terms of growth and the business cycle, the state enters into the role of an exogenously manifested, complementary, secondary factor. Therefore, regulatory functions, tax and monetary policy levers prevail, which the government applies carefully and in a limited way to influence economic processes. Under the Bulgarian conditions, the exogenous nature of the government's participation in the economy cannot be deduced so unequivocally that it is not clearly distinguished. In the Bulgarian economy, the share of the state sector has been decreasing in the last ten years, but it is still significant. In 1998, private companies already produced 56.7% of the gross added value, but although predominant, their share is not permanently established and continues to grow. According to the latest data from the NSI, in 2022 the gross added value (GVA) per employed person increased in real terms by 5.7% compared to 2021, and per man-hour worked increased by 5.9%, and the level of labor productivity in the industrial sector amounts to BGN 49,550.0 VAT per employee and BGN 29.8 per man-hour worked. In the service sector, each employed person produces an average of BGN 44,000.8 GST, and an average of BGN 26.8 of the current volume of the indicator is created for one man-hour worked. Labor productivity is the lowest in the agricultural sector - BGN 12,390.3, and BDS per employed person is BGN 8.6 per manhour worked. In 2022, the industrial sector increases its relative share in the added value of the economy by 4.8 percentage points and reaches 28.6%. The relative share of the agricultural sector in the added value of the economy is 4.4%, which is a decrease of 0.6 percentage points compared to 2021. The relative share of the added value realized by activities in the service sector also decreases to 67.0% in 2022 compared to 71.2% in 2021 (NSI, 2023). The contraction of the public sector does not affect all industries and economic sectors equally, subject to the restructuring of the economy, it is a slow and gradual process. While the overall participation of state-owned enterprises in GDP is relatively high, they can be considered an active direct segment of the market mechanism, an intrinsic factor of growth. The difficulties experienced by municipal companies, the strict budget restrictions and minimal subsidies, the delay in the privatization process and the agrarian reform are therefore among the most significant sources of the decline in GDP and the low rates of economic growth in our country over the last ten years. At the same time, however, the resolution of the complex problems and the exit of the country to a normal pace of development require the implementation of a consistent, versatile, flexible macroeconomic policy. The state's strong indirect, exogenous intervention intertwines and sometimes clashes with its role as an important independent economic entity. Combining the two purposes of the government is unusual, it is not possible to define one of them as predominant for the current parameters of growth. It is nonstandard, insofar as in market economies the real state sector is smaller, and the political functions of the state are not so markedly broad and dynamic. The typically Bulgarian conditions specified require a different approach in empirical research and analysis. For now, they allow a conditional separation of the market and non-market participation of the state, comparing their role for the achieved growth rates, but make it difficult to rank them in terms of importance. Undoubtedly, a unified endogenous-exogenous approach should be applied to the analysis of growth factors. It requires the development of a system of conditions, factors and subfactors of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 213 growth, tailored to the specific features of each national economy. Compiling a set of prerequisites for growth that is universally valid, acting everywhere and permanently, is not possible. The summarizing factors are tailored to the specific economic conditions of the individual countries, to the perceived degree of aggregation of the factors, their subdivision into more or less groups and sub-factor aggregates. In modern conditions of dynamic interaction between growth factors and cyclicality, significant transformations occur in the set of endogenous factors. In the combination of productive resources and general conditions, the center of gravity shifts gradually and decisively from labor to capital. According to research based on the Chinese experience, regional differences in economic development can also be overcome by improving the quality of human capital. (Zhang, Kumar, Huang, & Yuan, 2023). Over time, the changes in the number of the workingage population do not occur so intensively, the rate of employment becomes mostly productive, advanced technology requires relatively less and more highly qualified labor. The size of the available and functioning fixed capital and the changes in its production and technical characteristics predetermine to an ever wider extent the type, rates of growth and its main form. These comprehensive changes and the undeniably crucial role of investment and capital for growth and its instability also predetermine the emphases of more recent factor studies. The increase in the share of production investments partially excludes the necessary direct participation of the labour force in the created output. Intensive capital formation requires large financial investments, making growth more expensive. At the cost of delayed consumption and a technologically driven increase in unemployment, its current rates are understated. The accumulated new production capacities have a positive effect on growth in the longer term. Additional investments and changes in the volume and quality of working capital are both factors of growth and of the business cycle. They are one of the prerequisites for the alternation of lower and higher rates, for the instability of economic growth. If one traces the sequential, logically connected chain consisting of the invention, implementation and absorption of technical innovations, the accompanying rate of growth in the economy is not uniform. In the absence of a change in the action of other factors, the innovation process presupposes a wavelike dynamics of GDP, an objective transition from slow to accelerated economic growth. The trend towards higher and increasing real GDP growth is realized in future periods. It is mediated by a preceding deterioration in growth indicators, which may turn into a recessionary decline. The greater the distance between current consumption and investments, the more the danger of deepening and extending the duration of the decline in production grows, growth is lower and causes an impending crisis in the economy when the investment process is slowing down. According to a study of the economy of the countries of Central and Eastern Europe, in which Bulgaria falls, they have characteristics of the states in the former communist countries, which distinguish them from developed capitalist societies: the inability to create a predictable political environment, the inability to prevent the use of state institutions of powerful private groups to allocate wealth and opportunity to themselves and the failure to introduce extensive and effective regulations enforcing competition, including financial markets. This research states that for CEE countries, economic growth is driven mainly by their domestic capital represented by domestic investment and human capital, and FDI does not affect their economic development, but international trade has proven to be a driver of growth. According to Bostan, a country like Bulgaria needs adequate human capital, economic stability and liberalized markets to benefit from long-term capital flows, domestic or foreign (Bostan, et al., 2023).This assessment of the role of investments in GDP growth and its cyclical fluctuations has a generalizing, initial meaning. In research, it is further developed with the help of the actual absolute and relative changes in gross capital formation as a part of GDP by elements of final use. To more fully reveal their impact, it is necessary to consider the shares in the total investment costs of the actually acquired tangible fixed assets, their composition, and technical Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 214 level. They act as growth factors, although in the future, when aligned with the sectoral structure, they are primarily aimed at the industries with the highest relative weight in GDP. It is important to distinguish investments related to reconstruction or modernization from investments aimed at actually increasing available production capacity (Nedyalkova, Bauman, & Filipov., 2005).The allocation of funds between the replacement of worn out, obsolete equipment and the implementation in production of additional, fundamentally new machines and equipment is uneven over time. It depends on the amortization flows, on the optimal period of operation inherent to each type of equipment, on the life cycle and the investment strategy of individual companies (Geneshki, 2002). The investment process is naturally continuous, the amount of gross capital formation over the years does not remain constant. Delving deeper into the problems and elements of capital shows that increasing costs of capital are not necessarily a factor in continuous, sustainable growth. Their positive effect depends on the preponderance of additionally created and implemented capacities, on the reduction of the share of unfinished construction. The effect is negative or neutral in relation to GDP growth, presupposes negative or zero growth when investments in similar machinery and equipment, replacing obsolete ones, prevail. The higher technical and technological level of additional equipment compared to the capabilities of already functioning capital has a stimulating effect on growth, but it is indirect. In this regard, significant problems arise from the impossibility of its direct expression, of calculating its relative contribution to the realized increase in GDP. It is known that in the Bulgarian economy the return on investment is relatively low. The increase is unlikely to be commensurate with the resulting more efficient use of capital given the condition, wear and tear and deteriorating adequacy of most of the capacity from a demand point of view. Despite the restraining effect, however, growth rates will increase slightly. The role of capital investment for growth is inseparable from the problems of the economic structure, scientific and technical progress, direction and priorities of the government's macroeconomic policy. In their role as prerequisites for increasing the volume and increasing the effect of investments on economic growth, government measures indirectly aim to overcome the huge differences in the level of technical support of individual industries and economic sectors. The problem of the relationship between investment and politics has acquired new expressions and dimensions in recent years. Its updating is caused by the gradual change in the structure of national economies and the world economy as a whole. In their role as prerequisites for increasing the volume and increasing the effect of investments on economic growth, government measures indirectly aim to overcome the huge differences in the level of technical support of individual industries and economic sectors. The problem of the relationship between investment and politics has acquired new expressions and dimensions in recent years. Its updating is caused by the gradual change in the structure of national economies and the world economy as a whole. The development of a number of new types of production and the slow but steady withdrawal from the market of industries that have exhausted their potential or become obsolete in a short time are widening the gap in the technical base available to economic sectors. Its unevenness is manifesting itself as one of the sources of the unsustainability of growth at the current stage. On the one hand, firms in nascent industries are putting in place state-of-the-art, sometimes fundamentally new, technical and technological equipment, but their prospective expansion is a continuous process in which they have not yet reached the upper limits of their productivity and market presence. Innovative processes are also taking place in relatively stable, traditional types of production whose capacities are not at such a high level, but as a rule they are not so intensive there (Dimov, Ustoichivo regionalno razvitie: rolyata na stopanskite sektori v regionalnoto planirane, 2003). On the other hand, in the lagging industries, the state of the technical base is deteriorating, new investments are small, interest in improving their equipment is declining, but they are operating at the majority of their capacity. As a rule, the costlier, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 215 higher value in demand output of these industries provides them with a substantial share of GDP. The relative differentiation between investment driven by the market and market changes and investment induced by economic policy allows their specific importance for growth and its cyclical nature to become apparent. Market-driven investment generally fluctuates accordingly and unidirectionally with changes in GDP, although it results in a certain lag of the growth (decline) in output. The interrelationship between the two appears regular in both the short and long run. Policy-induced investment is not as closely related to the current value of GDP, although it also influences it. In the short term, the volume of such investment may rise or fall when positive economic growth is achieved. If policy aims to stimulate firms' investment in new technologies, for example, growth rates may slow in the short term, while in the longer term they are raised and accelerate (Dimov, Balansirano razvitie na raionite v Balgariya – sashtnost i osnovni instrumenti, 2005). The bilateral conditionality of investment in modern times, the associated technological and structural changes in the economy partly predict the new type of economic growth. In its factor analyses, objective and subjective circumstances are derived under which its regular cyclical manifestation is justified. The deepening of these analyses takes into account the processes taking place at the sectoral level and, more recently, at the firm level, concentrating on their generalization (Geneshki, 2002). Among the objective prerequisites for the transformation of the type of growth, it is necessary to highlight the role of the life cycle of firms in terms of the cost and type of investment, the general state and trends in the economy. The special emphasis proposed here on the stages through which firms pass in their existence is still poorly developed. It creates opportunities to examine the magnitude of investment inputs in relation to the characteristics of the initial stage of formation, market establishment and improvement, local expansion, upgrading and reconstruction, retrenchment and finally discontinuation of the individual firm. The cycle, which basically consists of the above summary stages, may have different durations. It is determined by the type and size of the company, the type and number of products of one or more types created, the specific justified duration of the production facilities, the relevant industry. According to the tactical behaviour and strategic programme within each stage of the cycle, the firm undertakes and implements investment decisions typical for it (Dimov, Balansirano razvitie na raionite v Balgariya – sashtnost i osnovni instrumenti, 2005). In cases of intensified registration of new firms or a relatively high relative share of recently started firms, an increase in investment can be expected. The first stages of the life cycle imply the advance purchase and installation of the necessary production equipment in new firms, additional investments in machinery and equipment for longer established firms, provided that sales of their products are regular and increasing. Regardless of the specific motivations, the market as a whole is growing, opportunities for investment-led economic growth are emerging. Where a large proportion of firms are formed in more remote periods, a more extensive refurbishment of existing facilities and equipment is necessary. The stage of modernisation and reconstruction also implies an increase in investment, which under normal market conditions can become a source of intensive economic growth. The significant share of firms in the last two stages of their life cycle has a pronounced negative impact on growth. They are losing interest in investing, making partial and marginal capital investments, consistent with keeping production within the already established limits. The total amount of investment in the economy is then likely to fall, growth rates to decline. The growing role of investment and scientific and technological innovation in modern times is not accidental, but natural. It is an expression of the desire to overcome the strong dependence of growth on the absolute or relative limitations of objective factors, which has led to a general slowdown in its pace. The effect of investment is not unidirectional insofar as it is both complex endogenously and exogenously assumed; its size and type also depend on the life and reconstruction cycle of the vast majority of firms operating in the macro economy. Its manifestation presupposes a sufficiently sustainable, long-term development of production units. It is disturbed in case of intensive processes of premature closure (bankruptcies) of firms, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 216 emphasized short duration of their existence. The positive role of investments also declines as a result of the dynamic structural changes in the economy that they cause. CONCLUSION The aspects of the amendment and transformation of some of the more important conditions and factors of growth reflect only a small part of the new moments arising from the specificities of modern economic development. They call for a rethinking of a number of basic patterns of growth and requirements for its sustainability. From the perspective of the new realities, the fluctuations in rates reported, the changes in the general characteristics and type of process, the expected tendencies towards unstable, undulating GDP dynamics are intensifying. The permanence of real GDP growth determines the relatively short duration of a business cycle. It is affected by the different intensity of development of the public and private sectors, the continuous change of government policy options, instruments and priorities, the restructuring of the structure of the economy, changes in the value of exports and imports. In order to outline and motivate the growth prospects in Bulgaria, it is important to compare the magnitudes of growth rates that do not characterize the process as proportional. The additional interest is provoked by the specific arrangement of the rates during the previous period. Traditional notions often introduce a uniformity requirement, according to which the rate of GDP increase should rise from year to year in the case of growth and fall accordingly in the case of decline. The problems of economic growth and the business cycle have traditionally been developed as interrelated but distinct areas of economic theory. In the period since the 1930s, scientific interest has continually shifted its center of gravity, moving from cyclicality to growth and vice versa. Theoretical disputes do not die down, but are relatively moderate when growth is more persistent and when volatility in real economic development prevails, when the relevant scientific field takes over. In the last decade, the problems and manifestations of growth have been changing and have given rise to a new integrative stage in the development of theory. Its deep roots are to be found in the first major theoretical models of growth, which assumed to one degree or another a temporary, non-permanent violation of the basic requirement of equilibrium, of uniform GDP dynamics. In the latter growth models, the possibilities for joint analysis are broader given the different types of growth norms and long-term trajectories of the process they infer. REFERENCES Bostan, I., Toma, C., Aevoae, G., Robu, I.-B., Mardiros, D. N., & Topliceanu, Ș. C. (2023). Effects of Internal and External Factors on Economic Growth in Emerging Economies: Evidence from CEE Countries. Eastern European Economics, 61(1), 66-85. doi:10.1080/00128775.2022.2109489 Chirwa, T. G., & Odhiambo, N. M. (2018). Exogenous and Endogenous Growth Models: a Critical Review. Comparative Economic Research. Central and Eastern Europe, 21(4), 63-84, doi:https://doi.org/10.2478/cer-20180027 Cornwall, J. L. (2023, 10 27). 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Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 218 Chinedu Ofoma PhD, Assistant Lecturer at Federal University Lokoja Department of Public Administration Federal University Lokoja Kogi State, Nigeria e-mail: chinedu.ofoma@fulokoja.edu.n g ORCID: https://orcid.org/00000001-5493-9433 Published First Online: 19.12.2023 Pages: 219-232 DOI: https://doi.org/10.37075/JOMS A.2023.2.03 FOREIGN AID IN NIGERIA: A DEPARTURE FROM ECONOMIC DEVELOPMENT IMPACT TO SOCIAL DEVELOPMENT IMPACT ABSTRACT Discussions around foreign aid although contradictory have mostly been on its impact on economic development of recipient countries leaving social aspect of development poorly attended to. Moving away from this common path, this paper aims to explore social development impact of foreign aid in Nigeria. Utilizing secondary sources of data, the paper decomposed social development into specific measurable variables such as poverty eradication, healthcare system and human security. The findings of the study demonstrate that foreign aid has not significantly impacted on larger components of social development investigated. It is also highlighted in the study that there is conflicting evidence regarding the impact of foreign aid on healthcare system in Nigeria. The result equally reveals that varying interest of foreign aid actors constitutes a serious challenge to the performance of foreign aid in the country. As a panacea, the paper recommends for global attitudinal change campaign to foreign aid actors. KEYWORDS: foreign aid, social development, poverty eradication, healthcare system, human security JEL: O24, P2, P3 INTRODUCTION For decades now, interrogations of foreign aid have been on its impact on economic development in the recipient nations. Justifying this assertion, Chenery & Strout (1996) argue that the fundamental justification that foreign aid plays a role in economic development of recipient nations has been the driving force behind aids flows. There was a significant increase in the sum and areas of coverage of aid transfer in the latter part of 20th century to the extent that development assistance from Organization of Petroleum Exporting Countries (OPEC) and Organization for Economic Cooperation and Development (OECD) was roughly $60 billion at the conclusion of millennium development aids (World Bank, 2004). This foreign aid to countries comes in various forms such as training of local people, grants, loans, sharing of intelligence and execution of projects among others; and this has been the case in African countries which have been part of developing nations receiving foreign aid to address numerous developmental challenges bedeviling the continent. Notwithstanding, there are increasing concerns among intellectuals and political actors over the implications of these huge foreign aid to developing countries. The various arguments regarding foreign id are made to ascertain its impact on economic indices which include investment, growth, saving and real exchange rate (Berg, Hussain, Aiyar, Roache & Mahone, 2005; Van, 1984, 1985 and Younger, 1992). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 219 This impact of foreign aid on economic development is controversial and arguable to the extent that different schools of thought have sprung up in that regard. Boone (1996) in Okon (2012) belongs to the category of scholars who believe that foreign aid has not impacted on economic development. On the other side is the school of thought who contends that foreign aid has impacted significantly on economic development of third world countries such as Nigeria. These later scholars further argue that this opinion is stronger when recipient nations implement right policies. The last school of thought draws on the above two different perspectives to posit that foreign aid has positive and negative effect on economic development (Ram, 2003; Sender, 1999 and Cassen, 1994 in Adamu et al, 2022). However, Moosa (2016, 83) slightly goes social by pining down the rationale for foreign aid to global security while contending that “After the terror attacks of 9/11 against the United States, the war against terror became an indispensable part of foreign aid programmes in poor countries, mainly because the industrialized countries (the donors) recognized the important and increasing need to collaborate with the governments of these countries to ensure global security. This stems from a profound comprehension the donor countries have of the intrinsic link between the spread of poverty and the phenomenal spread of terror”. Consequently, the prolonged poverty further weakens poor vulnerable nations thereby threatening global security. As a result, a significant aspect of the foreign aid has been channeled towards addressing developmental and poverty issues by executing projects aimed at creating the necessary manpower to boost the capacities of public institutions and different civil society organizations in the beneficiary nations ((Akramov, 2006). This contentious impact of foreign aid on economic development has created a research gap as demonstrates by Nwude et al (2023) while arguing that despite the various studies on foreign aid, consensus is yet to be reached by scholars; hence, opening up further investigation on the impact of foreign aid. Toeing this line of thought, Molokwu et al (2022) observe that Nigeria is not exempted from the controversial economic impact of foreign aid as so many studies have made conflicting findings. This attests to the identified gap which is more visible and fundamental in social impact of foreign aid due to its grossly inadequate exploration. Therefore, the novelty of this paper is accentuated in the contributions of foreign aid to social development in Nigeria. Consequently, this paper is motivated in three specific ways. Firstly, it interrogates the impact of foreign aid on poverty eradication in Nigeria. Secondly, the paper investigates the extent to which foreign aid contributes to healthcare system in Nigeria and finally, it examines the impact of foreign aid on human security in the country. 1. LITERATURE REVIEW This part of the study focuses on conceptual clarification of key variables (social development and foreign aid) and issues therein. It is also devoted to social related foreign aid received by Nigeria. 1.1 SOCIAL DEVELOPMENT Issues around standard of living, fundamental human rights, quality health, fairness and equality among others have necessitated the global agenda on social development. In this agenda lies a consensus on the integration of social development in political actions, policies and programmes (Panagiotis et al, 2022). Historical aspect of social development has been characterized by life expectancy and human population. However, certain earlier components of social development are currently given poor attention, although there is improvement of nutritional levels; and education is made available in an unprecedented manner; but some of these social change are not advantageous and development is uneven; general wellbeing and Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 220 opportunities had been unimaginably offered in an unequal way decades ago (Binggin & David, 2019). Presently, the concept of social development transcends social contracts for government to provide basic amenities and economic facilities. It suggests investment in citizens to enable them initiate and implement ideas aimed at achieving their aspirations as well as improving their wellbeing and those of others in the society (Veenhoven, 2012). Sustainable Development Goals accord is a demonstration of global recognition and acceptance of the need for social development by 2030. SDGs agenda aims to encourage member states to come up with initiatives that are consistent across sectors. Those of social sector include but not limited to poverty eradication measures, provision of employment opportunities and basic healthcare (United Nations, 2018). The above discussion paints a clear picture of top priority given to social development not only in a country but also on a global scale but without a clear definition of social development. In filling this lacuna, this paper views social development as efforts and measures directed towards improving the general wellbeing of the people and empowering them to meet their aspirations. Specifically, it entails policies, programmes and projects put in place to alleviate poverty, deliver quality healthcare services, provide security, access to safe drinking water and education among others. 1.2 FOREIGN AID Foreign aid which can also be known as official development assistance is traceable to post World War 11 (Mahembe & Odhiambo, 2019; World Bank, 1998). It comprises of resources such as grants, loans, technical skills and physical goods from donor nations to beneficiary nations (Mahembe & Odhiambo, 2019; Riddell, 2008). It is defined as financial assistance offered by a donor to third world countries or nations going through transitional period. This financial assistance might be used to support government-issued loans, trade, nongovernmental organizations, economic, security and political activities. Foreign aid is viewed as measures put in place by donor countries to address issues related to hunger, despair and misery in developing nations. However, economic aid is defined as the strategies adopted by donor nations to assist the citizens of economically poor nations in developing their resources and in setting up the ideal conditions for long-term economic growth geared towards selfsufficiency. Political military and security aid include projects sponsored by donor nations as well as initiatives aimed at ensuring political stability in recipient nations which in turn engender peaceful environment, advance democratic ideals, and sustain self-government of former colonies of the donor nations thereby exerting new but strong influence by foreign donor nations (Pronk et al. 2004). Thinking in the same direction of dominance of foreign donor countries, Ofoma (2023, 35) contends that “Foreign aid can be conceptualized as donation of money, goods, or services from one country to another county. Such donations may be given for humanitarian or altruistic reasons or to advance the national interests of the nation giving them. Aid can be provided between two (bilateral) or several (multilateral) countries or agencies”. It is volition transfer of government resources from a nation to another with a view to improving the standard of living of people in the recipient country (Lancaster, 2007). Looking at it from a perspective of relationship existing between developed and developing countries, Cassen (1994) contends that foreign aid is a situation where a developed nation offers financial assistance to developing nations which can come as project aid, commodity aid, programme aid and technical aid. This explanation by Cassen (1994) is very narrow and does not fully represent the trajectory of foreign aid over the years. Specifically, this view can be dismissed on the ground that it fails to take cognizance of the fact certain developing countries have been seen offering aid to other developing countries. For instance, Premium Times (2022) reveals that Nigeria donated N1.4 billion to Niger Republic for security purposes. Also, the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 221 flaw of this definition is underlined in the reality that developed nations can be given foreign aid when the need arises. Following this line of thought, Riddell (2008) submits that wealthy nations are sometimes given foreign aid especially during the time of economic crisis, natural disasters and emergencies. Figure 1: Social related foreign aid received by Nigeria S/N 1 2 3 4 Donor AfDB IRC US Department of State TSCTP 5 IRC 20172020 2019 6 7 AfDB WHO 2019 2019 8 European Union The Global Fund 20142023 2020 10 USAID 11 USAID 12 USAID 13 USAID 14 15 IOM UK 20202021 20202021 20202021 20202021 2022 2023 16 17 18 UNODC World Bank WHO 2023 2022 19 UNICEF 2022 20 UNHCR 2023 9 Year 2013 2014 20162020 Amount/Service/Project STVEP Project Relief materials & services $6 million Objective Promoting inclusive education Mitigating impact of flood Military education & training $10.6 million Tap project Epidemic intelligence Open Sources tool €437 million Training, equipment & advisory aid against terrorism Promoting good health among women & children Access to potable water Improving good health Health services $890 million Humanitarian assistance $40 million Promoting access to malaria prevention, access to HIV/AIDS and Tuberculoses services; and improving health system Maternal & Child Health $28 million Malaria control $10.5 million Safe drinking water $15.5 million Basic education Relief items for IDPs €20million Mitigating impact of flood Promoting resilience against health challenges Counter-terrorism National social program Providing critical health services Capacity building program $800 million Mobile health intervention program Integrated primary care services Labondo Project Local Integration Improving the health conditions of people in IDP camps and host communities Sustainable solutions for displaced families Author’s construct (2023), data extracted from relevant establishments. Explanations: AfDB: African Development Bank IRC: International Rescue Committee Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 222 TSCTP: Trans-Sahara Counterterrorism Partnership WHO: World Health Organization USAID: United States Agency for International Development IOM: International Organization for Immigration UK: United Kingdom UNICEF: United Nations International Children’s Emergency Fund UNODC: United Nations Office on Drugs and Crime UNHCR: United Nations High Commissioner for Refugees 2. METHODS This paper utilized secondary sources of data which include but not limited to journals, books, official publications and newspapers. Specifically, information was generated from reputable outlets such as Taylor and Francis, Sage, Elsevier, EBSCO, WHO and NCDC etc. Where available, Digital Object Identifiers (DOIs) of the articles were provided for easier verification. 3. THE TRIPARTITE DISCOURSE The main argument of this paper is the impact of foreign aid on Nigeria’s social development which is decomposed into poverty eradication, healthcare system and human security. Therefore, this part of the paper is devoted to these issues as critically interrogated below. 3.1 FOREIGN AID AND POVERTY ERADICATION IN NIGERIA Burnside & Dollar (2000) observe that certain studies have indicated that foreign aid has the capacity to eliminate poverty (Alvi & Senbeta, 2012; Arndt et al., 2015; Lensink & White, 2000; Mosley et al., 2004; Mosley & Suleiman, 2007; Rajan & Subramanian, 2008). Notwithstanding, there are other studies that made findings which are at variance with the above submission (Boone,1996; Chong et al.,2009; Easterly et al.,2004; Moyo,2009). It is interesting to aver that not everyone who opposes foreign aid does so completely. Additionally, the opponents do not demand that foreign aid be stopped (Easterly, 2007). Instead, they argue against relying solely on foreign aid to foster economic development. This is partially due to the fact that foreign aid has greatly improved living standards and growth in certain nations; but has failed to do so in others (World Bank, 1998). Arguably, the impact of foreign aid to nations is driven by mixed evidence (Alvi & Senbeta, 2012; Mosley, 1986). This is due to the fact that typical family and business income levels must not rise in order for foreign aid to eliminate poverty (Lensink & White, 2000; Mosley et al., 2004; Mosley & Suleiman, 2007). Viewing it from Nigeria perspective, Fasanya & Onakoya (2012) maintain that the increasing level of foreign aid in Nigeria together with its enormous economic potential has not resulted to economic development, job opportunities and poverty reduction. Aligning with this opinion, Olofin (2013) submits that the rate of poverty and unemployment has continued to increase in developing nations such as Nigeria in the face of increasing level of foreign aid. There is no strong justification that foreign aid has significant positive impact on development as poverty persists in many Third World nations despite receiving foreign assistance. For instance, in Nigeria, there is a negative correlation between foreign aid and human development which suggests that foreign aid has tendencies to compound problems around human development (Dreher et al, 2021). Raising salient questions around the impact of foreign aid on poverty reduction in Nigeria in a rhetorical manner, Anibueze (2018) avers that “The lesser developed countries (LDCs) of the world continue to suffer from economic hardship, raising questions of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 223 whether foreign aid is a worthwhile and effective approach to boosting growth, development and eradicating poverty in Nigeria. Now the pertinent question is does foreign aid enhance economic development in less developed country? And how does foreign aid affect growth? This is a question that has attracted the attention of many scholars over several decades. This has made some scholars to argue on the role of economic policy in determining”. It is disturbing that the economic growth in Nigeria just as South Africa cannot be married with poverty level in these countries as poverty rate equally grows (Beegle et al, 2016). Also, Odusanya et al (2011) contend slightly differently that foreign aid has impacted on Nigerian economic development but it has not reflected qualitatively on the well-being on citizens of Nigeria. A further attempt at narrowing down the discourse to Nigeria is made by Duru et al (2020) while maintaining that Nigeria’s receipt of various kinds of foreign aid has not had positive impact as many Nigerian citizens wallow in abject poverty, unemployment and insecurity. Premised on this position, Heidhues & Obare (2011, 56) blame the failure of foreign aid on imposition of strategies while observing that “Before, the recommendation and adoption by African leader of the Structural Adjustment Programmes, several continental strategies and plans for economic growth were disfavoured and rejected by the International Monetary Fund, World Bank and the United States of America and Western donors, such as, the Lagos Plan of Action (LPA), and the Regional Food Plan for Africa (AFPLAN). It is deducible that the above discussion attempts to suggest a negative correlation between foreign aid and poverty eradication in Nigeria. Hence, it is strong to argue that foreign aid has not significantly impacted on well-being of ordinary Nigerians which would have led to drastic reduction of poverty level. This submission is buttressed in National Bureau of Statistics (2023) that aapproximately 133 million Nigerians currently live in poverty. 3.2 FOREIGN AID AND HEALTHCARE SYSTEM IN NIGERIA “The aphorism that health is wealth is germane. Thus, a nation that neglects its health sector is bound to face huge challenges as a healthy citizenry most often approximate to a dedicated workforce. This accounts for the reasons many countries pay special attention to the training, retention and remuneration of their healthcare personnel” (Obi-Ani et al, 2021, 5). It is within this context that federal, state and local governments; foreign countries and organizations have continued to make efforts towards providing quality healthcare services in Nigeria. Available record reveals that various developed nations such as United Kingdom, France and United States of America have offered huge health related foreign aid both financially and materially to Nigeria (Abimbola, 2021). This is in agreement with the opinion of Abimbola (2019) that Nigeria state has continuously received huge foreign aid both financially and technically from foreign nations and international non-governmental organizations aimed at improving healthcare system. Between 2004 and 2010, Nigeria received $897million from United States of America and became one of the highest recipient countries of US foreign aid (Hill, 2011). The World Bank and Bill & Melinda Gates Foundation financed the purchase of $25 million worth of oral polio vaccines for Nigeria in 2009 (Gates & Gates, 2009). In addition, Jlatteh (2013) argues that Nigeria state has received huge amount of money from the United State of America to address health related challenges. This is outside other assistance from the US such as playing pivotal role in healthcare policies and programmes. Adewole (2017) posits that World Bank has contributed the sum of $171.5 million to healthcare programme in Nigeria aimed at enhancing performance based financing. World Health Organization has assisted Nigeria in treating tuberculosis among adults and children by establishing connection between them and primary healthcare centres together with laboratory test kits and anti-retroviral drugs. It has contributed in addressing other health challenges such as malaria and polio among others (WHO, 2016). Nigeria Centre for Disease Control and Prevention in partnership with Tropical Health and Education Trust; and Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 224 Commonwealth Pharmacists’ Association flagged off another phase of grants at the tune of £4.6 million for Antimicrobial Stewardship sponsored by the government of United Kingdom (NCDC, 2023), The grants aimed at funding health organizations and specialists to boost the capacity of manpower in Nigeria’s health sector. It is arguable that President’s Emergency Plan for AIDS Relief (PEPFAR) has played a vital role towards saving lives in Nigeria especially in the aspects of HIV treatment programmes, mother-to-child HIV prevention activities, care for orphans with HIV and safe blood supplies among others (PEPFAR, 2008). PEPFAR donated more than US$2.5 billion between 2004 and 2010 to combat HIV/AIDS in the country (PEPFAR, 2012). “More than 39 million Nigerians have been informed of HIV prevention methods through community programmes; approximately 5 million Nigerians have been reached with HIV counselling and testing services; more than 2 million pregnant women have received PMTCT health services; over 1 million PLWHA have received care to support their quality of life; over 200,000 320 J.V. Jappah children orphaned by HIV/AIDS and other vulnerable children receive care; and approximately 340,000 women and children are receiving antiretroviral treatment. PMTCT activities have been expanded and decentralized in Nigeria. There are more PMTCT outlets in Nigeria currently, with PEPFAR supporting 651 sites as of September 2009” (PEPFAR, 2008). These are just some of the foreign aid provided to improve the healthcare system in Nigeria as captured in the table above. However, Jlettah (2013) submits that the results demonstrating the degree of HIV/AIDS information among the people in Nigeria are varied, despite large resources invested by PEPFAR in the country. Condom use in Nigeria has not reached its full potential in terms of area of coverage. In Nigeria, the HIV myths persist and the social stigma surrounding HIV mostly ignores the biological basis upon which the virus spreads. The focus of HIV transmission from person to person or body fluid to body fluid has turned to issues of morality and sexuality. Investigation on sudden deaths conducted by Olayinka et al (2013) (SD) reveals that out of 48 instances, 35.5% were caused by communicable diseases and 60% were caused by non-communicable diseases, with 718 adult deaths documented in communicable diseases on the whole. Nigeria belongs to nations with healthcare challenges especially the northern part of the country where there is high child mortality rate with a very few number of pregnant women having access to antenatal services (Olatunji et al, 2014). Adelakun et al (2017) equally acknowledge the dilapidated healthcare system in the country using a poor handling of outbreak of Lassa fever as a point of emphasis but blame it on hesitant political leadership approach. Current records show that situation of Lassa fever in Nigeria has worsened in that in April, 2023, the suspected and confirmed cases; and deaths of Lassa fever stood at 4908, 897 and 154 as against the records of 2022 which stood at 4272, 751 and 140 respectively (NCDC, 2023). The condition of Nigeria healthcare system is very poor to the extent that it is responsible for about 10% global child, infant and maternal deaths (United States International Development Agency, 2014). 