Annual Report2007Bulgaria

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 nearly 20,000 students throughout Bulgaria. JA programs were taught by 627 teachers in 115 cities in 292schools during the academic 2006-2007. 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...

JA WORKS! 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

Early management education in schools will guarantee Bulgaria’s prosperity in the long run. The development of a modern entrepreneurial culture and environment is a prerequisite for improving our country’s economy and competitiveness. I believe that JA is a very special experience to every student as JA talks about the challenges in the real business world.

Entrepreneurial education helps young people develop an eye for opportunities and abilities to be creative and innovative and think outside the box. 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.

This is the reason why JA Bulgaria is naturally incorporated in the process and the system of teaching economic and business skills to the young generation, skills so much cherished and needed by the Bulgarian business.

JA has worked globally over 90 years, but the organization was established in Bulgaria just 11 years ago. In this short time span, JA Bulgaria established itself as the leading organization with an excellent capacity to be a partner in the development of economic environment in the country. 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. Several of JA Bulgaria’s main events and programs are implemented in fruitful partnership with the major business associations, members of the Bulgariancabinet, and media. Moreover, JA Bulgaria has started playing a significant role in the policy making in the Bulgarian educational system. The organization achieved the necessary standards which enable it to work with all types of schools in Bulgaria.

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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. That’s why we at JA believe that economic education and business skills are crucial for our future. Through different JA programs and initiatives young people are given the opportunity to learn directly from professionals in the private sector of our country, which gives them a chance to develop leadership skills, creativity, innovative approach and responsibility at a very early age.

The programs that JA has popularized help the schools meet the educational requirements and the needs of the students in Bulgaria. Through these programs the students learn how to realize their ideas and how to turn theory into practice. JA teaches the students how to use their knowledge and practical skills in order to assure the success of their enterprise, which motivates them to work and accomplish themselves their whole lives!

JA Bulgaria continued successfully to expand its program package and the number of schools it partners. JA programs were taught by 627 teachers in 115 cities in 292 schools during the academic 2006-2007.

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”. I would also like to say how privileged I am to be working so closely with so many talented professionals whose achievements continue to raise the bar every year.

This is our message to all young people - 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. Tsvetanka ValovaMr. Svetoslav Manoilov

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 - September 2006 – December 2007

September 20065 – 7 European Summit for Educators, Brussels, “Entrepreneurship in Education” – a partnership between JA-YE and the European

Commission8 Agreement between JA Bulgaria and the Ministry of Economy and Energy signed

8 – 10 Trainings for consultants and teachers from vocational, professional, and general high schools for business, economics, and entrepreneurship programs – Sofia

10 Fall session of the JA Academic Council on JA business, economics, and entrepreneurship curricula in the Bulgarian educational system

11 Fall session on cooperation between British Council, Junior Achievement, Youth Business International and Cardiff Business School (Wales, UK)

13 – 17 First Conference “Entrepreneurship in United Europe” – Sunny Beach, Burgas

October 20065 JA Bulgaria Board meeting

6 Training for Peace Corps volunteers in Dupnitsa5 – 7 Regional meeting with Balkan Children and Youth Foundation partners and Youth Business, Skopje

6 – 8 Microsoft and JA Bulgaria seminar for teachers and consultants in the field of IT technologies16 Launch of Banks Access Program – a joint project of JA Bulgaria and Citigroup

November 200613 – 14 Training seminar for teachers in primary classes for the programs “Ourselves”, “Our family”, “Our community”, “Our city”,

“Personal economics”, “Economic benefits from education”15 – 19 European CEO and staff training, Warsaw, Poland

27 Official opening of the first JAB Entrepreneurship Center in the Sofia High School for Construction, Architecture and Geodesy

December 20062 JA Bulgaria Annual Fun Raiser Party - Sofia

1 – 3 Business Without Borders – entrepreneurship training jointly with British Council and Cardiff Business School, Wales, UK15 Founding of JA Bulgaria Business Club under the joint project with the Ministry of Economy and Energy “Center for

Entrepreneurship “Student Company”6

Calendar of Events - September 2006 – December 2007

January 200719 Banks and financial literacy training, supported by JA and Citigroup 30 JA Bulgaria and HP “Responsible Business” National Conference

February 200723 JA Bulgaria Board Meeting

25 Business Without Borders – second trainingJA Bulgaria training for teachers on Banks in Action program in cooperation with Citibank

March 200712 Manager for a day 2007

16 European Business Summit, Brussels, Belgium28 JA Bulgaria Anniversary National Conference “Ten Years Investment in Education”29 March – 1 April JA-YE European student Trade Fair 2007, Bucharest, Romania

