Annual Report2008Bulgaria

Junior Achievement Bulgaria and Business Education

Established in 1997, Junior Achievement Bulgaria is a member of Junior Achievement Worldwide (JAW) and its regional entity Junior Achievement –Young Enterprise Europe (JA-YE). Junior Achievement Bulgaria is the first and foremost organization in Bulgaria offering top-notch programs and courses in business, economics and the development of the entrepreneurial spirit through educational and hands-on activities in economics, financial literacy, business skills, leadership and strategies for success.

Started with 10 pilot classes, today JA Bulgaria offers 28 educational courses, business programs, and separate initiatives and projects for all ages and school grades and has more than 20,000 students throughout Bulgaria. JA programs were taught by 782 teachers in 607 schools and 5 universities during the academic 2007-2008. Since their inception in 1997 until the end of the 2007-2008 school year, approximately 60,000students, 582 student companies and more than 500 business mentors have benefited from JA Bulgaria programs.

MISSION: JAB was created to educate young Bulgarians to value free enterprise, understand business and economics, develop ethical leadership and be workforce ready for the challenges of the future.

OUR PURPOSE: To inspire and prepare young people to succeed in a global economy.

OUR CORE VALUES:Belief in the boundless potential of young people;Commitment to the principles of market based economics and entrepreneurship;Passion for what we do and honesty, integrity and excellence in how we do it;Respect for the talents, creativity, perspectives, and backgrounds of all individuals;Belief in the power of partnership and collaboration;Conviction in the educational and motivational impact of relevant, hands-on learning.

ORGANIZATION OVERVIEW: Junior Achievement is the world’s oldest, largest and fastest-growing non profit economic education organization. Founded in the U.S. in 1919, Junior Achievement has reached over 70 million young people. 287,491 JA volunteers teach 339,261 classes to 8,358,087 students a year...

The JA-YE Company Programme is recognised by the European Commission Enterprise Directorate General as a ‘Best Practice in Entrepreneurship Education’.

“The achievements of JA-YE are impressive. Their efforts are truly a testament to what can be done if businesses, government, andcommunities work together. We must do everything we can to promote and encourage the growth and sustainability of such initiatives across Europe.” Gunther Verheugen, Vice President of the European Commission

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Letter from the Chairperson of the Board of Directors of JA Bulgaria

JA Bulgaria has established a tradition and reputation to be seen as a major partner in the promotion of best business practices and responsible leadership behavior. Ensuring a working link between education and business, JA Bulgaria grants a unique opportunity to hundreds of students to walk side by side with Bulgaria’s top managers and learn about good business practices first hand.

Several of JA Bulgaria’s main events and programs are implemented in fruitful partnership with the major business associations (Confederation of Employers and Industrialists in Bulgaria - CEIBG, AmCham, Bulgarian Business Leaders Forum), members of the cabinet (Ministry of Finance, Ministry of Economy and Energy, Ministry of Education and Science, Ministry of Culture, Ministry of Foreign Affairs, Ministry of Labor and Social Policy) and media (bTV, Dnevnik, Capital, Manager, Darik Radio). More than 220 corporations, companies and government institutions volunteer to host students in Manager For a Day and over 40 businesses and government entities support JA Bulgaria operations each year.

JA Bulgaria CEO Milena Stoycheva was elected Europe’s CEOs Round Table chairperson for the period 2006-2008, which is a proof of the professionalism and quality of work of the organization in Bulgaria and of its active participation in the activities of the European and global JA network.

JA Bulgaria established itself as the major provider of quality entrepreneurship education for school-age kids. Its business programs are very much valued for some of the unique opportunities they provide to the schools and students: hands-on education, opportunities for higher teacher qualifications, exposure to international competitions for best performing schools and competitive advantage for attracting more students to the schools participating in the programs. JA Bulgaria makes a true impact on the lives of young people in Bulgaria and is instrumental in the creation of entrepreneurial culture and environment in the country.

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Sasha Bezuhanova

Chairperson, JA Bulgaria Board of DirectorsGeneral Manager, Hewlett-Packard Bulgaria

Letter from JA Bulgaria’s Chief Executive Officer

In order to reach the goals set in the Lisbon strategy, Bulgaria, as a European country, should focus on promoting knowledge and innovation. Bulgaria needs to develop entrepreneurial culture and financial literacy among the young generation. The growing significance of the ability to communicate and connect with people, to work in networks and synergize, to uphold values and embrace socially responsible causes means that success is also measured in terms of the added value of “soft skills”. Bulgaria cannot afford not to educate young people in these skills and attitudes which will help form a society of active, informed and confident citizens.