16% of children below five years old die of illness that can be prevented (Department for International Development, 2013; United States International Development Agency, 2014) To be positive, Abimbola (2021) argues that health related aid from foreign donors such as United Kingdom, United States of America and France appear to have contributed not only to health sector but also economically. Additionally, the provision of this foreign aid has increased the public expenditure in health sector. To corroborate this, Nnamuchi (20007) observes that there is a significant growth in Nigeria’s health sector due mainly to unrestrained assistance from the government together with that of foreign organizations. This submission that foreign aid has impacted on Nigeria health sector supports the findings of Muhammad & Ahmad (2021) which reveal that the effect of foreign aid on health sector is less than five mortality rate. Pining it down to a particular foreign donor, Bello submits that the assistance of World Health Organization in Nigeria healthcare service delivery system has positive impact on the lives of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 225 Nigerian citizens precisely those of Bauchi state. In the same vein, WHO (2016) reveals that its aid to Nigeria has led to reduction in death of pregnant women and children dying of malaria. “NCDC has established and supports a network of Lassa fever diagnostic laboratories and overall clinical expertise has greatly increased in Nigeria through the efforts of colleagues are the hospitals in Irrua and Owo in particular, and partners such as World Health Organization (WHO), United States Centres for Diseases Control and Prevention (US-CDC), The World Bank, African Field Epidemiology Network (AFENET), Georgetown University (GU), Coalition of Epidemic Preparedness Innovations (CEPI) to list a few which have led to the current reductions in the case fatality”(NCDC, 2023). The aid for malaria control from foreign donors and development partners such as World Bank, Clinton Health Access Initiative, WHO, UNICEF, Global Fund and President Malaria Initiative has been helpful in Nigeria (Nigeria Malaria Operational Plan, 2014). Building on this investigation leads us to contradictory evidence for impact of foreign aid on healthcare system in Nigeria. The credence of this result is pivoted in the position of Abimbola (2021) that there is still no consensus on whether foreign aid is positive in impacting on health and economic sectors of the recipient nations as well as meeting the objectives of the foreign donors. 3.3 FOREIGN AID AND HUMAN SECURITY IN NIGERIA Security especially human form of security is said to be business of every individual in the society but it is more business of the government. This argument is underscored in social contract theory whose tenet is the provision of security as a public good by the state (Hobbes, 2004). Therefore, a government’s legitimacy is premised on its ability to ensure security of lives and property of the citizens (Locke, Two Treaties, 123). This postulation suffices but does not foreclose the role played by foreign nations and organizations in security governance of a country. Following the trajectory of military foreign aid in Nigeria, Macro (2016) and Idem (2018) unanimously submit that upon the termination of Anglo-Nigeria defence accord, Nigerian entered into agreement with German, Indian and US governments for expanding her air force; setting up of military training centre and training of army officers respectively. Kinsey & Krieg (2021) posit that Western allies have contributed in enhancing military capacity in Nigeria. To be precise, United Kingdom and United States of America have put in huge resources in establishing training programmes aimed at combating terrorism in Nigeria. Notwithstanding, the training courses were occasional and not part of the overall method adopted to address terrorism and insurgency in the country. In addition, Multinational Joint Task Force (a security outfit established in 1994 with partnership of nebouring nations) was deployed by political authorities in Abuja to fight Bokoharam insurgency that was growing into international criminal organization operating along borders (Kinsey & Krieg, 2021). The commitment of foreign donors and partners in assisting Nigeria to address numerous security challenges bedeviling the country has come under serious scrutiny. As Eeben (2018) puts it “The absence of effective direction and assistance with operational planning in antibokoharam operations in Northern Nigeria widely undermined the effectiveness of Western defence engagement. In the critical application phase of converting doctrine and theory into military practice, most regular Nigerian army platoons were left on their own- Western Special Forces teams would only embed sporadically with Nigeria Special Forces. Much of this training is focused on window-dressing, but when you look through the window, the room is empty”. This opinion is at variance with the submission of Boutton & Carter (2013) that foreign donors are interested in combating transnational security challenges such as Bokoharam in Nigeria because their interests in the country are more endangered. The influence of foreign aid is especially noticeable in recipient nations with the greatest degree of transnational insecurity Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 226 since there is a tendency that the donor interest will likely increase proportionately with the rate of transnational terrorism. Quoting a high ranking Army Officer from Britain involved in training military officers in Nigeria, Kinsey & Krieg (2021) acknowledge the effectiveness of training courses but blame the challenges on lackadaisical attitude of the trainers in following up as the British government was unfavourably disposed to letting the trainers (their Army officers) get close to the conflict areas in the North. Therefore, Nigeria’s partnership with foreign countries and regional allies can at best be described as incapable of combating security challenges such as Bokoharam insurgency. Agreeing with this submission, Asongu & Ssozi (2017, 14) blame it on three factors while positing that “The consistent negative impact of foreign aid on terrorism (especially the effects of bilateral and total aid) may be explained from three angles: the motives of aid, insufficiency of aid and usage of aid (mismanagement). First, the motives of aid substantially vary from one donor to another. For instance, while the USA is substantially involved in Africa for security reasons, China’s and France’s presence in the continent is fundamentally driven by economic and politico-economic interests respectively. It also depends on the outcome of bargaining among donors”. To support this, Ofoma & Onwe (2023) submit that Nigeria state has been locked in numerous conflicts ranging from boko-haram insurgency to youth agitations to the extent that the security agents have been seemingly overpowered by these bad elements. In Nigeria, various states have their own peculiar security challenge but banditry in the Northwest geopolitical zone is becoming prominent (Ojo, 2020). For instance, in the Southeastern part of the country, secessionist agitation manifesting in sit-at-home order has resulted to a serious security tension leading to death of innocent citizens, the agitators and security personnel (Ofoma, 2023). The above discussion is a suggestive consensus of the pervasive security conundrum in Nigeria which casts a serious doubt on impact of foreign aid on human security in the country. While various efforts have been made by foreign donors as acknowledged earlier; the security realities in the country point to a different negative direction. Inference of this; is reinforced in salient rhetorical question by Molokwu et al (2022), where is the significant impact of foreign aid in the face of abject poverty, poor human development and increasing unemployment rate in Nigeria? Rationale for the failure of foreign aid in Nigeria security system is found in the expression of Asongu (2015) and Eubank (2012) that impact of foreign aid on security challenges (terrorism) can be ineffective partially due to its inability to tackle the root causes of insecurity which are in many cases linked to injustice, inequality, religious bigotry and anti neo-colonial disposition etc. 4. IS VARYING INTEREST AN IMPEDIMENT? Foreign aid either as a programme, project, transfer of skill, grants, loans or service etc is driven by interest of not only the government(s) but also other relevant actors. The fact that activities around foreign aid are carried out by human beings who naturally have interest which may be national, organizational or personal strengthens this argument and opens up windows of interrogations on level of consistency or inconsistency of the interests. Looking at it from government perspective, Nye (2008) contends that foreign aid is a foreign policy instrument used in form of attraction by a donor country to affect other recipient country’s decision towards a particular outcome. This is in congruent with the opinion of Riddell (2018) that foreign donors are driven by diverse interests which include humanitarian aid, developmental objective, solidarity, economic reason, strategic political motive and promoting fundamental human rights. The suasiveness of this position is stressed in the opinion of Moosa (2016, 93) that “most donors still connect their own self-centred interests, including those related to politics, strategy, trade, culture and ideology, with the likely granting of foreign aid. The essence of the problem Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 227 lies in the fact that donors entertain strong intentions to accomplish these self-centred interests while paying little attention to the failure of foreign aid programmes. A widespread feeling about the ineffectiveness of foreign aid programmes points to evidence that these programmes often work against humanitarian and development objectives. This assumption goes further, claiming that donors’ self-centred interests help to undermine the outputs of the aid and limit their effectiveness”. Again “donors may prefer to release their funds to solve problems other than the sectoral priorities set by the governments where these funds are highly managed by their own experts and/or by independent NGO’s which are merely implementers of already designed projects. Funds meant to help governments achieve its mandate to combat poverty and alike may be directed by foreign policies of hidden economic or political agenda whereas, they must be subjected to adhere to conditions hard to meet, meant to enable its best utilization” (Pycroft & Pedro, 2009). It can be argued further that foreign aid actors such as local street level bureaucrats, policy makers and officials of implementing agencies may have their own interests divergent from the government interest. Whether these individual interests are nationalistic, progressive, developmental or selfish is debatable. Moosa (2016) infers that administrators who implement foreign aid initiatives have vested interest which they protect. These administrators have converted foreign aid projects and scheme to lucrative enterprise. Lancaster (2007) explains the type of motives existing among actors in foreign aid. The actors may be private individuals, formal or informal institutions with some interests or purpose in initiating and executing measures in the process of foreign aid. These players have developed their own procedures and targets with hidden motives. Their interests may vary but they have clear strategies for influencing foreign donors externally and internationally thereby achieving their objectives. With the instrumentality of bilateral and multinational institutions responsible for foreign aid initiatives in recipient nations, these actors can influence the tools and strategies for executing foreign aid interventions. Put differently, goals of foreign aid are mostly reflections of local powers in donor nations which by extension govern various interests in foreign aid offered to recipient nations (Olsson & Wohlgemuth, 2003; Brainard & Chollet, 2007). In his survey of charitable organization financing in Global South, Schiffrin (2017) reveals that the conflicting interest among parties (donors and recipients) which manifested in editorial partiality and overzealousness of reporters to please foreign donors. Narrowing it down to foreign donor’s agenda stetting in Nigeria, Myers (2018, 37) quotes a Punch Newspaper director as “I’ve always believed that funders usually have an agenda and try to get you to subscribe to it. But I’m like “no, what you think we need is not necessarily what we need”... [The donor] comes with an idea and my role is to circumscribe that and define what would be appealing to our readers”. In the same vein, a Premium Times publisher observes “pick and choose our donors—for example [we partner with] Open Society because our interests coincide... [Mostly] we don’t reject the funding that’s on offer—for example, LGBT rights issue are currently the fashion [among donors] but we have no problem with this—we go for it from the human rights angle. The strategy we have already defined is clear” (Myers, 2018, 37). Premised on this discussion is the negative impact of conflicting interest on foreign aid in recipient countries such as Nigeria. CONCLUSION This paper is a departure from common exploration of economic impact of foreign aid to social impact in Nigeria with poverty eradication, healthcare system and human security as the specific variables. Relying on secondary sources of data, the paper found out that foreign aid has not impacted significantly on poverty eradication and human security in the country. It is equally discovered in the study that there is mixed evidence regarding the relationship between Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 228 foreign aid and healthcare system in Nigeria. Also, it is observable that varying interest of actors poses a serious threat to the performance of foreign aid in Nigeria. On the whole, this paper submits that foreign aid has negative correlation with larger components of social development investigated in the study. Away from that, this study’s contradictory finding on the relationship between foreign aid and healthcare system in Nigeria presents an opportunity for further exploration. It is also the position of this paper that conflicting interest of actors is undermining element to the performance of foreign aid initiatives in Nigeria. As a panacea, this paper suggests for global attitudinal change campaign to actors of foreign aid. REFERENCES Abimbola, W.O. (2019). 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Assessing aid: What works, what doesn’t, and why. Oxford University Pres World Bank (2004). World development indicators. Washington: D.C. World Bank Younger, S. (1992). Aid and the dutch disease: Macroeconomic management when everybody loves you. World Development, 20, 1587–1597. doi:10.1016/0305-750X(92)90016-O Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 232 POVERTY IN BULGARIA: A GENERAL CHALLENGE Ralitsa Veleva Chief Assistant, PhD Department of Public administration, Faculty of Management and Administration, UNWE, Sofia, Bulgaria Corresponding author: e-mail: ralitsa.veleva@unwe.bg ABSTRACT The current article is not committed to the complex task of providing solutions to the deepening unfavorable economic situation in the country, but rather to put an emphasis on one of the most pressing problems for society in Bulgaria poverty. European statistics report that our country faces the highest risk of poverty compared to other members of the European Union. Among those most at risk are some of the working people - the so-called working poor, children and persons over 65 years of age. Bulgaria is the EU-27 country with the highest inequality in income distribution and a low poverty threshold. The research has an empirical and analytical focus, considering indicators that have a direct relationship to the high proportion of the poor population in our country. ORCID: https://orcid.org/00000002-2736-9401 KEYWORDS: poverty, in-work poverty, inequality, poverty threshold Published First Online: 19.12.2023 JEL: D63, I30, I32, J3 Pages: 233-240 INTRODUCTION DOI: https://doi.org/10.37075/JOMS A.2023.2.04 The twenty-first century epitomizes an era characterized by unparalleled technological and technical advancement. Within these temporal confines, a pervasive struggle ensues between the material and social domains, where concerted efforts for social cohesion, inclusive initiatives for vulnerable groups, and the eradication of discrimination persist. Despite such endeavours, an unresolved quandary persists within Bulgaria: How can individuals be educated, maintain their health, and fulfil their paramount needs amidst this environment? To elucidate the profound challenge confronting our nation – a challenge underscored by poverty – the current discourse endeavors to empirically illuminate Bulgaria's status across key indicators relevant to this thematic concern. The thesis posits that the high relative proportion of impoverished individuals, low poverty thresholds, and pronounced inequality significantly impact the prevalence of the working poor, disengaged youth not in education or employment, early school leavers, and the country's low life expectancy. METHODOLOGICAL FRAMEWORK To achieve the thesis, an analysis is conducted for each of these indicators, juxtaposing the levels of poverty among all European Union member states for the year 2020. In this study, empirical data sourced from Eurostat is used, employing methodologies such as comparativecomparative analysis, desk analysis, and correlation analysis. Each indicator is separately analysed and compared due to the application of dual scales, with the aim of providing a clearer graphical representation of the information and a higher-quality analytical interpretation. The research logic follows a structured examination, initially focussing on the proportion of individuals falling within the impoverished category, presenting averaged values for the period Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 233 spanning 2010 to 2020, inclusive, across all EU member states. It aims to delineate Bulgaria's dynamic trajectory, emphasizing the deepening of the issue by 2020 concerning preceding years. The poverty threshold in euros for individual countries serves to illuminate the severity of the problem within Bulgaria, while the inequality of income distribution underscores the disproportionate income ratios among our population. The analysis highlights the percentage of youth not engaged in employment or education in relation to their educational attainment, the working poor and early school leavers juxtaposed against the percentage of individuals living in poverty. Following the presentation and analysis of these diverse indicators, a correlational analysis is performed to reveal the interconnections between them. 1. OVERALL PICTURE In 2020, Bulgaria emerged as the nation with the highest relative share of individuals living in poverty (23.8%) among all EU member states, compared to an average of 16.5%. The dynamic trend that spans 2010 to 2020 unequivocally demonstrates a persistently negative trajectory. Despite this, when considering the averaged values during the examined period, Romania surpassed Bulgaria in terms of the relative share of people living in poverty. Figure 1 illustrates all EU member states based on averaged values of individuals in poverty from 2010 to 2020, inclusive. In this study, the poverty indicator, the poverty rate, signifies the percentage of individuals with equivalent disposable income (after social transfers) falling below the poverty line set at 60% of the national median equivalent disposable income after social transfers. The analysis employs "risk of poverty" and "individuals living in poverty/poor" as indicators. According to European statistics, individuals comprising this group do not necessarily endure a low standard of living. However, Bulgaria's National Statistical Institute considers them as a relative share of the impoverished population within our country. Figure 1. Individuals in poverty for the period from 2010 to 2020 inclusive (average values) in the EU-27 countries 25,00 20,00 15,00 10,00 5,00 0,00 Romania Bulgaria Spain Latvia Lithuania Greece Estonia Italy Croatia Portugal EU (European Union) Poland Malta Germany Sweden Luxembourg Ireland Belgium Cyprus Austria Hungary France Slovenia Slovakia Finland Denmark Netherlands Czech Republic In % (percent) of the population 2010-2020 г. Source: Author's calculations based on Eurostat data (ILC_LI02), 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 234 The figure conspicuously reveals that our country is second after Romania in terms of poverty risk from 2010 to 2020. Bulgaria significantly exceeds the average values for the European Union. Figure 2 delineates the dynamic trend within our nation, illustrating that, rather than addressing the issue, it exacerbates, with 2020 marking the highest increase in people at risk of poverty compared to previous years. Numerous public policies, subject to annual monitoring regarding their enactment, directly or indirectly relate to poverty alleviation within our country. However, tangible outcomes of these measures remain elusive. For example, the National Strategy for Poverty Reduction and Social Inclusion Promotion 2020 (NSPRSI 2020) set the objective of reducing the number of people living in poverty by 260,000 by 2020. However, adverse statistics indicate an increase of 95,700 people during the observed period (INFOSTAT, 2023). Figure 2. Individuals living in poverty in Bulgaria for the period from 2010 to 2020 2014 2015 2016 YEAR 2017 2018 2019 23,80 22,60 22,00 23,40 22,90 2013 22,00 2012 21,80 21,00 2011 21,20 2010 22,20 20,70 IN % (PERCENT) OF THE POPULATION BULGARIA 2020 Source: Author's calculations based on Eurostat data (ILC_LI02), 2023 In Bulgaria, as of 2020, almost one in every four individuals reside in poverty, with the dynamic trend presented from 2010 to 2020 inclusive indicating a deepening predicament. According to data from the National Statistical Institute (NSI), the age group most vulnerable is those over 65 years of age, which represents 38.3% of the population at risk, followed by individuals aged between 0 and 17 years, accounting for 28.3%. Those within the working-age bracket, i.e., between 18 and 64 years old, encompass a collective 17.5% of the impoverished population. Indeed, a comprehensive analysis of the profoundly adverse situation in our country requires consideration of the poverty line, which represents the minimal resources an individual should possess to sustain a standard of living. The poverty threshold for each member state of the European Union varies. Its annual sum is depicted in euros per individual in the figure below. For instance, if an individual in Bulgaria possesses an amount lower than 2,767 euros in 2020, it is assumed they fall below the poverty line for our country. Significant contrasts in the poverty threshold are observed among different states within the European Union. For instance, if an individual in Luxembourg has an income below 22,706 euros in 2020, they are considered under the poverty line for that country. Substantial differences exist among EU states concerning the magnitude of the poverty threshold. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 235 In 2020, Romania and Bulgaria had the lowest poverty thresholds among the member states, while Luxembourg and Denmark had the highest poverty thresholds, more than eight times higher than those of Romania and Bulgaria. Figure 3 illustrates the EU member states based on the relative proportion of individuals living in poverty and the magnitude of the poverty threshold for each country. 25 000 20,0 20 000 15,0 15 000 10,0 10 000 5,0 5 000 0,0 0 Poverty risk In euros per person for the year 2020 25,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czech Republic In % (percent) of the population Figure 3. Relative share of individuals in poverty and poverty threshold for the year 2020 in the EU-27 countries Poverty threshold Source: Author's calculations based on Eurostat data (EU-SILC, ECHP), 2023 From the figure, it is evident that the two indicators diverge across most countries. Specifically, nations where the poverty threshold is higher have fewer individuals falling below it, while conversely, in countries with a lower poverty threshold, a higher relative share of individuals live below it. This presumption contributes to the exacerbation of the poverty problem in Bulgaria. However, for a comprehensive analysis, one should also consider the standard of living in each country, which remains a subject for future scholarly investigation. Returning to the current study, it is crucial to exhibit and interpret data concerning inequality in income distribution between individual countries. Figure 4 presents the values of both indicators: individuals living in poverty and inequality in income distribution. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 236 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 20,0 15,0 10,0 5,0 0,0 Risk of poverty Inequality of income distribution 25,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czech Republic Poverty (In % (percent) of the population) Figure 4. Relative share of individuals in poverty and income distribution inequality for the year 2020 in the EU-27 countries Inequalities Source: Based on Eurostat data (ILC_DI11; TESPM151), 2023 The figure illustrates a parallel movement between the values of individuals in poverty and the inequality of the income distribution, suggesting a strong association between the two observed indicators. Where the ratio of total income earned by the top 20% of the population (upper quintile) compared to the income earned by the bottom 20% (lower quintile) is greater, there tend to be more individuals falling into the impoverished group. 2. IMPACTS ON THE SOCIO-ECONOMIC ENVIRONMENT The relationship between poverty and several social factors is bidirectional, including factors such as youth not in education or employment, the working poor, early school dropouts, and life expectancy. These indicators are arbitrarily selected among those deemed prioritized for influence in Bulgaria's public policies. In the current study, the presentation will focus on our country's position across various indicators without delving into an in-depth analysis. Figure 5. Percentage of individuals in poverty and NEETs for the EU-27 countries in 2020 25,0 20,0 15,0 10,0 5,0 0,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czechia 25,0 20,0 15,0 10,0 5,0 0,0 Risk of poverty Young people not in employment or education Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ One out of every five Bulgarians aged between 15 and 29 was neither employed nor enrolled in education in 2020. Our country ranks third in this adverse indicator. No. II, 2023 pg. 237 Figure 6. Individuals in poverty and working poor as a percentage for the EU-27 in 2020 25,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 20,0 15,0 10,0 5,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czech Republic 0,0 People in poverty Working poor Every tenth employed Bulgarian falls into the group of the impoverished in our country in 2020. Bulgaria ranks seventh among the EU27 in terms of employed individuals living in poverty. Figure 7. Individuals in poverty and early school leavers for the EU-27 in 2020 25,0 20,0 15,0 10,0 5,0 0,0 20,0 15,0 10,0 5,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czechia 0,0 Risk of poverty Early school leavers Every 7th Bulgarian aged between 18 and 24 dropped out of the education system prematurely in 2020. Bulgaria ranks fourth in terms of early leavers from the educational system. Figure 8. Individuals in poverty and life expectancy in the EU-27 in 2020 25,0 84 82 80 78 76 74 72 70 68 20,0 15,0 10,0 5,0 Bulgaria Romania Latvia Spain Lithuania Estonia Italy Croatia Greece Luxembourg Malta Portugal Germany Sweden Poland Cyprus Belgium Austria Ireland France Netherlands Slovenia Hungary Finland Denmark Slovakia Czechia 0,0 Risk of poverty Bulgaria has the lowest life expectancy in the EU-27 as of 2020. Our life expectancy is nearly 10 years lower compared to Ireland, for instance. Life expectancy Source: based on data from Eurostat (EDAT_LFSE_20, ILC_IW01, EDAT_LFSE_14, HLTH_HLYE), 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 238 In summary, Bulgaria stands as the European Union country with the highest relative share of individuals falling below the poverty line in 2020, accounting for 23.8% (1,659,900 individuals) of the country's population living on less than 2,767 euros annually. Concurrently, there exists a pronounced income distribution inequality (8.01 for 2020), the highest among all other Union nations, while life expectancy remains the lowest (73.75 years). The issue of early school dropouts is severe, with their relative share reaching 12.8% in 2020. One in every ten Bulgarians in the workforce falls below the poverty line, and one in every five young individuals in our country is neither professionally engaged nor enroled in an educational cycle. 3. RESULTS AND CONCLUSIONS To discern the interconnections and dependencies between different indicators – such as the risk of poverty (poverty), poverty threshold (line), income distribution inequalities, working poor, youth not in education or employment, early school dropouts, and life expectancy – a correlation analysis is conducted. The study includes all EU-27 member states for the year 2020. The analytical outcomes are presented in Figure 9. Figure 9. Relationships and dependencies among poverty-related indicators Risk of poverty STRENGTH AND DIRECTION OF THE RELATIONSHIP R = 1,00 0,93 0,75 0,80 0,60 0,43 0,36 0,40 0,20 0,00 -0,20 -0,40 Poverty threshold Inequalities Working poor Young people Early school leavers not in employment or education Life expectancy -0,37 -0,39 -0,60 Source: Author's calculations based on Eurostat data, 2022 and 2023 The conclusions that can be drawn are as follows: 1) The higher the income distribution inequalities, the higher the relative share of individuals living in poverty or at risk of poverty. 2) A higher count of working-poor individuals corresponds to a higher relative share of those living in poverty or at risk of poverty. 3) An increased number of young individuals not engaged in work or education leads to a higher relative share of those living in poverty or at risk of poverty. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 239 4) More early school dropouts correlate with a higher relative share of individuals living in poverty or at risk of poverty. 5) A higher relative share of individuals living in poverty or at risk of poverty would result in a lower poverty threshold (line). 6) A higher relative share of individuals living in poverty or at risk of poverty corresponds to a lower life expectancy. The drawn conclusions and synthesis from the correlation analysis are not surprising but rather emphasize, once again, the role of the state (legislative, executive, and local authorities). Implementing social-focused public policies could yield tangible economic results for our country. Investments in human capital and the achievement of human development are the instruments through which the broad spectrum of poverty in Bulgaria could be effectively countered. REFERENCES Eurostat. (2023). At-risk-of-poverty rate [TESPM010]. Retrieved [https://ec.europa.eu/eurostat/databrowser/view/tespm010/default/table?lang=e] July 10, 2023, from Eurostat. (2022). At-risk-of-poverty thresholds - EU-SILC and ECHP surveys. Retrieved September 13, 2023, from [https://ec.europa.eu/eurostat/databrowser/view/tessi014/default/table?lang=en] Eurostat. (2023). Early leavers from education and training by sex [SDG_04_10]. Retrieved October 12, 2023, from [https://ec.europa.eu/eurostat/cache/metadata/en/sdg_04_10_esmsip2.htm] Eurostat. (2023). Inequality of income distribution [TESPM151]. Retrieved October 10, 2023, from [https://data.europa.eu/data/datasets/6lghmjcpw6t20inenvzeoa?locale=en] Eurostat. (2023). In-work at-risk-of-poverty rate [TESPM070]. Retrieved [https://data.europa.eu/data/datasets/6lghmjcpw6t20inenvzeoa?locale=en] July 10, 2023, from Eurostat. (2023). Life expectancy at birth [TPS00208]. Retrieved October 10, 2023, from [https://ec.europa.eu/eurostat/databrowser/product/view/TPS00208?lang=en&category=hlth.hlth_state.hlth_hly] Eurostat. (2023). Young people neither in employment nor in education and training by sex [TESEM150]. Retrieved October 10, 2023, from [https://data.europa.eu/data/datasets/lvbp3wbjzo9olo4wqw4w?locale=en] INFOSTAT. (2023). Otnositelen dyal na bednite po pol i vazrastovi grupi. Retrieved September 21, 2023, from [https://infostat.nsi.bg/infostat/pages/module.jsf?x_2=107] NSNBNSV 2020. Natsionalna strategia za namalyavane na bednostta i nasarchavane na sotsialnoto vklyuchvane 2020 g. Retrieved July 1, 2022, from [https://www.strategy.bg/StrategicDocuments/View.aspx?lang=bgBG&Id=1345] Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 240 ADMINISTRATION - STILL IN SEARCH OF SELFDISCOVERY Daniela Krasteva Chief assist. Prof., PhD Department of Public Administration, UNWE, Sofia, Bulgaria ABSTRACT ORCID: https://orcid.org/0000-00016977-0271 The purpose of the present notes (scientific communication) is firstly, on the basis of inventoried definitions of public administration in the Bulgarian literature (legal and economic) to attempt to specify an analogous author's solution and secondly - to interpret the question of the instrumental function of public administration to generate and support the implementation of a complex of policies. Published First Online: 19.12.2023 In the first direction, it proceeds from the fact that each definition contains a mandatory categorization and some strictly distinctive feature of the subject under consideration. In this sense, beyond the obligatory generic and species membership, a variety of contextual definitions are possible that will fully serve any creative act. In our case, the utilitarian aspect is applied to the definition of public administration. e-mail: d.krusteva@unwe.bg Pages: 241-247 DOI: https://doi.org/10.37075/JOMS A.2023.2.05 In the second direction, as a continuation of the definitional discourse, the power vector of public administration and its role in the creation and implementation of public policies is summarized. KEYWORDS: definition, definition, public administration, public policy, public utility JEL: J38, H41, H29, H83 INTRODUCTION Society has never doubted that public administration is an important element of life activities. Nonetheless, there are still controversial elements in its field that have long attracted the attention of Bulgarian social scientific thought. Two of them are the subject of this article: the self-identification of public administration and its power instrumental-functional fragmentation. 1. DEFINITIONAL DISCOURSE ON PUBLIC ADMINISTRATION There is a lack of unity in the academic literature and social practice regarding the definition of this category. An attempt to inventory the definitions of public administration available to the author in the Bulgarian literature confirms this claim. Back in 1994, Em. Zhivkova presents a number of definitions of public administration that were created (and were accessible to her) in the decade 1980-1990. In brief touches (pp. 11-12) they refer to: a. productive aspect: sphere in which goods and services are produced to meet the needs of citizens; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 241 b. the political aspect: a set of activities through which government policy is made and implemented; c. the electoral aspect: the specification of the electoral platforms of the ruling majority in the form of the political determination of development during the mandate; d. applied aspect: part of the political process centred on policy that stems from elections, a group effort of government in the exercise of power (generally legislative, executive and judicial), the defining part of which is the creation/consumption of administrative services; e. executive aspect: theories and procedures in the implementation of legislative, executive and judicial government mandates to prepare regulatory instruments and create administrative services for society or prioritized parts of it; f. Managerial: the creation and programmatic implementation of public policies through employee participation; g. Concerted: consolidation of the different forces in government in the programmatic administrative service to the public and its citizens. The research marathon of the interpreted author does not stop here. He makes his own commentary on the aspects of public administration envisioned as indisputable requisites (pp. 13-14) of what is essential in its functioning. In a condensed form, it is, first, an institution of public relations that arise between the state and its citizens on the occasion of and in connection with the process of realization of power, second, a system that assists in "bringing" the policies of the ruling majority to the concrete consumer of their applied utility, third, it is dominated by the place of created services to the population and business, fourth, it is an inevitable active part of the mechanism of the functioning of the social system. With the contours thus drawn, Em. Zhivkova (1994, p. 13) defines public administration as "...the higher and middle level of management of public organizations, which formulates the general policy and strategies for development, creates the necessary conditions for resource provision and effective behavior, in accordance with the principles of the constitution and the laws of the country". B. Benev (2002, pp. 9-13), recalling that the term "public" conveys openness, transparency, clarity, free exposition of positions, says that administration "...is a special kind of human activity designed to support (the state, b.m. D.K.) and content the organization of decisionmaking". Without administration, there is no governance, since the administrative product it produces is an indispensable aspect of it. Shortly thereafter (p.12) he writes that public administration is understood as "...a system that carries out a complex set of functions embedded in the composition of institutions and performed by personnel who create certain values for the state, society or other government". In terms of power (p.13), "Public administration is a complex of administrative processes, administrative structures and persons acting in official capacities, supporting and ensuring the development of laws, and the action of the authorities". It is interesting to note that the same year in the "Terminological Dictionary of Public Administration and Regional Studies" B. Benev did not publish a definition of the category "public administration". Closer to it are those of: a) administrative apparatus (p.7): "...an organizational system of central and local state organizations that are designed to carry out the tasks of state management and development, specifically creative executive power.The administrative organization is an organizational mechanism through which the administrative activities of the state are carried out"; b) administrative power (p.8) - "...executive power of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 242 executive bodies of the state (central and local administration), which is carried out through administrative Power exercised in the interest of the whole society on behalf of the State, which may not be used for private purposes", "2. Collective designation of higher state bodies". Pavel Pavlov (Hristov, Pavlov and Katsamunska, 2007, pp. 10-11) interprets public administration as a science and as a practice. As a science, it is "...a system of scientific knowledge and theoretical views about the ways in which public power and public administration are constructed and function", and as a practice "...a set of interrelated administrative processes, functions and structures that hold public institutions accountable and support them in the exercise of public power". It is imperative that "...public administration cannot exist outside its political context" - only two arguments are sufficient: a) synthesized public interest and spirit, and the resulting; b) creates or organizes the production of administrative products for itself (public policies, legislative decisions, normative documents), the population and business. Hence its links with the law: it facilitates their creation and, above all, their strict implementation. A few pages later (p.17) the same author presents another faceted definition "Public administration can be defined as a system of institutions (ministries, agencies, commissions and other similar budget-dependent institutions) and their employees to whom the authorities have delegated the right to provide public services". Stavrev, S. (Stavrev, S. and Vulkov, A. 2008, p. 371) does not give a direct definition of public administration, but pays serious attention to the active action of "administration", as methodological and technical service through the application of the rules and norms in force, in another aspect "...to assist, but also to assist social actors in adjusting their private and public activities to the requirements of the valid rules and norms". Obviously, this is a private segment of the essence of public administration. Н. Arabadzhiiski (2010, pp. 22-23) describes five groups of specific definitions (categorization) of public administration (see also; Velichkov, Iv. and Benev, B., 2004, p. 23): a. political aspect: inevitable political context of public administration; synthesized expression of the public spirit; part of the cycle of public policy-making for the realization of the public interest; complex of activities and actions for the provision (directly or indirectly) of public services to citizens; b. legal definitions: law in operation without any right to administrative arbitrariness; regulation of legal relations arising between the state and citizens; means of distributing public goods through the application of laws; c. managerial definitions: executive function of government; delivery of public services, allocation of public resources, control and appropriate consumption of public goods; fetish of bureaucracy, formalism and order; support of public opinion through policy; d. professional aspect: expression of performance by public servants; continuous competitive process that is linked to professional career; form of organisation to acquire power quickly without the presence of personal status; theoretical field in which the characteristic features of public administration theory are shaped. On this basis and a number of other studies N. Arabadzhiyski (2010, pp. 19, 34) circulates two definitions of public administration. In the first (tentative!) he considers it "...as a complex of processes, organizations and persons acting in official positions and roles related to the implementation of laws and other regulations in the sphere of administrative activity of the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 243 state". The second definition is definitive: " Public administration is a socially managed system comprising public authorities and administrative structures, with the employees appointed to them carrying out tasks related to assisting these authorities to implement the powers presented to them by law and to provide public services to citizens". The intention of the present fragments is an attempt at an authorial definition of public administration in terms of utility generation. In this sense, it is a part of the administration of the economy (state in action, material and immaterial sphere), whose purpose (telocracy) is to provide the necessary (in terms of desirable quantity and high quality) administrative services to the population, business and government bodies, as well as to create and provide public goods to those in need in strict compliance with legislation and regulations (nomocracy) and to demonstrate a high morality of commitment (prompt, concrete, honest, economical and efficient service) to joint This definition can be contextualized in different aspects to serve the differentiated clarification of the nature of public administration. The search for purity in the absolute is a mandatory responsibility of every author. Only in this way will he reveal himself as an individual and be maximally understood by his audience. 2. POWER VECTOR OF PUBLIC ADMINISTRATION Power emanation (radiation) finds implicit manifestation also through public administration. Power is a type of social relation that is associated with the imposition of constraints and the delegation of certain human actions in the form of rights, responsibilities and obligations. In its content, it is the disposition, control and subordination of another's will, which derives from the nature of the political and socio-economic relations operating in a country. Its intensity (power, including through positionality of power) is determined by legal and moral regulators. Power is a coordinated system of influences and manifests itself in a unified network of political choices (political parties), policies, laws, wealth, celebrity (publicity), charisma, expertise (knowledge and skills), interests, beliefs, governance, subordination, regulation, etc. It has adequate institutional integral mechanism for implementation. Public administration is part of the substratum of this mechanism. (Table 1) Table 1. Institutional mechanism for the exercise of power № 1. Groups and types of power І. Common authority identification group 1. Capital power 2. 2. Semiotic power Foundation Ownership in the form of tangible, intangible and financial assets Public authority of the institution, more generally – signs of communicatton exchange Powerful force Interest level Microlevel Socioeconomic force and asset progress Self-interest and interest of the organisation Interest of the whole society Sociocultural power Operations, market power, media, regulations, etc. Strategic activity: power over society public opinion and information connectivity Journal of Management Sciences and Applications ISSN 2815-3030 Macro level https://jomsa.science/ No. II, 2023 pg. 244 3. ІІ.Functional group of power 1. Public authority 1.1. Political power 4. 1.2. Executive power 5. Trust and electorate Right to take management decisions on the basis of delegated powers Public force Regional election Central elections Standards System (rules of the game in the state (strategies, policies, laws, etc.: central administration. Administrative force 2. Judiciary Enforcement of laws and regulations Controlling force Normative system (rules of the game in the organization: rules, regulations, standards, etc.) Administrative empowerment of the adoption and implementation of current, specifying and individualizing established norms, operational management decisions: territorial and municipal administration The interests of citizens and regional institutions in terms of compliance with laws and regulations 6. 