April 2007Second National Student Conference on Entrepreneurship, Sofia

26 April Launch of Banks in Action program with Citigroup with an open class27 Meeting of students and young entrepreneurs participating in JA Bulgaria programs with James Hyslop, EBRD – “Opportunities

for business development in Bulgaria”

May 20074 Second National Event “Juniors in Action” – in front of the National Theater in Sofia

9 – 10 Tenth National Competition “Virtual Enterprise”, PlovdivAnnual Meeting of JA-YE Europe, Brussels, Belgium

31 Tenth National Competition “Best Student Company of Bulgaria” in front of the National Theatre in Sofia

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Calendar of Events - September 2006 – December 2007

June 200720 Roundtable under the Center for young entrepreneurs project with the Ministry of Economy and Energy

22 Inauguration of the renovated Takev garden in downtown Sofia – a joint project of the Bulgarian Charities Aid Foundation and students from the National High School in Finance and Business studying JA Business Ethics program

27 – 29 JA-YE European Graduate Program Competition 2007, Oslo, Norway

July 200717 – 21 4th European JA-YE Alumni Conference “Beyond Business”, Sofia, Bulgaria

26 – 29 JA-YE Europe Company of the Year Competition 2007, Berlin, Germany

September 200710 -12 Fall Seminar for teachers

28 – 30 JA Bulgaria and Microsoft Bulgaria joint IT training for teachers

October 20075 – 7 JA Bulgaria and Microsoft Bulgaria joint IT training for teachers

16 JA Bulgaria Board Meeting20 Audi Test Drive for JA partners and business representatives

22 Larry Farrel roundtable for students and teachers on entrepreneurship education including a lecture “What is entrepreneurshipand why we need to teach it in the 21st century global economy”

23 Larry Farrel business workshop for partners “Corporate Entrepreneurship – how big companies and government administrations can create an entrepreneurial spirit within their organizations”

November 20072 JA Bulgaria Board Meeting

December 20071 Annual Fun-Raiser – JAB Christmas party 8

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Annual Report | Student Numbers by Age Group, 2006-2007

1010

Annual Report | Student Numbers by Age Group, 2006-2007

Primary

Middle

Secondary

Graduate

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) Personal Economics (13-15 year olds) – retiring in 2008-2009 school yearEconomics of Staying In School (13-15 year olds) – retiring in 2008-2009 school year

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 11

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Juniors In Action®

On May 4, 2007, more than 150 students working on JAB elementary programs “Ourselves”, “Our Families”, “Our Community”, and “Our City” gathered in the city garden in front of the National Theatre to participate in the Second National Competition “Juniors in Action”. Traditionally the initiative was under the patronage of the mayor of the city – Mr. Boyko Borisov. The motto in 2007 was “Our City – a more beautiful and clean place to live in”. The teams had to work in groups of up to five students. Each team had to develop a project/idea of how to raise money to improve the city or to start and develop a business in the city. The two age groups were working simultaneously but independently from each other. The youngest students needed to come up with ideas and solutions of how to make the city they live in a cleaner, safer and more beautiful place. They were given 10 different projects to work on (the park in the city, their school, the street, the school playground, their building, the city garden, the bus stop, the classroom, the library and others). Their task was to find ways to raise money, buy equipment or any other materials they might need to implement their ideas for improving the city.The second group of students aged 9 – 13 were faced with the challenge to decide how to start their own business in the city. Each team had to develop a certain type of business: a restaurant, a bank, an office with an appropriate activity, a marketing agency or other types of companies, a newspaper and so on. Having selected their new business they were given also a frame of their potential expenses and income which helped them develop a real business plan for their new business.In the second phase of the competition, each participant had to draw his/her idea. An exhibition of 200 drawings from the participants of the contest took place all around the garden.

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 Company - revisedJA EconomicsLeadership and success skills – retiring in 2008-2009 school yearGlobe – retiring in 2008-2009 school yearTTBiz – retiring in 2008-2009 school yearJA Business Ethics - revisedBanks in ActionMESE - Management and Economics Simulation Exercise - revisedYouth Business

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 CompetitionManager For a DayBest Virtual Enterprise Competition

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JA Student Company

The oldest JA program is the COMPANY PROGRAM, which is recognised by the European Commission as a Best Practice in Entrepreneurship Education. The Company program is our benchmark and model for success: we see that it has achieved a high level of quality due to the fact that it now exists in all our Member Nations (know-how is being shared across the network) and we have established pan-European activities (such as the Company of the Year Competition) which draw upon national participation and raise standards. The program helps young people appreciate and better understand the role of business in our society. With the support and guidance of volunteer consultants from the local business community, the program provides basic economic education for high school students. By organizing and operating an actual business enterprise, students not only learn how businesses function, they also learn about the structure of market economics and the benefits it provides. In addition they learn a number of important life skills such as teamwork, how to present and communicate, leadership, problem-solving, decision-making, etc. They learn about responsibilities and how to organize an enterprise; they learn about strategies for business planning, production, finances, and marketing; they learn how to manage production, sales, and people; they learn how to be accountable to their shareholders and other stakeholders and liquidate their enterprise. One semester or full-year programme; includes visits to the school by a volunteer business consultant, as well as extra-curricular activities such as Trade Fairs and Company Competitions. 82 student companies from more than 40 cities and towns, ranging from production through services and retail, operated throughout Bulgaria during the academic 2006-2007.

