FRANCESCO FRATTINI: THE ITALIAN CONNECTION

From large corporations to small enterprises, Italian businesses form a significant part of the Bulgarian economy. For the past two decades, many of them have relied on Alias Group for timely, professional, and competent support. The consultancy was founded by a true business leader: Francesco Frattini – a man who not only has the vision and knowledge of what a business should do (and avoid) to succeed in Bulgaria, but who is also a passionate art lover. He has launched a side career as a film director and producer, and is now exploring further opportunities in the local market.

The year 2025 will be a dynamic one in Bulgaria and abroad. What is your expert advice for Italian companies that want to do business here?

Bulgaria remains attractive for Italian entrepreneurs looking to expand their manufacturing and commercial influence. The steady rise in wages and the growth of the local middle class allow many Italian companies to find an increasingly interesting and dynamic market. Additionally, many Bulgarians love typical Italian products, from coffee to food, clothing, furniture and more.

Bulgaria's appeal as manufacturing destination persists despite the difficulty in finding local staff for large-scale production. The investment opportunities for manufacturing with low human resource demands are excellent. The 10% tax rate and the relatively low energy costs also make the country attractive; labour costs are roughly half of those in Italy.

Importantly, Bulgaria is Europe's gateway to the East – a rapidly growing market.

How will Bulgaria's adoption of the euro affect the operations of Italian companies in the country?

The euro will be a great advantage for the country's economy, as it – along with the recent accession to the Schengen Area – is a step towards greater cohesion within the EU. Now Western entrepreneurs will see Bulgaria as an increasingly reliable and secure partner, free of risk of currency devaluation. It will simplify international trade and will improve market stability – these are crucial to foreign investors. Moreover, Bulgarians are already familiar with this currency: they pay their properties and many vehicles in euro. So, I do not foresee any negative reactions.

How can Alias Group help companies make the most of the current situation?

Alias Group has been supporting Italian entrepreneurs who want to invest in Bulgaria for 20 years. Our strength comes from the fact that I am a professional well-versed in both the Italian and Bulgarian realities, capable of offering the best advice to our clients so they avoid risks related to Italian and Bulgarian tax laws. Crucially, Alias Group's collaborators have been working with us for 15 years, earning exceptional trust and professionalism. This guarantees our clients full support from every perspective.

The strength of Alias lies in maintaining a stable structure over time, consolidating and continuously expanding accumulated experience, and making it available to our clients.

What are your tips to foreigners considering to start a business in Bulgaria?

My advice has always been the same, and my 20 years of experience have proven it absolutely valid. First, approach the country with humility and an open mind. Those who come with arrogance, thinking they know everything or that they come to a backward country usually end up hurt. It is always important to remember that Bulgaria is a country with a long history, traditions and its own culture, so you need to adapt and understand before making decisions. It is also helpful to adopt a more sociological than purely entrepreneurial approach.

Second, take small steps – start with a smaller investment to explore the terrain and graw gradually. The ideal scenario is a period of at least two or three years of starting up before consolidating the business and truly knowing the market.

Third, rely on local people with proven reputation and competence who can support you through the first, most delicate phase of the investment. Many focus only on price and think trusting someone who asks for little money will do, without realising that if you spend too little, you cannot achieve much, and sometimes nothing at all.

What was the biggest leadership challenge you had faced as the founder and manager of Alias Group in these 20 years?

We went through several difficult moments. The first was in 2008, when Bulgaria – the last country in Eastern Europe to enter the real estate market – suffered an almost fatal blow from the global subprime mortgage crisis and the collapse of some international banks. Alias Group started its operations in 2005 with clients from the real estate market. It survived because in two-three years it had managed to diversify to other fields. Fortunately, many of the clients in this sector had substantial capital that allowed them to withstand the following ten years until the market recovered.

The second difficult moment was the COVID-19 pandemic. The year before, Alians Group had begun opening offices in North Macedonia, Serbia and Kosovo. Unfortunately, the two years of near-total border closures forced us to terminate the initiative as around 25% of local clients had to cease operations. We had to reduce some expenses, working hours and staff. Thankfully, we recovered in the following years.

Where do you draw your strength for leadership? What gives you the energy to keep confidently leading your company and side projects?

I am almost 60 years old, but I am an incurable optimist – a curious person who is always attentive to emerging business opportunities. Keeping a young and open mind is the key element to continuing to do business. Three years ago, Alias founded a movie production company that has produced two feature films. We are working on a project to build a hospice and we are following a project to open a chain of virtual arenas in residential neighbourhoods.

I firmly believe that it is essential to always maintain and invest in your core business, but also to diversify, so there are always alternatives for the future.

In my view, the next real and biggest challenge will be the integration of AI into consultancy work. I see this as an opportunity rather than as something negative – at least for now. It is difficult to predict how AI will evolve in the future, but currently it is of great aid for people doing my kind of work – providing language support, checking the necessary actions, offering a place to compare impressions and getting information and assistance.

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phones: +359 2 983 20 71, +359 2 983 35 96
www.aliasgroup-bg.net