3. Market/economic power Private property and private interest Economic economic power Business interests manifested in fair competition and inevitable innovation The interests of society as consumers of business products created in an efficient production mode 7. 4. Citizen power/social dimension of democracy/effective social alternative Civic initiative (moral criteria and civic values) based on unmet needs from state and business failures Civic power The interests of disenfranchised individuals and social groups with embedded compassion and social concern and social entrepreneurship Anti-social distortions, quality control of institutions, guarantee of human rights, efficient social adaptation The interests of society but in the context of central institutions in the aspect of compliance with laws and regulations Source: the table is based on solutions (with author's additions) of Stavrev and Valkov, 2008, p. 424.425; Tanev, 2008, p. 76, 152-155; Tanev and Petrov, 2020, pp. 20-44. In making sense of the information in the table, several additional considerations should be kept in mind. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 245 First, the recognition group of power appears in two forms: capital and semiotic. The capital one is based on the widely interpreted carriers of a building substance (the immutable basis of everything), concentrated in property (in the form of tangible, intangible and financial assets) and brought into play by the human factor. It is interesting, that even the mere possession of this social substrate (common ground) gives rise to the lord's trust in the individual, group, collective, organization, etc. concerned. This moment is historically established and exists as the disposition of people (slavery, for example), property and destinies and hence hierarchically ensuring submission to a certain superior will. In another perspective (and in this connection) it is no secret to anyone that an educated person solves present and future task far more easily and correctly than an uneducated one. The competent individual possesses much greater activating power, which results from the accumulated knowledge, skills and attitudes, and on this basis generates quickly and with high quality a necessary product. At the same time, this agent "climbs" far more quickly and smoothly up the ladder of personnel and professional growth, organizes at a high level the qualitative performance of the tasks set, forms a full-fledged trusting attitude in the public, etc. All these moments are rightly associated in the last decades with a certain kind of capital, as a nucleus, a force-major of the can, a guarantee of success, a specific "radiation" of any progress, a kind of power manifestation. Capital has many carriers, but what unites them is the ownership of emblematic resources: land, forests, beauties, talent, information, knowledge, experience, approach, etc. In this sense, it is a socio-economic force. Its function is related to the multiplication of wealth, seen in the broad and humane sense as welfare for all (low cost of quality life). Capital's function is the abscissa of all power, i.e., its purposive orientation towards progress. In fact, it is both the basis for its creation and the vast "food" for the functioning of life activities. The semiotic attribute refers to the recognisability of the institution in terms of its public authority and communication capabilities. Just as we prioritize the demand for health care by some hospitals "marked by society" as creating more useful value than others, some cities gain public prestige because of the good municipal social policy they have, others because of the impeccable road infrastructure they have built, others because of their brand position, which is the result of the presence of mineral springs and ecological environment, etc. The communication side is also related to the possibility of information communication, which is the ordinate of any success. The second consideration relates to the functional power formed and exercised - public (political and executive), judicial, market (economic) and civil. The first relates to the creation of a regulatory public framework and the general management of its implementation through the formulation of specific policies, the second to the monitoring of this implementation and the protection of the rights of citizens and society, the third to business and market processes, and the fourth to the growing role and place of citizens' initiatives. The main focus of this group is the creation, maintenance and improvement of order and security in the state, specifically the adoption and enforcement of laws, in a more general sense the implementation of the policies of the ruling majority and in an even more specific aspect the fulfilment of the promises made by politicians to their constituents. The economic and social conditions of life should not be underestimated either. Thirdly, the fields of constellation (interactions) in the matrix under consideration can be interpreted as follows: a) along the two tiers: general recognition and functional; b) within the individual tiers; and c) between the elements of the individual tiers. This involves legitimating the functioning of multiple relationships, which is a complex, labour-intensive and extremely difficult task. More relevant to the context of this analysis are the following conclusions: Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 246 a. the basic meaning of the two common recognition aspects: capitalization and semiotization are at the same time conditions for the recognition and delineation of relations (jointly and separately) with the 4 functional fields of power; b. in turn, the sides and fields in question interact separately and in combination; c. it is difficult to attempt a gradation of the strength of these interactions as they define their impact in a complex whose components are equivalent; d. there is no doubt that there is a confluence of influences between these elements that manifest themselves as mixed relations: capital and semiotic forces in the sense under consideration are charges that feed successively or simultaneously all the elements of the functional system; e. Between the latter, there is also compensation for any shortcomings that may have arisen in the event of a distrust of one of them, as well as an institutional transfer of responsibilities and powers from one field to another. Fourthly, in this configuration, the public administration serves the entire functional group of government, concentrating considerable public resources. This stems from the fact that the public complex (Hristov, 2005) includes the institutions that administer all four varieties of power functional resource. In this sense, public administration is the "violin" played integrally by each power in relation to and more as a result of creating and implementing its own policies. In its most general form, the interpreted administration performs the role of an important instrument for the implementation of a balance between market, state and civil sector (triangle of modern management), which is undoubtedly a requirement of good anti-monopoly governance (Tanev and Petrov, 2020, pp. 55-64). This point is parallel to the search for full correlation between the elements of this triangle and, in particular, presupposes the need for a detailed knowledge of the advantages and failures of its constituent components. Public administration is a phenomenon whose functioning is linked to the interests of the entire economic and social complex. Therefore, it is necessary to increase our attention to its theoretical and practical conundrums. REFERENCES Arabadzhiiski, N. (2010). Organization of public administration in the Republic of Bulgaria. Sofia: New Bulgarian University. Benev, B. (2002). Public administration. Problems and positions. Sofia. Benev, B. and Ivanov, I. (2002). Terminological Dictionary of Public Administration and Regional Studies. Blagoevgrad: South University of Public Administration. Velichkov, Iv. and Benev, B. (2004) Theoretical Foundations of Public Administration. Blagoevgrad: SUSU. Zhivkova, E. (1994). Public Administration.Sliven: Publishing house "Zhadzha" Stavrev, S. and Valkov, A. (2008). Fundamentals of public sector management. Introduction, schemes, questions, texts. Sofia. Tanev, T. (2008) Public policy analysis: the science of concrete policy making. Sofia. Tanev, T. and S. Petrov (2020). Theory of public sphere management. Textbook. Sofia. Kliment Ohridski" Hristov, Hr. (2005). New Approaches in Public Sector Management. Sofia. Hristov, Hr., Pavlov, P. and Katsamunska, P. (2007). Fundamentals of public administration. Sofia: University Publishing House "Stopanstvo". Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 247 Valentin Vasilev Monika Icheva Valentin Vasilev Prof. Dr. Higher School of Security and Economics, Plovdiv, Bulgaria e-mail: valentin.vasilev@vusi.bg ORCID: https://orcid.org/0000-00020074-9578 IN SEARCH OF SOLUTIONS FOR EMPLOYEE MOTIVATION - FROM IDEAS AND GOOD PRACTICES TO WORKING MODELS ABSTRACT Monika Icheva PhD student Southwest University "Neofit Rilski", Faculty of Law and History, Blagoevgrad, Bulgaria e-mail: monika_icheva@abv.bg ORCID: Published First Online: 19.12.2023 The modern world's dynamic environment dictates the necessity of developing new organizational behavior, leadership philosophies, creative approaches, and strategies for making decisions. Investing in human resources, the organization's most precious resource, is necessary to achieve the building of a new vision for the public realm. The primary objective of the current development is to demonstrate the necessity of boosting employee motivation through a variety of strategies and tactics that have been effectively applied in public organizations. When I observe good practices being used in other settings, they serve as a source of extra inspiration and motivation for individuals involved in their implementation. In addition, the presentation and dissemination of good practices function as a catalyst for the accumulation of ideas. When used more broadly, this method of spreading excellent ideas is strategically directed and resembles the work of a brilliant public visionary. KEYWORDS: motivation, benchmarking, municipality Pages: 248-254 human resource management, manager, JEL: J58, M54, O32 DOI: https://doi.org/10.37075/JOMS A.2023.2.06 INTRODUCTION Today's world includes flying cars; renewable energy sources; tracking devices hidden in unexpected places; "smart cities"; cutting-edge software for analyzing any data; "internet folk alarm clocks"; a high-tech culture marked by virtual tours that transport us to different eras; audio books; elevating marketing by promoting individuals as brands; and an endless stream of information without first undergoing quality analysis. Human resources are the one sustainable force in the modern world, despite its dynamism, urbanization, sociality, and transition to the information society. Without them, this continuous process would not be conceivable. The development puts the problem under consideration in a strategic light and gains attention with its wide comprehensiveness on the plane of unification of the activity of several modern scientific fields, which have always had intersections, but in Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 248 their essence perform rather different roles – human resources management (HRM), public relations (PR), and sustainable development (SD) (Vasilev, V., Stefanova, D. and Popescu, C.; 2023). Here, the term "human resource management" takes on an even broader definition, encompassing both the majority of other human resources in their role as subordinates, who have different needs, attitudes, values, and beliefs, and the human resource unit in the manager in his capacity as a conscious leader, coming up with the right solutions through innovation. "In a world where technologies are applied at a fast pace, it seems that every city is a smart city." (Georgiev, Ognyanski, 2023) To become one, however, requires not only well-developed information and communication processes but also attentive citizenship, dedicated workers who view their jobs as careers rather than just smart goals, and capable leaders who can act effectively and creatively to bring about organizational development and change. The recognition of each person as an individual, the need for continuous growth, and the requirement for developing so-called "soft skills" like empathy, collaboration, and communication are all coming into play (Vasilev, 2021). Effective public management is focusing more and more on the value of internal communications. This is because of the fact that workers are not only the primary and most significant element of the company, but they also determine how organizational strategies are changed in unsteady, uncertain, and crisis-ridden periods. (Efremovski, Vasilev, Stefanova, 2023) The public and private sectors' expectations of managers as well as those of current and potential employees in the corresponding organizations are rising in terms of both working conditions and management. Their position changes, and they go from being a strict enforcer of rules to an active listener, an empath, and even a little psychologist. The saying, "Good leaders inspire their followers to trust them," is not a coincidence. However, great leaders encourage their people to have confidence in themselves. (Maxwell, 2018) Motivation is a key management function in this process. It should be noted that both internal and external incentives are being discussed here. The value of the corporation as a whole will rise immediately when we recognize our personal worth. It's known as "synergy" in the domain of management. Generally speaking, three is equivalent to one plus one. Public sector organizations will alter both their overall reputation and the caliber of the services they provide if they follow this idea. New behavioral, mental, and communication habits will be imposed in this way. This is how beneficial organizational change may be confirmed, organizational development can be accomplished, and public confidence in public institutions can be restored. The 'problem-solving' approach is consistent with the rationality requirements of behaviour and takes account (collectively and in its individual elements) of uncertainty and risk in consumption (Valkov, A. and Stancheva, L.;2023). Not only do policies and strategies, as well as the management style of leaders, need to change, but so do attitudes, thought processes, and inefficient decision-making habits. Because of this, the primary goal of the current development is to demonstrate best practices in organizational growth and motivation as a component of efficient human resource management, as well as to argue for the necessity of a methodical study of employee motivation as part of organizational development. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 249 ESSENCE AND ELEMENTS OF "MOTIVATION 4.0" MODEL We can conclude that good working conditions are related to every aspect of human resource management, including planning for the need for human resources, selection, beginning of new hires, training and development, evaluation, and motivation. This is based on our empirical research and testing of its findings in the public administration. In the current setting, there is a growing need for new management roles in areas such as talent management, organizational stress and conflict management, emotional intelligence, and training in administrative culture and ethics. For this reason and in view of the results of the research, we are developing and presenting a modern model, tailored to technological progress, the needs of employees, managers, and the organization as a whole, called "Motivation 4.0". The model's primary components are emotional intelligence, benchmarking, social responsibility, and green HRM. Each component will be discussed in the next section along with its nature and significance for the public administration's motivational policy. By improving the company's reputation, the practice of corporate social responsibility is seen as a major chance to boost competitive advantage. (Maklan, Knox. 2004) It is important to note that towns are increasingly forced to compete with one another in order to secure funding for specific initiatives, given the functioning of the public realm. Through the establishment of social and economic norms that foster competitiveness, the idea of corporate social responsibility is strategically connected to innovation. (Dimitrova; 2020). Public administration meets the needs of the public by definition. This, along with its primary goal, which we have already discussed. However, the trust of the corresponding organization is reinforced when workers are involved in charity activities related to some sort of improvement, even outside of their work responsibilities. Higher levels of motivation follow, caused by the fulfillment of knowing that you have done something thoughtful and selfless for someone else. Organizations should identify their unique selling point, competitive advantage, and contribution to the development of not only the industry in which they operate but also to the improvement of society at large through their activities. So for example, data from 1,605 employees in five countries indicate that power distance moderates the positive relationships observed between the discretionary green workplace behavior of leaders and their subordinates. In addition, an observed positive relationship between team green advocacy and individual discretionary green workplace behavior held across both collectivistic and individualistic cultures, contrary to our predictions (Jiang, Y., Jackson, S. E., and ; 2022). This calls for a fresh approach to management as well as the application of cutting-edge instruments like Green Human Resources Management. It has to do with environmental preservation, sustainability, and our obligation to protect it. Green management can be used to every human resource function within the framework of the management process, from hiring and socializing to employee motivation. For instance, information technology-based procedures are becoming more and more popular for use in the selecting process. These involve sending application materials online using a variety of websites, e-mail accounts, and web-based platforms for a particular post. Green can be applied to other HRM tasks as well (Blagova, Vasilev; 2022). For instance, a variety of methods can be used to conduct an online green evaluation. We may recommend the current research on motivation and organizational Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 250 development, which was carried out in multiple firms and using the web-based platform Google Forms, as a good practice. Benchmarking is a management tool that is being utilized more and more for the successful implementation of public policies. In English, "benchmarking" is used. The word "benchmark," which denotes a "mark" or "sign" of a stationary item, is where it comes from. In simple terms, it is an item with a specific amount, characteristic, and capacity to serve as a benchmark when compared to other items. (Vasilev, 2022) When it comes to self-motivation, benchmarking is a part of the motivational process. Our intrinsic need to learn new things and advance our careers drives us to look for innovative ways to improve as workers. The leader's leadership style and attitude toward change, innovation, and development play a major role in how this tool is used (Stefanova, D. P., Vasilev, V. P., & Efremovski, I. P. ;2023). The right recognition of practical approaches and unusual best practices in human resources management are critical to the survival of many public sector enterprises. Effective communication between coworkers and management, as well as the absence of stress and conflict, peacefulness, and efficiency, are all indicators of a positive work environment. These variables are largely influenced by each employee's mindset as well as the leadership of the company. Because of this, the subject of emotional intelligence is becoming more and more important. Although the idea is relatively new, it has recently drawn attention and been the focus of investigation in a number of academic books and articles. "The ability to motivate yourself, to show persistence in difficult moments, to control your impulses and delay the reward for your efforts, to regulate your moods and not let anxiety interfere with thinking, to show empathy and to live in hope" is what we should grasp when we talk about emotional intelligence (Golman, 2011). Training on the application of emotional intelligence would be very helpful in the public administration process when it comes to employee-citizen interactions. On the other side, good conflict resolution and stress management in businesses would result from having emotional control. The model can be shown as follows in a graphical and organized format: Figure № 1 – Motivation 4.0 Model Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 251 MOTIVATION 4.0 APPLICATION Practically, the "Motivation 4.0" model was presented and implemented for the first time in practice in the administration of the Municipality of Karlovo. With care for its employees, attention to detail and a desire for non-traditional organizational development, the management of the municipality takes an innovative approach to the management and development of human resources. The motivational model we present is what allows for organizational development and the creation of a new, non-traditional, and innovative aspect of the Municipality of Karlovo's motivational policy. It is implemented through a workshop that includes a generalized and systematized theoretical part, as well as a specific strategy and exercises developed with the aim of increasing employee motivation. (https://www.ipa.government.bg/bg/publications#cbp=/bg/sbornik-s-dobri-praktiki-2022). It has been effective to implement the "Motivation 4.0" approach in Capital Municipality's Ilinden District. Administration staff members were introduced to the non-traditional management tool at a one-day training, and they were pleased by the model's broad scope and range of applications. They also shared their best practices that can be successfully applied to the "Motivation 4.0" application during the discussion portion. A creative workshop is a good tradition that has its roots in the Municipality's organizational culture. Every employee participates voluntarily and creates a variety of beauty with great zeal and dexterity using their own hands. The works' sale proceeds are donated to charities in support of different causes. The Mayor of the Municipality distinguished himself with an innovative management style. On the eve of the Christmas and New Year holidays, he calls on all employees to get involved in the preparations by making a video of their culinary delights. He enthusiastically joins in himself. Another municipality where the motivational model has been successfully presented is Maglizh. In the process of discussing good practices, employees do not fail to present their contribution to the development of public policies. The Mayor has a major contribution to the dedication of the employees in the administration. With his appreciation and personal attitude, he motivates all his subordinates, and each of them receives an individual certificate of appreciation on the occasion of their birthday. These practices demonstrate the value of interpersonal relationships and the value of nonfinancial incentives (Wang, B., & Gu, Y.; 2002) It should be mentioned that the model can be replicated in other public or private sector organizations, following some initial research, and customized to the needs of the workers. Depending on the needs, resources, and mindsets of managers and employees, each of the individual components of "Motivation 4.0" can be applied to certain actions, practices, and public policies. The motivational model's adaptability is one of its benefits. CONCLUSION In view of the dynamism of the environment, periodic studies of the motivational environment of the organization in which the Model is used should be carried out, so that its individual Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 252 elements can be supplemented and amended with certain activities that are relevant at the present moment. The concept of "Motivation 4.0" presents a new image, management approach, and vision that, if adopted by leaders, would create a new, contemporary institutional framework and modern European public administration. The operation of the administrative machinery has a major role in the incarceration of youth in our nation. With the adoption of the "Motivation 4.0" model and the belief that they represent the most capable generation yet, public administration will be viewed as a more secure, tempting, and desirable place to work and grow. REFERENCES Blagova, N., V. Vasilev (2022). Zeleno upravlenie na choveshkite resursi, motivatsiya i liderstvo – ot inovatsii kŭm traditsii i dobri praktiki“; SBORNIK s dokladi ot mezhdunarodnata nauchna konferentsiya „Izkustveniyat intelekt v sferata na sigurnostta – predimstva i zaplakhi“ /doktoranti i studenti/; IK VUSI – Plovdiv, 30 septemvri 2022 g.; ISBN 978-619-7343-71-7; 2022 (Благова, Н., В. Василев (2022). Зелено управление на човешките ресурси, мотивация и лидерство – от иновации към традиции и добри практики“; СБОРНИК с доклади от международната научна конференция „Изкуственият интелект в сферата на сигурността – предимства и заплахи“ /докторанти и студенти/; ИК ВУСИ – Пловдив, 30 септември 2022 г.; ISBN 978-619-7343-71-7; 2022) Vasilev, V. (2021). Sŭvremenni motivatsionni tekhniki v menidzhmŭnta, Propeler, Sofiya (Василев, В. (2021). Съвременни мотивационни техники в мениджмънта, Пропелер, София) Golman, D. (2011). Emotsionalna inteligentnost, „Iztok-Zapad“ (Голман, Д. (2011). 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Chinese Public Administration Review, 1(3-4), 199-208. https://doi.org/10.22140/cpar.v1i3.4.24 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 254 THE CONFLICT: TYPES AND MODE OF ACTION Violeta TonchevaZlatkova Chief assist. Prof., PhD ABSTRACT Public Administration Department/ Faculty of Management and Administration, University of National and World Economy (ÙNWE), Bulgaria e-mail: violeta.zlatkova@unwe.bg ORCID: https://orcid.org/0000-00028940-8808 Conflicts are an inevitable part of our lives and it is important to have the skills to define them, relate them to a specific type and apply management techniques to deal with them in different situations. The article presents an analysis of the types of conflicts classified according to different criteria. In accordance with the levels of conflict in the organization, the four main types of conflicts are described in detail: intrapersonal conflict; interpersonal conflict; intra-group conflict; intergroup conflict. The main focus is on the most common conflicts in the organization conforming to the causes of occurrence. The author presents a description of the distinctive features of different types of organizational conflicts. It points to specific examples of conflicts and provides guidance on how to deal with them. KEY WORDS: conflict, Published First Online: 19.12.2023 management, types of conflict, organization JEL: H00, H12, L20, M12 Pages: 255-364 INTRODUCTION DOI: https://doi.org/10.37075/JOMS A.2023.2.07 Conflict is an unavoidable companion in human existence. It is as old as humanity itself. The study of conflict dates back to the 1920s with the development of psychoanalysis. Later, issues related to the conflict between activity and environment were included. Conflict comes from the English word "conflict" - clash, contradiction, clash (lat. conflictus - clash, collision, derived from "con" - with and "fligo" - to poke), and the science studying conflict is called "conflictology - it deals with new issues, its areas of study have become established in the last 15-20 years. Conflicts initially started to be studied in the USA, research units, laboratories, institutes were established. Masters programmes in conflict management/resolution are gradually being introduced in universities, and are making inroads in Europe. Out-of-court dispute resolution became popular in Bulgaria in the early 1990s. In 1995 the University Centre for Conflict Management and Organisational Studies at Sofia University was founded. It was later renamed the University Centre for Conflict Analysis and Resolution. The relevance of the topic comes from our everyday life, because conflicts are everywhere within us (intrapersonal conflicts), between us, within groups, within social communities (interethnic conflicts, interstate conflicts). Today, it is important to distinguish the types of conflicts, the reasons that give rise to them. In addition, to be aware of the need to form young people's practical skills to cope with the challenges in their lives, including their skills to deal with conflicts in their daily lives - at work, at home and with their friends. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 255 1. TYPES OF CONFLICTS There are different classifications of conflict types. Most often, conflict typologies are considered according to two characteristics: the levels of conflict and the consequences of conflict. Several models are presented in a generalized form. According to the levels of conflict in the organization, four main types of conflict emerge: 1. INTRAPERSONAL CONFLICT Intrapersonal conflict occurs when an individual realizes the incompatibility of the goals assigned to him and his personal capabilities and role. At this level of conflict, strong feelings, inner emotional states, and volitional process develop. D. Dimitrov gives the following definition of this type of conflict: "intrapersonal conflict is a struggle between at least two contradictory tendencies that coexist inevitably in the psyche of each individual". This type of conflict has been studied extensively by the following four strands of psychology: psychoanalysis, behaviorism, humanistic and cognitive psychology. Psychoanalysis explains conflict as a manifestation of the eternal and hidden struggle between the unconscious psychic forces hidden in the nature of man and the necessity of survival in the social environment. Behaviorism advances the idea that intrapersonal conflict arises because of the individual's faulty experience and faulty training. Humanistic psychology recognizes the existence of this type of conflict when the growth of the constructive origin of the "human self" is impeded. From the standpoint of the cognitive strand of psychology, conflict is seen as caused by the contradiction between psychologically incompatible thoughts or beliefs. V. Avramov explains the origin of these conflicts as a consequence of unsatisfied individual needs, the satisfaction of which is a continuous and prolonged process. Similarly, D. Dimitrov also believes that the reasons for the emergence and development of intrapersonal conflicts are due to the unsatisfaction of basic human needs. The author draws an analogy with Maslow's concept of needs, which distinguishes physiological needs, the need for security and safety, the need for success and self-confidence, the need for respect and the need for self-actualization. In one's social life, one fulfils different social roles, some of which one can choose, but there are also roles where the choice is limited or made "from the outside". The contradiction that arises between the different role positions of the individual and his ability to cope with them, according to V. Merlin is at the heart of the intrapersonal conflict. Based on this, the author identifies two types of conflict. The first of them is the "I-role" conflict, and the second type that the author considers is the interrole conflict. Self-role conflict involves contradictions arising between the demands of the role and the capabilities of the individual. The subjective experience arising in a person in such a situation is defined as personality-role. The resolution of the conflict is based on which will be preferred, the preservation of the self or the preservation of the role. Inter-role conflict arises in situations where the role positions of individuals prove to be incompatible. In everyday experience, a person tries to cope successfully with all of his or her obligations related to the demands of the individual social role, but this is not always achieved. 2. INTERPERSONAL CONFLICT Develops when two individuals express disagreement about goals, actions, decisions, outcomes, etc. The reasons for this conflict lie in the different perceptions of the two, different motivations, different learning styles, differences in assessment styles, and other internal Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 256 individual differences between people. This conflict at work manifests itself in different ways. For example, two people may get into interpersonal conflict in a struggle over who gets more of the limited resources or who gets approval of their project. D. Dimitrov considers interpersonal conflicts as a clash of interests between two people. V. Avramov's understanding of the nature of interpersonal conflict is similar to that of D. Dimitrov, but he also adds that the parties involved in the conflict are bearers of mutually exclusive goals. Regardless of whether this type of conflict arises in a work situation or not according to W. Markham it has a destructive effect on relationships. It also negatively affects those who must work with one or both parties involved in the conflict. М. Mescon, M. Albert and F. Hedowry consider interpersonal conflict as directly related to communication between people in a community. 3. INTRA-GROUP CONFLICT Occurs and develops mainly because of intellectual differences (and hence differences in behaviour) between group members. In addition, this type of conflict is also based on the emotional reactions of group members to a situation. А. Angelov, M. Harizanova and M. Kuzmanova adhere to the idea that intragroup conflict exists in the organization when an individual violates the norms of behavior established in the group. This immediately leads to the adoption of disciplinary measures against the group by the leader. The expected results of the presence of such conflict may find expression in negative behavior towards the individual or the group. Furthermore, it may lead to a decrease in work productivity and a deterioration of the relationship between the supervisor, the individual and the group. К. Levin in the process of studying group dynamics determines the level of tension that exists in the person and the group. According to him, the occurrence of conflicts depends on the atmosphere that is established in the group, on the group norms imposed and on the relationships between the members in the group. As the cause of the emergence and development of intra-group conflict, he points first to the degree of satisfaction-unsatisfaction of needs. Unmet needs increase the likelihood of conflict. Secondly, the author puts the amount of space for free movement of a person. К. Levin believes that the adaptation of an individual in the group is formed by the subjective space for free movement, which provides opportunities for the satisfaction of individual needs. In case it is restricted, the tension increases. The third reason for the occurrence of intragroup conflict is associated with the presence or absence of opportunities to get out of an unpleasant situation. The increased internal tension creates a tendency to leave. The last cause is determined by the degree of congruence or divergence between the goals of the members and the group. If the goals coincide and are common, it implies interaction in achieving them. The American sociologist L. Kozer advocates the idea that the more closed the group, the more intense the conflicts within it. In the great variety of groups in which a person is involved, he seeks to satisfy his needs, goals and interests. On the other hand, he is obliged to conform and obey the group norms, requirements and values existing in the group. And conflict can arise precisely from the discrepancy between individual and group desires and interests. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 257 4. INTERGROUP CONFLICT This conflict arises between groups, whether formal or informal. These are disagreements between separate groups dependent on each other in an activity where dissatisfaction is expressed leading to opposition. J. Greenberg advanced the idea that intergroup conflict exists when two groups are in conflict with each other and each group is trying to achieve its set goals. W. Markham shares that some organizations actively encourage conflict and competition between teams and employees in their organization, believing that by doing so, teams will work harder and achieve better results. In this case, competition can become a leading line of behaviour and not have a positive impact on performance. In such situations, measures should be taken immediately and the energies of each team should be redirected in other directions, especially those that are in the strongest competition. Competition between teams can result in members of one group deliberately sabotaging the efforts of the other in their strong desire to win. This might not be to the benefit of the organization, due to a lot of wasted time and effort, but can lead to conflicts in the workplace. The dynamics of intergroup conflict provide an opportunity to uncover the ways in which individual groups function within the whole organisation. The division of people into separate structural units leads not only to the sharing of a common organizational culture, but also to the development of its own subculture, whose values and norms are specific and sometimes differ significantly from other subcultures in the organization. Individual subcultures are formed both horizontally and vertically and reflect the core values and goals of the group. Adherence to different values and competition for resources place departments and groups in a near conflict situation. An important moment in the development of conflict situations between groups is the process of building group cohesion and group identity, in which one seeks opportunities for identification with the group to which one belongs. This contributes to the reinforcement of his self-concept, strengthens his self-confidence and realizes the adequacy of his self-esteem. The more cohesive a group is, the stronger its identity and the danger of difficulties in coordination and integration in interdependent tasks. As a result, intergroup conflicts may arise and several changes in intergroup relations may occur. First, group perceptions become distorted, as each group perceives itself as better than the other does. Furthermore, the opposing side is seen in an unfavourable light. Another change occurs in the direction of increasing distrust of the other group. There is hostility, which in turn leads to a restriction or avoidance of communication, and consequently the decision-making process breaks down. The conditions that create the prerequisite for the emergence of intergroup conflicts according to V. Avramov are primarily rooted in the organizational instability of the firm. Moreover, the mistakes made in the allocation of resources between individual structural units can also be considered as a cause of the emergence of this type of conflict. As another cause, the author considers the clash of interests between different groups in the organisation. М. Mescon, M. Albert and F. Hedowry describe this type of conflicts as more complex than interpersonal conflicts, where individuals can act independently to resolve contradictions among themselves, but as members of groups they have to comply with the norms, values and goals of the group, as well as be loyal to it. According to the effects that conflict has, the conflict typology outlines other types of conflict: constructive conflicts and destructive conflicts, i.e. they lead to an increase in organizational Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 258 effectiveness or they lead to a decrease in personal satisfaction, group cooperation and organizational effectiveness. In interpersonal conflicts, the results can be positive (the conflict is resolved, the parties gain experience and broaden their worldview) - this is the so-called functional conflict, but they can also be negative (disruption of interpersonal relationships) - dysfunctional conflict. Another classification of conflicts defines them as: 1. Conflict of interests - incompatible aspirations to limited resources, goods, etc. It is associated with competitive behaviour between participants and striving to gain at others' expense, which gives rise to enmity, fighting, etc. 2. Cognitive conflict (conflicts of ideas) - associated with solving problems on which individual participants have different views, which gives rise to inconsistencies in assessments of the situation, and hence in behavior. There are three derivatives of cognitive conflict:  Attitudinal conflict - refers to the biases of the disputants;  Values conflicts - due to different social experiences, culture, moral and normative system, paths of socialization, etc.;  Psychological conflict - due to the peculiarities in characters, to the discrepancy in the dynamics of mental processes, to the differences in intellect, in upbringing, etc.; 3. Organizational conflict - as a result of poor organization of joint activity. According to the nature of the relationships of the participants, conflicts are divided into vertical - between superiors and subordinates and horizontal - between collaborators in the respective collective. According to the environment, there are conflicts between the organisation and the environment. They arise mainly from the uncertainty in relations with state authorities, partners, suppliers, consumers. In addition, conflicts can be conditionally distinguished into content, procedural and relationship conflicts. There are important conflicts affecting the substance of relationships with other people, as well as those for which unnecessary efforts are often wasted, not affecting individuals as a whole. According to the way they arise, conflicts are: spontaneously occurring and consciously provoked, and according to the degree of publicity - hidden and open. In their gradation, conflicts can be: 1. The "business dispute" type - in this type the disagreements are about the joint activity. The resolution of this type of conflict is easy, it does not require the intervention of external people; 2. The type of "formalization of relations" - in it the circle of disagreements is expanded and the participants in the conflict do not believe that a consensus can be reached. Sometimes the conflict is transferred to a third party - the management or the collective, which leads to its difficult resolution; 3. The type of "psychological antagonism" - in this type the parties are openly hostile to each other and do not make any attempts to reach an agreement. This makes conflict resolution extremely difficult. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 259 Figure 1 presents the most common conflicts in organizations, according to the causes of occurrence, and Table 1 describes the causes, characteristics, and courses of action, respectively. Figure 1. Conflicts in organizations, according to the causes of occurrence Conflicts of relations Conflicts of infomation Conflicts of interests Structural conflicts Conflicts of values Table 1. Main types of conflicts in organizations Types of conflicts Conflicts of relations Causes  Poor communication  Different stereotypes  Negative behaviour  Strong emotions  Repetitive negative behaviour Characteristics Mode of action They are conditioned by strong negative emotions, layered stereotypes, misunderstanding of the situation, ineffective communication and unwillingness to understand each other. Often these conflicts are defined as 'unnecessary', as they arise even when no objective conditions exist. They are the surest means of escalating tensions. By identifying them, the following steps can be used to resolve them: Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/  clarifying perceptions through effective communication;  exercising control over emotional processes and the emotions expressed;  recognising the importance of feelings;  encouraging positive decision-making attitudes; No. II, 2023 pg. 260 Types of conflicts Conflicts of infomation Conflicts of interests Structural conflicts Causes  Lack of information  Misinformation  Different criteria  Different interpretation  Different assessment procedures  Property  Competing interests  Substantive  Procedural  Psychological  Various resources  Geographical constraints Characteristics Mode of action They generally boil down to: inadequate communication system; lack of information; different criteria for evaluating information; different interpretation of information. Easily resolved by: These conflicts are caused by rivalries in the distribution of scarce goods. Most often, one side attempts to satisfy its needs at the expense of the other. This type of conflict concerns both the content of the processes /money, resources, goods/ and the ways in which the dispute is conducted, i.e. the procedure. Moralpsychological issues such as trust, mutual respect, fairness are also involved. Structural conflicts are related to the place of the conflicting parties in the management hierarchy, the social role they play, the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/  improving hierarchical and vertical communication networks;  developing a system for collecting and processing information;  developing common criteria for evaluating information;  using experts. In order to resolve these conflicts, it is necessary to diagnose those roles that are mutually exclusive, complementary and common. Only on the basis of common interests can stable relations develop between the parties, following the steps described for resolution, such as:  creating a conducive working atmosphere;  focusing on interests rather than positions;  developing solutions that meet the needs and interests of all.  developing a reward system; The resolution of structural conflicts is achieved by: No. II, 2023 pg. 261 Types of conflicts Causes Characteristics  Time constraints  Unequal power  Violation of rules  Unclear/unacceptable rules  Unclear objectives  Skipping phases different degree of control over resources and the unequal distribution of power. Considering structural conflicts, one can speak of two types of conflicts: hierarchical-role and functional-role. 1. 