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BEST STUDENT COMPANY OF BULGARIA 2007 COMPETITION

A part of JA-YE European Company of the Year Competition 2007With the partnership of DG Enterprise, EU Commission

May 31st, 2007

For the tenth year in a row Junior Achievement Bulgaria awarded students from Bulgaria for best achievements in business and economics. This year more than 40 student companies participated in the “Best student company of Bulgaria”® 2007, which was held in the City garden just in front of the National theater “Ivan Vazov”. The first place for “Best student company of Bulgaria”® 2007 went to JA Experts. The company was founded in 2006 by 13 students from Sofia High school in Construction, Architecture, and Geodesy “Hristo Botev” and offers work clothes and accessories for construction and building. JA Experts' President, Peter Stoyanov (17), said: “This award gives us strength to fight with even more fervor to make our dreams come true. Our efforts are really appreciated and this fact gives us hope that the business in Bulgaria will open space for us – the young talented people.” The students from JA Experts represented Bulgaria at the Junior Achievement – Young Enterprise Europe trade fair for student companies on July 26-29 2007 in Berlin (Germany). The European competition was organized in partnership with DG Enterprise and the European Commission. This is the central annual event for the student companies in Europe, which gathers at one place the talented, innovative young people from the continent who are determined to succeed professionally. JA Experts’ participation was sponsored by GLOBUL, the Golden sponsor for the Bulgarian competition. “It is an extreme honor for GLOBUL and for me to be partners of Junior Achievement Bulgaria. To support talented and aspiring young people has always been among the GLOBUL priorities as for us it as an investment in the future. Junior Achievement Bulgaria assists us in achieving that goal and we highly appreciate our partnership. With its initiatives, Junior Achievement Bulgaria gives a valuable input for the professional and personal development of the future business leaders of Bulgaria”, says Globul CEO Haris Kotsibos.The participants put to the test the competitiveness of their skills, efforts invested, and the realization of their business ideas. The other award categories included: responsible business, marketing strategy, best business plan, best team, best stand, most innovative product.During the academic 2006-2007, ambitious young people from over 40 locations in the country made their first step in the world of business. The young entrepreneurs founded 78 student companies, which operate in reality and fulfill the innovative ideas of their creators.

Gold Sponsor: Silver Sponsor: Bronze Sponsor: Media partners:

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JA Bulgaria Students Set an Example for Social Responsibility

JA Bulgaria students from the “Business ethics” program at the National High School in Finance and Business found a way to put into practice the lessons learned in the JA classroom. The students formed a special club, named “Radeteli”, aiming at organizing charity projects, thus implementing the values of ethical behavior and social responsibility.December 21, 2006 was the date of the first event that the students organized all by themselves - a Christmas charity party at the high school grand hall. Among the performers in the show were the actor Robert Yanakiev, the vocal band “Jestim”, pantomime students from the National Academy for Theater and Film Art, as well as the JAB students themselves. Proceeds from the event amounting to 685.71 were donated to the Children’s onchohematology clinics at the “Tsaritsa Yoana” hospital. On January 15, 2007, JAB and Bulgarian Charities Aid Foundation started a project “Giving is wonderful … in school” with the Business Ethics students from the National High school in Finance and Business. They were given a certain amount of money and had two months to decide how to spend it. The results of this social experiment depended strongly on the ethical decision of the GBE group. They chose to renovate the Takev city garden at the intersection of “Solunska” and “Angel Kanchev” streets in Sofia. The students collected 2,500 BGN for the renovation and the official opening of the renovated garden took place in June 2007. The project was done with the financial support of KAI Group, Bulgaria’s largest producer of wall, floor tile and granitogress ceramic tiles.

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The second Responsible Business National Conference was held on January 30, 2007 at the National High School in Finance and Business in Sofia. Students from all over the country participating in JA Student Company program took part in the conference. They learned about the opportunities to enter the European Responsible Business contests and win prestigious awards from Hewlett Packard. Ms. Sasha Bezuhanova – General Manager of HP Bulgaria and Milena Stoycheva, CEO of JA Bulgaria, officially opened the conference. Volunteers from HP Bulgaria kindly joined the conference as lecturers. Within the panels they held lectures on “Responsible business” and discussed with the students business cases form their practice.