In 2008, JA Bulgaria continued successfully to work towards achieving that goal by providing more and more students the opportunity to experience the benefits of hands-on economic education. We enlarged our joint project with the Ministry of Economy and Energy of Bulgaria for the creation of entrepreneurship centers in vocational high schools. The centers provide students participating in the Student Company program with modern working environment and methodological support that facilitates the functioning of their mini-enterprises. The project encompassed one new vocational high school and continued the support for two others.

In 2008, Junior Achievement Bulgaria organized national competitions in JA Titan, JA Banks in Action, JA Company Program, JA Graduate Company Program, Skills@Work, numerous initiatives, conferences, and roundtables, directed at promoting the entrepreneurship education agenda and developing long-term partnerships with the business community and the public institutions. JA Bulgaria is recognized by all stakeholders as an agent of change and modernization in the Bulgarian educational system.

JA Bulgaria received the prestigious Model Organization Award given by JA-YE Europe to JA organizations in recognition of the quality of their board, management, and operations, their impact and programs at all age levels from primary school through to university and their contribution to the overall success of the JA-YE Europe network.

I would like to extend my sincere gratitude to our partners from the business community, the institutions, and the many individuals who share our vision and help us dream “big”. Our message to all young people is be pro-active, take advantage of the opportunities, be bold! We have to be the change we want to see in the world!

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Milena Stoycheva

CEO, Junior Achievement Bulgaria

Board of Directors, Trustee Council, JA Ambassadors and JA STAFF

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Ms. Jocelyn GreeneMs. Sasha BezuhanovaMr. D. Panitza

Mr. Stefan IvanovMr. Boni Bonev

Mrs. Galya ProkopievaMr. Maxim BeharMr. Martin BankovMr Andon IchevMr. Nikolay Nedelchev

Mr. Peter PopovMr. Peter IvanovMr. John AyersrMrs. Tanya Boyadjieva

Mr. Nikolai BozhilovMrs. Teodora KaleynskaMr. Mihail KolchevMr. Rosen Sofroniev

Ms. Milena StoychevaMs. Mita GeogievaMr. Dobromir DobrinovMs. Vera PetkantchinMs. Maria YankovaMs. Elica EfremovaMs. Iglika MiloshevaMs. Ralitsa LikomanovaMs. Maria Karayotova

Patron / Wife of U.S. Ambassador to Bulgaria, H.E. Ambassador John BeyrleChairperson/HP Bulgaria, General ManagerHonorary Chairman / Free and Democratic Bulgaria Foundation, Chairman

Citigroup, Country OfficerNestle Bulgaria, BD member / Active Business Systems - BD, Chairman / "Vaptsarov" AD, MB,Chairman“Capital” Weekly, Editor-in-ChiefM3 Communications Group, Chief ExecutiveMicrosoft Bulgaria, Education Programs ManagerGeneral Electric, National Advisor for BulgariaMarc Communications,CEO

Curtis/BalkanCisco Systems BulgariaConsultantDeloitte

Unimasters Logistics, General ManagerEuropean Information Center, Director"Sviloza"AD, Executive DirectorNova Plama SA, Executive member of the Board of the directors

CEODirector Educational Programs and TrainingsPR and Marketing ManagerBusiness Development ManagerProgram Manager / Youth Business CoordinatorProgram ManagerManager “Center for Entrepreneurship”AccountantOffice Manager

BOARD OF DIRECTORS:

TRUSTEE COUNCIL:

JA AMBASSADORS AROUND THE COUNTRY:VarnaVeliko TarnovoSvishtovPleven

JUNIOR ACHIEVEMENT BULGARIA’S STAFF

Calendar of Events: January 2008 – December 2008

February 2008

22-23 Globul Training for student companies, Sofia, Globul office

March 2008

18 National Manager for a Day initiative

April 2008

4-6 International Trade Fair – Linz, Austria22-23 Third National Student Conference – Elieff Center, Sofia

May 20085 National Competition “Virtual Enterprise” – Varna14-15 JA-YE Europe Innovation Camp – Brussels27 Banks in Action National Competition – Sofia

June 2008

12 Competition Best Graduate Student Company of Bulgaria – Sofia 16 Competition Best Student Company of Bulgaria – Sofia 25-27 Competition Best Graduate Student Company of Europe - Brussels

July 2008

24-26 Competition Best Student Company of Europe – Stockholm

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Calendar of Events: January 2008 – December 2008

September 2008

9-12 Annual Teacher Training – Sofia

October 2008

11 Official launch of the Center for Entrepreneurship in Vocational School of Forestry and Woodprocessing in Teteven14 Conference “Creation of a network of Entrepreneurship Centers in vocational schools” – Sofia

November 2008

19-23 Global Entrepreneurship Week hosted by Junior Achievement in Bulgaria18 Roundtable “New generation entrepreneurs in Bulgaria – Opportunities and Challenges”21 Open House Day22 Juniors in Action national initiative