2. The former are the result of unresolved problems between units and specialists of different hierarchical levels, of artificially maintained great distance, of poor leadership style on the part of superiors, of deliberate suppression and discrediting of those who are capable and those who wish to grow in the profession.  clear and precise definition of roles;  establishing a fair and mutually acceptable decision-making process;  changing the way influence is exercised;  changing time constraints;  responsibility to bear the burden associated with the moves made and decisions taken. The second is the result of misallocation of authority horizontally, i.e. between units/organisational forms at the same management level. The struggle is for better positions, for redistribution of responsibilities, for faster career advancement when it comes to individuals. Here the conflict can be referred between the supervisor /formal leader/ and the informal leader, as well as the conflict between the heads of the different functional units. Journal of Management Sciences and Applications ISSN 2815-3030 Mode of action https://jomsa.science/ No. II, 2023 pg. 262 Types of conflicts Causes Conflicts of values  Religion, ideology  Differences in criteria for morality  Contradictory values Characteristics Mode of action They are distinguished when the people involved in the conflict have a different value orientation and feel a desire to impose their values on the other side or show intolerance to its value system. The characteristic features are: incompatible value systems; different criteria for assessing values; different way of life, ideology, religion. These conflicts are very noticeable and are resolved by:  allowing parties to have their own values;  avoiding defining the problem;  search for a higher value that unites the parties;  creation of spheres of influence. Source: Own (Adapted from the practical advice of various organizations.) CONCLUSION Conflict exists on different levels. Depending on criteria, different classifications can be made. In organizations, there are five types of conflicts that need to be addressed most often. Sometimes conflicts have a destructive effect and a timely response would contribute to maintaining stability in the organization. In other cases, the conflict has a beneficial influence to clarify the situation and can be seen as an opportunity for development. The skills and actions that will be taken are important for the overall development of the company and its people. 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(1998) Kak da reshavame uspeshno konflikti: Sistema za obuchenie na uchenicite v goren kurs: Rakovodstvo za uchiteli, Centar Otvoreno obrazovanie, Sofia (Вълчев, Р., 1998, Как да решаваме успешно конфликти: Система за обучение на учениците в горния курс: Ръководство за учители, Център Отворено образование, Сoфия) Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 264 Loreta Traykova PhD – student at University of National and World Economy Department of Management, Faculty of Management and Administration, University of National and World Economy, Sofia, Bulgaria e-mail: l.traykova09@gmail.bg ; loreta.traykova@unwe.bg CHARISMA AS A FACTOR OF THE FORMATION OF LEADERS IN THE MUNICIPAL ADMINISTRATION ON THE TERRITORY OF THE REPUBLIC OF BULGARIA ORCID: https://orcid.org/00090009-6942-1579 ABSTRACT This article aims to study and present charisma as a factor of the formation of the leader, taking as an example the municipal administration in the Republic of Bulgaria. The author has used data from her own online survey of mayors of municipalities in the Republic of Bulgaria, as well as of district mayors of the Pages: 265-273 cities Sofia, Plovdiv and Varna. The survey started in June 2022; by the time this DOI: article was written, responses had been received from 55 mayors. The author’s emphasis will be on one of the survey questionnaires, composed of questions https://doi.org/10.37075/JOMS grouped into six blocks. The analysis methods are: descriptive statistics, A.2023.2.08 calculation of mean values, testing of statistical hypotheses, and analysis of openended questions. The analysis identified factors of charisma and the respective personal characteristics. The identified personal features and behavior of the surveyed mayors may be used to design a profile to be applied when selecting candidates for public positions. Published First Online: 19.12.2023 KEYWORDS: charisma, leadership, personality factors, local self-government, Bulgaria JEL: H7, R5, Z00 INTRODUCTION The management of any economic organization is a complex process which requires a certain set of knowledge and skills that the senior managers and their employees should possess. In order to achieve success in governance, a leader must coordinate activities and direct the team members’ efforts to achieving the organization goals. In recent years, increasing attention has been devoted to the personality of an organization’s leaer as a factor of success for that organization. The emphasis is on the qualities that a leader should possess, on his/her ability to motivate and engage the team members in the organization goals, on the leader’s associating and identifying with the organization’s vision and mission, its social and economic success. Leadership is a basic element of effective management. The effectiveness of leadership is undoubtedly determined by some basic human qualities. This has been confirmed by research on the behavior of outstanding leaders in the last one hundred years. Many researchers in various fields have addressed the question whether a leader is born or made, but no straight answer has yet been found, though a possible one is “both”. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 265 This article aims to study charisma (a gift from God, an innate quality of the person) as a factor of a leader’s formation, taking the municipal administration in the Republic of Bulgaria as a case in point. The subject of the research is charisma as a unique trait of an individual who possesses strong charm and magnetism, a quality that attracts followers. The research focuses on mayors of municipalities and districts within the territory of the Republic of Bulgaria as personalities having the highest public support. They embody institutional responsibility and stability within the state, demonstrate personal concern and understanding of the needs of citizens whose interests they represent and the expectations for resolving societal issues directed towards them. The topical importance of this study of charismatic leadership and of the personal characteristics a leader should possess is supported by the fact that not every person holding a position of leadership has the skill to lead: certain personal qualities and social skills are required for the purpose. On the other hand, in order for leadership qualities and skills to be demonstrated, there must be a group of people whose joint activity requires an internal organizer. The focus of this article is on exploring the phenomenon of "charismatic leadership" and its manifestation in public administration in Bulgaria. Specifically, it aims to prove the hypothesis that charisma is a crucial factor in shaping the personality of a leader in municipal administration in the Republic of Bulgaria. This influence is most prominently reflected in the relationships between the mayor and the individuals he governs. The choice of this public sector as the subject of research is based on the observation that the possibility of developing leadership potential in the public/municipal administration is considerably more restricted than in the sphere of business organizations, because the former seeks to satisfy public needs and improve the living standard of the population, while the latter seek profit. Moreover, we found that no in-depth studies of this public sphere had been conducted in Bulgaria, The relevant studies we found concern the management style of leaders in the private sector or in the military; or concern leadership theories examined through the optic of Bulgarian organizational culture (e.g., Dimitrov & Karastoyanov, 2012, Manolov, 2011; Petkova-Gurbalova, 2020, 2021; Petkov & Encheva & Аtanasova, 2018; Radev, 2020; Stoyanova, 2015; Uzunov & Zhivkov, 2020; Bobina & Sabotinova, 2022; Chankov, 2023; Islam & Ali & Shahzad, 2018; Tzokov, 2019). Another reason for our choice is that mayors of municipalities and districts are elected by majority vote and mainly in consideration of their personal qualities – for they are the people who interact directly with citizens, whose problems they are expected to solve. An additional reason for this choice was the instability of the political environment in Bulgaria in the last few years. The combination of these factors comes close to the theoretical definitions of the phenomenon of leadership. 1. LITERATURE REVIEW In theory and also in practice, leaders are classified according to various criteria. Some authors divide them into the categories authoritarian and democratic, successful and unsuccessful, people-oriented or results-oriented, liked and hated. Leadership as such is also viewed in various perspectives: it may be natural, prestigious, institutional, voluntary or professional. The best-known theoretical classifications of types of leadership divide them thus:  Charismatic (based on the qualities and charm of the person);  Followership (based on the expectations of supporters and followers);  Situational (as a function of situations and threatsе); Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 266  Behavioristic (related to behavior);  Emotional (as a function of the specificity of interpersonal communication in the emotional, cognitive and behavioral aspects);  Relational (based on the specificity of the groups and conditions in which leadership is effectuated). It is assumed that the theory of charisma is a theory of the so-called “great” person (Ivanov, 2014). The term charisma comes from the New Testament and signifies “grace, favor” (Goleman, 2010). The founders of the theory of charisma are considered to be Charles Darwin and Max Weber. Darwin’s theory of evolution continues to serve as an explanation of charismatic leadership (Ivanov, 2014). Max Weber was the first to introduce “charisma” as a term. According to him, charisma is “a certain quality of an individual personality, by virtue of which he is set apart from ordinary men and treated as endowed with supernatural powers” (Ivanov & Chavdarova 2013, Leadership and Charisma, р. 101). Weber believed that an individual endowed with charisma is believed to possess supernatural, superhuman qualities that enable him to exercise a kind of “domination” over others (Ivanov & Chavdarova, 2013). In the inception of the theory of charismatic leadership, it was assumed that a leader is born rather than gradually formed, i.e., a leader’s qualities are psychologically inherited and are not created through ethical pedagogy. The proponents of this theory ascribe several categories of characteristics to leaders. The charismatic leader must be physically healthy; socially formed; socially complete and effective in behavior (Ivanov, 2014). Charisma has been pointed out by scholars as one of the most important and most interesting characteristics of a person, a characteristic that is particularly important for governance, as difficult as it may be to study and describe. Weber himself asserts that a leader must be charming and possess charisma. He claims that, thanks to this personal quality, an individual who does not have wealth, great physical strength or any other form of power, is able to exert strong influence on large groups of people, to “subject” their willing behavior to his will. Followers are attracted by the leader’s magnetism, his celestial gift. (Ivanov & Chavdarova, 2013). In recent years, the theories of charismatic leadership have been applied to the sphere of public life and business. Hughes, Ginnett and Curphy have devised a system of factors in order to explain the phenomenon and sum up all significant previous definitions. Their system encompasses the personal traits of leaders, the specificities of their followers, and the characteristics of the situation. The elements of charisma are presented in Figure 1. Source: Designed by the author based on: Iliev, Tsv. 8/2016, “Leader and leadership nature and theoretical constructions", Scientific Works. International Business School – Botevgrad, Bulgaria, p. 168 (in Bulgarian) Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 267 Not least, the environment largely determines the mutual relations between leader and followers. The situation is a factor that in some cases favors and in others obstructs the growth of charismatic leadership. Two favorable factors for the development of charismatic leadership are the existence of a crisis and/or the existence of interconnected tasks (Paunov, 2008). Parsons was the first to discuss the connection between individual charisma and the charisma of the normative order. His idea was supported by Shils, who in turn argued that individual and institutional charisma have a common nature. What they have in common becomes evident when the individual endowed with charisma is able to create a new order in destroying the old (Ivanov & Chavdarova, 2013). Charisma is also related to the leader’s authority; his demonstrated level of competence; organizational skills and the ability to find convincing arguments (Iliev, 2016). Generally speaking, the charismatic leader never leaves people indifferent: they either love him or hate him (Stoyanova, хххх). Charisma is hardly subject to quantitative measurement, but it can be felt by the people around, by different people to different degrees (Wilink, 2021). 2. METHODOLOGY Data was collected through an independent online survey among mayors in municipalities throughout the territory of the Republic of Bulgaria (265), as well as regional mayors in the cities of Sofia, Plovdiv, and Varna (35). The total sample size is 300 individuals. The research commenced in June 2022, and at the time of article preparation, it is still ongoing. Responses have been received from 55 mayors, comprising 44 males and 11 females. One difficulty encountered in the course of the study was establishing personal contact with all mayors of municipalities and districts. This article emphasizes one of the questionnaires used for the survey. That questionnaire contains 24 questions grouped in six dimensions: 1. Vision and articulation; 2. Environmental sensitivity; 3. Unconventional behavior; 4. Personal risk; 5. Sensitivity to member needs; 6. Does not maintain stutus quo. The model for studying charismatic leadership was designed in 1994 by Conger and Kanungo (Conger and Kanungo, 1994). It was structured into three stages. In the first stage, the environment is assessed through questions aimed to reveal the leader’s ability to see the particularities and needs of his/her subordinates, the possibilities and restrictions of the environment, and the challenges arising to the established order. The leader’s vision is studied in the second stage. The questions here are meant to reveal the leader’s ability to construct an inspiring vision and transmit it effectively to his/her subordinates. The third stage deals with the exercise of leadership. Here, the questions are related to two dimensions: risk and unconventional behavior. The aim is to establish the degree to which a leader is able to take personal risks and to demonstrate his commitment and uniqueness through his conduct. Conger and Kanungo analyze the collected data using the method of principle component analysis. They thereby define six dimensions of charismatic leadership, each of which can be used as a separate subscale: vision and articulation, sensitivity to the environment, unconventional behavior, taking personal risk, sensitivity to the needs of others and does not maintaining the status quo (Conger and Kanungo, 1994). Basing our study on their model, we have adapted and tested their questionnaire in a survey of public sector leaders, specifically, leaders in municipal and district administrations on the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 268 territory of Bulgaria. We used 24 questions related to the six dimensions indicated above. A five-degree Likert scale was applied, ranging from 1 – “fully agree” to 5 “disagree entirely”. The methods used in processing the results are: descriptive statistics, calculating of mean values, testing statistical hypotheses (Goev et al., 2019) and analysis of open-ended questions. 3. RESULTS Analysis of the results has identified the factor that has the strongest influence for charismatic leadership among the surveyed mayors. It is “Sensitivity to member needs” (4.42). Table 1 shows the mean values by factors and the total number of mayors having the highest score on the respective factor. Table 1. Mean values by dimensions and numbers of mayors Vision and articulation Environment al sensitivity Unconvention al behavior Personal risk Sensitivity to member needs Does not maintaini ng the status quo Total mean value 4.28 4.36 3.33 4.04 4.42 3.13 3.93 18 19 6 14 34 7 Total number mayors factors Source: author’s own sources Base: 55 It is evident from the data that charismatic leadership of the surveyed mayors is most prominent with regard to “sensitivity to the needs of others” (the employees of the municipal/district administration and the residents of the municipality/district). This is confirmed not only by the mean value but also by the number of mayors with highest percentages in this specific dimension – 34; in other words, the highest share - 61.82 % of all surveyed mayors - is related to this indicator. The indicator “unconventional behavior” is the leading factor of a mayor’s charismatic leadership in only six cases. It should be noted that some of the surveyed mayors have equal mean values for more than one dimension, and in some cases all the leadership dimensions of a mayor have the same mean value. In other words, charismatic leadership of some mayors is evident in several or all dimensions. Figure 2 presents the mean values by each dimension of charismatic leadership for men and women in ascending order, as well as several quotes from the responses of surveyed employees in the municipal/district administrations to the open-ended question: Briefly describe what you like and value most in your leader. This question was included in an anonymous questionnaire (which contains 8 blocks of questions: energy and determination; vision; challenges and encouragement; taking risks; open-ended questions: personal qualities, mutual relations and style of leadership) randomly sent to the municipalities/districts whose mayors gave consent for participation. The highest mean values on the questionnaire for self-assessment of charismatic leadership filled in by mayors is evident for the dimension “sensitivity to the needs of others” (4.42), and the lowest, for the dimension “maintaining the status quo” (3.13). The total mean value on all dimensions of all surveyed mayors is 3.93. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 269 of by Figure 2. Mean values by factors Source: author’s own sources The testing of hypotheses regarding mean value differences on the six dimensions, related to various characteristics of the respondents indicated a statistically significant difference by gender, by the size of the respondent’s municipality (small, medium, large) and by the category “municipality or district”. The level of significance is (p < 0.05). Table 2 presents the basic characteristics for each of the dimensions of charismatic leadership: Table 2. Basic characteristics by factors Dimensions Characteristics of mayors with highest results on the respective dimension Number of surveyed mayors Vision and articulation - they are good speakers; 18 - they have good presentation skills; - they can inspire and motivate people; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 270 - they have a vision for the future; - they are constantly generating new ideas; - they set inspiring strategic and operative goals. Environment sensitivity - they are able to easily recognize the social, cultural, administrative and physical restrictions in the environment that can obstruct the achievement of goals; 19 - they can easily recognize opportunities that may help achieve goals; - they are aware of the weak points of their subordinates and recognize their strong points; - they have an enterprising spirit. Unconventional behavior - they engage in unconventional behavior in order to achieve goals; 6 - they often behave in unconventional ways, thereby surprising their subordinates. - in order to achieve goals, they often engage in activities requiring considerable self-sacrifice; Personal risk 14 - they take high personal risks; - they often invest their personal financial resources for the good of the municipality. Sensitivity needs to member - they are understanding towards their employees’ needs and feelings; 34 - they set an example for others; - they create an atmosphere of mutual respect and sympathy; - they often express personal concern for the needs and feelings of their employees. Does not maintain the status quo - they try to preserve the status quo and the traditional way of doing things; 7 - they are supporters of the traditional methods of management, established over time, by which goals are achieved. Source: author’s own sources The data presented in this table indicate that charismatic leadership is most prominently displayed in the relation of mayors to their employees and the citizens of their municipalities. We see that the largest accumulation is in the dimension “sensitivity to member needs”. Thus, a mayor’s attitude to people is indicative of his/her social skills and empathy. Empathy and the possession of social skills are a leading factor of governance of the municipalities/districts. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 271 DISCUSSION AND CONCLUSION This article aims to study charisma as a “unique” factor influencing a person’s being perceived as a leader. Charisma is a unique feature of an individual who possesses strong charm and magnetism, and thereby attracts followers. This characteristic in a leader is considered to be a unique set of supernatural, superhuman qualities, an endowment from above. According to theory, it is a factor acquired at birth; when combined with factors acquired through life (education, upbringing, professional skills, etc.), it influences the formation of a leader’s personality. This combination of factors is particularly important in the selection of candidates for high public positions, as they are the ones who will be managing public resources. The analysis of the results reveals the dimension that is most significant in the charismatic leadership qualities of the surveyed mayors. The results obtained thus far show that the dimension “sensitivity to other people’s needs” is the predominant dimension of leadership charisma among the mayors of municipalities and districts in Bulgaria. This dimension, related to the social commitment of mayors, was confirmed by the responses employees of municipal and district administrations gave to the open-ended questions. No gender-related differences were observed in the study of charisma, but such differences were registered in the study of the personality profile of the same mayors. In both cases, no differences related to the size of the municipality/district (small, medium, large) or in terms of the category municipality as opposed to district. Based on the identified personality traits and behavior of the surveyed mayors, we may deduce a profile that should be applied when selecting candidates for public office. In the future, the correlation between innate personality characteristics (charisma etc.) and acquired personality traits (education, professional skills, etc.) will be studied, as well as their impact on the management style the leader applies in his/her work at the municipal/district administration and their impact on the financial results of the municipality/district. Not least, the impact of the aggregate of these qualities and the mandate of the mayors will also be analyzed. 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(Стоянова, Цв., хххх. Лидерство, курс лекции за дистанционно обучение, магистърска програма по Бизнес администрация, Университет за национално и световно стопанство); Tzokov, P., 2019. The challenges of globalization to charismatic leadership. International journal. Institute of Knowledge Management, Vol. 35.1. Knowledge, (р. 333 – 339); Uzunov, F., Zhivkov, N. 2020. Harizmatichnata lichnost na Georgi Benkovski – apostola na bulgarskata natsionalna revoliutsia. Nauchen zhurnal „Vestnik po pedagogika I psihologia Juzni Sibir”. (Узунов, Ф., Живков, Н. 2020. Харизматическая личность Георгия Бенковского – апостола болгарской национальной революции. Научный журнал „Вестник по педагогике и психологии Южной Сибири“); Willink, J., 2021. Liderstvo. Strategia I taktika: polevi narachnik, Sofia: LOCUS PUBLISHING. (Уилинк, Дж., 2021. Лидерство. Стратегия и тактика: полеви наръчник, София, LOCUS PUBLISHING). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 273 FEATURES IN THE DEVELOPMENT OF URBAN SYSTEMS AND OUR ENVIRONMENT IN THE CONTEXT OF GEO-URBAN DEVELOPMENT Mihaela Georgieva Dr. e-mail: mihaela.i.georgieva@gmail.co m ORCID: https://orcid.org/00090007-6332-2073 ABSTRACT This paper is devoted to issues related to the definition of the spatial landscape framework of urban systems development. The introduction includes some aspects of spatial planning and legal provisions related to spatial planning and the various zoning and development policies that apply in the modern nation-state. The author's views on the influence of landscape on spatial development are also presented. Next, an analysis is made of the incorporation of regional science to assess and analyze the spatial development of urban systems and how this differs from a purely urban planning approach to our surroundings. Specific features of landscape and regional science are discussed. Particular aspects of policy implementation related to the analysis and features of urban space research and development are highlighted, and leading authors and researchers are mentioned. The urban focus of spatial policies is then outlined. The conclusion summarises the author's views on the importance of urban processes for contemporary regional development and spatial governance. Published First Online: 19.12.2023 Pages: 274-280 DOI: https://doi.org/10.37075/JOMS A.2023.2.09 KEYWORDS: cities, development, public sector, change, settlements, governance, environment, territory JEL: R15, R58, E27, E61, L98 INTRODUCTION Spatial planning is a system of measures, acts and actions of a de facto legal nature that aim to create normative conditions for the use of the land surface for work, recreation and recreation of the population. In the modern nation-state, territories are divided into groups according to various criteria. The division of territories has its horizontal and vertical distribution. More fundamentally, the modern state determines which parts of its territory can be used for which purposes, irrespective of their physico-geographical location. This framework and functional division of territory is usually done through regulations or laws. In the first place, the hierarchy implies to be taken into account as written in the Constitution of the modern state, in the second place is the legislative framework that brings out the regulation of the main administrative units of the country. This paper aims to set the framework of administrative and territorial planning of the national territory through the prism of regional development and the functioning of the administrative-territorial units. Here arises the question of the peculiarities of the legal characteristic of property rights and territorial rights. Here it is worth mentioning that land has its own property. In this direction, we can assume that ownership is a legal right to an asset, which gives the owner the power to do whatever he wants, subject to the restrictions provided Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 274 by law or contract. A person can have only one property, no matter what its size. If that person's estate has separate rights, obligations and de facto relationships, for example a business enterprise or has accepted an inheritance under inventory, it does not mean that the person owns two estates. Thus, with respect to regional governance, it is important to determine that all landuse activities are subject to legal regulation. From the point of view of regional development, we will not mainly observe the legal side, but we will refer to the Law on Spatial Planning, the Law on Administrative and Territorial Planning and other important laws concerning territorial development issues. It is worth mentioning here that, according to an expert assessment, the Law on Spatial Planning (LZP) adopts rules which in some cases go beyond the limits of classical administrative law. Article 7 of the Planning Act defines territorial and land properties according to their main purpose. It is determined specifically through development schemes and development plans (Botev, J 2000). Thus, it is important to note that according to the legislation and in territorial terms, it is assumed that land plots are parts of the territory and their use depends on the nature and on the provisions and perspectives of the respective plans. The first, basic category is the so-called urban areas. These are used to meet the immediate needs of people for work, recreation and recreation. The second, subsequent category is the agricultural categories (territories). These cover arable land and often non-arable land. The third category is forest areas. The fourth - the protected territories (Stanev, p, 2000).The legislation allows change in the use of the territory. This requires certain actions to be carried out. First of all, it is important whether the development event is planned for the territory or land plot. This means that under this law only the development can be the reason for a change in the designation of the territory. Another important condition is to have a detailed development plan in force. This means that this plan has been created by the relevant competent authorities and the appeal periods have expired or have not been appealed. For areas or parts of areas which are public, state and public property, no change of use is allowed. This transition to spatial planning policies is related to the fact that since 1990, in the years of transformation, the understanding of the spatial arrangement of settlements in general has changed and we have a total contrast in land use and spatial planning. This undoubtedly leads to depressive development of settlements, and the expectation is that gradually local authorities and central government will realize that this pattern of chaotic regional development also sets urban development at more than two speeds (Tsonkov, 2022). On the other hand, in the context of contemporary urban studies, research accepts a basic starting point: at its deepest, cities are an economic phenomenon - a primary and spontaneous form of economies of scale. The socio-cultural and civilisational significance of cities and urbanisation has its economic determinism. For many geographers and economists, the uneven development generated by the principles of the market economy is the basis of the acute social contradictions of modernity. And the explanation of this uneven development is embedded in the very patterns of macroeconomic development and political stability of development. Uneven development and inequality are also a feature of urbanization. Thus, we can assume the growth of cities along with the spatial growth of depressed areas and the ghettoization of urban territory. In relation to this, there is an imperative need to expand the living environment, but at the same time, many efforts are needed to maintain the quality of life in cities. In this direction, we will trace regional development as a factor for the development of urban systems (Petrov,2015). 1. THE URBAN LANDSCAPE AND REGIONAL SCIENCE Focusing on population, society and the economy, examining them from all sorts of aspects, it elucidates basic economic issues related to the development, structure and distribution of the workforce, work habits, economic specialization. By linking the objective natural complex (the landscape) with the super-current issue of the protection of the natural environment, one inevitably arrives at the contemporary landscape ecology of cities. The main author who Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 275 brought urban landscape as a scientific field was Karl Troll, who for the first time in his research used the concept of urban landscapes, which include the territories with the immediate perception of natural and "human" (settlements, traffic flows, etc.) components. He sees landscapes primarily as morphological features. For Troll, the changes made by people in the landscape represent the main task of regional research. Karl Troll's definition of landscape is somewhat different from the understanding of landscape by nineteenth-century geographers. After the Second World War, landscape traditions continued their development in the major interdisciplinary field of Regional Geography and later in Regional Economic Geography. Regional studies reflected the spirit of neo-positivism in the social sciences in the 1970s. It is the quintessence of a synthesized methodological approach, in this case focused on regional studies. Regional science is a field of social science concerned with analytical approaches to problems that are primarily urban, rural, or regional. Topics in regional science include location theory or spatial economics, location modeling, transportation, migration analysis, land use and urban development, cross-industrial analysis, natural and environmental analysis, resource management, urban and regional policy analysis, geographic information systems, and spatial data analysis. In the broadest sense, any social science analysis that has a spatial dimension is covered by regional science. uka. The beginning of Regional Science is usually taken to be the late 1940s, when some American economists, dissatisfied with the low level of regional econom ic analysis, had the urge to update it. Working in the field of regional planning, in 1950 Walter Eisard met at the American Economic Association with 26 other like-minded economists to work out a more detailed idea of what the emerging science should look like: it should be interdisciplinary, with a new concept and methodology. The official "beginning" of Regional Science, however, is 1954, when the Regional Science Association was founded (by members of the American Economic Association, including Walter Eisner), a time when Eisner was working on his first major work, Location and Space Economy, probably based on his original Harvard lecture course on location theory and regional development (. Even the modern economic theory of urbanism and regional development is a macroeconomic discipline in its spirit, and therefore leaves little room for a microeconomic approach, characteristic of the classical location theory for the location of industrial and other sites (Geneshki, Georgiev, 1995). In 1991, Paul Krugman, highly regarded as a theorist of international trade, urged economists to pay more attention to economic geography in a book entitled Geography and Trade, emphasizing the basic region-based scientific concept of agglomeration economics. Thus, with the creation of the New Economic Geography, there is renewed interest in Regional Science, with which the New Economic Geography has many points of contact. Moreover, the unification of Europe and the increasing internationalization of the economic, social and political spheres of the world has further induced interest in the study of regional, as opposed to national, phenomena (Blaug, M.1996). The rapid prosperity of the New Economic Geography at the Cape has also been due to the well-trained specialists of the London School of Economics, who combine t quantitative analysis with other research techniques. In his Nobel lecture, Paul Krugman has references to both the location theory of regional science and the economic theory of trade. It is a form of economic analysis that aims to explain the spatial structure of the economy by creating models in which increasing utility has a place in an imperfect market. The development of the New Economic Geography is the result of the explosive interest of economists in questions of space to govern economic activity. The new theoretical elaboration of the spatial concentration of industry through the approaches of the New Economic Geography greatly assists in understanding why some regions develop more than others, why cities arise, and where they are located. A complete theory of regional development would integrate the theories of agglomeration economies with physical geography and with public sector economics (Sachs, 2008). ideas of urban modernisation are moving away from their original meaning and are beginning to have more negative consequences for the urban environment and ultimately becoming a driver for processes of spatial segregation and Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 276 economic and urban decline. The segregation of urban space in the major urban centres of Western democracies was most intense precisely in the apogee period - the 1960s, 1970s, when the largest infrastructure projects were implemented. The social basis of artistic modernization is the industrial economy in its last stage, preceding postmodern times. The cities of the early Industrial Revolution were at the epicentre of progress and the urban environment was a reflection of new forms of economic and social governance. And, above all, of the tradition of governance of the modern nation and colonial state - centralized from the metropolis to the periphery, both in "overseas" and "home", provincial aspects (From the point of view of urban development, we are of the opinion that GDP is a more appropriate aggregate macroeconomic indicator that can be used in monitoring urban development and in particular the urban economy. The main reason for this is that cities are a major centre of attraction and in many cases, and especially in less developed countries, urbanisation is largely an efficient process driven by foreign investment. This applies to a high degree to the sectors of the urban economy such as services, trade and construction, and also to a number of industries attracting labour from agricultural areas(Asheim.1996).Here the role of the city rises within the landscape, in which the city, creating some good (product or service), and its sphere of influence, are the basic elements of the lower level subsystem of such subsystems as from the "cells" of the nationwide network the lower level of the pattern is formed. Thus, the pair "city - zone of influence" becomes the basic construct in a model of urban systems development. In it, production is located in a specific plane (plane), but output "flows" to the pole (the city acts as a market). Population size and settlement importance are not necessarily synonymous, but the central place is conceptualised in terms of its importance in the area around it. Thus, the city and the settlements form the agglomeration area. The purpose of its study is to determine the optimal location of cities. Thus, the central place is some territory in which there is a city that performs the functions of serving the population of the area, providing trade of goods and services. Thus, the urban environment has its own intensity and importance depending on the size of the locality. The very possibility of creating urban spaces within economic activity is very significant for the economy of the city. Urban space thus serves as one of the factors of production on the one hand, and on the other hand, it is itself a product of productions intended for intermediate (production) or final consumption. In this regard, the analysis of the role of the city's infrastructure deserves special attention. Moreover, the emergence of basic concepts and numerous empirical studies summarizing extensive factual material create a prerequisite for the formation within the scientific field of city economics of a subject for research of an academic type with logically organized theoretical foundations. For their modern development, cities in the world rely on innovation, which is the main driver of economic growth and increases the investment potential of the city. Innovation is vital not only for the development of the economy, but also for the development of the whole territory. In the city, the relationships between people are much more intense, ideas are born, and they drive innovation processes. On this basis, the innovative development of cities is being developed. The modern development of cities is accompanied by significant technological and societal changes which impose new challenges on society. The city is the place where people meet much more often, where they can exchange ideas to solve important problems. 2. FEATURES OF URBAN SPACE RESEARCH AND DEVELOPMENT The main thing is what is the state of urban space is derived processes and spatial forms of social relations, which are closely related to the general mechanisms of social development. In order to understand the processes in cities, the processes that create and restructure spatial forms must first be uncovered. The spatial planning and architecture of cities and their districts reflect the conflicts between different social and economic communities. Housing, schools, transport, services and entertainment are the modes of consumption of the products of modern industry, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 277 i.e. location within the urban territory is important in terms of attitudes towards business behaviour. The taxation system influences where and who can buy, rent or build. Large corporations, banks, and insurance companies providing capital for urban development have considerable power over the processes of shaping the urban environment. State and municipal institutions also directly influence many aspects of the urban environment through the planning and construction of urban infrastructure. The physical appearance of the city is therefore the result of the action, interaction and often counteraction of market and institutional forces. The example of the labour market is a simplification of the spatial model of an urban economic system, especially given the importance of temporary labour migration, the rise in importance of telecommunications (the internet), and labour and/or housing markets often defining the basis on which the concept of local/urban economy is based. However much the concept of a local economy may appear to be a given, it must be recognised that it is based on certain fundamental (unavoidable) conditions, even if these are widespread or artificially held for a long time. To speak of an urban economy in a meaningful sense is to make sense of the whole range of exchange - labour and the basic commodities involved in production and consumption. Territory is one such factor of production, and the market for land as well as property presages the widespread spread of private property, but also the responsibility of states to enforce property rights. The idea of an urban economy also implies a specific division of labour that generates the exchange of goods and services. As the territorial scope of economic activities expands, the coherence and limitations of the local/urban economy increasingly come to the fore. As flows across borders intensify, the meaning of the thing called national economy is now being questioned. The coherence of local/urban economies is rooted in the mindset that economic interests and communities share a collective dependence on social and technical infrastructure such as transportation and utility networks, labor markets, and the capabilities and powers of local government. They can all be seen as a specific territory, which means that their spatiality tends towards a relatively compact form. The new global role of the urban economy began with the transformations at the micro and macro levels in the West, following deindustrialisation in the 1970s, and in some developing countries since the mid-1980s. As a result of large-scale restructuring, major cities and metropolitan regions adopted their own, local principles and initiatives to generate employment and growth without waiting for and overly depending on national economic trends (Shikova,2000). As a direct consequence, in some cities and urban areas with old industrial infrastructure, the shift to the tertiary sector has caused massive structural unemployment. Thus, many towns and cities which generally account for a large share of the national system have fallen into serious crisis. In this process, the trend of local coping through the mechanisms of clustering has begun in cities. Local governance has assisted these processes by creating suitable conditions for endogenous growth (Krugman, 2010). The essence of this approach is the understanding that the mobilization of endogenous local resources and partnerships (clustering) can benefit from globalization processes instead of being a passive consumer and will improve the conditions for growth. Urbanisation is above all a change of organisation and way of life imposed by economic processes. Urban settlements are the first known form of the principle of 'economies of scale'. Econom ics and urban econom ics take into account the relationship between the main stages in the development of production relations and the stages of urban developm ent (within the geographical scope of the 'old world'): pre-antique, antique, medieval, early capitalist, modern, post-modern. There are several significant reasons that led us to focus on one such issue as administrative-institutional conditioning in the development of urbanization. First: the social "address" of most of the natural "driving forces" of the urbanization process (modernization and technological development, the development of productive forces, the intensity of the social and territorial division of labor, the movement of capital) is no longer the city alone, but also the other (nonurban) settlements (especially in developed countries) where agricultural production is developed. If the first technical breakthroughs at the beginning of the actual urbanization (the Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 278 industrial revolution) appeared in the city and brought about qualitative changes in its social development, in its socio-professional structure, in its culture and way of life, now, thanks to the new technological breakthroughs, these (or similar) changes are already an integral part of non-urban (rural) areas as well. Thanks to its 'industrial revolution', agriculture in developed countries is similar to industry, with a social significance identical to that of 'urban' agriculture. We are not referring to the ideological thesis of socialism, the "levelling of the countryside and the city",1 nor to the concept of the "unified urban way of life" of Western sociology, but in urbanisation (whether "socialist" or "capitalist"), the development of transport and digital communications has led to the integration of "urban" with "rural" culture and lifestyles. Moreover: many villages offer better living conditions than cities (Velkovska, 2011). Modern urbanisation has even changed the activity and direction of demographic processes (one of the main measures of urbanisation): both rural and urban populations are growing; urban-rural migration is increasing; daily rural-urban commuting is increasing. The other reason is the overideologization of urbanization processes, which animates many researchers of this problem: "socialist" and "capitalist", or its idealization. As much as we would not like to, we must surely accept one thing: "From their initial emergence, cities came into being through a geographically and socially determined concentration of productive surplus. Urbanization in the world is now in the stage of catastrophic acceleration of the concentration of population in cities and their agglomerations. If in 1800 the planet had only London with a population of more than 1 million, in 1900 the million cities were already 10, in 1950 - 78, in 2000 - more than 400 million cities, in which about 40% live. 2 In 2015 there will be more than 80 cities with a population of more than 4 million, i.e. in them will live every fourth inhabitant of the planet. A new stage in urban development has begun: global urbanisation. Globalisation, driven by advances in transport and telecommunications, and a positive political climate has already created a global economy characterised by unprecedented levels of urbanisation (more and bigger cities than ever before). Many of these, especially cities in East Asian countries with robust economic growth, have grown spectacularly in the last 25 years, in some cases more than fourfold. Urbanization is now a global phenomenon (Georgiev.2006). Cities are deliberate concentrations of exchange opportunities created to facilitate access. To reach these opportunities, however, we need mobility. This means that cities cannot simply be concentrations of exchange opportunities they must devote some of their space to movement. This is why settlements are made up of two types of space - space for movement and space for exchange. The more space settlements devote to movement, the more the space for exchange is dispersed and reduced. In addition, urban development should also be driven by technological solutions that bring together different policy areas, help cities reduce their environmental impact and provide a better life for citizens. The development of cities, from their formation as a geographic feature with a growing concentration of functions and populations on a limited territory, to their present state as a complex and dynamic social organism, generates a certain educational interest. Cities require sustainable management, adeĸvant planning in terms of spatial regulation, physical planning of urbanised territories based on well-developed and developed iĸnomic functions and activities. CONCLUSION In recent years, a process of investment pressure on urbanised and suburbanised territories has been realised, based on the expansion of the scope of the economic influence of cities. The result of this process is a complication of the problems and tasks related to the management and development of cities, as well as the emergence of conflict points between the centre and the periphery. The increased development of cities, based on the developed economic base and the additional population, necessitates the extension of the transport axes linking the different parts of the city. Today's rapid development of knowledge necessitates the rational renewal of cities, subject to the achievement of increased aspirations for a better life in a better urban Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 279 environment. The vision for urban development in the 21st century is linked to the New Charter of Athens 2003. In the 21st century, the European Union will realise its main objective of integrating the European economic and physical space. On this basis, the widely spread vision of the future of eupo ppean cities is presented. The complex relationships between the different functions and activities of cities deteriorate the eĸoligical balance between the natural and anthropogenic environment and the possibilities for realising sustainable urban development. In economic terms, the urban territory represents the consolidation and development of urban functions and activities and, on this basis, the provision of urban services. In an economic sense, the process of urban development is determined by the growth of the economic impact of the city, including on the adjacent urban territory, i.e. This creates an 'inĸomicĸ field' - of the city's influence over a larger territory. This influence is particularly evident when looking at the city from a spatial perspective. Contemporary urban processes determine the fact that the city is no longer seen as a tangential form of settlement, but as a highly developed urbanised territory. REFERENCES Asheim, B. T (1996). Industrial districts as "learning regions": A condition for prosperity? // European Planning Studies, 1996, Vol. 4, No 4, 379 - 400 Blaug, Mark. (1996) Spatial economics and the classical theory of location - In: Economic Theory in Retrospect. Chap. 14, 596-612, Cambridge University Press, Fifth Edition, 1996. Botev, J. et al. (2000) Administrative and Territorial Structure of the Republic of Bulgaria. Bulgaria. ForCom, S. Velovska, G., (2011) Structure of the territory: a lecture course, Valdes-VV-GV, S., 2011 Geneshki, M., L. Georgiev (1995), Regional Economics, LIA, S., 1995 Georgiev, L (2006)., Regional economy, S., NBU Harvey, David. The right to the city. New Left Review, 2008, No 53, 23 - 40 Paul Krugman, Block those Economic Metaphors- NYT December 2010 Petrov, K. (2015) Geourban Studies and Urban Development. Ed. Economics, UNWE Stanev, Ch., Administrative-Territorial Structure of the Republic of Bulgaria, Sofia, 2000. Tsonkov, N. (2022) Regulatory models for territorial development, Publishing House of UNWE. Troll, Carl(1999). Luftbildplan und okologische Bodenforschung [in:] Z.Ges.Erdkunde zu Berlin. Sachs, Jeffrey D., Gordon C. McCord. The New Palgrave Dictionary of Economics. Second Edition. 2008 Shikova, In (2000)., Regional and local authorities in the process of European integration, Sofia, https://gradat.bg/news/2014/01/28/2229332_razlichnite_aspekti_na_razvitieto_na_gradovete_-_vuv Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 280 Ruslan Kolarov Dr. Municipal Forestry - city of Svoge ANALYSIS OF THE POLICY AND MODELS FOR FORESTRY DEVELOPMENT IN BULGARIA e-mail: ruslankolaroff@gmail.com ORCID: https://orcid.org/0009-00074678-7290 Published First Online: 19.12.2023 Pages: 281-289 DOI: https://doi.org/10.37075/JOMS A.2023.2.10 ABSTRACT This paper is an attempt to analyse and evaluate the models for forestry development in Bulgaria. It is important to bear in mind that the structure of forest ownership is predominantly state-owned, which requires and necessitates that the state takes on the main functions in formulating and implementing forest policy, ensuring the strategic management of the sector through the development and implementation of strategies, plans and programmes at different levels and the role of state institutions and their structures in policy implementation, management and control. In this direction, it is discussed how far the state can go without going into specific examples. Important is the structured model, which is assumed to be in line with European forestry policies. At the same time, measures and the implementation of specific activities and policies are proposed to demonstrate the better management of the sector and its vitality. In this paper we seek to develop a methodological framework for structuring and functionally managing forestry with an accompanying assessment and analysis of the management structure. KEYWORDS: development, forest sector, management, ecology, forest, policy, control JEL: R14, Q23, Q28 INTRODUCTION The Forest Policy sets out the long-term strategic objectives and the key principles underpinning the development of the forest sector. Forest policy is an element of economic policy. Forest policy can be defined as a certain approach, a method of consistent actions of the state, institutions, society, to take decisions for the harmonisation and future development of the system "forest - forestry - society", through the management process. The main objective of forestry policy should be: the development and strategic management of forests and forestry by balancing societal interests related to creating a favourable environment for economic development, maintaining the ecological benefits of the forest and ensuring the social functions of the forest. Forest policy should be closely linked to agricultural policy, regional development, industrial policy, tourism, employment and especially ecology and environmental protection (Todorova, 2016) (Paligorov, 2011, p. 10). A key principle of the policy is multifunctional forest management. The policy functions of planning, regulation, containment and support need to be implemented in a balanced and coherent manner through the application of the policy instruments of legislation, institutional structure, information provision and financing. The term 'function' in the management literature refers to a specialised type of activity characterised by the homogeneity of the work carried out and its orientation towards the achievement of a specific objective (Paligorov, 2011). This links the concept to the relationships between individual actors in a process and their actions that lead to some particular outcome. Function Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 281 in this case is an expression of the relationship between forest and human, i.e. it expresses the network of relationships in the forest - forestry - society system. The aim of this paper is to analyze and evaluate the policy, models of forestry development in Bulgaria. The main tasks are directly related to the implementation of forestry policy and activities to improve the condition of forests lead to an increase in the quantity and quality of forest products and functions - economic, ecological and social, and vice versa - when the forest area decreases (logging, drying, fires, etc.), the volume of products and functions decrease in the long term. Therefore, forestry policy, through targeted action, should aim to restore forests and, in the long term, expect from them a greater quantity and quality of forest products and functions. In methodological terms, the ways and means of implementing and developing forest management. Moreover, as a full member, Bulgaria's forestry policy is fully aligned with that of the EU and global forest management requirements. In 1987, in a report entitled 'Our Common Future', presented to the UN World Commission on Environment and Development, also known as the 'Brundtland Report', a new idea for managing natural resources and the natural environment appeared for the first time, called - Sustainable Development. There is no precise and categorical definition of sustainable development, so the understanding of development that meets the needs of the present generation without compromising the ability of future generations to meet their needs is accepted. This concept was later developed at the 1992 UN Conference on Environment and Development in Rio de Janeiro, and reflected in the document Principles for the Sustainable Management of Global Forests. This document stresses the requirement that 'forest resources and forest lands should be managed to meet the social, economic, environmental, cultural and spiritual needs of people of present and future generations'. In this direction, in this presentation, we will focus on those issues and postulates that concern the principled implementation of sustainable development policies. INTRODUCING THE NEED FOR SUSTAINABLE MANAGEMENT OF THE TORRENS Sustainable forest management is an intrinsic element of the policy strategy for forestry development. Forests are multifunctional and fulfil economic, social and environmental objectives. They provide habitats for animals and plants and play a primary role in climate change mitigation and other environmental services. In 2013, an EU Forest Strategy was developed (A new EU forest strategy: on forests and the forestry sector, 1993), defining sustainable forest management as "Sustainable forest management means using forests and woodlands in a way and to the extent that their biodiversity, productivity, regeneration capacity, vitality and potential to fulfil, now and in the future, appropriate ecological, economic and social functions at local, national and global levels without causing harm to other ecosystems". Europe has a long tradition of sustainable forest management, which is reflected in the principles of the FOREST EUROPE programme (Marušáková, et al., 2019), implemented in Member States' policies and supported by the EU. This is a dynamic concept with international, regional and local levels that needs to be implemented by forest managers on the ground. The main guiding principles are:  sustainable forest management and the multifunctional role of forests, balancing the provision of multiple goods and services and ensuring forest conservation;  efficient use of resources, optimising the contribution of forests and the forestry sector to rural development, growth and job creation;  global responsibility for forests, promoting sustainable production and consumption of forest products. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 282 At the international level, forestry objectives have been summarised in recent years in a relatively simple concept of sustainable forest development. However, the physical characteristics of forests, as well as the driving forces determining the current state of forestry in different countries, vary widely. This makes it necessary to use a variety of means to approach sustainable development. It is also important to stress that forestry is only one sector of society, while the need for sustainable development encompasses all aspects of social life. There are very strong linkages between forestry and other sectors - linkages that often have a direct impact on forest management. Solberg and Rykowski1 point out that in many countries the forestry sector occupies a very small part of the overall economy of the country, but its importance is great for both regional development and the environment, i.e. the policies followed in other sectors are very important for forestry. The conclusion is therefore that policies related to land use, energy, environment, trade, transport, regional development and the economy in general have a strong influence on the functioning and potential of the forestry sector. The sustainable development of forestry lies in the complex fundamental unity of its three components - economic, social and environmental. In this respect, the opinion of some authors2 can be fully accepted that when a system is economically sustainable, and therefore competitive and efficient, it implies positive social conditions and makes it possible to allocate resources to the protection and improvement of the ecological state of forests, and hence of the environment. The conclusion is that the economic prosperity of forestry enterprises in particular and the sector as a whole is a basic prerequisite and criterion for the sustainable development of the forestry sector. In the concept of sustainable development there are several indicators adopted for measurement, but it cannot be measured categorically (quantitatively), especially in the field of forestry, therefore sustainable development is not the subject of research in this thesis. APPLICATION OF FOREST LEGISLATION IN SHAPING COMMON REGIONAL POLICY Forest legislation is a key instrument of forest policy. Since Bulgaria's accession to the EU and the adoption of the new Forest Law in 2011, the Bulgarian legislation has been fully aligned with the European legislation, including the principles of sustainable management and multifunctional forest management. The Law regulates the public relations related to the protection, management and use of forest areas in Bulgaria, with the aim of ensuring multifunctional and sustainable management of forest ecosystems and responsible institutions for the implementation of forestry policy. The main objectives set out in the Forest Act3 are: to protect, improve the condition and increase the area of forests; to ensure and maintain the ecosystem, social and economic functions of forest areas and the effective and efficient use of 1 There again Khadzhieva, V. et al. State and opportunities for sustainable development of agriculture. Management and Sustainable Development, issue 1-2, 2004, p. 249 3 SG 19 of 8.03.2011, in force from 9.04.2011, amended by SG 43 of 7.06.2011, SG 38 of 18.05.2012, in force from 1.07.2012, amend. and suppl., issue 60 of 7.08.2012, amend., issue 82 of 26.10.2012, in force from 26.11.2012, issue 102 of 21.12.2012, Art. 15 of 15.02.2013, in force as of 1.01.2014, amended and supplemented, Art. 27 of 15.03.2013, amended, Art. 66 of 26.07.2013, in force as of 26.07.2013, Art. 109 of 20.12.2013, as amended, Art. 28 of 28.03.2014, as amended, Art. 53 of 27.06.2014, Art. 61 of 25.07.2014, Art. 98 of 28.11.2014, in force as of 28.11.2014, amend. and supplemented, issue 60 of 7.08.2015, in force as of 7.08.2015, amend. 79 of 13.10.2015, in force from 1.08.2016, amend. and supplemented, issue 100 of 18.12.2015, amend., issue 13 of 16.02.2016, in force from 15.04.2016, issue 15 of 23.02.2016, issue 57 of 22.07.2016, issue 61 of 5.08.2016, in force from 5.08.2016, issue 57 of 22.07.2016, issue 61 of 5.08.2016, amend. 95 of 29.11.2016, amended and supplemented, issue 13 of 7.02.2017, amended, issue 58 of 18.07.2017, in force from 18.07.2017, amended and supplemented, issue 103 of 28.12.2017, in force from 1.01.2018, issue 17 of 23.02.2018, in force from 23.02.2018. 2 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 283 forest resources, production of wood and non-wood forest products through environmentally sound management of forest areas. Figure 1. Forest governance and policy structure Council of Ministers National Forest Council Minister for Agriculture, Food and Forestry State-owned enterprises Executive Forest Agency Regional Forest Directorates State forest holdings State hunting farms Specialised territorial units of the Executive Forest Agency Source: author's representation. The Minister of Agriculture, Food and Forestry is the central sole body of the executive power that manages, coordinates and controls the implementation of the state policy in the field of forestry and hunting and forest land protection. It exercises the rights of the State as the owner of the capital in commercial companies with State participation in the capital and in State enterprises in the field of forestry. In exercising his powers, the Minister shall interact with other ministers and with the bodies of the executive power to pursue a unified State policy and shall be accountable for his activities to the Council of Ministers and the National Assembly. A National Forestry Council4 is established as an advisory body to the Minister of Agriculture, Food and Forestry to discuss major forestry issues. The National Forestry Council shall include representatives of the Ministry of Agriculture, Food and Forests, the Ministry of Environment and Water, the Ministry of the Interior, the Ministry of Regional Development and Public Works, the Ministry of Finance, the Ministry of Justice, the Executive Forestry Agency, state enterprises, the Bulgarian Academy of Sciences, municipalities and other forest owners and non-profit legal entities whose activities are related to forest management and conservation. The main function of the Council is to assist the Minister in the implementation of state policy in the field of forestry. 4 See Art. 155. (amend. - SG 58/2017, in force from 18.07.2017) Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 284 SPECIFICITY OF STATE POLICY IN THE FIELD OF FORESTRY State policy in the field of forestry is implemented by the Minister of Agriculture, Food and Forestry through the Executive Forestry Agency5. The EAG supports the development and coordinates the implementation of the strategic documents in the field of forestry, manages and supervises the activities of the RFG and the specialised territorial units. The EAG and the RDGs are legal entities with budgetary support and are managed by executive directors. The EAG supervises the implementation of state policies for sustainable management of the forestry sector, coordinates and supervises forest conservation and protection, supervises forest reproductive materials, implements international and national forestry programmes and projects; participates in the work of the European Commission's subsidiary bodies supporting its activities in the field of forestry and liaises with other international organisations; provides information, advice and assistance to forest owners, legal entities and other stakeholders. The activities of the EAG are organised in 9 directorates. There are 16 IAG territorial units - the Regional Forest Directorates (RFDs). The structure of the IAG also includes the Forest Seed Control Stations (FSS) in Sofia and Plovdiv, the Forest Protection Stations (FPS) in Varna, Sofia and Plovdiv and the publishing house of the magazine "Forest". The Executive Forestry Agency is responsible for the management of the nature parks through 11 specialised territorial divisions established for this purpose - nature park directorates, which are third-level budget administrators and function according to the structural regulations. For the purposes of sustainable management of these areas, 10-year management plans are developed and adopted. The eleven directorates of nature parks are: SPN Bulgarka, SPN Belasitsa, SPN Persina, SPN Rila Monastery, SPN Rusenski lom, SPN Shumensko Plateau, SPN Sinite kamani, SPN Strandja, SPN Vitosha, SPN Vrachanski balkan, SPN Golden Sands. The IAG has a key role in mitigating the effects of climate change and a significant contribution through the Programme of Measures for Adaptation of Forests in the Republic of Bulgaria and Reduction of the Negative Impact of Climate Change on them. The Forest Act (FA). Thus, the legislation provides for the establishment of State Forest Enterprises, which operate in accordance with the provisions of the Forest Act, the Commercial Law and the Regulations on the Organisation of the Activities of State Enterprises under Article 163 of the Forest Act6. For the management of state-owned forest territories that are not assigned to departments or legal entities, 6 state enterprises have been established (North-Eastern State Enterprise, North-Central State Enterprise, North-Western State Enterprise; South-Eastern State Enterprise, South-Western State Enterprise and South-Central State Enterprise). The enterprises are legal entities with the status of state-owned enterprises under Article 62(3) of the Commercial Law. The areas of operation of the State Enterprises shall be determined by the Minister of Agriculture, Food and Forestry. They have a two-level structure: 1) central administration; 2) territorial subdivisions - State forestry holdings and State hunting holdings. Among the main activities that SOEs perform are7 : a) implementation of forest management plans for forest areas - state ownership; b) implementation of hunting management plans in state hunting farms and in state forest holdings; 5 See Art. 154. 154 of the Law on Forests (amend. - SG 58/2017, in force from 18.07.2017) Art. 163 of the Law on Forests, SG No. 19 of 8.03.2011, amended and supplemented by SG No. 17 of 23.02.2018, in force since 23.02.2018; 7See Art. 165 of the Law on Forests, SG No. 19 of 8.03.2011, amended and supplemented by SG No. 17 of 23.02.2018, in force since 23.02.2018; 6See Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 285 c) implementation of maintenance and/or restoration activities in state-owned forest areas, as provided for in the management plans of the protected areas; d) organizing and conducting activities for the protection of state-owned forest areas; e) organising and conducting anti-erosion measures; f) maintaining ecosystem diversity and conserving biological diversity in them; g) creation of new forests on agricultural land; and h) protection of forest areas - state property. For the implementation of the activities of the state-owned enterprises, the state provides for the use and management of property - state property. It consists of property granted to them by the Council of Ministers, the Minister of Agriculture, Food and Forestry, international institutions, local and foreign natural and legal persons and other organisations, as well as property acquired by the enterprises as a result of their activities. The Minister shall exercise the State's ownership rights in State-owned enterprises, take decisions on the distribution of profits and the coverage of losses, and approve the annual financial statements and annual reports on the activities of State-owned enterprises. The Minister for Agriculture, Food and Forestry shall carry out the management of the enterprises by approving the decisions of the board of directors of the State enterprise concerned. The board of directors of State-owned enterprises shall consist of three members, including the director of the enterprise, and the Minister shall conclude a management contract for a period of five years with each member of the board of directors. Similarly, the Management Board shall be assisted by a Business Council, which shall consist of the directors of the territorial divisions of the SOE concerned. The economic council has advisory functions, such as: discussing the draft financial plan of the State enterprise and the draft financial plans of the territorial subdivisions, making proposals to the management board on the spending of the funds created and managed by the enterprise. The Director of the State Enterprise shall manage the overall activities of the State Enterprise in accordance with the powers conferred on him by law, propose to the Management Board a draft annual financial plan and an annual financial statement of the State Enterprise, be responsible for and exercise control over compliance with the regulatory enactments, financial discipline and the safeguarding of the assets of the State Enterprise and of the territorial subdivisions of the State Enterprise. The activities of the Director in the management of the SOE shall be coordinated with the Minister and the Board of Directors. State forestry holdings and state hunting holdings are territorial subdivisions of state enterprises that carry out the functions of the state enterprise in their defined area of operation8. Territorial subdivisions of State-owned enterprises shall conclude commercial and other contracts in their own name, on their own account and under their own responsibility, within the powers conferred on them by law and by the Director of the State-owned enterprise. The management of the territorial units is carried out by a director who concludes management contracts for a period of 5 years with the director of the State enterprise. The new Law on Forests of 2021 provides for an inventory of the forest areas to establish the state of the resources and prepare their assessment. The National Forest Inventory project is being developed to carry out the inventory, in line with international and national experience. The EAG is responsible for the implementation of the National Forest Inventory, which has not yet been launched. Another important point in the Forest Act is the assessment and validation of forest management practices using a set of standards - forest certification. Certification gives importance to environmental, social and economic aspects in forest management. Forest certification can be 8 See Art. 173 of The Forestry Act, SG No. 19 of 8.03.2011, amended and supplemented by SG No. 17 of 23.02.2018, in force since 23.02.2018; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 286 defined as the process of issuing a certificate by an independent body certifying that forest areas are managed to a certain standard. Inventory and certification is an important prerequisite for the implementation of the policy of multifunctional management and strategic management in the forest sector also affects the policy of sustainable forest management. These two instruments are poorly addressed in Bulgarian legislation. CONCLUSION The implementation of forestry policy is realised through the preparation and implementation of strategic documents - strategies, plans and programmes to achieve the identified strategic objectives in the long term. They define the strategic framework of state policy for achieving long-term and sustainable management, multifunctional management and development of the forest sector. The prerequisite for the development and management of forest areas are the three levels of forest planning regulated by the Forestry Act - national, regional and local, reflected respectively in the National Forest Sector Development Strategy, the Strategic Forest Sector Development Plan, the Regional Forest Territory Development Plans and the Forestry Plans and Programmes. At the same time, in view of Bulgaria's EU membership, it is necessary to underline that the policy in the field of sustainable development and strategic forestry management in Europe also has numerous and topical problems, which are generally expressed in several main points:  economic processes focused on achieving short-term economic goals and applying intensive management methods;  the harmful effects of air, water and soil pollution on the state of Europe's forests;  Global climate change, which affects all forest types, remains an unexplored factor of major importance for European forestry problems;  the need to establish a system for the protection of all nature, integrated with human social and economic activities in all forests, taking into account local and regional conditions and the rights and interests of local people. Such a system must be embedded in the sustainable and balanced development of all economic activities. The documents presented by the UN9, related to forest policies and institutions, identify some of the vital issues that hinder sustainable and multifunctional forest management in Europe related to the decline in wood prices and forest benefits towards environmental and social values not being valued by the market. In this context, forestry plays a peripheral role in national economic planning. At the same time, the countries of Central and Eastern Europe have experienced specific difficulties related to the development of forestry in recent years. The Agriculture, Rural Development and Environment Section of the European Committee on Economic and Social Affairs examines the role of forestry and the forest industry in 13 countries10 (Lithuania, Latvia, Estonia, Poland, Hungary, Czech Republic, Slovakia, Slovenia, Bulgaria, Romania, Cyprus, Malta, Turkey) and the changes this enlargement will bring with it for the EU forestry sector. A policy of sustainable and multifunctional forest management should have the following economic, environmental, social and international cooperation (especially within the EU) dimensions and tasks: 9 UN (2001), Forest Policies and Institutions in Eurepe 1998-2000. Geneva Timber and Forest Study Paper, United Nations, New York, USA and Geneva, Switzerland. 10 Options of the Eastward enlargement of the European Union and the forestry sector www.esc.eu.int/scripts/avis.asp?type=en Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 287  Economic - consists of development towards economically sustainable conditions for the forest sector. In order to achieve it, it is necessary to solve the following tasks:  Ecological - is expressed in support of efforts to protect biodiversity, protect the environment, preserve and develop forests as a base for forestry production. The resulting tasks are:  Social - formulated as an increase in the role of forests on the one hand as a general public good, through the uses of forests, and on the other hand through the public use of forests for health and recreation.  International cooperation in support of sustainable forest development at local, regional and global levels and integrating forest biodiversity and environmental protection with forest mobilisation for social and economic well-being. To this end, the following tasks need to be addressed: Special emphasis in forest policy should be placed on increasing the forest area in Bulgaria by increasing the country's forest cover and stimulating afforestation in abandoned agricultural areas. To this end, it is possible to expand the use of funds under the various EU-funded programmes. The long historical experience in forest management and use shows that largescale and compact forest enterprises function effectively. Through forest legislation, the state should motivate small private forest owners to voluntarily associate in freely chosen institutional forms and to manage private forest areas responsibly. In this respect, some specific legislative measures could be taken to support the process of establishing and operating forest owners' associations. A review of the literature on models of institutional structures and policy shows that, despite the diversity of global forms of forest governance and forestry, models can be Bulgaria's forest policy and forestry management can be classified as a conservative model of management, although the presence of private forest land owners, companies, firms and associations is regulated in legislation, yet the functions of forest management are in the hands of the state - through its institutional structure and state-owned enterprises. REFERENCES: Wachowski, X. Forest policy and the development of forestry in Bulgaria. S., Zemizdat, 1997; Georgiev, I. et al., Economics of Enterprise, IK-UNWE, 2017; Annual Report of the Executive Forest Agency for 2018; Goev, V. et al., Statistical Analysis in Sociological, Economic and Business Research, UNWE, 2019; Forests and forestry of Bulgaria. S., KG Publishing, Ed. Company K&M, 1997; Report "The potential of forests and forest products for the economic development of the territory of the LAG "High Western Rhodopes: Borino-Dospat-Sarnitsa", 2016; Dokova, S., K. Petrov, Geoeconomics and Regional Development, ed. Stopanstvo, 2015; Yovkov, I. Economics of Forestry. Zemizdat, S. 1994; Yovkov, I., Economics of Forestry, ed. "Zemizdat", 1994; Kostov, G. et al. Multifunctional forest planning. Bulgarian-Swiss project "Natural and sustainable forest management". S., LTU, "Vanguard", 2005; Paligorov, I., Forest Policy, 2011, ed. "Vanguard Prima", pp. 10 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 288 Khadzhieva, V. et al. State and opportunities for sustainable development of agriculture. Management and Sustainable Development, issue 1-2, 2004, p. 249 Todorova, S. (2016) Bulgarian agriculture in the conditions of the EU Common Agricultural Policy. Journal of Central European Agriculture, 2016, 17(1), p.107-118 UN (2001), Forest Policies and Institutions in Eurepe 1998-2000. Geneva Timber and Forest Study Paper, United Nations, New York, USA and Geneva, Switzerland. Options of the Eastward enlargement of the European Union and the forestry sector www.esc.eu.int/scripts/avis.asp?type=en The Forestry Act, promulgated by the State Gazette, issue 19 of 8.03.2011, amended and supplemented by issue 17 of 23.02.2018, in force since 23.02.2018; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 289 Grigor Pavlov PhD – student at Agricultural University of Plovdiv Department of Management and marketing, Faculty of Economics at Agricultural University of Plovdiv, Bulgaria DIAGNOSTICS OF BUSINESS PROCESSES IN WINE-GROWING ENTERPRISES IN THE SOUTH-CENTRAL REGION e-mail: admin@kompbg.com ORCID: https://orcid.org/0009-00013787-9237 ABSTRACT Published First Online: 19.12.2023 Following Porter's model, viticulture enterprises are considered as economic entities that organize two groups of processes – core and auxiliary business processes. The organization of these processes is the subject of analysis. The aim is to determine which processes are primary and which are secondary and whether they correspond to the classic model advocated in the work of Michael Porter. Pages: 290-298 DOI: https://doi.org/10.37075/JOMS A.2023.2.11 Using the approach of Michael Porter (Porter, 1980) for the analysis and evaluation of business processes, the present study examines the principles according to which these processes are organized in the Bulgarian viticultural enterprises. The main objective of the research is to analyze the business processes in wine-growing enterprises and to assess their status. KEYWORDS: business processes, wineries, business model, inbound logistics, outbound logistics JEL: E32, L66, O18 INTRODUCTION Winemaking is a business whose worldwide turnover exceeds more than 100 billion dollars per year (Borisov, Radev, Dimitrova, 2014). It is one of the oldest and most competitive industries on the old continent. It can be said that wine production is one of the emblems of Europe. Winemaking, like all other businesses, undergoes its own development and change. In the conditions of globalization in recent decades, the traditional producer Europe faces the competition of "new players" in the world market, namely Argentina, Australia, USA, South Africa, Chile and New Zealand (Borisov, 2015). These countries have been able to build largescale production facilities and, through the use of new technologies and approaches, provide the market with high quality wine at decidedly low prices. Of course, aggressive competition has led to a change in the organization of the value chain on the old continent. Restructuring processes have been launched both at the macro level and at the country and wine region level in Europe. These processes are related to the change in the varietal composition of the vineyards and reorganization of the overall process of securing the production and supply of wine (Borisov and Radev, 2011). Wineries were forced under the competitive pressure of new players to rethink their place in the value chain and reorganize their business processes to enable them to remain competitive both on the domestic and foreign wine markets. as well as at the level of the country and wine-growing region in Europe. These processes are related to the change in the varietal composition of the vineyards and reorganization of the overall process of securing the production and supply of wine (Borisov and Radev, 2011). Wineries were forced Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 290 under the competitive pressure of new players to rethink their place in the value chain and reorganize their business processes to enable them to remain competitive both on the domestic and foreign wine markets. as well as at the level of the country and wine-growing region in Europe. These processes are related to the change in the varietal composition of the vineyards and reorganization of the overall process of securing the production and supply of wine (Borisov and Radev, 2011). Wineries were forced under the competitive pressure of new players to rethink their place in the value chain and reorganize their business processes to enable them to remain competitive both on the domestic and foreign wine markets. 1.METHODOLOGY Using the approach of Michael Porter (Porter, 1980) for the analysis and evaluation of business processes, the present study examines the principles according to which these processes are organized in the Bulgarian viticultural enterprises. The main objective of the research is to analyze the business processes in wine-growing enterprises and to assess their status. Following Porter's model (Porter, 1980), viticulture enterprises are considered as economic entities that organize two groups of processes – core and auxiliary business processes. The organization of these processes is the subject of analysis. The aim is to determine which processes are primary and which are secondary and whether they correspond to the classic model advocated in the work of Michael Porter (Porter, 1980). The analysis of business processes proceeds through the following stages: - Data collection for diagnosing business processes in the winemaking enterprise. The main tool for data collection is the survey and personal interview with the owners and/or managers of the enterprise (Borisov, Stoeva, and Dirimanova (2021); - Interpreting the data obtained, formulating findings and conclusions from the conducted field research. The purpose of this stage of the analysis is to identify the main groups of business processes, as well as the factors that determine their organization; Organization of the survey. In order to implement the first stage of the analysis, a questionnaire test is also being developed. The survey has the following structure of questions: Introductory part. In this part, the main reasons for surveying the managers of wine-growing enterprises, as well as the very purpose of the survey, are described. A brief annotation is given on the topic of the dissertation research and the need to involve the interested parties to clarify and study the processes taking place in the wine-growing enterprises; Descriptive section. Included in this section are questions about the registration of the company under which the enterprise is managed; type of ownership and/or legal status of the enterprise; number of personnel employed in the enterprise; organizational and management structure of the enterprise; main sources of financing the enterprise's activity; the period of time during which the enterprise functions as a market unit; structure of the markets – internal/external, market segments in which the market is operated; sales volume and/or market share in the last 5 years; product assortment that the enterprise offers on the market; Main section. The purpose of this section of questions is to gather information about the way business processes are organized in wine-growing enterprises. The questions included in the survey aim to gather information about: what are the main business processes that the enterprise organizes to deliver value to the client; who : what are the ancillary business processes that the enterprise organizes to deliver value to the customer; what are the main factors that determine the chosen organization of business processes; what business process control systems managers use; what tools and systems are used to identify, analysis and assessment of the achieved effects Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 291 of the chosen organization of business processes; what quantity and quality of labor resources are used to control business processes in the enterprise; how the future development of business processes in the enterprise is planned. Final section. In this part of the survey, gratitude is expressed to the respondents, as well as additional questions are included, aimed at collecting additional information that can enrich the analysis and help to identify the critical factors in the organization of business processes. These questions are related to obtaining information about: what main sources for future development of the enterprise are planned to be used /what financial assistance has been received, what will be received in the future/; what is the attitude towards the future development of the enterprise and the effects it achieves. 