December 2008

14 National Skills@Work Competition

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Annual Report | Program Statistics, 2007-2008

Junior Achievement Bulgaria Programs

ELEMENTARY AND MIDDLE GRADE JA PROGRAMS AND EVENTSThrough the elementary and middle grades programs, Junior Achievement Bulgaria is delivering the youngest members of society a truly innovative educational experience. Designed specifically for pupils aged 5 to 15, these programs provide building blocks for skills development and understanding of the 'world of work'. Through practical and fun activities, role models engage pupils and help them understand how and why individuals, families, communities and nations work together. JAB conducted a few teacher trainings, truly believing that the introduction of these new programs into the elementary and middle grades will greatly enhance the quality of business and economic education in some of the most needy areas of Bulgaria.The programs also supplement core elements of the National Curriculum, particularly with its links to literacy, citizenship and personal andsocial health education. As we look to the future, we know that it will greatly depend on the efforts of our youth and on us as we strive to promote their education, diligence and career aspirations. JAB’s programs encourage the young generation's initiative and independence and illustrate to them how economic literacy can help everyone meet the goals and basic needs of a democratic country and its citizens.

PROGRAMS:Ourselves (5-7 year olds) Our Families (7-8 year olds) Our Community (8-9 year olds) Our City (8-10 year olds)

PILOT PROGRAMS IN 2008-2009:It’s My BizzEmphasizes entrepreneurship while providing a strong focus on social studies, reading, and writing skills. Students are encouraged to use critical thinking to learn entrepreneurial skills that support positive attitudes as they explore and enhance their career aspirations.Europe and MeIncreases the understanding of how businesses operate in Europe and introduces the relationship between the natural, human, and capital resources found in different countries and explores European businesses that produce goods and services for consumers.Global MarketplaceProvides practical information about the key aspects of the global economy, what makes world trade work, and how trade affects students’ daily lives.

EVENTS:Juniors in Action

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Juniors In Action®JA Bulgaria put the entrepreneurship talents of first-graders to a test

Junior Achievement Bulgaria challenged the entrepreneurship talents and creative thinking of young students (first to fourth grade) for the third year in a row in a hotly-contested “Juniors in Action” competition. The initiative is a final test in Junior Achievement’s specialized education program which stimulates the business thinking of the youngest students. This year, the event was the last of a series of events within the Global Entrepreneurship Week in Bulgaria. The annual initiative was held under the patronage of Sofia Municipality and the mayor of Sofia Boyko Borisov.

The main goal of Juniors in Action is to provoke the kids’ ideas about the ways different entrepreneurship activities and professions can be carried out. More than 200 students from all over the country, aged 6-12, took part in Juniors in Action on November 22, 2008 in Sofia’s Universiada Hall. The kids had the task to think of different professions for all of the members of their teams and explain on the stage what their duties and responsibilities are. The motto of the competition was “My future career in our city”. The students also had to draw the future profession they dream of undertaking.

The students were very energetic and creative, especially at the end of the competition when they had to present their professions in front of all guests. All participants received certificates. Official guests of the event were Sasha Bezuhanova, chair of the Board of Directors on JA Bulgaria and general director of Hewlett Packard Bulgaria; representatives of Sofia Municipality; Antoaneta Apostolova, mayor of Slatina region in Sofia; Andon Ichev, national advisor for General Electric.

Junior Achievement Bulgaria Programs

HIGH SCHOOL JA PROGRAMS AND EVENTSAs high school students begin to position themselves for their future, there are many unanswered questions about what lies ahead. Junior Achievement's high school programs help students make informed, intelligent decisions about their future, and foster skills that will be highly useful in the business world.With a range of different programs, Junior Achievement teaches about concepts from microeconomics and macroeconomics to free enterprise. The volunteers bring real-life business experience and guidance into the classroom at a time that represents an essential crossroads for young people.

PROGRAMSJA Student CompanyJA EconomicsLeadership and Success SkillsGlobe – retiring in 2008-2009 school yearTTBiz – retiring in 2008-2009 school yearJA Business EthicsBanks in ActionJA TitanYouth BusinessGraduate Student Company Program

PILOT PROGRAMS IN 2008-2009Enterprise Without BordersThe program gives students the opportunity to form student-run, trade collaborations between two schools located in different countries. At the end of the project, students liquidate their company by preparing a profit and loss statement and balance sheets, paying a dividend to their stockholders, and publishing annual reports.

EVENTSHP Responsible Business ConferenceBest Student Company of Bulgaria CompetitionBest Graduate Student Company CompetitionManager For a DayNational Competition “Virtual Enterprise”

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VIRTUAL ENTERPRISE 2008

Junior Achievement Bulgaria gathered 24 school teams from all over the country to test their abilities in the national student competition "Virtual Enterprise". The initiative was held for the eleventh year in a row. This year the finals were held in Varna. The Virtual Enterprise competition which is part of the annual calendar of the Ministry of Education and Science is a computer simulation for business management organized on national, European, and global level under the title Hewlett-Packard Global Business Challenge. In the simulation, the virtual companies test their business skills with the task to introduce an imaginary innovative product at the market. They all start their business under equal conditions and have to consider carefully the real market situation and the macroeconomic policy when making their decisions. The following major criteria were taken into account for determining the winners - price of the product, quantity, distribution channels, investments in factory equipment, funds invested into R&D, etc. The final ranking is based on the so-called Index of Market Performance, which compares the results according to the criteria that were set in advance.

In 2008, around 90 students grouped in 24 teams reached the finals. They came from 7 different Bulgarian towns - Plovdiv, Varna, Kazanlak, Vratsa, Targovishte, Pleven, and Sofia. They were divided into 3 markets where they competed against each other. The first places in each market were occupied by the teams Energy from Plovdiv, Vzel dal from Kazanlak, and DantroFL from Plovdiv. This year's virtual race in Bulgaria was organized with the active support of Microsoft Bulgaria. "For us at Microsoft it is very important to encourage the development of innovation and entrepreneurship, so that young people realize their potential here in Bulgaria. An IDC survey for Europe shows that 97% of the kids in kindergardens want to develop their ideas, to experiment and have their own business; among students in the universities this percentage falls to 7%, whereas in reality only 4% really become entrepreneurs and develop their own business. It is our responsibility to encourage people to experiment and make their dreams come true", shared Ognyan Kiryakov, Microsoft Bulgaria CEO.

To view photos from the competition, please visit our gallery.

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Gold sponsor:

With the support of:

Best Student Company of Bulgaria 2008

On June 16, 2008 more than 40 student companies from all over Bulgaria competed for the eleventh year in a row for the title “Best Student Company of Bulgaria”. The contest took place at the Radisson SAS Hotel in Sofia. The three best student companies presented their products and services in front of the whole jury and audience. The jury assessed the real business principles that drive the companies and whether they provoke an urge for maximum competitiveness in the businesspeople-to-be. The big prize went to student company Bio World from Plovdiv. The company impressed the jury with its interactive educational program in physics and biology for seventh-graders which is distributed on CD. The same company took another prize – for most innovative product bestowed by the JA Alumni Business Club. The big prize for the winners was the opportunity to represent Bulgaria at the JA-YE European competition for best student company in Stockholm, Sweden. The runner-up prize went to student company IdeaInspirers from the Sofia High School of Construction, Architecture, and Geodesy. The company produces rulers for measuring and drawing using a highly-precise laser technology. Another Plovdiv company took the third place – Smart, which is interested in the floriculture business and the production of flowers that grow in eco-soil.The competition was held under the general sponsorship of Globul for the second year in a row. The initiative was also supported by: Ministry of Economy and Energy, Nestle Bulgaria, Citibank, Helwett Packard. Media partners were bTV, Economedia, Fame Cards.

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Main partner: With the support of:

Media partners:

JA-YE European Company of the Year Competition 2008

In partnership with DG Enterprise, European Commission,Stockholm, Sweden

The winning teams of the best student company competitions in 33 different European countries shared three hectic days of sales, preparation of stands, presentations, and interviews with judges on July 24-26 in Stockholm. The 19th JA-YE Europe Company of the Year competition was held open-air at the heart of Sweden's capital - the King's Garden.

The teams rivaled for the big title of European Student Company of 2008 and for the awards for Best Impact Stand (bestowed by the Swedish Region Skane), the Fedex Global Impact Award (the winning team had to show an understanding of the international trade component of their product, as well as show environmental awareness), and the HP Responsible Business Award (for excellence in corporate and socialresponsibility). The Bulgarian student company Bio World from Plovdiv attracted the attention of the visitors to the trade fair and realized sales of its product - multimedia guides in physics and biology for 7th and 8th grade.

A glamorous ceremony at the world-famous Stockholm City Hall where the Nobel Prizes are given out each year marked the conclusion of the three-day event. Hosts of the show were the Swedish band "Tripple and Touch" who entertained the hall for more than 4 hours with songs and sketches.

The big prize for European Company of the Year went to the student company Image.BB (Germany). The company created a high-quality multilingual image film about the city of Boeblingen with information about the history, economy, culture, sport, quality of life, and future of the city. The film had a public screening at the city cinema and elicited the positive response of the deputy mayor of the city. Thus, they successfully advertised and turned into an attraction a small German city which most of the people had never heard of before.The selection process for the big winner involved stage presentation in front of the jury and audience, interview with the jury at the stands, and panel interview with the jury.