2. FORMATION OF THE REPRESENTATIVE SEMPLE. The register of the Chamber of Winemakers, Sofia, updated as of 07/21/2023, is used to form the general sample of investigated wine-growing enterprises. All registered enterprises at this time form the general sample. In the formation of the statistical sample, the method of the previously selected principle is used (Saykova, 2002). This principle is as follows - the representative sample includes all enterprises that are located in the South Central Planning Region of the Republic of Bulgaria. These enterprises must have their own vineyards and produce and market wine. The total number of surveyed enterprises must be no less than 33 in order to achieve statistical reliability when processing the received data. In the next section of the questionnaire, questions aimed at gathering information about the main business processes are included - factors that determine them as well as their organization in practice in wine-growing enterprises. In this part of the dissertation, the graphic analysis of the received information is presented, as well as the main findings and conclusion regarding the investigated business processes. 3.RESULTS AND DISCUSSION In Porter's model, the first business process to be analyzed in enterprises is "inbound logistics". This is a process whose purpose is to ensure the production needs of wine-growing enterprises. The figure below contains information about the main activities that are carried out within this business process by the 33 wineries studied. Figure 1. Activities of the business process "Inbound logistics" performed by the winegrowing enterprises. management of production inventory 21,8% control over the use of raw materials 19,7% processing of raw materials required for production 20,4% receipt and storage of raw materials required for production 21,1% providing input from suppliers 17,0% Source: Own survey of 33 wineries, 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 292 According to the surveyed managers, independent activities that the enterprise manages and controls completely /autonomously/ in recent years is the management of the production inventory. Of all 33 enterprises, 21.8% define this activity as completely independent, which is provided entirely with its own funds and resources. The reception and storage of the materials, raw materials and resources necessary for the production of products for the end customer is the next most important business activity within the researched business process - 21.1% of the surveyed enterprises declare this as a fact. In addition to the reception and storage of these elements, processing is also an important and autonomous activity carried out by enterprises - 20.4% of all surveyed managers state that this process is completely under their control and can be defined as fundamental in forming the value for the end customer. Another important business activity within the "inbound logistics" process is the quality control of the incoming raw materials of production, 19.7% of the surveyed enterprises state that this is an autonomous and main activity, the purpose of which is to ensure the target quality of the final product. The next business process subject to analysis is "work operations". The results of the conducted research are shown in the figure below. Work operations are the main activities that ensure obtaining high value for the end user. The data shows that the most important activities within the business process "work operations" are: - The tracking and control of the processed raw material and the finished product (wine), respectively 15.9% of all 33 surveyed enterprises, recognize this activity as the main one; - The stabilization and storage of the raw material for wine production is also a main activity, important and guaranteeing a high value of the product offered on the market, 15.9% of all enterprises state this as a fact; - Packaging, labeling and storage of produce is also recognized as a core activity, fully under the control of managers, 15.9% of the total enterprises surveyed. Figure 2. Activities of the business process "Working operations" performed by winegrowing enterprises. maintenance of equipment and machinery used… 11,6% packaging and labelling of final products production of the packaging and wrapping… 15,9% 0,5% testing and qualification of final products 12,7% traceability and control of processed raw… 15,9% stabilisation and storage of the raw material for… 15,9% processing of the raw material for the… 14,8% technological provision and renewal of… 12,7% Source: Own survey of 33 wineries, 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 293 At 0.5% of the surveyed enterprises, it is noticed that the production of packaging and packaging is an important activity and it is under the full control and ownership as a process of the managers. The low share of enterprises proves that the production of own packaging is not recognized as a core business process by the surveyed enterprises, it is an activity that has an auxiliary character, although it is important in the process of delivering value to the end customer. Next is the "outbound logistics" business process, which is the subject of analysis. According to the obtained data, the activity of processing orders, deliveries and receivables from customers is the most important for the 33 studied wine-growing enterprises - 31.1% of the surveyed enterprises recognize this activity as critically important. This is an activity fully secured and controlled by the managers of the investigated enterprises. They also define it as extremely important in the formation of sales revenue and the profitability of those sales. Another important process is the storage of finished products, 28.3% of surveyed enterprises recognize it as such. Bottled wine is easy to store and age, with some varieties a process is required to increase the value offered to the end customer. Reserve wines have a higher value/price and very often customers consume them as an investment product (ie a product that can be invested in and increases in value over time). Figure 3. Activities of the business process "Outbound logistics" performed by wine-growing enterprises. establishment and maintenance of a network of dealers and distributors 19,8% processing of orders, deliveries and receivables from customers 31,1% delivery of final products to the end customer 20,8% storage of final products 28,3% Source: Own survey of 33 wineries, 2023 Dispatch of bottling wine to the end customer is also a basic business process in the viticulture business in our country. In 20.8% of the enterprises surveyed, this activity is performed independently and is fully controlled by the managers of the viticulture enterprise. They believe that shipping is an important element of the overall offer and in this context full control over this business process is required. The next business process subject to analysis is the "Marketing" of wine-growing enterprises. According to Peter Drucker, marketing as a business process largely determines the effectiveness of a business enterprise. Any company that imposes the marketing approach as a comprehensive approach to managing business processes has the potential for competitive development. According to the conducted survey among the managers of the Bulgarian winegrowing enterprises, critical important basic business processes are: - The preparation of the price policy of the enterprise, 16.6% of the surveyed managers recognize this activity as important in the overall management of marketing; - The positioning of the produced wine is also a critical business process determining the effectiveness of company marketing. According to 15.5% of all surveyed managers, this Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 294 process is completely under their control and is extremely important for achieving market success; - The preparation and implementation of a communication program is also a recognizable basic business process, 12.2% of the total respondents gave this answer in the survey card; - The preparation of a marketing plan is also recognized as an important activity within the Marketing process, with 12.2% of the total surveyed managers stating this as a fact. Figure 3. Activities of the business process "Marketing", performed by wine-growing enterprises. merchandising and arrangement of production for sale the design and implementation of the communication policy 10,5% 12,2% product positioning 15,5% the development of the pricing policy and its implementation the design and implementation of the promotional policy 16,6% 9,4% the preparation of the marketing plan 12,2% the development of the marketing strategy setting marketing objectives 10,5% 2,8% performing a marketing analysis of the environment 10,5% Source: Own survey of 33 wineries, 2023 The most neglected activity is the compilation of marketing objectives - only 2.8% of the surveyed managers recognize this activity as the main one. According to them, marketing goals are not important and are not recognized as a strategic tool for managing business processes in the enterprise. The interviewed managers declare that they do not participate in the development of the marketing objectives, but only implement them, and therefore do not recognize them as important in the overall marketing management of the company. Marketing objectives are determined by the owners of the enterprise and/or by an external consultant who knows the needs of the market. The preparation and implementation of the promotional program is also a neglected activity in the researchedwine-growing enterprises, only 9.4% of the surveyed managers fully control and organize this activity. In most cases, an external consulting service is used in the formation of a program. Next business process subject to analysis is "Customer Service". The data from the conducted survey regarding the state of this business process inwine-growing enterprises is given in the figure below. The data shows that customer feedback is an important core business process, 90.9% of surveyed enterprises recognize this process as critical and fundamental in creating value for the end customer. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 295 Figure 4. Activities of the "Service" business process performed by the wine-growing enterprises. customer feedback customer training for product use delivery and replacement of products that are subject to complaint 90,9% 3,0% 6,1% Source: Own survey of 33 wineries, 2023 The auxiliary processes for analyzed with the following module of questions included in the questionnaire/. Already during the first interviews, it is noticeable that the auxiliary processes in the studied wineries can be clearly defined and distinguished from the main business processes. The figure below shows the distribution of the responses of the surveyed managers regarding the status of the supporting business process "Infrastructure". Graphical analysis covers the opinion of managers from 33viticulture enterprises. Figure 5. Activities of the "Infrastructure" business process performed by the wine-growing enterprises. management of relations with public authorities 13,6% physical and technical security of production… legal support in company management 5,0% 2,3% contract management and authorisation 7,7% management of accounting flows and finances 11,3% information management 8,6% technological development and innovation… 13,1% production management 13,6% marketing management 11,8% organizing the overall management of the enterprise 13,1% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% Source: Own survey of 33 wineries, 2023 According to the answers received, it is clear that the management of relations with the state authorities (13.6% of the total respondents) and the management of production (13.6% of the total respondents) are the most often recognizable as auxiliary business activities among the managers of viticulture wineries. Followed by activities such as management of technological development and innovation and organization of the integral management of the enterprise with a relative share of the answers received for both activities – 13.1% of the total. With the lowest weight in the organization of the auxiliary business activities in the "infrastructure" process are: legal support in the management of the enterprise - 2.3% of the total surveyed enterprises; physical and technical protection of production processes – 5% and management and sanctioning of the concluded contracts – 7.7% of the total enterprises surveyed. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 296 The next phase of the analysis covers the activities within the Technology Development business process. The graphic analysis of the data shows that mainly two activities are defined as truly auxiliary within this business process, namely: - (1) research and development of products and markets - 46.4% of the total surveyed enterprises and (2)) research and development of the technological process – 39.3% of the total. According to the managers, the development of the technological process in the sector is carried out through effective cooperation with scientific organizations and universities, which are the main units supplying this type of business service/activity for the needs of wine cellars. Market research as well as product development is carried out in close cooperation with the next participants in the value chain, namely the traders and stores, from which end customers buy. These business structures carefully analyze the market and accordingly present estimates and identified market needs to the viticulture enterprises that must comply with them. Figure 6. Activities of the business process "Technological development" carried out by wine-growing enterprises. testing and implementation of new products, technologies and methods of production and trade 10,7% product design development 3,6% research and development of the technological process of production 39,3% product and market research and development 46,4% Source: Own survey of 33 wineries, 2023 The organization of supplies is the next business process subject to analysis. Data from a survey conducted regarding the status of this business process is presented in the figure below. Within the research process, the trend clearly stands outwine-growing enterprises to provide with their own resources the activities of finding and negotiating the production resources 84.6% of the surveyed enterprises declare this as a fact. The development of the supply network is carried out with own resources in a small part of the surveyed enterprises, only 15.4% of them state that they carry out this activity entirely independently. The data shows that the development of the distribution network is mainly carried out through strategic partnerships with other participants in the value chain. Figure 7. Activities of the business process "Organize deliveries" carried out by winegrowing enterprises. 100,0% 84,6% 80,0% 60,0% 40,0% 15,4% 20,0% 0,0% finding and negotiating resources supplier network development Source: Own survey of 33 wineries, 2023 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 297 CONCLUSIONS As a result of the conducted analysis, covering 33 wine-growing enterprises from the territory of the South Central region of Bulgaria, the following findings and conclusions can be formulated regarding the way of organization of business processes and the effects achieved by them: - The majority of the investigated enterprises are small structures, i.e. business processes along the value chain are organized by small enterprises, which enables them to be flexible to market demands and quickly reorganize their business processes and models; - Business processes are organized exclusively with own funds (66.7% of all surveyed enterprises use such a source). Which determines a strong dependence of the results on the success of the activity of previous years. The high levels of self-participation in the financing of business processes are primarily explained by the high interest rates on investment loans that banks grant for the needs of the industry; - Business processes are mostly organized using functional and linear organizationalmanagement structures. These structures make it possible to organize business processes quickly and adequately to market needs, so as to maintain the sustainable competitiveness of wine-growing enterprises; - Business processes are organized in such a way that the produced product (value) first of all meets the requirements of external markets. These markets are defined as more attractive compared to the domestic market, i.e. make it possible to achieve a higher margin and, accordingly, profitability of the activity. SPONSORSHIP The results published in the articles at the current issue are funded by the National Scientific Program - "Intelligent Plant-growing", 2021-2024, Ministry of Education and Science Bulgaria, Sofia. The aim of the program is to support basic and applied research to create models for robotic technologies, digital diagnostic and forecasting methods, and digital management of crop farms to ensure a sustainable and efficient food system. For further information, please visit the official website of the program – www.nnp-ir.bg REFERENCES Borisov, P., Stoeva, T., Dirimanova V. (2021). Methodology for Assessing the Competitiveness of Agricultural enterprises. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 21, Issue 4, 2021 PRINT ISSN 2284-7995, E-ISSN 2285-3952, p. 81-88. Borisov, P. (2015). Impact of product strategy on market share. The case of Bulgarian wineries. Changes and perspectives in the rural areas and in the agriculture of Bulgaria, Poland and other EU Member States. Sofia, pp. 179-187 Borisov, P., Radev, T. (2011).Regional analysis of specialization of vine growing in Bulgaria. Agricultural Economics and Management (Bulgaria), 2011/2, p. 31 - 39. Borisov, P., Radev, T., Dimitrova, D. (2014). Comparative advantages of EU Member States in Trade with Wine. Agricultural Economics and Management, (59), vol. 4/2014, Sofia, p. 71-76. Porter, ME “Competitive Strategy: Techniques for Analyzing Industries and Competitors”. New York: Free Press, 1980. (Republished with a new introduction, 1998.) Saykova, Iv. A statistical study of dependencies. Economy, 2002. p.113 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 298 Georgi Borisov Haik Garabedian Georgi Borisov PhD – student at Agricultural University of Plovdiv Department of Management and marketing, Faculty of Economics at Agricultural University of Plovdiv, Bulgaria METHODOLOGICAL APPROACH TO MEASURE THE CONTRIBUTION OF LANDSCAPE IN SERVICES PROVIDED BY RURAL TOURISM e-mail: georgiborisov@gmail.com ORCID: https://orcid.org/00090005-6492-9921 ABSTRACT In the last years the importance of landscape in supporting rural economy and the quality of life in rural areas has been increasingly recognized. Hence the interest of policy makers in identifying and designing suitable policy instruments for enhancing the potential benefits that the maintenance and valorization of landscapes may provide to the rural economy. Haik Garabedian PhD – student at Agricultural University of Plovdiv Department of Management and marketing, Faculty of Economics at Agricultural University of Plovdiv, Bulgaria e-mail: haik.t.garadedian@gmail.com ORCID: https://orcid.org/00090001-6148-2790 In this context, this working paper provides a qualitative analysis of the specific functions of landscape, and of the mechanisms through which targeted rural development instruments could generate beneficial leverage effects on rural economies. Starting from the commonly agreed definition of "landscape" and its multifunctional nature, its economic value and the theoretical framework of landscape and regional development are then considered, in view of identifying the main potential socio-economic benefits for the rural economy attached to their provision. Further an overview of concrete examples (from literature review) of applied methods for assessing the socio-economic value of landscapes is provided, and also the effects of tourism practices and eco-systems on the value of landscape are considered in more details. Published First Online: 19.12.2023 KEYWORDS: landscape, rural tourism sector, landscape services, landscape values, landscape management Pages: 299-309 JEL: J43, O18, P32 DOI: https://doi.org/10.37075/JOMSA.2 023.2.12 INTRODUCTION In the last years the importance of landscape in supporting rural economy and the quality of life in rural areas has been increasingly recognized. Hence the interest of policy makers in identifying and designing suitable policy instruments for enhancing the potential benefits that the maintenance and valorization of landscapes may provide to the rural economy. In this context, this working paper provides a qualitative analysis of the specific functions of landscape, and of the mechanisms through which targeted rural development instruments could generate beneficial leverage effects on rural economies. This paper is based on literature research, and is part of the analytical work developed to support the preparation methodological approach, part of activities of project KП-06-Н65/11 – 12.12.2022 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 299 Landscape and tourism are connected in terms as key objectives in landscape planning and management in some rural areas specialized in providing tourism services. All of this calls for careful evaluation of the effects of territory on the tourism. In recent years there has been significant interest in landscape management as a tool for development of particular industry or economic sector (Heijman and Hubregtse, 2002); (Vollet and Аrlot, 2006); (Dissart, 2009); Waltert, 2009). Therefore, alterations in the landscape can bring about signiﬁcant demographic and economic change in rural regions (Waltert, 2009). Proper combination of the realities of the landscape of a region with opportunities for economic development may lead to rapid and multiplier effect (Dissart, 2009). Realities of the landscape of a given territory, can add value to the products in agriculture and tourism (Cahill, 2001a); (Brouwer, 2004); (Marangon and Tempesta, 2008); (Gupta and Mythili, 2009); Trevisan and Mauracher, 2006). In Bulgaria rural tourism occupy a large part of the working population and are the main alternatives to the economic development of the rural areas (Nikolov et al., 2012). Perception of landscape as an essential tool for achieving competitiveness in a particular economic sector is not a popular approach among studies in the countries of Eastern Europe. RESULTS AND DISCUSSION What does it mean – “landscape”. The study of landscape is inherently complex, due to its multifaceted character, its relatively recent importance, and the difficulty to find a commonly agreed definition. One accepted starting point is the etymology of the word "landscape", which comes from the Dutch word landschap, from land (directly equivalent to the English word land) and the suffix -schap, corresponding to the English suffix "-ship". The word "landscape", first recorded in 1598, was borrowed as a painters' term from Dutch during the 16th century, when Dutch artists were on the verge of becoming masters of the landscape genre. The Dutch word landschap had earlier meant simply 'region, tract of land' but had acquired the artistic sense, which it brought over into English, of 'a picture depicting scenery on land'. A first set of elements to be considered when studying landscape and its impacts can be: artificial surfaces, arable land, permanent crops, pastures, heterogeneous agricultural areas, forests, mineral surfaces, natural vegetation, water bodies, etc… In its environmental acceptation, it has been defined as: "a mosaic of land cover patches", or "the traits, patterns, and structure of a specific geographic area, including its biological composition, its physical environment, and its anthropogenic or social patterns. An area where interacting ecosystems are grouped and repeated in similar form" (US Environmental protection Agency). Another interesting approach is the one stating: "Landscape comprises the visible features of an area of land, including physical elements such as landforms, living elements of flora and fauna, abstract elements such as lighting and weather conditions, and human elements, for instance human activity or the built environment". These definitions are helpful in identifying some aspects: physical and abstract elements, biological composition and human intervention, visual features and functionalities. All of these elements are of extreme importance if we want to explain what landscape is, and which is its potential usefulness and socio-economic value. The effort to reach a commonly agreed understanding of the concept of landscape has been deployed across a wide range of academic and regulatory activities. The regulatory framework and the policy debate about the subject have been developing a lot in the last two decades. In 1992 the World Heritage Convention of UNESCO became the first international legal instrument to recognise and protect cultural landscapes. It acknowledged that cultural landscapes represent the "combined works of nature and of man" (Art.1 of the Convention), Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 300 and that they are illustrative of the evolution of human society and settlement over time, under the influence of the physical constraints and/or opportunities presented by their natural environment and of successive social, economic and cultural forces, both external and internal. In the World Heritage Convention, the term "cultural landscape" embraces a diversity of manifestations of the interaction between humankind and its natural environment. Cultural landscapes often reflect specific techniques of sustainable land-use, considering the characteristics and limits of the natural environment they are established in, and a specific spiritual relation to nature. Protection of cultural landscapes can contribute to modern techniques of sustainable land-use and can maintain or enhance natural values in the landscape. The continued existence of traditional forms of land-use supports biological diversity in many regions of the world. The protection of traditional cultural landscapes is therefore helpful in maintaining biological diversity. This was an important first recognition of the role and of the relevance of landscape, as well as a good attempt to define it. In 1994, the Resolution adopted on the 3rd Conference of Mediterranean Regions launched the initiative "to draw up, on the basis of the Mediterranean Landscape Charter – adopted in Seville by the regions of Andalusia (Spain), Languedoc-Roussillon (France) and Tuscany (Italy) – a framework convention on the management and protection of the natural and cultural landscape of Europe as a whole". One year later, the European Union’s European Environment Agency published "Europe’s Environment: the Dobris Assessment", an in-depth analysis of the state of the art and prospects for the environment in the greater Europe. Chapter 8 deals with landscapes, and in its conclusions it sets the basis for the drawing up of a European convention on rural landscapes. In 1995 the World Conservation Union (IUCN) published a text advocating an international convention on rural landscape protection in Europe. The Council of Europe set up an ad hoc drafting group and several international, national and regional bodies and programmes were invited to take part in its work. Among these were the European Commission, the Committee of Regions, the Parliamentary Assembly and the Cultural Heritage Committee of the Council of Europe (CC-PAT), the Committee for the activities of the Council of Europe in the field of biological and landscape diversity (CO-DBP), the Unesco World Heritage Committee, the IUCN, and the Bureau for the Pan-European Biological and Landscape Diversity Strategy and the Regions of Andalusia (Spain), Languedoc-Roussillon (France) and Tuscany (Italy). The existing national and international legal instruments in this field were taken as a basis for the drawing up the Convention. These include the UNESCO Convention concerning the Protection of the World Cultural and Natural Heritage, the Convention for the Protection of the Architectural Heritage of Europe, the Convention on the Conservation of European Wildlife and Natural Habitats, the European Convention for the Protection of the Archaeological Heritage, the Mediterranean Landscape Charter, the European Community regulation on agricultural production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside, the European Community directive on the conservation of natural habitats and of wild fauna and flora, the European Community directive on the assessment of environmental effects, and other important national, European Community and international instruments. A consultation conference for ministerial representatives and major international and nongovernmental organizations with technical expertise in landscape matters was organised in Florence (Italy) in 1998, and in October 2000, the Council of Europe adopted a "European Landscape Convention" as part of its work on natural and cultural heritage, spatial planning and the environment, and based on the concern for sustainable development expressed at the Rio Conference in 1992. This Convention seems to be a good starting point towards a complete, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 301 clear and accepted definition of "landscape". It was adopted in October 2000 and came into force in March 2004 (Council of Europe Treaty Series Nº176). In our attempt to find a unique definition of "landscape", a review of all the insights suggested by these relevant documents has been made, and some common elements have been highlighted. First of all, landscape can be considered as part of the land, as perceived by local people or visitors, which evolves through time as a result of being acted upon by natural forces and human beings. The European Landscape Convention seems to provide the most suitable, comprehensive and useful definition. It applies to the entire territory of the parties involved, and relates to natural, urban and suburban areas, whether on land, water or sea. It therefore concerns not just remarkable landscapes but also ordinary everyday landscapes and blighted areas. According to this Convention, "Landscape" means "an area, as perceived by people, whose character is the result of the action and interaction of natural and/or human factors". Landscape definitions differ depending on the specific disciplinary perspective and policy context. The European Landscape Convention defines landscape as “an area, as perceived by people, whose character is the result of the action and interaction of natural and/or human factors” (European Council, 2000). It defines Landscape management as “action, from a perspective of sustainable development, to ensure the regular upkeep of a landscape, so as to guide and harmonize changes which are brought about by social, economic and environmental processes” (European Council, 2000). Landscapes should be understood as composite entities, which reflect topography and the physical environment and comprise a cultural, “...archaeological and built heritage, as well as an ecological infrastructure” (Cooper et al, 2009, pp.16). In Europe, landscapes show high heterogeneity and local distinctiveness (Cooper et al, 2009); (Meert et al, 2009); (Gobster, Nassauer, Daniel, & Fry, 2007). Moreover, European landscapes are to a high degree shaped by agricultural land use (Eurostat, 2010). The main landscape services provided by agricultural landscapes have been specified by numerous studies (Cooper & Baldock, 2009); (Power, 2010); Sandhu et al., 2008; Tscharntke et al., 2005). Prager, K. & Freese, J. (2009) express landscape as “the outdoor environment, natural or built, which can be directly perceived by a person visiting and using that environment. A scene is the subset of a landscape which is viewed from one location (vantage point) looking in one direction... ”. On the other side landscape can be defined as a set of visually visible by the human eye relief elements such as ground, part of the territory, including the various rock formations visible on the horizon, visible flora and fauna, climatic phenomena which occur in the relevant territory created structures civilization as infrastructure, buildings, ponds, agricultural land. Valorization of landscape in rural tourism is significant and plays a crucial role in attracting visitors to a destination. The landscape of a region, including its natural features, terrain, climate, and overall aesthetic appeal, can greatly impact the tourism industry in several ways: - Scenic Beauty and Aesthetics: Beautiful landscapes, such as pristine beaches, majestic mountains, lush forests, tranquil lakes, and picturesque countryside, can captivate tourists. Travelers are often drawn to destinations that offer stunning natural beauty for relaxation, rejuvenation, and recreation; - Outdoor Activities: Diverse landscapes provide opportunities for a wide range of outdoor activities, such as hiking, skiing, surfing, kayaking, and wildlife watching. Tourists seeking adventure and outdoor experiences are more likely to choose destinations with varied landscapes; Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 302 - Cultural Significance: Landscapes can hold cultural and historical significance. Iconic natural landmarks like the Grand Canyon or Machu Picchu draw tourists interested in history and culture. Indigenous communities often have a deep connection to their local landscapes, making them attractive for cultural tourism. - Ecotourism: Pristine and ecologically diverse landscapes are crucial for ecotourism. Travelers interested in environmental conservation and responsible tourism are more likely to visit places with unique and well-preserved ecosystems. - Climate and Weather: The climate and weather patterns of a destination can be a significant factor in attracting tourists. People often choose destinations with climates that align with their preferred activities, such as skiing in winter or beach vacations in summer. - Photography and Social Media: Picturesque landscapes serve as excellent subjects for photography and social media sharing. Tourists often share their experiences online, which can further promote a destination. - Wellness Tourism: Tranquil and natural settings are appealing for wellness tourism. Spa resorts located in scenic landscapes offer relaxation and stress relief, and yoga retreats often choose peaceful, natural settings. - Culinary Tourism: Landscapes can also influence culinary tourism. Regions known for their agricultural landscapes, vineyards, or fishing industries often attract food enthusiasts looking for local and authentic gastronomic experiences. - Art and Inspiration: Many artists, writers, and creatives draw inspiration from landscapes. Destinations with a rich artistic history or a thriving arts scene can attract tourists interested in culture and creativity. - Economic Impact: Tourism driven by landscapes can have a significant economic impact on a region. It can create jobs, stimulate local businesses, and lead to infrastructure development, such as hotels, restaurants, and recreational facilities. - Conservation and Sustainability: Tourism can have both positive and negative impacts on landscapes. It can provide financial incentives for conservation efforts, but it can also lead to environmental degradation if not managed sustainably. Many destinations now focus on responsible tourism practices to protect their landscapes. In conclusion, the influence of landscape in tourism is multifaceted and encompasses various aspects, from aesthetics and outdoor activities to culture, sustainability, and economic development. A destination's unique landscape can be a powerful magnet for tourists and a vital component of its overall tourism strategy. However, it's crucial to manage tourism responsibly to ensure the preservation and sustainability of these landscapes for future generations. Based on literature review we can conclude that landscape is a multi-dimension element of management. Landscape can be represented as a complex system which contains of several elements and has structure, function and value (see figure 1). Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 303 Figure 1. Key landscape elements: structure, function and value Source: OECD, 2001 Landscape functions are elements in landscape theory that are vital to be examined in purpose to choose adaptive method for measurement of landscape values. The landscap function are: - Ecosystem Function: Landscapes provide essential ecosystem functions, including: (1) Habitat: Supporting diverse flora and fauna and contributing to biodiversity; (2) Nutrient Cycling: Recycling of nutrients and maintenance of soil fertility; (3) Water Regulation: Managing water flow, filtration, and storage; (4) Carbon Sequestration: Capturing and storing carbon dioxide, helping mitigate climate change; (5) Pollination: Providing habitats for pollinators, essential for agriculture. - Cultural and Aesthetic Function: Landscapes serve as cultural and aesthetic settings: (1) Scenic Beauty: Providing visual appeal and aesthetic enjoyment; (2) Cultural Significance: Holding cultural, historical, and spiritual value for communities; (3) Inspiration: Inspiring artists, writers, and creatives; (4) Heritage: Preserving cultural heritage and traditions. - Recreation and Tourism Function: Landscapes offer opportunities for outdoor recreation and tourism: (1) Outdoor Activities: Supporting activities like hiking, camping, fishing, and skiing; (2) Tourism Attractions: Attracting tourists to destinations with natural beauty and unique landscapes. - Economic Function: Landscapes contribute to the economy in various ways: (1) Agriculture: Providing fertile land for agriculture and food production; (2) Tourism: Generating income and employment through tourism-related activities; (3) Natural Resources: Offering resources like timber, minerals, and water. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 304 - Environmental Protection Function: Landscapes can act as protective barriers: (1) Flood Mitigation: Buffering against floods, storms, and erosion; (2) Natural Hazards: Reducing the impact of natural disasters like wildfires and landslides. - Educational and Scientific Function: Landscapes are valuable for education and research: (1) Research: Serving as outdoor laboratories for ecological and environmental studies; (2) Education: Providing opportunities for environmental education and interpretation. Landscape value – every landscape function provides different values for economy. The value of landscapes is multifaceted and can be assessed from various perspectives, including economic, ecological, cultural, and aesthetic dimensions. Here are some key aspects of landscape value: Economic Value: - (1) Tourism and Recreation: Many landscapes attract tourists and outdoor enthusiasts, contributing significantly to the local and national economy through the tourism industry; (2) Agriculture: Agricultural landscapes provide food and other agricultural products, supporting the agricultural sector and food supply chain; (3) Real Estate: The scenic beauty and desirability of certain landscapes can influence property values, making real estate more valuable in these areas. (4) Natural Resources: Landscapes may contain valuable natural resources like minerals, timber, or water, which can be extracted for economic gain. Ecological Value: - (1) Biodiversity: Natural landscapes often support diverse ecosystems, which are crucial for biodiversity conservation and maintaining ecological balance; (2) Ecosystem Services: Landscapes provide essential ecosystem services such as clean air and water, pollination, and carbon sequestration, contributing to human well-being; (3) Habitat: Natural and semi-natural landscapes serve as habitat for wildlife, including endangered species, which are vital for conservation efforts. Cultural and Historical Value: - (1) Heritage: Some landscapes hold cultural or historical significance, representing the heritage and traditions of a particular region or community; (2) Archaeological Sites: Landscapes can contain archaeological sites and artifacts that offer insights into human history and culture; (3) Spiritual and Sacred Sites: Certain landscapes are considered sacred by indigenous communities and have cultural and spiritual value. Aesthetic and Recreational Value: (1) Scenic Beauty: The aesthetic appeal of landscapes has intrinsic value, attracting artists, photographers, and those seeking aesthetic experiences; (2) Recreation: People often engage in recreational activities in appealing landscapes, providing opportunities for relaxation and enjoyment. Educational and Scientific Value: (1) Research: Landscapes serve as living laboratories for ecological and environmental research, contributing to scientific knowledge and understanding; (2) Education: Landscapes can be used for educational purposes, teaching people about geology, biology, and environmental science. Psychological and Well-being Value: (1) Stress Reduction: Access to natural landscapes has been shown to reduce stress, improve mental health, and enhance overall well-being; (2) Cultural Connection: Landscapes can foster a sense of place and cultural identity, contributing to a community's well-being; (3) Climate Regulation: Certain landscapes, such as forests and wetlands, play a crucial role in regulating the climate by absorbing carbon dioxide and influencing local weather patterns; (4) Resilience and Disaster Mitigation: Natural landscapes like wetlands and mangroves provide resilience against natural disasters like floods and storm surges; (5) Agricultural and Food Security: Landscapes that support agriculture are essential for food production and food security. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 305 The value of a landscape can be subjective and dependent on individual perspectives and cultural contexts. Recognizing and assessing these various dimensions of landscape value is important for making informed decisions about land use, conservation, and sustainable development. It's also crucial for ensuring that landscapes are preserved and managed in ways that balance human needs with ecological and cultural preservation. Methods for measuring the influence of landscape on tourism development. Measuring the influence of landscape on rural development and tourism is a complex task that requires a combination of quantitative and qualitative methods. Here are some methods and approaches that can be used to assess this influence: (1) Surveys and Questionnaires: (1) Visitor Surveys: Conduct surveys of tourists to gather information on their motivations for visiting rural areas, the importance of landscape in their choice of destination, and their satisfaction with the landscape; (2) Community Surveys: Survey residents of rural areas to understand their perceptions of the landscape's role in tourism and how it affects local development. (2) Collecting survey data using GIS (Geographic Information Systems): Use GIS to analyze spatial data and map out the distribution of tourist attractions, natural features, and development in rural areas. This can help identify patterns and relationships between landscape and tourism development; (3) Economic Impact Studies - conduct economic impact assessments to measure the contribution of tourism to rural development. This includes analyzing visitor spending, job creation, and tax revenue generated by tourism activities. (4) Case Studies: In-depth case studies of specific rural areas can provide rich qualitative data on the influence of landscape. Interviews, focus groups, and observations can be used to gather information from tourists, residents, and local businesses. (5) Visitor Counts and Data Collection: Use visitor counters and data collection techniques to track the number of tourists visiting specific rural areas. This data can be used to assess trends and the impact of landscape on visitor numbers; (6) Environmental Impact Assessment: Evaluate the environmental impact of tourism activities on the landscape, including factors like land degradation, pollution, and habitat disruption. (7) Cultural Heritage Assessments: Assess the cultural heritage and historical significance of the landscape, as this can be a significant driver of tourism and rural development. This may involve archaeological surveys and ethnographic research. (8) Stakeholder Interviews and Workshops: Engage with stakeholders, including local government officials, tourism operators, environmental organizations, and community members, through interviews and workshops to gather insights into the relationship between landscape, tourism, and development. (9) Visitor Behavior Analysis: Analyze visitor behavior and preferences through techniques like tracking social media posts, online reviews, and mobile app usage to understand how tourists interact with the landscape and what aspects appeal to them. (10) Environmental Valuation Methods: Use economic valuation methods like contingent valuation or travel cost analysis to estimate the economic value of the landscape in terms of recreation, aesthetics, and other ecosystem services. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 306 (11) Sustainable Tourism Assessments: Assess the sustainability of tourism practices in rural areas, including their impact on the landscape. Tools like the Tourism Sustainability Assessment Tool (TSAT) can be applied. (12) Remote Sensing and Satellite Imagery: Utilize remote sensing and satellite imagery to monitor changes in the landscape over time, such as deforestation, land use changes, and urban sprawl, which can affect rural development and tourism. (13) Community-Based Tourism Development Workshops: Organize workshops that involve the local community in planning and developing sustainable tourism initiatives that leverage the landscape's unique attributes. Combining multiple methods and data sources can provide a comprehensive understanding of how landscape influences rural development and tourism. It's essential to tailor the research approach to the specific context and goals of the study. Additionally, engaging local communities and stakeholders throughout the research process is crucial for developing strategies that balance tourism development with landscape preservation and community wellbeing. The method of “Choice experiment”. A choice experiment is a method used in economics and social sciences to understand individuals' preferences and willingness to pay for different attributes of a product, service, or environmental resource. It is commonly used in the fields of environmental economics, marketing, and public policy to inform decision-making. Here's an overview of how a choice experiment typically works: 1. Attribute Selection: The first step in designing a choice experiment is to identify the attributes of the product, service, or resource you want to study. Attributes are the specific characteristics or features that individuals consider when making choices. For example, if you're studying preferences for a smartphone, attributes might include screen size, battery life, camera quality, and price. 2. Attribute Levels: For each attribute, you need to define different levels or variations. These levels represent the different options or scenarios that respondents will consider in the choice experiment. For example, for the attribute "screen size," you might have levels like 5 inches, 6 inches, and 7 inches. 3. Choice Sets: Choice sets are combinations of attribute levels that respondents will evaluate and choose from. These are created using a fractional factorial design to efficiently cover all possible attribute combinations without overwhelming respondents. Each choice set typically contains two or more alternatives, each with different attribute levels. 4. Survey Design: You design a survey in which respondents are presented with a series of choice sets and asked to choose their preferred alternative from each set. The survey should also collect demographic and other relevant information about respondents. 5. Data Collection: Administer the survey to a sample of respondents, ensuring that the sample is representative of the population you are interested in studying. Respondents' choices in the choice sets will provide data on their preferences and trade-offs between different attribute levels. 6. Data Analysis: Analyze the choice experiment data using statistical techniques like conditional logit models or mixed logit models. These models estimate individuals' preferences for different attribute levels and can be used to calculate willingness to pay for specific attributes. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 307 7. Interpretation: Interpret the results to understand which attributes are most important to respondents and how they value different attribute levels. This information can be used for pricing strategies, product design, policy decisions, or resource allocation. 8. Policy or Business Implications: The insights gained from the choice experiment can inform decision-makers about how to design products, services, or policies that better align with consumers' preferences and maximize their welfare. CONCLUSION Choice experiments are valuable tools for understanding consumer preferences and can be applied to various contexts, such as transportation planning, environmental conservation, healthcare, and more. When conducting a choice experiment, it's important to carefully design the survey, ensure a representative sample, and use appropriate statistical methods for analysis to obtain reliable and actionable results. SPONSORSHIP The results published in the articles at the current issue are funded by the National Scientific Fund Sofia in the frame of project “KП-06-Н65/11 – 12.12.2022”. REFERENCES Brouwer, F.M. and F.E. Godeschalk, (2004). 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Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 309 Svetlozar Ivanov Bojura Fidanska Svetlozar Ivanov PhD – student at Institute of Agricultural Economics Institute of Agricultural Economics, Sofia, Bulgaria IMPACT OF AGRIENVIRONMENTAL ECOSYSTEM SERVICES ON FARM LANDSCAPES ABSTRACT PhD – student at Institute of Agricultural Economics More than a third of the Earth's total land area is used for agriculture and grazing, leading to alarming rates of land conversion and habitat loss for a variety of plant and animal species. Conventional agricultural production, in both methods and practice, is responsible for high rates of biodiversity degradation, soil erosion, reduced water potential, and impacts on a range of ecosystem services. In Bulgaria, research on economic and other issues related to agroecosystem services is at an early stage. With few exceptions, there is a virtual lack of research on the dominant forms of agroecosystem services management in the country. This paper aims to investigate the impact of implementing ecosystem services on the shaping of the landscape on farms. As well as to further the understanding of the impact of multiple agroecological ecosystem services in farm landscapes. Institute of Agricultural Economics, Sofia, Bulgaria KEYWORDS: agro-ecological services, landscape, impact, implementation e-mail: svetozar88@mail.bg ORCID: https://orcid.org/0009-00026589-1046 Bojura Fidanska e-mail: bojura_fidanska@abv.bg JEL: J43, Q57, Q58 ORCID: https://orcid.org/0009-00017888-3099 INTRODUCTION An ecosystem is a system consisting of biotic and abiotic components that function together as a unit. Biotic components include all living things, while abiotic components are non-living things. Thus, the definition of ecosystem science includes an Published First Online: ecological community consisting of diverse populations of 19.12.2023 organisms living together in a particular habitat. Any sustainable Pages: 310-317 development of ecosystems must overlap the ecological, economic and social elements equally. Our development should not disturb the DOI: development of future generations and they should have access to https://doi.org/10.37075/JOMS the same natural resources as us. In general, the state of ecosystems A.2023.2.13 in Bulgaria is good, but in some places there are serious processes of degradation and efforts must be made to restore them and identify the causes of negative impacts. When the concept of ecosystem was defined and the idea that nature functions as a single whole was introduced, the theory of systems had not yet been developed. After the justification of the systems approach, the possibility of studying the structural-functional organization of ecosystems was realized. The founders of the systems approach came to the conclusion that each system is a collection of components with given properties, functioning interdependently, united into a whole to achieve certain actions and goals. Ecosystem services are the conditions and processes by which natural ecosystems and the organisms that make them up maintain and replenish their life. These services maintain biodiversity and the production of ecosystem goods. Ecosystem goods and services are the benefits that humans derive directly or indirectly from ecosystem functions. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 310 The most important thermodynamic characteristic of ecosystems is their ability to create and maintain a high degree of internal order, with each system in equilibrium not only with its external environment but also in the relationship of its individual parts. The ecological equilibrium of an ecosystem is understood as a state of balance between its constituent elements and the processes occurring within it. As between the ecosystem and its environment, this equilibrium is maintained by the ecosystem's own mechanisms of self-regulation. Essentially, the definition of an ecosystem in biology is that it acts as the basic unit of nature. Just as a living organism consists of cells that act as the structural and functional units of life, nature also consists of basic units called ecosystems. Figure 1 shows the structure of the ecosystem, which shows the interrelationship between its different components. Figure 1. Ecosystem structure Structure of Ecosystem Biotic Abiotic Components/ Biotic components Components Manufacturers/Producers Air/Air Herbivores/Herbivores Soil/Soil Carnivores/Carnivores Sunlight Omnivores/Omnivores Water/Water Composters/ Decomposers components Source: author's work Ecosystem services are products and other benefits that people receive from natural ecosystems (MEA, 2005). Or it can be summarized that ecosystem services are the benefits that people receive through their interactions with nature. These benefits are associated with several dimensions such as people's quality of life, need for food, water, health, security and livelihood, to cultural and spiritual meaning including identity that people gain through their relationship with ecosystems. A large part of agro-ecological ecosystem services is applied in agriculture. Although the main purpose of agriculture as a sector of the economy is food production, farmers have recently been encouraged to provide a wide range of ecosystem services to meet the needs of the population (Kazakova; Nedkov; Nikolov; Todorova; Bachev; Grigorova and Kazakova; EEA; Yordanov et al.; Chipev et al.). Farm landscapes are viewed as coupled social-ecological systems and are the result of interactions between biophysical and social environments. Consequently, the combination of factors such as climate, geology and ecology, as well as management practices, technologies, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 311 skills, institutions and societal demand, leads to the provision of ecosystem service impacts on top of farm landscapes. According to authors Zhang W, Ricketts T. H, Kremen C., Carney K.& Swinton S. M. (2007), depending on how farms are managed, agriculture can be the source of many harmful methods and practices that will result in wildlife habitat loss, harmful substances in the soil and air, sedimentation, greenhouse gas emissions, pesticide poisoning, and other Any trade-offs associated with using appropriate agricultural management methods and practices are critical to realizing the benefits of ecosystem services and reducing environmental damage Agroecosystem services can provide farmers and communities with a set of different rules, divided into two groups: ▪ Regulatory rules. These include flood control, water quality control, soil carbon storage, climate change mitigation, pesticide use reduction and appropriate crop treatment. ▪ Cultural rules, could include education, recreation, tourism, area vitality, and others. Biodiversity conservation can also be considered a cultural ecosystem service influenced by agriculture Daily G. C. (ed.) (1997). Swinton S. M., Lupi F., Robertson G. P. & Hamilton S. K. (2007) conclude that conversion of natural habitats to cropland can on the one hand have a strong impact on the ability to produce important ecosystem services, but on the other many agricultural systems can also be important sources of certain services. Agricultural land use can be considered as a certain intermediate stage in human development between natural and agricultural ecosystems. 2. RESEARCH METHODOLOGY According to Bashev (2020) "Agrarian" ecosystems and "agrarian" ecosystem services are those associated with agricultural "production". The hierarchical system of agroecosystems includes multiple levels (from individual agricultural plot/plot, area, micro-region, macroregion, etc.), while their (ecosystem) services are classified into different categories (supporting, economic, recreational, aesthetic, cultural, educational, biodiversity conservation, water purification and retention, flood and fire protection, climate regulation, etc.) (MEA). The term 'management of (agro)ecosystem services' refers to the management of human actions and behaviours related to the conservation, enhancement and restoration of ecosystems and ecosystem services (Bachev 2021). The present study aims to deepen understanding of the application of multiple agroecological ecosystem services on farm landscapes. Measuring the value of ecosystem services and ensuring an effective level of provision requires three main approaches to the implementation of agroecological ecosystem services (Polasky S. 2008). 1. Provision of agro-ecological ecosystem services ('ecological production function'); 2. Valuation of agro-ecological ecosystem services ('valuation'); 3. Develop policies, tools for effective delivery of agro-ecological ecosystem services ("incentives, management"). With respect to the first approach, a number of scientists and ecologists have engaged in decades of research to improve understanding of how ecosystem services are produced (Costanza et al. 1997; Daily 1997; MEA 2005). Basic knowledge of ecosystem structure and function is continually increasing, yet we know considerably less about how these factors determine the provision of the full suite of agroecological ecosystem services to an individual ecosystem (NRC. 2005). A better understanding of the processes that influence agroecological ecosystem Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 312 services will allow prediction of the outcomes of their implementation, given their specific characteristics and the corresponding negative impacts on them. This means that an "ecological production function" can be generated. In practice, most 'ecological production function' studies focus on the provision of one or two well understood and researched ecosystem services. Thus, as a result of analysing the different processes, the predictability of the application of ecosystem services on the farm landscape will increase. Despite the wealth of research, this is one area that needs considerable attention (Kazakova; Nedkov; Nikolov; Todorova; Bachev; Grigorova and Kazakova; IAOS; Yordanov et al.; Chipev et al.). Under the second approach, determining the value of agro-ecological ecosystem services usually uses a market valuation, but can also use a non-market valuation. Valuing services arising from agricultural activities is a relatively straightforward task because agricultural commodities are traded in different markets. Separately, some ecosystem services provide a high contribution to agricultural production, and their value can be measured by estimating the change in the quantity or quality of agricultural output resulting from an increase, decrease or removal of some services. This approach has been used to estimate the value of pollination services and biological control services (Gallai N., Salles J. M., Settele J. & Vaissiere B. E. 2009). Additionally, the values of such services can be easily determined by comparing opportunity costs: different substances, pesticides that will substitute natural pest control. The other main method is the use of non-market valuation. It can be based on a particular consumer choice - behaviour or a particular attitude as a result of a market survey. Thus, these surveys for a particular 'conditional' valuation or attitude result in consumers being asked what they are willing to pay for the implementation of the agri-environmental ecosystem service they have chosen accordingly. What is important here is to understand the views of farmers as farmers: what they would be willing to accept in return for the provision of a particular ecosystem service (Swinton S. M., Lupi F., Robertson G. P. & Hamilton S. K. 2007). One of the main difficulties in managing agri-environmental ecosystem services is that those providing such services do not always benefit from them. Many ecosystem services are synonymous with public goods. Although farmers benefit from various ecosystem services, their activities can strongly influence the provision of services to third parties who do not control their production. Examples include: the impact of different farming practices on the conservation of water resources, pest populations and many others. Therefore, the main purpose of measuring and valuing ecosystem services is to use this information to design and implement certain policies and specific incentives for farmers to better and efficiently manage both farms and limited natural resources (Bashev; Bashev et al.; Bachev, 2021; Todorova). In implementing the third approach, namely developing policies, instruments for effective delivery of agroecological ecosystem services ("incentives, management"), incentives to farmers can be in the form of government payments for agroecological service delivery or initiatives of various private organizations by implementing environmental programs (Swinton S. M. 2008). Agri-environment schemes aim to mitigate the negative environmental effects of intensive agriculture by providing financial incentives to farmers to adopt environmentally friendly farming practices. In the US, they provide support for investments in soil conservation and other readily observable practices to maintain or improve certain ecosystem services, as exemplified by the 2002 Farm Bill Conservation Security Program. Many European countries also provide government support for environmentally sound agricultural practices that maintain ecosystem services. A recent evaluation of over 200 pairs of fields in five European countries showed that agri-environmental programmes have minor to moderate positive impacts on biodiversity, but largely fail to protect rare or threatened species (Kleijn D., et al.2006). Agri-environmental services have been identified as a practice that can be supported through the eco-schemes under the first pillar of the Common Agricultural Policy (CAP). They are also Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 313 highlighted as one of the sustainable farming practices that can help achieve the objectives of the European Green Pact and its related Farm to Table and Biodiversity strategies. Under Horizon 2020, the EU is funding several research projects dedicated to the development of agrienvironmental research. These projects contribute to a better understanding of the practical application of ecological and low-intensity agricultural practices and their benefits for the environment, climate and society. 3. TYPES OF AGRO-ECOLOGICAL ECOSYSTEM SERVICES AND THE IMPACT ON FARM LANDSCAPE DESIGN Nearly 40% of the earth's surface is associated with rural economic production: crop cultivation, manufacturing, and livestock grazing, allowing tremendous opportunities for humanity and increased economic development (Ramankutty, N., Evan, A.T., Monfreda, C., and Foley, J.A. 2008). Different types of agroecological ecosystem service types generate different impacts on farm landscapes. There have been a number of studies in this regard that compare different types of agroecological systems and the services they provide. An example can be given with conventional monoculture production and organic farming, in particular the effects that agricultural intensity has on biodiversity and ecosystem services (Björklund, J., Limburg, K.E., Rydberg, T. 1999). Other studies present comparative analyses between small and large farms and focus on factors such as: productivity (Lele, M., and Agarwal, U. 1990), soil erosion and loss (Essiet, E.U. 1990), diversity of different bird and plant species (Andersson, E., and Lindborg, R. 2014), and last but not least adaptation to climate change. However, none of these examples provide what the impact of implementing ecosystem services would be on farm landscapes and the environment. Simultaneous valuation of multiple agroecological ecosystem services is necessary to understand the interrelationships between individual services, how they respond to change, such as innovations in management, but also how modification of one service affects all others (Bennett, E.M., Peterson, G.D, and Gordon, L.G. 2009). The types of agroecological ecosystem services are: ▪ Pest control - biological pest control in agroecosystems is an important ecosystem service that is often maintained by natural ecosystems. The landscape outside of cultivated crops provides the habitat and diverse food resources needed by arthropod predators, insectivorous birds, and microbial pathogens that act as natural enemies of agricultural pests and provide biological control services in agroecosystems (Tscharntke T., Klein A. M., Kruess A., SteffanDewenter I. & Thies C. 2005) These biological control services can significantly reduce pest and weed populations in agriculture, thereby reducing the need for pesticides. It has been estimated that natural pest control services save about $13.6 billion annually on U.S. farms (Losey J. E. & Vaughan M. 2006) This estimate is based on the estimated value of crop losses from insect damage as well as the value of insecticide costs. Studies have shown that insects account for approximately 33% of natural pest control (Hawkins B. A., Mills N. J., Jervis M. A.& Price P. W. 1999). ▪ Pollination - Pollination is another important agro-ecological ecosystem service for agriculture that is provided by natural habitats in the farm landscape. About 65% of plant species require pollination. An analysis of data from 200 countries shows that for 75% of crops of global importance for food production, farmers rely on pollination primarily from insects (Klein A. M., Vaissiere B. E., Cane J. H., Steffan-Dewenter I., Cunningham S. A., Kremen C. & Tscharntke T. 2007). Wild insect pollinators are often present in crops of economic importance in addition to honey bees. Of the most important crops pollinated by insects and animals, over 40% depend on wild pollinators. The economic impact of insect pollination on global food production in 2005 in the 162 FAO member countries was estimated at 153 billion Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 314 euros, but the vulnerability to loss varies by geographical region (Gallai N., Salles J. M., Settele J. & Vaissiere B. E. 2009). ▪ Conservation of water resources - ensuring sufficient quantities of clean water and the level of quality is an essential agri-environmental service. According to various data, agriculture accounts for about 70% of global water consumption. Perennial vegetation in natural ecosystems such as forests can regulate water retention, infiltration and flow across the landscape. Vegetation cover plays a central role in regulating water flow by retaining soil and modifying its structure. Forest soils tend to have a higher infiltration rate than other soils and forests reduce flooding while maintaining constant inflow levels (Maes W. H., Heuvelmans G. & Muys B. 2009). Another type of agroecological ecosystem service is water availability in agroecosystems, which depends not only on infiltration and inflow but also on soil moisture retention. With climate change, increased rainfall variability is predicted to lead to a greater risk of drought and flooding, in addition higher temperatures will increase the demand for water. Farm management practices can significantly alter this water scarcity. Changing the way soils are tilled or introducing mulching can reduce water evaporation by 35-50%. (Stefanie Rost) and others predict that global crop production could increase by nearly 20% as a result of introducing onfarm water management practices. ▪ Soil condition - soil with its structure and fertility provides essential ecosystem services to agroecosystems. Well aerated soils abundant in organic matter are the basis for nutrient uptake by crops as well as water retention (Zhang W., Ricketts T. H., Kremen C., Carney K. & Swinton S. M. 2007). The structure, soil aggregation and decomposition of organic matter are influenced by the activities of bacteria, fungi and macrofauna (earthworms, invertebrates, etc.). Agricultural management practices that degrade soil structure and soil microbial communities include mechanical tillage, disking, cultivation, and harvesting, but management practices can also protect soil and reduce erosion. Conservation tillage and other conservation measures can maintain soil fertility by minimizing nutrient loss. Incorporation of crop residues can maintain soil organic matter, which aids water retention. CONCLUSION Agriculture as a whole system provides a variety of agro-ecological ecosystem services that are essential for human well-being. They also provide and use a range of other ecosystem services, including regulating services. Maximizing agroecosystem service provision can lead to improvements in other ecosystem services, but careful management can significantly reduce or even eliminate harmful effects. Agricultural management practices are key to realising the benefits of ecosystem services and reducing the harms of agricultural activities. These challenges will be magnified as a result of climate change. Our ability to assess the value of different agro-ecological ecosystem services will increase the potential in analysing future agricultural management. The application of agroecological system services is a holistic approach that supports sustainable agricultural production while caring for the environment - it works with nature and ecosystem services, enhances farm resilience and diversity, and has the potential to lead to a complete transformation of agricultural activity and food systems. Agrienvironmental system services influence a range of agricultural practices, from the breeds and varieties used to soil management practices and crop diversification strategies, to integration into value chains and business models that can support locally adapted practices and provide greater market opportunities for farmers and consumers. Examples of agricultural practices applying agri-environmental principles are organic farming, agroforestry and mixed farming. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 315 REFERENCES Andersson, E., and Lindborg, R. 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Econ. 64, 245-252 Swinton S. M. (2008) Reimagining farms as managed ecosystems. Choices: mag. Food, Farm Resour. Issues 23, 28-31. Swinton, S.M., Lupi, F., Robertson, G.P., and Hamilton, S.K. (2007). Ecosystem services and agriculture: Cultivating agricultural ecosystems for diverse benefits. Ecological Economics 64(2):245-252.; Tscharntke T., Klein A. M., Kruess A., Steffan-Dewenter I.& Thies C. (2005). Landscape perspectives on agricultural intensification and biodiversity: ecosystem service management. Ecol. Lett. 8, 857-874 Zhang W., Ricketts T. H., Kremen C., Carney K.& Swinton S. M. (2007). Ecosystem services and dis-services to agriculture. Ecol. Econ. 64, 253-260. Zhang W., Ricketts T. H., Kremen C., Carney K.& Swinton S. M. (2007). Ecosystem services and dis-services to agriculture. Ecol. Econ. 64, 253-260. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 317 Plamen Patarchanov Assoc. Prof. Dr. Faculty of Geology and Geography, Sofia University " St. Kliment Ohridski" e-mail: p_patarchanov@abv.bg ORCID: https://orcid.org/0000-00032494-3217 SPATIAL-GEOGRAPHIC FEATURES OF THE DEVELOPED REGION "KRAISHTE" IN THE WESTERN PARTS OF BULGARIA ABSTRACT Published First Online: 19.12.2023 Pages: 318-328 DOI: https://doi.org/10.37075/JOMS A.2023.2.14 This article is devoted to a particular region in our country, the Craiște. It is a region located in Pernik, Kyustendil and Sofia districts. The region has its important strategic importance as a bridgehead to the capital. The presentation gives a brief historical overview of the chronology of the development of the region and its socio-economic, ethnographic and geographical development. The main economic indicators related to the emerging serious barrier to the economic development of the municipalities of the cross-border region is the low labour productivity and the extremely low cost of labour. The specific features of agriculture and forestry, extractive industries and industrial profile, services and tourism are highlighted. The analysis carried out has its spatial patterns. KEYWORDS: Territory, space, development, governance, region, placeholder, forecasting JEL: O18, R00, R50 INTRODUCTION Nowadays, territory management is related to the effective development of individual local territories. Thus, the region as a natural and historical-geographical area is of significant scientific interest for a number of our and foreign researchers. The spatial identification and anthropogeographic characteristics of the "Kraishte" region is the subject of serious research by the prominent Bulgarian pedagogue, geographer, ethnographer, historian and folklorist - art. cor. Jordan Zahariev. For more than half a century, he conducted a cycle of surveys of the Kyustendil region, covering 159 villages and Kyustendil. In practice, however, "Kraishteto" covers a larger territory. The positioning of Kraishte region as peripheral to the country's capital gives it the opportunity to develop as a secondary spatial zone of European importance in space by creating opportunities to promote regional economic development. The purpose of the article is to bring out new challenges for the development and functional characteristics of the "Kraishte". This will allow us to assess the quality level and characteristic of the structural parameters of the area. On a European scale, "Kraishte" is a physical-geographical and historical-geographical area in Western Bulgaria and Eastern Serbia, and a very small part (the most southwestern) falls on the territory of North Macedonia. Their main direction of extension is from northwest to southeast. On Serbian territory, it includes the mountains Tumlashka (highest peak Bele Vode or Golemi vrah, 1832 m), Gramada (1719 m), Chemeritsa (Chemernik, 1638 m), Vardenik (highest peak Veliki Stresher 1875 m), Musul (peak Besna kobila 1922 m, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 318 the highest point of the entire region), Doganitsa (1829 m), Dukat (highest peak Cernook, 1881 m) and Strazha (1547 m) and numerous valley extensions and hollows - Vlasinska, Bosilegradska, etc. The region can be divided into five physical-geographical (landscape) subregions. They represent well-defined mountain ranges or valley strips. from north to south the following sub-districts are traced: Trnsko-Pernishka, Ruysko-Verilska, DivlyanskoRadomirska, Milevsko-Konyavska and Kamenishko-Dupnishka. ЕXPOSITION There is accumulated historical material for the "Kraishte" region in the direction of its anthropogeography, ethnography, folklore, sociology and dialectology. A predominant place in his researches is related to everyday life and the language of the population, as oral folklore is increasingly being forgotten and vernacular is rapidly losing its distinctive local features. The book "Kyustendil Region" is the first settlement study in Bulgaria. His other major works are: "Guide to Anthropogeographical Research in Bulgaria" (1928), "Slokastitsa Village" (1935), "Piyanets" (1938), "Kyustendil. Contribution to Settlement and Geographical Studies of our cities" (1938), "Kyustendil Basin" (1963), numerous articles, etc. Regarding the region of "Kraishteto", it is necessary to point out its importance in terms of its regional development in order to determine the possibilities for regional development of the settlements in it. Another important feature is to introduce a certain type of regional policies in the conditions of new spatial development of the regions in Southwestern Bulgaria. Yordan Zahariev (1918) introduced the term "Kyustendilsko Kraishte" to designate the part of the vast historical-geographical region of Kraishte, stretching northwest from Kyustendil and enclosed between Radomirska County on the east, Trunska County on the north, the SerboBulgarian border (until 1919) on the west and Kyustendilska County (within its borders until 1901) on the south. For the boundaries of Kyustendil Krajishte, Yordan Zahariev assumed the administrative boundary of Krajishte Nahya (until 1878, and after the Liberation - Bosilegrad District), with the 62 villages included in it. The Western Region of Bulgaria now includes: Kyustendil Region : - Goranovtsi, Gorno Uyno, Poletintsi, Polska Skakavitsa, Regizintsi - commonly. Kyustendil; - Brest, Bazovitsa, Gabreshevtsi, Gorni Koriten, Gorno Kobile, Dobri Dol, Dolni Koriten, Dolno Kobile, Dragoichintsi, Zlogosh, Kiselitsa, Kosovo, Metohija, Pobit Kamen, Sredorek, Sushitsa, Treklyano, Ushi, Cheshlyantsi - commonly. Treklyano; Transko Krajishte: Vidrar, Gorna Melna, Gorochevtsi, Dokyovtsi, Dolna Melna, Dalga Luka, Kushle, Leva Reka, Penkyovtsi and Shipkovitsa - commonly. Trun; Zemensko Krajishte: Vranja Stena, Gorna Vrabcha, Gorna Glogovitsa, Divlja, Dolna Vrabcha, Kalotintsi, Odranitsa, Peshtera, Rayantsi and Smirov dol - commonly. Zemen. The economies of the municipalities in the study area today are characterised by serious structural problems. The deep political transformation and the transition from a planned to a market economy have determined the current shape of local economies. There is a need for a high level of activity by the public authorities to attract investment for new economic activities in order to achieve sustainable employment of the workforce and diversification of municipal farms (Zahariev. I.1918). Indicative of the economic profile of the study area is the fact that Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 319 most municipalities are part of the scope of the targeted support areas. They are the territorial basis for the concentration of resources in order to reduce intra-regional disparities in the degree of development of individual administrative-territorial communities and to achieve the objectives of the state policy for regional development. The municipalities of Treklyano, Tran and Zemen, as a whole or individual settlements thereof, are defined as backward regions in all three types - rural, mountainous and border regions, respectively. The characteristics defining the economic image and development of the target region are: - predominantly monostructural economy with low adaptability, without the regional centre Kyustendil; - a high share of the agricultural sector due to insufficient development of other alternative economic activities, especially in the smaller municipalities of the study region; - Extensive agriculture with a low degree of mechanisation and efficiency of individual production; - fragmentation of land ownership, determined by the specific terrain of most of the region; - closure of structurally defining enterprises and industries in the transition years and unsuccessful privatisation of a significant part of the economic entities. The sectoral and territorial structure of the region's economy is inhomogeneous, and characterised by serious structural and intra-regional disparities. The economic shape of the region's municipalities is determined by their specialisation in the following major industries and industries: 1. Kyustendil - textile, clothing and food industry; footwear production; machine building; tourism and trade. 2. Treklyano - logging; extensive crop and livestock farming. 3. Trun - timber; engineering and tourism. 4. Zemen - mining and production of building materials; extensive crop and livestock production; forestry; food industry. Starting from one of the basic principles of regional and local development, which is to reduce disparities, it should be noted that it is necessary to create preconditions for stimulating the economy in the cross-border region and increasing the GDP growth rate. This is especially true for the small rural municipalities in the study area, such as Treklyano. Characteristic of local municipal economies is the very limited number of employers, which determines an insufficient supply of jobs on the labour market. Overcoming these negative tendencies requires a complex approach and the involvement of the capacity of the responsible state institutions through the development of specific programmes and measures, and their joint creation must be carried out with the active participation and support of both non-governmental organisations and scientific units, as well as supranational and EU structures. Increasing the competitiveness of the local economy, economic sectors and individual business units is a prerequisite for achieving economic growth and leads to higher incomes and improved living standards for the population of the study region. The competitiveness of municipal economies is of paramount importance in overcoming the increasing external pressures following our accession to the EU. On the other hand, competitiveness reflects the potential to achieve high productivity based on an innovative approach to human resources, capital and physical assets. In recent years, some competitive advantages that played a significant role at the beginning of the transition, such as low-paid labour, relatively cheap electricity, and availability of raw Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 320 materials, have become less important. Higher-ranking advantages - the ability to develop hightechnology industries, to produce and export goods with a higher degree of processing and intellectual content - have become increasingly important. One of the main problems of the local economy in the transition period is related to the low technological level of the functioning economic entities. The problem of innovation activity of companies is relevant because it is a necessary tool for the survival and development of both private and public sector enterprises. At the same time, it is a necessary condition for their transformation into competitive market structures. This is even more true for enterprises doing business on the territory of relatively small municipalities in the region, such as Treklyano, Zemen and Tran (Zahariev. I.1928). A serious barrier to the economic development of the municipalities in the cross-border region is the low labour productivity and the extremely low cost of labour. Because of this, entrepreneurs are not motivated to be innovative and to implement new technological solutions in the main economic activities. The lack of sufficient private financial resources for research and development, the low innovation capacity of businesses and the low level of use of information and communication technologies, as well as the absence of a targeted company policy for the development of human resources, highlight very clearly the negative trends in the development of the region's economy. Adequate measures are required, involving all stakeholders, especially the state and especially the local authorities, which should actively cooperate with organisations supporting business and entrepreneurship. All of them can become a key resource for the growth of economic activity by increasing the managerial culture of entrepreneurs and the competitiveness of individual business units in the regional economy. They can help to overcome the problem of little or no experience and knowledge in marketing, difficulties in accessing credit financing, lack of information and support in carrying out especially export operations, etc. The stagnation characteristic of some of the periods of ongoing transition is again very much in force, as a result of the serious regional economic imbalances accumulated over the years, reinforced today by the local influences of the economic crisis. The resulting sharp decline in both foreign and domestic investment in the region has had a negative cumulative effect on the already limited business environment, basic infrastructure and quality of human resources. Ultimately, this determines the decreasing degree of investment attractiveness of the region's territory (Opportunity for cross-border, 2005) SECTOR SPECIFICS. 1. AGRICULTURE AND FORESTRY. By its nature, agriculture remains a high-risk economic activity in the cross-border region. This, combined with the low profitability, partly due to the predominantly small size of the economic units (most of them are of the so-called semi-market type), has a disincentive effect on the sustainable development of this type of activity. The future market strength of farms in the region will depend on overcoming the problem of reluctance to cooperate. By joining together in producer organisations, these economic operators can find more opportunities to market their produce. This is also tolerated by the new agricultural policy of the EU, and Bulgaria in particular, in order to effectively counteract the growing competitive threats on the internal market for agricultural products as a result of its active opening. An advantage and opportunity for farmers in the region, but also a risk to some extent, is the development of organic production, based on the preserved geographical environment, which is a priority worldwide due to the massive penetration of genetically modified organisms in a significant part of agricultural food. However, the transition from conventional to organic farming involves the need for significant investment, which producers in the region do not have. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 321 The solution lies in the active participation and, above all, effective use of funds from the various external donor programmes of the EU and other organisations supporting this type of agriculture (National Plan…2006) With the largest share of usable agricultural area is commonly. Kyustendil, where more than 70% of them are concentrated, the result of the larger share of the basin areas and its significant total area (959,4 sq.km), which makes it the largest in the whole region. The limited total area and the prevailing, albeit low-mountain topography limit the arable agricultural land in the municipalities of Treklyano, Zemen and Trun. The fact that almost 30% of the arable land is unused is of serious concern, which clearly shows the disinterest of both local and external investors to develop agricultural production. The continuing division of hereditary estates is leading to a reduction in the average size of estates, and this cannot be compensated for by too little land consolidation through exchanges and purchases. The reason for this is that the agricultural land market in the region, as in the whole country, is not developed. Underdeveloped tenancy relations also hinder the natural consolidation of agricultural land. The crop specialization of farms has largely maintained its profile of the last decades of the twentieth century, but with a strong contraction of yields and especially of total volumes in all municipalities of the region. In Kyustendil in recent years there has been a trend of continuous decrease in autumn cereals sown, but the transition period has had the most adverse impact on fruit growing. In some of the productions, the reduction is so great that it is tantamount to a gradual disappearance, especially of its marketable nature. The worst affected is apple production, which today is downright symbolic - only a few hundred acres and three times lower yields, compared with almost 20 000 acres in the mid-1980s. In cherries, things are not quite so tragic, although the decline in acreage since the peak years has more than doubled and yields are down 25%. A significant factor and resource for the development of the sub-sector, not only in the municipality, but for the whole region, is the Institute of Fruit Growing near the town of Bled. It has strong capacities to provide specialized expert assistance and to supply planting material to farmers. The area of Treklyano is also suitable for fruit growing, but this agricultural sub-sector is almost completely abandoned. Crop production is represented by a few potato producers on a few dozen acres. The main agricultural activity in Trun is carried out by 79 registered farmers, of which about 35 are tenants specializing in the production of potatoes and cereals. The municipality of Zemen is not a traditional agricultural area. For years, traditional agricultural industries (fruit growing, potato production, etc.) have been destroyed. The presence of more than 4 000 acres of alluvial-fallow soils along the four rivers provides excellent conditions for the development of intensive agriculture with traditional or alternative specialisation. In the area of livestock farming, there has been a decrease in the number of animals kept in the municipalities. Livestock are exclusively kept on private and family-owned private farms. The decrease during the reporting period is due to the following reasons: Fragmented crop production; disturbed breeding stock; high cost of elite breeding material; high cost of feed produced; high cost of medicines and drugs; lack of free financial resources in cooperatives and private farmers; low farm gate prices of the produced produce, often below cost; irregular payment of the produced produce by processing companies; low qualification of the livestock workers, ageing and declining population in villages. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 322 Kyustendil has a multi-sectoral livestock breeding, in which dairy cattle and poultry breeding have a larger share. Livestock farming in Treklyano and Trun is represented by small family farms of a few cows or sheep. Livestock farming in the municipality of Zemen is also experiencing negative trends. Only in the period 1992 - 2002 the number of farm animals has halved. A serious advantage and significant economic resource of the cross-border area is the high share of forests, especially for the smaller mountain municipalities (see Table 3), where the forestry sector is of great importance for the economic landscape of the area. This is a major prerequisite for the development of the timber, wood processing and furniture industries. Unfortunately, a major obstacle to the development of the sector is illegal and often chaotic logging, which leads to the deforestation of significant areas, together with the numerous forest fires characteristic of the area. The high share of forests in the municipalities of Tran, Treklano, Zemen and Kyustendil is also a prerequisite for the development of hunting tourism, the collection of wild fruits, mushrooms, herbs and ecotourism. Primary afforestation is taking place in the forest stock, mainly in areas of drying plantations and crops in firebreaks, bare areas and clearings. The current priority is the sustainability of forest crops, not just their productivity. Challenges to the region's forests are related to poaching, corruption in governance structures and increasing anthropogenic activity in some forestry areas (e.g. Kyustendil and Trun). The problem of restoration of ownership of forests and forest land to municipalities and private individuals remains serious. As it is typical for the whole country, it has not been completed here either, and this in turn leads to almost permanent conflicts of interest due to unpaid compensation to owners for confiscated forests, etc. He economic development of a given geographical or administrative territory reflects the social and economic dimensions of the change in the standard of living of the population due to the change in the nature, scope and volume of economic activity within the territory. According to the Lisbon Strategy, the main priority is the achievement of sustainable economic growth and the provision of more and better jobs. Forestry has its traditions in Kyustendil municipality. The forests on the territory of the municipality are managed by the State Forest Enterprise "Kyustendil" and the State Forest Enterprise "Osogovo". They are located on an area of 413 247 ha. Kyustendil municipality has a higher than the national average forest cover. Forests occupy 47,3 % of its territory and this share is significantly higher than the average for Bulgaria (33,47 %). Training of personnel for the sector is carried out by the Vocational School of Woodworking and Forestry in the following specialities: Interior Architecture; Wood Carving; Furniture Production; Forestry. The high school has good material and technical base and provides high professional qualification, on a solid general education (Investment profile of the municipalities 2008). Forestry is an extremely important and profitable means on the territory of the community. Treklyano. The activity is carried out in two directions: protection and reproduction of forest resources; ecologically sound use of wood resources. The forest territory of the municipality is a favourable environment for the development of hunting and farming activities. The natural resources are favourable for the development of domestic and international tourism, including through the holding of the traditional International Fair in the area of 'Slavcheto' with R. Serbia. The forest fund in the municipalities of Tran and Zemen, which is 55.2 or 316.6 ha and 57.3% or 156.5 ha respectively, is perceived by the people as one of the main factors for improving the living conditions, especially in rural and mountainous areas. About 20-22% of the forest stock is afforested, but the forests are mainly used for firewood and pulpwood. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 323 2. MINING ACTIVITIES Useful minerals in the municipality. Kyustendil are mainly expressed in deposits of polymetallic ores (Osogov ore area), aggregates, quality clays (near Dragovishchitsa village) and coal. The great development of heavy industry about 35 years ago necessitated the search for minerals. Older geological surveys identified small deposits of brown coal in the southern fence. A minor lignite deposit has also been discovered near the village of Sovoljano in the north-western part of the valley. In 1905, the 'Sovoljano' coal mine was opened, but subsequently closed due to lack of transport. Coal mining subsequently resumed in 1921 and 1945-1955. After exhaustion of the coal seam in 1955, the 'Sovoljano' mine was permanently closed. Tertiary sediments in the area of the villages of Tarsino, Bersin and Lelintsi provide indications of coal seam deposits. In the vicinity of the village of Smolychino, immediately on top of dolomitised limestone, a coal seam of high calorific value has been deposited. However, the tertiary formations cover a relatively small area, so the coal is in limited quantity. In the southern part of the valley, in the villages of Stradalovo and Tsarvaritsa, oil shales with an average thickness of 1-1.5 m are found in many places. In the vicinity of the village of. Güeshevo are the Lebnitsa mine, the Silver Colliery from the lead-zinc ore deposit and the Osogovo flotation plant (now closed). Kausto-Gold, JSC, Kyustendil is a 10-year concessionaire for the extraction of solid fuels - brown coal, building materials - ballast, and metallic minerals - gold, in connection with their complex extraction from the Katrishte deposit, municipality of Kyustendil. Kyustendil. Permits for prospecting and exploration of nonmetallic minerals for a period of 3 years on an area of 0.712 sq.km. were obtained by Geoprokad Ltd. in the Grunchar deposit, Kyustendil municipality (Municipal Development Plan.20005) "Enemona AD will search for non-metallic minerals from "Kyustendilsko Kraishte", Treklyano municipality. The area is 49,98 sq. km. The planned investment in exploration activities is about BGN 140 thousand. Of these, about BGN 128 thousand are for prospecting, and about BGN 13 thousand for exploration. - for environmental protection. In the past in the area of the town of. Gold was mined in the past in the area of Tran. Following exploration in 2006 by the Canadian company Martern, a subsidiary of Canadian company Euromax Resources Ltd, which explored the area together with Tech Cominco Limited, it was reported that more than 440 g of the precious metal could be extracted from the Nadezhda deposit near the town of Trnovo. The company has also found more than 440,000 tonnes of ore from the "Hope" deposit. This is hundreds of times more than the production so far in our other deposits - about 3-5 g per tonne. A deposit from which more than 5 g can be extracted is considered profitable and a yield of 100 g is considered exceptional. The two companies plan to invest C$14.7 million in the area. The initial program is currently underway, according to which CAD 280 thousand should be invested in exploration. The deposit was discovered after preliminary soil assays showed a result of 9 g per tonne in a sample. In the overall structure of production in the mining sector of the municipality of Zemen, the following will remain priorities: production of lime and lime mortars, stone-crushing materials, refractory clay. SECONDARY SECTOR Industry In the study area, industrial industries and activities are experiencing the strong impact of the reforms of recent decades, as well as the negative impacts of the economic crisis of the last year, year and a half. Industries that are a legacy of the centralized economy are unable to respond to the challenges of a globalizing global, regional and even national market. As a result, Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 324 bankruptcies, especially in heavy industry, are not uncommon in the transition period. Specialisation in areas related to the collapsed markets of the CIS and the former Soviet republics are a further reason for the closure or downsizing of a number of enterprises in the region (Development Plan of Trn Municipality 2006-2013). The following features can be identified in the industry of the target region: - industrial specialization is concentrated in industries that are insufficiently adapted to the available resources of the territory and with low added value, and this gives rise today to serious structural problems; - the territorial concentration of industrial production and activities is mainly in the regional center Kyustendil and it naturally experiences the most serious negative effects of the changes; - a constantly decreasing share of industrial production in the structure of the formed product; - morally, and in p Despite these problems, however, at this stage the municipalities with a predominant share of industry in the local economy still have relatively higher incomes of the population, in contrast to those specialized in the agricultural sector. In common. Kyustendil there were 2290 enterprises. Of these, the largest relative share is occupied by enterprises with a number of employees up to 10 people - 92.14% (2110 enterprises), and the smallest (only 0.3%) of those with a staff of over 250 people. In general, we have a decrease in the number of industrial enterprises, increasing net sales revenues but decreasing final profits. There are also municipal trading companies operating in the municipality, in which the municipality is the sole owner of the capital. These are: "Hygia" Ltd, "BKS" Ltd and "DDD" Ltd, "NARMAG" (in liquidation). The assessment of the investment activity shows that the acquired tangible fixed assets amounted to BGN 16 539 thousand. The largest expenditures were incurred for the acquisition of machinery, equipment and vehicles 62.34%, buildings, construction equipment and structures - 26.95% and land - 6.12%. Today the economic structure of the municipality is defined by commercial companies operating in the sphere of: - Kitchen furniture - "Torgotherm" AD; - Textile industry - TPK "Osogovo", "Boditex" EOOD, "Etavia" AD, "Velbezh" AD; - Sewing industry - "Vital" Ltd, ET "Valentin Zlatkov - Valena", ET "Valeri Georgiev - Vita Style", "Moni Petrov" Ltd, ET "Snezhinka Zlatkova - Snezhanka", "Texicom" Ltd, "Texco" Ltd, "Inkstil" Ltd, "New Line - Dimitrios Avgostinos" Ltd; - Footwear production - "Ilyo Voyvoda" AD, "Tiziano" Ltd, "Daris" Ltd, "Jiwal" Ltd, "Erika Limited" Ltd, "Moda Bulita" Ltd, "Vesika" Ltd; - Transformers: "Elektron" Ltd; - Condensers: "Arcotronics Bulgaria" AD, "Konis Company" Ltd; - Food and beverages industry: ET "Lyubka Koleva - Misha", "Stratos" Ltd., "Kyustendil Bread Factory" Ltd., "Spectrum - Comp" Ltd., ET "Slavcho Kerelski - Sati - 91", "K+M" Ltd., ET "Maxim Srandev - Mak", ET "Georgi Borisov"; - Production of toys - "Detska radost" Ltd; - Production of spirits - "Vinprom Kyustendil" AD. On the territory of the community. There is only one Bakelite workshop in the territory of the municipality of Treklyano, which employs about 20 people. In common. Mini hydroelectric power plant on the river Erma. The plant was built in four years. In nine years the HPP will cover the costs incurred and will be profitable. The small plant produces 170 kilowatts of electricity per hour and its owners have already signed a contract with CEZ for the purchase of the electricity produced. The plant operates with a turbine manufactured by a German company. "Balkankar - Erma AD is a state-owned enterprise, owned Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 325 by Balkankar Holding and the Ministry of Economy and Energy. It produces galvanic and plate circuits; it employs 80 people, but there is currently almost no production. "Krakrales AD - a state-owned logging enterprise with good development prospects, provided that good coordination between the enterprise's management and the local authorities is ensured. Ideal Pipe Ltd. in Trun - is a water and sewerage pipe manufacturing enterprise that applies new technologies in its production process (re-registered Fintech Bulgaria) - creates employment for 30 people. "Hydrocomp Ltd - Thorn Spring table water bottling plant in the village of. Initially, the enterprise will provide employment for 30 people, with the trend being to expand the activity, move to shift work and consequently create additional jobs. In the municipality, the bakers are ET 'Kenton' - Vasil Vassilev, SD 'Tony' - Anton Nikolov and RPC. The majority of the energy and production capacities of the industry in the municipality of Zemen were established in the 1980s, both in volume and structure. The industries have a high degree of consumption of energy resources, labour, materials and outdated, uncompetitive technologies. In the overall structure of manufactured industrial output, priority will be given to: building materials manufacturing and food processing. TERTIARY SECTOR Services are the fastest growing segment of the modern economy of the study region. It is characterised by better efficiency compared to other economic industries and activities. This is mainly reflected in the strong reallocation of the labour force mainly from industry and less from the agricultural sector to services. This is characteristic of almost all municipalities in the cross-border area, as it is currently economically viable and at the same time ensures the sustainability of social processes. The main part of the social services in the study area, related to health, education, transport and other activities are territorially concentrated in the regional center Kyustendil. Apart from the administrative prerequisites for this, it has considerable resources and traditions. In other municipalities, separate segments of these services are developed, which often creates problems with the normal access of the population, especially from small settlements to them. The problems in the territorial organisation of health care in the region, which is currently undergoing reform, are extremely serious. The most serious are the challenges with access to hospital care in small municipalities, such as Trun, for example, where the future of the main health facility remains unclear. The lack of a real centre of higher education (even college education) in the cross-border area limits not only the local population in their attempts to improve their qualifications, but also the possibilities of offering such educational services to representatives of the neighbouring Serbian and Macedonian border regions (Bulgaria-Serbia cross-border 2007). Transport services in the study area are increasingly struggling to cover all settlements with regular services. There are already many small villages that are not served by any public transport. It is significant that in the whole community. Treklyano has not a single gas station (the last one was closed in 2008), which forces the population to travel 40-50 km to refuel. All this is a serious prerequisite for negative social and, consequently, demographic processes. Communications and other communications in the area are at an unsatisfactory level except in the district and some of the municipal centres. For the majority of the population, only the traditional services of voice telephony are available through analogue exchanges, Internet but mostly over switched lines, and mobile communications have relatively good coverage. Plumbing services have significant regional variations. Most of the settlements have central water supply, but the problem is the water transmission network, which is mainly made of Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 326 etherite pipes. Its operation is associated with a high accident rate and the generation of relatively large losses of water resources, which in some parts of the region are quite limited. The sewerage system is well below modern standards. Rural settlements lack a sewerage network in large numbers and there are also centres where there are no serious treatment facilities. Tourism, which is traditionally perceived as a profitable sector with significant potential for development, has been identified as a priority for the border area under study. On the basis of the diverse natural and anthropogenic resources and seriously renewing facilities in the area, tourism services have a constantly expanding position in the economy of a number of municipalities. The economic context of the analyzed period, both globally and regionally, is marked by the consequences of the global economic crisis that began in 2007 in the USA and worsened globally in 2008. The main challenges are related to: improving the overall infrastructure serving tourism directly and indirectly; creating conditions for year-round use of tourist potential through additional products and attractions to extend the season; improving service quality through investment in the human factor; improving the image of tourist sites by developing an adequate marketing strategy that focuses on the uniqueness of local destinations and creating modern multimedia opportunities to promote the region. CONCLUSION It is important to underline that despite the difficult mountainous relief, high altitude, difficult accessibility, harsh climate and infertile soils, Kraishte was settled to a significant extent. The region has its present and future, but it is related to its modernization and attracting investments. The most ancient registered settlements are from the time of the late Chalcolithic (near the villages of Dolno Kobile and Brest), and the new ones have an important geo-economic significance, but the demographic process is also important for them. It is important to underline that despite the difficult mountainous relief, high altitude, difficult accessibility, harsh climate and infertile soils, Kraishte was settled to a significant extent. The region has its present and future, but it is related to its modernization and attracting investments. The most ancient registered settlements are from the time of the late Chalcolithic (near the villages of Dolno Kobile and Brest), and the new ones have an important geo-economic significance, but the demographic process is also important for them. The peculiarities of the relief in the area (deep gorges with bare and steep slopes and no larger plain) suggest the formation of Chinese settlements. None of the modern villages in Kraishte have a compact character, but are scattered in hamlets, often several kilometers apart. The region may be of strategic importance for the development of tourism and recreation, but it needs a lot of work. Efforts and activities in this area should be directed in two directions: optimization of the system and support for educational institutions that offer quality and adequate education to modern requirements. The peculiarities of the relief in the area (deep gorges with bare and steep slopes and no larger plain) suggest the formation of Chinese settlements. None of the modern villages in Kraishte have a compact character, but are scattered in hamlets, often several kilometers apart. The region may be of strategic importance for the development of tourism and recreation, but it needs a lot of work. Efforts and activities in this area should be directed in two directions: optimization of the system and support for educational institutions that offer quality and adequate education to modern requirements. In summary, we can say that the Kraishte region has its socio-economic significance for the regional development of Bulgaria. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 327 REFERENCES Zahariev. I. The Kyustendil Region, Collected Works, 32, S. 1918. Zahariev. I. A guide to anthropogeographical studies in Bulgaria. "School Review", vol. 6, S. 1928. Opportunity for cross-border cooperation between the municipalities of Kovachevtsi, Zemen, Treklyano (R. Bulgaria) and Bosilegrad (R.Serbia). Neighbourhood Programme - Sustainable Economic Development. 2005. Investment profile of the municipalities of Kovachevtsi, Zemen, Treklyano (Bulgaria) and Bosilegrad (Serbia) - region "Krajiste". 2008. National Plan for Agricultural and Rural Development 2007-2013. Municipal Development Plan of Commun. Kyustendil (2007-2013). Kyustendil. 2005. Development Plan of Trn Municipality 2006-2013. Res. Municipal Council - Trun № 64/30.12.2005. Tourism Development Programme in the Municipality of Trun for 2005-2007. Bulgaria-Serbia cross-border cooperation programme - Instrument for Pre-Accession Assistance. 2007. Strategy for joint development of Kyustendil and Pernik districts and Pchinski and Yablanicki districts. Association "CMI- Kyustendil", 2007. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 328 Tsvyatko Tolev DR. UNWE, Sofia, Bulgaria e-mail: tstolev@unwe.bg ORCID: https://orcid.org/0009-00000250-8359 Published First Online: 19.12.2023 THE NEED FOR MODERNISATION OF NATIONAL, REGIONAL AND LOCAL INFRASTRUCTURE IN THE GRAVITY ZONE OF PLOVDIV AND PAZARDZHIK ABSTRACT Pages: 329-337 This article is devoted to the effective development of the agglomeration in the direction of Asenovgrad-Plovdiv-Pazardzhik, which requires the need to increase the intensity of regional development. This also requires the building of institutions and partnerships between all levels of government (central, district, regional, municipal), the private sector, donors and civil society. In practice, the region between the two cities has had satisfactory transport links for the last 50 years, but in the new realities it needs to double infrastructure and improve innovative development for high competitiveness. The article uses the results of a survey on the problems of the Plovdiv-Pazardzhik agglomeration area. Some trends are presented and relevant recommendations are made. DOI: https://doi.org/10.37075/JOMS A.2023.2.15 KEYWORDS: development, agglomeration, direction, model, survey, study JEL: R5, R53, R58, H7 INTRODUCTION Today, Bulgarian agglomeration areas and their adjacent municipalities are part of a vertical governance structure in which the direction of relationships and interactions is still mainly topdown. Effective development of the agglomeration area in the Asenovgrad-Plovdiv-Pazardzhik direction also requires building institutions and partnerships between the different levels of government (central, planning region, regional, municipal), the private sector, donors and civil society. The regional level of governance (district, region, municipality) in Bulgaria is still highly dependent on decisions taken at the central level. The agglomeration area Pazardzhik Plovdiv covers the distance between the two cities 37 km and areas of gravity about 15 km outside the two cities. The area between the two towns has for the last 50 years been famous for good transport connections and the presence of an international transport corridor, creating the conditions for economic development, which slowed down after the changes of 1989. Over the last few decades, the not good demographic development in the agglomeration area between Plovdiv and Pazardzhik has had its negative consequences. These are measured by a declining Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 329 and ageing population, declining birth rates and a persistently high level of overall mortality, negative natural and mechanical growth. To illustrate the processes in the Plovdiv agglomeration area and the Pazardzhik area, an empirical sociological study was conducted. The study seeks to answer the following hypotheses. On the basis of the identified dependencies and the results of the interviews, recommendations are made for the regional development of the settlements and their general development trends. For the purpose of the study, descriptive methods were used to collect data and analyze the information obtained. The study of consumer attitudes was carried out on the basis of a questionnaire consisting of 22 questions concerning the modeling of the regional development of the Plovdiv and Pazardzhik areas. The survey included closed and scale questions, providing respondents with the opportunity to indicate the level of agreement or disagreement on a symmetrical scale for a series of statements, in order to determine the intensity of consumer views on the development of the mentioned agglomeration areas. The questionnaire was developed using the online platform QUALTRICS, which provides a convenient and clean look in handling and structuring the questions. Due to the nature of the study and the nature of the data extracted from the survey, the use of non-parametric methods for the analysis of the information obtained is required. The data in the study was collected mainly using weak scales, namely nominal and ordinal, which necessitated the use of nonparametric tests. This, in turn, poses risks due to the weaker efficiency compared to parametric tests and due to the greater likelihood of making errors of the second kind, namely accepting false null hypotheses. In this thesis, three different non-parametric methods are used to analyse the extracted information. These are Chi-square analysis, Mann-Whitney U-test and Spearman correlation test. The questionnaire was developed keeping the requirements of accuracy, brevity and clarity of the questions. At the same time, the use of questions that would make it difficult for respondents to recall, make generalizations and calculations or the possibility of misleading was avoided. The results of the survey help to create a profile of the Plovdiv-Pazardzhik agglomeration at its fundamental level. EXHIBITION Business considers the demographic factor not only in terms of demand (as a determinant of aggregate consumer demand and its territorial differentiation), but also in terms of supply (as a determinant of employment). The availability of highly educated, skilled and unskilled labour resources appears to be an important factor in reducing the finances for preparing and stimulating immigration into a region of labour force. Thus, an opportunity is opened for firms to open new industries in these regions without having to invest in attracting or training personnel (Evrev P., 2018). This makes it necessary in this study to approbate the questionnaire through a specific approach and methodology for empirical research of consumer attitudes towards the assessment of regional development of the Plovdiv-Pazardzhik agglomeration area. Additionally, respondents were asked to distribute the questionnaire to their reference groups. The results are valid only for the surveyed group of persons. They do not claim to be exhaustive, but the 351 respondents surveyed make it representative of the population of the agglomeration area between Plovdiv and Pazardzhik. The main object of demographic policy in the two agglomeration areas is the people, and they in turn are at the centre of a sustainable development (Evrev P., 2018). To the first question about the gender of respondents, 63% of respondents answered that their gender is Female. The remaining 37% responded that their gender was Male. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 330 Figure 1. Gender distribution of respondents Man 37% Woman 63% Source: Questionnaire survey The results should be taken as a borehole in the empirical field, from which guidelines and hypotheses for future nationally representative quantitative or in-depth qualitative research in the problem field around the vision for the development of the agglomeration area between Plovdiv and Pazardzhik can be derived. The results of the online survey allow for the coarsest orientation in regional development patterns. It must be assumed that demographic factors, number and sex-age structure influence employment, production, income and consumption at the macro level. They also affect the standard of living, differential income and poverty of individual families and their members. Figure 2. Population by age structure from the survey. Distributio n o f respo ndents by a g e 20% 10% 12% 0% 16% 9% 14% 17% 9% 10% 2% 6% 4% 1% 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-70 Source: Questionnaire survey When asked about the age structure of the population, only 2% of the respondents were in the 15 to 19 age range, 12% of the respondents were in the 20 to 24 age range, 16% of the respondents were in the 25 to 29 age range, 9% of the respondents were in the 30 to 34 age range, 14% of the respondents were in the 35 to 39 age range, 17% of respondents were in the 40 to 40 age range, 9% of respondents were in the 45 to 49 age range, 10% of respondents were in the 50 to 54 age range, 6% of respondents were in the 55 to 59 age range, 4% of respondents were in the 60 to 64 age range and 1% of respondents were in the 65 to 70 age range. The research also involves collecting data on the positions and educational level of the respondents. In practice, in the Plovdiv-Pazardzhik agglomeration area, it is good to highlight the possible factors that influence the occupational and socio-demographic characteristics; what are their attitudes towards practicing professions and the level of education of the population (Tsonkov N., 2016). The majority of the respondents had higher education, but nearly one third had secondary education. This is necessary due to the peculiarities of employment in the agglomeration area, allowing, on the one hand, the identification of the status and needs of the surveyed sites, and on the other - the comparability of data with those for other agglomeration areas in the country. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 331 Figure 3. Percentage of respondents by education High school education 28% University education 72% Source: Questionnaire survey Thus answering the question regarding education, it is evident that 72% of the respondents answered that their education was "High school education". The remaining 28% responded that their education was "University education ". There are no people in the survey who are with primary education. Figure 4. Percentage distribution of respondents by occupation What is your profession? 16% 14% 12% 10% 8% 6% 4% 2% 0% 14% 7% 6% 7% 14% 13% 15% 8% 6% 5% 3% 1% 3% Source: Questionnaire survey In the survey, the largest participation were people in the profession "Secretary" (15%) "Manager"(14%), "Labourer" (14%) and “Freelance” (13%). People engaged in social activities were "Teachers" 8%, "Doctors" 7%, "Protection of public order " 6%. "Unemployed" have 7%. "Retired" and "Student" are 3% and those who are currently on maternity leave only 1%. People who defined themselves as "Engineer" are 6%, 5% of the respondents answered that their profession is "Managing Director". The wide range of participants in the survey enables us to approach the problems of the PlovdivPazardzhik agglomeration area in a more targeted way. Moreover, besides the different professions, some of the respondents have a vision and an assessment of the development potential. In this direction, an important place according to the survey is occupied by the vision in the South-Central planning area the possibility of "support for the young and new employees" Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 332 (30.00 %), followed by "meeting other social and cultural needs" and "cards for fitness and other sports activities" each with (25.00 %). It is interesting to note that employers pay a lot of attention to "facilities for long and short-term recreation and tourism" and "facilities for physical culture, sports and tourism", which probably means that there are such facilities built on the premises of the enterprises themselves. On the one hand, these results show that those who filled in the questionnaire are interested, but on the other hand, it is obvious that the problems of regional development have taken a back seat to the social problems of the population in the last two years (Petrov K. 2021). Here it can be confirmed that Plovdiv and Pazardzhik in the period 2021-2022 are in a complex process of socio-economic development. This seems to be a key period to determine the growth of the economic and human potential of the country, the solution of its socio-economic problems is impossible without defining regional policy as the main priority for the future development of the region and the country as a whole. In this situation within the national territory, the territories around Plovdiv and Pazardzhik managed to transform and gradually form a new regional economic profile. This process of highlighting the strengths of the settlements around the Plovdiv-Pazardzhik axis is fading due to emerging problems with the quality of regional connectivity and infrastructure provision. Thus, according to the NSI indicators of 2022 for the territory in the direction Plovdiv Pazardzhik, there is no change in the length of highways, roads of different classes, as well as railway lines. There is insufficient investment in energy, communications and water and sewerage infrastructure, which raises many questions regarding the capacity for development of the agglomeration area between Plovdiv and Pazardzhik. In this direction, the formed common mega-area between Plovdiv and Pazardzhik needs the formulation of specific objectives and activities to achieve strategic superiority in national and regional terms. This should include building business networks, stimulating the development of various forms of tourism, improving the quality of life and the connectivity of the region nationally and internationally, improving access to educational, health, social, cultural services and sports, etc. (Yovcheva, M. 2012). In line with these possible policies, one should not ignore the fact that Plovdiv and Pazardzhik have a very good and favorable geographical location (Yovkova. Y 2021). In the national space, the routes Plovdiv-Pazardzhik-Razlog-GotseDelchev-Drama-Kavala, Sofia-KoprivshchitsaPanagyurishte-Pazardzhik-Peshtera-Dospat, Plovdiv-Pazardzhik-Ikhtiman-SamokovDupnitsa-Kyustendil, Plovdiv-Karlovo-Troyan-Lovech-Oryakhovo, Plovdiv-HaskovoSvilengrad, Plovdiv-Smolyan-Rudozem-Kavala, as well as other directions of the regional character of: Pazardzhik-Stamboliiski-Plovdiv, Asenovgrad-Plovdiv-Krichim-Peshtera and others. It is essential how the agglomeration area is embedded in the local, regional and national space. In this direction, a fundamental element for the present and future development of the forming agglomeration is the assessment of the available road infrastructure that serves the settlements (Yovcheva, M. 2012). The road network should also be correlated to the national network, where the South Central Region includes some of the main road routes of the TEN-T network, whose length represents 18.4% of the total length of the road network in the country. These roads ensure the integration of the country's road network with that of neighbouring countries and are important for the integration of the territory both nationally and in European terms. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 333 Table1. The road network in the South Central Region in relation to the districts of Plovdiv and Pazardzhik Statistical zones, regions and districts Roads Total Highway First Class Second Class Third-class and road connections at junctions and interchanges South Central Region 4105 192 416 785 2712 Pazardzhik 753 51 59 203 440 Plovdiv 1020 50 129 240 601 Source: Questionnaire survey It is evident that the agglomeration between Plovdiv and Pazardzhik has a high road density. This brings to the forefront the assessment that the agglomeration network has a satisfactory degree of development, but it is necessary to relate it not only to the regional development, but also to its national and international importance and density of regional and intra-regional roads, given their different functions in serving the territory of the Plovdiv - Pazardzhik agglomeration. Here is the main deficit of the satellite settlements around the agglomeration, because they do not have wider transport accessibility (Yovkova, Y 2021). Less than half of the municipalities in Plovdiv and Pazardzhik districts are served by roads of international and national importance, providing them with better positions for transport communications on a larger scale and greater opportunities for socio-economic development. Figure 5. Assessment of the possibility to improve the connectivity of Plovdiv and Pazardzhik How do you assess the possibility of improving the connectivity between Plovdiv and Pazardzhik? 52% As important but not determinant of development 12% 11% As a very important development process 22% 52% 3% As a negative process that will not reflect well on the two cities 3% 11% 22% I don't think it matters 12% Resources will be wasted rather than progress made Source: Questionnaire survey On the other hand, municipalities are not flexible and do not have development alternatives, this is because nearly 60% of municipalities have more limited development opportunities due to the inability to bring out their strengths and form their own regional economic profile. The worst situation is faced by municipalities served by third-class roads, former fourth-class roads reclassified in 2002, whose parameters and condition are traditionally poor. The area of influence of their centres is most often limited to the municipality. An example of such a Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 334 municipality is Peruschitsa. In this direction, based on the results of the survey conducted, it is evident that this issue is still facing public management. When asked "How do you assess the possibility of improving Plovdiv-Pazardzhik connectivity?", 52% of respondents answered that their assessment of the possibility of improving Plovdiv-Pazardzhik connectivity should be understood as a set of policies. The high percentage indicates that there is a public opinion created in the region about the need to build better and more efficient connections between the settlements (Yovkova. J. 2021). It is evident that only 3% of the respondents answered that their assessment of the possibility of improving connectivity between Plovdiv-Pazardzhik is "I do not think it makes any difference". A part of the public, which includes nearly 22% of respondents, expressed doubt that it is possible for the infrastructure to change the image. This pessimism indicates that the public sector is not sufficiently justifying the importance and role of infrastructure in the changed regional economic environment and change in the means of production and movement of the population. Higher class roads situate the designated municipality at a higher territorial level, determining the possibilities for spatial organization of economic, social and administrative policies at a larger scale, respectively with more other municipalities and centers of higher rank (Kolev, B 2008). Conversely, servicing a lower class road network 'shrinks' communications to a smaller perimeter of the territory and limits development opportunities. Here it is worth emphasizing that for the development of the agglomeration area between Plovdiv and Pazardzhik it is necessary to develop regional road connections. Roads and infrastructure that will ensure regional connectivity should guarantee the links between the major administrative and economic centres in the regions, as well as between the regions themselves, contributing to their integration (Kolev, B 2008). At the same time, they have the task of bringing traffic to motorways and Class I roads and serve as redistribution points for traffic on national and internationally important roadways. Class II and III roads provide good transport services and transport accessibility to small and medium towns and villages, but the region needs further development of high class roads. Additional issues are already beginning to arise here related to daily labour migration and the preferences of the population as to where they wish to build their homes. The formation of Plovdiv and Pazardzhik as regional economic centres in the country and their peripheries should be seen as a first step towards shaping successful investment destinations. The positioning of Plovdiv as the main and Pazardzhik as a complementary economic centre for investment destination sets a wide spatial area for present and future geo-economic development forming a natural economic area around the centre of Plovdiv and Pazardzhik. It should be noted here that in the Bulgarian context wages are the main factor regulating the daily labour migrations of the workforce in a gravitational march of 40 to 70 kilometres. This is explained by three circumstances. First, the absence of close production linkages with the economies of individual municipalities, and hence different labour costs. Second, in most of the country, wages, measured as a share of the EU average, are negatively correlated with emigration and positively correlated with immigration (Shishmanova, M. 1996). Thirdly, objections to the rapid increase in wages and minimum wages come as a rule from Bulgarian business. They are related to two main theses. Firstly, that wage increases are limited by labour productivity and secondly, that increases in minimum wages lead to a blurring of the boundaries between high and low incomes. This implies that a policy of accelerated wage increases may limit labour leakage and accelerate the flow of workers to developing regions of the country, but on the other hand it is not clear how it will be accepted by Bulgarian business. Our study allows for a correction of these views. In practice, with wages in the country being extremely low in comparative terms, a wage increase is an incentive to increase labour productivity in line with the concept of the effective wage. Moreover, the slowdown in wage increases leads to an acceleration of labour brain drain, which in turn leads to even greater labour shortages and upward pressure on wages. It is another matter that infrastructure provision in the agglomeration area between Plovdiv and Pazardzhik can create a somewhat balanced wage and employment system, but it goes through a targeted Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 335 regional infrastructure development policy. Whatever policy is deemed best, it should be aimed at regulating and controlling migration processes and be based on reliable information about the factors that limit daily labour migration and the consequences of the measures implemented (Shishmanova, M. 1995). On the other hand, a shrinking labour force also leads to a labour shortage. Increasingly, the lack of sufficient skilled labour is hampering investment. This in effect becomes a brake on economic development, reason enough to develop a targeted policy to address this problem in the long term. Moreover, generating real demand for highly skilled professionals presupposes an efficient high-tech sector. The existence of high-tech potential depends, in turn, on the supply of adequate financing (venture capital, investment banks, developed capital market, state funds, access to EU structural funds, use of resources under the EIB, EIF and Operational Programmes. The agglomeration area between Plovdiv and Pazardzhik is structured by the need for state policy in the field of education, science and research, the existence of clusters uniting business, universities and the financial sector, the creation of free industrial zones, business incubators, the state of the justice system, the efficiency of public administration and quality housing policy. Figure 6. Preferences for place of residence of people from Plovdiv and Pazardzhik municipalities Where do you think people prefer to live in the municipalities of Pazardzhik and Plovdiv? 14% In single-family houses in cities 14% 16% 34% In peripheral urban areas 34% 32% 4% In a smaller municipality (e.g. Asenovgrad, Maritsa, Kuklen...) 4% 32% In the villages that are in the gravity zone of Plovdiv or Pazardzhik 16% In the city center Source: Questionnaire survey Within the survey conducted in the agglomeration area in response to the question "In your opinion, where do people prefer to live in the municipalities of Pazardzhik and Plovdiv?", 34% of the respondents answered that in their opinion people in the municipalities of Pazardzhik and Plovdiv prefer to live "In the peripheral zones of the cities", 32% of the respondents answered that in their opinion people in the municipalities of Pazardzhik and Plovdiv prefer to live "In the villages that are in the gravity zone of the city of Plovdiv or Pazardzhik", 16% of the respondents answered, that in their opinion people in the municipalities of Pazardzhik and Plovdiv prefer to live "In the city center", 14% of the respondents answered that in their opinion people in the municipalities of Pazardzhik and Plovdiv prefer to live "In single-family houses in the cities" and 4% of the respondents answered that in their opinion people in the municipalities of Pazardzhik and Plovdiv prefer to live "In a smaller municipality (e.g. Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 336 Asenovgrad, Maritsa, Kuklen...)". In the answer to this question it is evident that the population in the Plovdiv-Pazardzhik agglomeration area prefers to live in houses, which implies in the long run the settlement of the peripheral territories in the agglomeration area. This means that in addition to industrial production, services also need to be developed in the region. This can be done by encouraging and promoting the practice of the already existing legislation on flexible working hours and teleworking. CONCLUSION It is recommended to legislate to expand the range of social services, such as the creation of vouchers for home support and the development of a culture linked to the increase of service consumption. A wide, stable and guaranteed range of social services that allows concentration on professional activity in the Plovdiv-Pazardzhik area will lead to peace of mind in terms of home and family, which is one of the main attractions for young families to settle in the agglomeration area. Thus, the views of the people and their ideas for development are brought out in the agglomeration area between Plovdiv and Pazardzhik. The fundamental question is about adapting the Plovdiv-Pazardzhik agglomeration, more rationally to the new things in governance, when they are the product of the innovative development of local government. The more innovations are introduced in a region, it is assumed that it has great potential for socioeconomic development. An important aspect of improving living standards combined with economic innovation is better transport connectivity. REFERENCES Evrev P., The City Planning of Lovech, e-book, 2018 Yovkova.J. (2021) Real Property. Innovative Urban Planning, Smart City, Real Estate & Business - Volume V (1) Yovcheva, Mirjana. (2012) The reality of "shrinking cities, International Jubilee Scientific and Applied Conference UASG, 2012. http://uacg.bg/filebank/att_6874.pdf Kolev 2008: The National Geographic Space of the Republic of Bulgaria. Sofia. Petrov, K. (2021) Geo-urbanization systems and urban development. IC at UNWE Tsonkov, N. (2016) Developing regions and markets. Ed. Economy Shishmanova, M., N. Yankova et al. Trends and Problems in the Structure and Development of the Settlement Network in the Republic of Bulgaria, NCTR, 1995 Journal of Management Sciences and Applications ISSN 2815-3030 https://jomsa.science/ No. II, 2023 pg. 337

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