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Best Graduate Student Company of Bulgaria 2008

Junior Achievement Bulgaria held the first-ever competition for best graduate student company in Bulgaria on June 12 at Hilton Hotel in Sofia with the kind support of Nestle Bulgaria. Nestle was the main sponsor of the Graduate Company program for 2008. The contest was jointly held with Microsoft Bulgaria's Innovation Forum. Six graduate student companies from five Bulgarian universities took part in the contest. They managed to develop and offer intriguing products on the market in the course of only a few months during the second semester of the academic year: mobile phone skins with various designs which the client can customize according to his own preferences; training bike that is suitable to use in the office and is entirely discreet; magazine that offers information about career development and targets exclusively the young people; event management through unusual show programs with music and colorful costumes; eco-bags made of recycled paper; luxuriously-looking wooden trash bins and complete solutions for landscape planning and design of green spaces.

The jury which consisted of leading managers from Nestle Bulgaria, Microsoft Bulgaria, APRA Porter Novelli, General Electric, and Active Business Solutions, chose YPM from Sofia University as the best graduate student company for its overall performance, innovativeness of the business idea, business documentation, design of the stand, presentation skills, and potential for future investment and growth. The winners went on to represent Bulgaria at the European contest for best graduate student company in Brussels. The special award for most innovative product given by Microsoft Bulgaria went to graduate student company Fat Burner from Ruse University.

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General sponsor:

With the support of:

Media partner:

European Enterprise Challenge 2008

The Bulgarian graduate student company "YPM" participated in the JA-YE Europe Enterprise Challenge 2008

YPM publishes a career development magazine “Start Point” targeted at young people. The magazine is a monthly issue distributed for free at sites such as universities. It provides students with information about current events and topics related to business, education and career development.

YPM tested the competitiveness of their business idea and the company itself in a contested competition with more than 50 young entrepreneurs from 9 European countries. The student company "Mensa Heating" from Denmark won the competition for their environmentally friendly terrace heater which can be easily placed underneath the table, offering a pleasant feeling to the client. The product reduces the use of energy by 68% compared to the normal terrace heaters used today.

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First ever JA-YE Innovation Camp in Brussels

The JA-YE Europe Innovation Camp is a 24-hour intensive idea generating workshop where students gather in order to address a specific business challenge to come up with ideas which would solve the problem. The team members may not know each other, have to adapt to one another quickly and find out how to work together most efficiently. While applying the principle of “learning by doing", the students are able to develop their interpersonal as well as problem-solving skills and learn to work under very tight deadlines.

During the first Innovation Camp in May in Brussels, Nokia challenged 80 students from 12 European countries with a task in relation to Nokia’s activities. All teams had to think of an innovative and ecologically-friendly technology with a great impact to people in the future. The students had to propose a solution within 24 hours, given access to tools, information and resources. Bulgaria took part in the challenge with three students from the Model Mathematical High School in Plovdiv. The teams had to present their business plans in front of all participants and a professional jury that consisted of Nokia, JA-YE and European Commission representatives. The main criteria included feasibility of the business idea, innovation, ecological issues and team work, and presence at stage.

The five finalists` ideas were: computer bag with a solar panel and a shaking system that automatically recharges your laptop (winner); intelligent shoes with a GPS sticker on them; expire assistant that scans all your receipts from the supermarket and warns you when each item in your fridge expires; sticker with Wi-Fi sender that might be used by governments as a tracking method; system for mobile phones that simultaneously translates audio to audio while talking in different languages.

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The Bulgarian participants at JA-YE’s Innovation Camp

Manager for a Day 2008

Students took over the management of three ministries and more than 190 companies for one day

For the seventh year in a row “Manager for a Day” gave the opportunity to hundreds of young people to work with top managers and ministers and to spend one real business day in their companies and ministries. The young students who make their first steps in the development of entrepreneurship culture and management skills saw how the knowledge they acquire at school is put into practice at the host companies. Traditionally, “Manager for a Day” was held under the patronage of the Ministry of Finance. “I participate in Junior Achievement’s initiative for yet another year because I am convinced that the future of the country is in the hands of young people. Their development however is our responsibility. For this reason I consider it my personal cause to support activities in which the state and business together lend a hand to our children”, said Minister Oresharski. Another three ministers joined the initiative this year – Ministry of Economy and Energy, Ministry of Labor and Social Policy, and Ministry of State Administration and Administrative Reform. Another active participant was Sofia Municipality with its seven deputy mayors sharing their administrative experience to their young colleagues.

More than 190 leading Bulgarian and international companies in 46 cities opened their doors to the young entrepreneurs. Sasha Bezuhanova, JA Bulgaria’s Board of Directors Chairperson, turned to the students, saying: “Today we give you the opportunity to see what the real business environment feels like, so that tomorrow you have that knowledge and experience. “Manager for a Day” is a unique initiative which makes us forget the differences between big and small and remember that knowledge is passed on from generation to generation, and that experience is gathered through a lot of practice.”

This year, another 7 cities held an official opening ceremony for “Manager for a Day” – Ruse, Plovdiv, Pleven, Varna, Burgas, Byala Slatina, and Velingrad. 18

Minister of Finance Oresharski (center) with the “minister for a day” Preslav Mitranov (left) from National High School in Business and Finance.

Manager for a Day 2008

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International JA-YE Trade Fair in Linz, Austria

Three hundred and seventy-five young entrepreneurs from 17 European countries participated in the annual European trade fair for student companies which took place in Linz, Austria, on April 4-6, 2008. Bulgaria was represented by the student company JA WOW from Velingrad. They produce hand-woven cases for cell phones, bags with Rhodopian ethno motives and elements, socks, scarves, etc. The traditional Bulgarian motives are based on the young entrepreneurs' desire to preserve the customs of their region. The motto of JA WOW! is "Looking into the future, we remember the past". The young managers from JA WOW! taught Austrian citizens how to dance traditional Bulgarian "horo" and showed them how to knit socks and to paint Easter eggs.

The Italian company YouVisit.it was awarded the big prize for developing a website which gives tourists information about the remarkable sites in the students' home region. The best stand award went to Flexcup who produce cups for beverages. A student company from Denmark won the award for most innovative product with its sensor system for typing PIN codes.

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More than 120 students took part in the conference that is already a tradition for JA Bulgaria. During the first day, the participants discussed issues of responsible business, best practices and principles of work that make the company a responsible contributor to society. The conference was supported by Hewlett Packard Bulgaria whose employees took active part in the discussions serving as business consultants during the group work. The students received real-life cases to which they had to find the most appropriate, innovative and socially responsible business solution. The joint project of Hewlett Packard and Junior Achievement encourages future entrepreneurs to combine their pursuit of financial profit with society’s best interests and the commitment to give back to their communities.

During the second day, a heated discussion about intellectual property and author’s rights unfolded. The second day of the conference was held under the patronage of the Ministry of Culture. The students had the opportunity to learn more and share their views on the hot social topic of Internet piracy. The different stakeholders on this significant issue were represented by famous Bulgarian artists and influential lawyers. Vasil Gyurov, a famous Bulgarian rock musician, shared with the students: “Stealing from others, every intelligent person is actually stealing from himself. Think about this next time when you decide to download a movie or mp3 from the web.” The conference was part of a project of Junior Achievement Bulgaria and the Ministry of Culture titled “Intellectual property – element of the culture of the young”. The goal of the project is to foster an understanding of intellectual property as a moral right and to help form a conscious attitude among young people toward protecting it.

Third National Student Conference

First-ever Banks in Action competition in Bulgaria

Sixty high school students participated in the first national ‘Banks in Action’ competition held at the High School of Finance and Economy in Sofia. The competition, organized by Junior Achievement Bulgaria, is part of the Banks in Action financial education program, run with the support of Citibank N.A. – Sofia Branch, through a Citi Foundation grant. The students, forming 20 teams of 3, represented 15 schools from 10 towns throughout the country. During the day-long session, the students played the role of bank managers who had to take decisions on credit, savings interest rates, etc in a dynamic and competitive environment. Citi volunteers supported the teams by providing counseling and assistance.Banks in Action is a financial literacy program specially developed by JA Worldwide and Citi and is implemented in over 28 countries in the world with the financial support of Citi Foundation. It is a bank simulation program that teaches high school students basic skills and concepts required to run a bank. In Bulgaria, the program was launched last year and now reaches 1000 students throughout the country. Citi is supporting the program for the 2007/2008 academic year by providing a grant of $27,000 and volunteering time and expertise.Stefan Ivanov, Citi Country Officer for Bulgaria, who attended the event said “The combination of the elements of competitiveness, teamwork and the acquisition of knowledge in the sphere of banking and finance through the Banks in Action program, allows us to help the students develop an interest in financial education and strive for excellence – qualities which will help them in the future irrespective of the choice of professional realization.The winners from The State High school in Finance and Business in Pleven, as well won the “Best Strategy” prize in the First National Competition “Banks in Action”. “The great investments in R&D and Marketing helped us climb from the bottom to the first place despite the very competitive market” – shared the winners. “First Runner-Up” went to the second team from Pleven. “Second Runner-Up” and the “Best Recovery” prize went to the team from Targovishte.Please, see photos from the event in our gallery.

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Global Entrepreneurship Week in Bulgaria hosted by Junior Achievement

Junior Achievement Bulgaria was the host for Bulgaria of this worldwide entrepreneurship initiative and celebrated its participation with a series of events. A round-table “New generation entrepreneurs in Bulgaria – Opportunities and Challenges” set off the week in Bulgaria. It got together Junior Achievement Bulgaria Board members, CEED Bulgaria (specialists in the consulting of business start-ups), the Institute for Market Economy and young entrepreneurs. An Open House Day, with the partnership of the American Chamber of Commerce, saw business people enter the classroom together with young 3rd and 4th graders from 73rd School in Sofia and experience the spirit of JA programs. Students and volunteers worked in groups, solving problems, discussing topics from the lesson and answering questions. The topic was based on JAB’s program “Our city”, which explores careers, the skills people need to work in those careers, and how businesses contribute to a city.

The exciting end to the Global Entrepreneurship Week in Bulgaria was the third “Juniors in Action” initiative, under the patronage of Sofia Municipality and the motto “My Future Career in Our City”. “Juniors in Action” is a competition that fosters entrepreneurship among youngsters. This year the students were given tasks related to their future career; working in teams they had to take on the job of different professionals and explain their daily tasks and responsibilities. They also had to explain the reasons for their choice and list the abilities a person needs to be a certain professional. Business volunteers mentored their work. More than 200 students from all over Bulgaria took part in the initiative.

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Skills @ Work National Competition – December, 2008

Junior Achievement Bulgaria and British Council in Sofia in partnership with the Ministry of Education and Science organised a very successful national competition on 14 December. Skills @ Work is a joint project of JA-YE and British Council in 10 European countries, based on JA’s concept of innovation camps. The national competition was included in the official calendar of competitions of the Ministry of Education and Science. The 100 participants from 40 vocational schools in 37 towns from all over the country were selected out of 365 candidates who had applied online to a nation-wide competition organised by JA Bulgaria. The applicants were asked to submit a solution to an environmental business challenge on saving water and preserving diminishing water resources globally in a short essay.

The 100 finalists in the national competition were divided into 20 teams of 5 students. For a period of 6 hours they had to find a new way to supply their homes with energy using already known or completely new energy sources. The challenge was given by the sponsor Overgas. The solution had to be innovative, efficient, feasible and of social benefit. The teams also had to come up with a business strategy and a SWOT analysis of their product and a good presentation of it. The jury, including two employers (directors in Overgas and Microsoft), representatives from the Ministry of Education, JA and British Council, assessed the solutions of the challenge on the basis of previously agreed criteria. The presentations themselves provoked great fun. Both the jury and the audience enjoyed the solutions presented in a fresh and amusing way. Some of the proposed solutions were: a floor carpet producing energy while being pressed thus creating more energy the more you step on it; blankets accumulating energy from human bodies while sleeping; satellite solar systems transforming solar energy into electricity and being able to supply whole towns.

The first prize went to the SAVE THE ENERGY team who proposed an integrated approach for energy production and saving. The SAVE THE ENERGY house combines three technologies to produce energy and one to preserve it. The team uses waste and rain waters and steam to produce electricity and waste processing to produce bio gas. Their house has double thermal insulation to prevent the energy loss. The system’s advantages are that it’s environmentally-friendly, uses waste products, assures maximal quantity of energy and prevents energy losses. The main disadvantage is the high expenses for technical equipment. To overcome it the team proposed that the state contributes to the construction of such houses up to 5% of its annual VAT income. The team promised to arrange for financial alleviations with municipalities and institutions. It staked on a direct marketing strategy via public discussions with potential clients. Media and Internet advertisement had as well a big share in positioning the product on the market.

The second award went to the ECO TEEN team. They will produce energy using the production process of alcohol drinks for the households. The idea behind it is that while combusting the alcohol evolves big quantity of energy which rightly applied might be transformed into electricity. It’s very innovative, as it uses the waste of the alcohol production process. The team stressed on its differentiated approach channelling low quality, illegal and waste alcohol to electricity production.

The third award went to the SUNNY POWER team who proposed the construction of a Sun HemiSphere with a sensor movement to collect solar energy and convert it into electricity. It’s a product especially developed for the households. It will decrease the electricity expenses of the households and they will have a constant stream of lowcost energy. The production and installation price of the product is also attractive –appr. 100 £. So, the producers would count on economy of scale to generate profit.

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Skills @ Work National Competition – December, 2008

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Report of the Auditors

TO THE MANAGEMENT OF JUNIOR ACHIEVEMENT BULGARIA FOUNDATION

We have conducted an audit of the attached financial statements of the Junior Achievement Bulgaria Sofia Foundation including its Balance Sheet as of 31.12.2008, Profit & Loss Statement, Statement on the Equity Capital Changes, Money Flow Statement for the year ending on this date, and an overview of the substantial accounting policies and other explanatory notes.

The liability for the preparation and the correct presentation of this financial report in conformity with the International Financial Accounting Standards is borne by the Management. This liability includes: development, implementations and maintenance of internal control system related to the preparation and reliable presentation of financial statements without any material inaccuracies, inconsistencies, and discrepancies therein, regardless of whether they are due to fraud or error; selection and application of appropriate accounting policies; and preparation of reasonable accounting estimates in the context of particular circumstances.

Our liability is limited to the expression of auditor’s opinion regarding this financial report based on the audit conducted by us. Our audit was conducted in accordance with the professional requirements set forth by the International Auditing Standards. It is an imperative of these standards to abide by the ethical norms and that the audit be planned and conducted in a way as to persuade us to a reasonable extent that the financial report is free of any material inaccuracies, inconsistencies and discrepancies. The audit also includes the implementation of procedures aiming to collect audit evidence about the sums and representations made in the financial report. The procedures are selected at the auditor’s discretion, including the risk assessment pertaining to material irregularities, inconsistencies and discrepancies in the financial report regardless of whether they are due to fraud or error. While conducting such risk assessments the auditor is taking into consideration the system of internal control related to the preparation and reliable presentation of the financial report by the Foundation, in order to develop auditing procedures appropriate for the specific circumstances but not aiming to express opinion about the efficiency of the entity’s system of internal control. The audit also includes assessment of the adequacy of accounting techniques applied and the feasibility of the accounting estimates made by the Management and comprehensive evaluation of the presentation of the financial statements.

We believe that the audit conducted by us provides sufficient and appropriate background for the opinion we have expressed. Therefore we do hereby certify that the financial report provides true and fair picture of the financial condition of Junior Achievement Bulgaria Foundation as of 31.12.2008, its business financial results and money flows for the year ending on this date in accordance with the International Accounting Standards.

SofiaMarch 16, 2009

Maria VaklinovaGraduate Expert AccountantRegistered Auditor

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Report of the Auditors

JUNIOR ACHIEVEMENT BULGARIABalance Sheet as of 31 December 2008 in BGN Currency

Income Statement

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ASSETS LIABILITIESAmount in BGN’000 Amount in BGN’000

Sections, groups, items Current year Previous year Sections, groups, items Current year Previousyear

A. Fixed (non-current) assets 39 60 A. Equity 85 83I. Tangible fixed assets net of accumulated depreciation 4 7 I. Subscribed capital

II. Intangible fixed assets net of accumulated depreciation 1 5 II. Reserves 85 83

III. Long-term financial assets 34 48 III. Financial resultB. Current assets 233 236 B. Liabilities 122 73

I. Inventories 18 14 I. Long-term payables 4II. Short-term receivables 35 22 II. Short-term payables 122 69III. Short-term financial assets 180 200 III. ProvisionsC. Deferred expenses 1 C. Deferred income and financing 65 141TOTAL ASSETS 272 297 TOTAL EQUITY AND LIABILITIES 272 297

EXPENSESAmmount in BGN'000

REVENUESAmmount in BGN'000

current year previous year current year previous yearА. Operating expenses 462 406 А. Operating revenues 464 413I. Operating expenses 300 243 I. Grants and subsidies 153 234 II. Administrative expenses 146 151 II. Other net revenues 3 4III. Financial expenses 16 12 III. Revenue from sales 304 167

IV. Investment earnings 4 3V. Exceptional income 5

B. Operating profit 2 7 B. Operating loss C. Extraordinary expenses C. Extraordinary income

D. Total expenses before taxes 462 406 D. Total revenues before taxes 464 413

E. Accounting profit 2 7 E. Accounting lossF. Tax expenses F. Tax revenuesG. Net profit 2 7 G. Net lossTOTAL 464 413 TOTAL 464 413

Sponsors / Contributors to JA Bulgaria and Partners:

Ministry of Economy and EnergyUnited States Agency for International DevelopmentBalkan News Corporation (bTV)Capital Weekly NewspaperDnevnik Daily NewspaperCitiGlobulMicrosoft BulgariaPublicis / MARCHewlett-Packard BulgariaNestle BulgariaGE (General Electric)Darik RadioDimi PanitzaBoni BonevMinistry of Education and ScienceMinistry of FinanceMinistry of CultureJA WorldwideU.S. EmbassySofia Municipality

British Council BulgariaOvergasPeace Corps BulgariaBulgarian Charities Aid FoundationHewlett-Packard EuropeFree and Democratic Bulgaria FoundationBulgarian International Business Association (BIBA)AudiM3 Communications WorkgroupManager MagazineBusiness WeekBulgarian Charities Aid FoundationSheraton Sofia Hotel BalkanKongress EngineeringKarieri.bgJA-YE Alumni Business Club BulgariaRadisson SAS Grand HotelEcopackProgramata MagazineFame CardsBusiness Week

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