The discussion included problems of the day regarding the corporate social responsibility and the development of the business and the community. Within the working groups the students paid attention to serious issues like CSR practices, principles of work and corporate values. The initiative`s purpose is to develop certain skills in the young people and to encourage innovative ideas for responsible business thus creating the future business leaders and bounding the students in socially responsible practices.

JA BULGARIA AND HEWLETT PACKARD BULGARIA RESPONSIBLE BUSINESS NATIONAL CONFERENCE

Banks in Action Program Launched with an Open Class

By long-term partnership with Citigroup Bulgaria, JAB developed the Banks Access program with the delivery of a $12,500 grant from the Citigroup Foundation. Within its global commitment to financial education, the Citigroup Foundation awarded for the second time the grant to ensure that an increasing number of students and schools across the country have access to modern finance training methods and to provide them with the appropriate teaching materials, trainings and mentorship. The project has been organized in cooperation with the Bulgarian Ministry of Education and Science. The Program allows students active interaction with representatives of the Bulgarian banking and finance community and through group work, case studies and lectures gives them a first hand feel of the economics of doing business in Bulgaria.

Citibank N. A.-Sofia Branch and Junior Achievement Bulgaria announced the launch of the new financial education Banks in Action on April 26, 2007. The program is funded by Citigroup Foundation, which has provided a grant in excess of $1 million to JA Worldwide, and is implemented in over 28 countries around the world. Banks in Action is a bank simulation program that helps

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teach high school students about the many facets of the banking industry. JA Banks in Action simulates the operation of banks in a competitive environment helping students develop their decision making skills. The revised program includes a competition in which teams of students assume the role of bankers and make banking decisions.

In Bulgaria, Banks in Action will run along and complement Banks Access, another financial literacy program sponsored by the Foundation and managed by JA Bulgaria. This marks a significant increase in Citi’s funding of local JA Programs and confirms its commitment to support financial education of young people.

Stefan Ivanov, Citi Country Officer for Bulgaria said, “Junior Achievement and Citi share a common belief that financial literacy is an important life skill for young people in today’s global economy. We are very happy to share our knowledge and experience of the banking industry with students through JA’s educational programs. By planting early the seeds of interest in financial education, we hope to yield better bankers, financial managers, and generally more versatile professionals for the benefit of our economy."

Milena Stoycheva, CEO of Junior Achievement Bulgaria added, “Thanks to the continuing support of Citigroup Foundation, JA programs will now reach more than 1000 students in 32 schools throughout the country. We value greatly the participation and support of the Citi employees who serve as business consultants and volunteer their time to help deliver the program.”

VIRTUAL ENTERPRISE 2007

Students from Kazanlak created the most successful virtual enterprise in Bulgaria

For the tenth year in a row, Junior Achievement Bulgaria held the computer-generated competition in financial management “Virtual Enterprise”, part of the annual calendar of the Ministry of Education and Science. The most successfully managed enterprise at the competition was the company SAW from “Antim I” high school, Kazanlak. The second and third places went for the Plovdiv teams PGTM and Phantom.At the contest, high school students from all over the country competed in the development of a new high-tech product and in realizing high sales. At the semi-finals, 42 company-teams produced “Concertmaster” - a revolutionary product for forecasting concerts from all over the world in real-time. The participants were placed in a situation of economic recession and had to survive under the risk of bankruptcy.

At national level the competing company teams, allocated in 21 markets, started under equal conditions. The participants managed their companies for seven periods and made their decisions based on the market conditions and macroeconomic indicators. The most important decisions for the teams to make were: setting the price of their products, deciding how much to produce, and deciding how much to invest in marketing and advertising, capital and equipment, and research and development respectively.

The results of the teams were processed automatically by the computer simulation program based on fluctuating Market Index. Based on their performance, only seven companies had the chance to continue to the finals.

In 2007, the live semi-finals and finals were on 9-10 May in Plovdiv. The winners received their official certificates from Mrs. Silvia Kantcheva, chief expert in “Public Education Policy” Directorate, Ministry of Education and Science.

Sponsors:

SVILOSA Inc.;

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Youth Business

The JAB Youth Business program started in 2006 as a partnership with Balkan Children and Youth Foundation www.balkanyouth.orgfollowing the successful model of Youth Business International www.youth-business.org. It targets young people between 18 and 29 years of age who have a viable business idea and would like to start their own business. In less than two years more than 50 young entrepreneurs from all around the country applied for mentoring and financial support and the best ideas received a loan at the preferential conditions that Youth Business offers. Ten are the business plans that took advantage of the program so far. The total amount of the loans is $38 000.

Georgi Dichev, 21 years old, from VarnaFuture Media Company for web solutions and programming, loan: $ 4000

Future Media provides specialized computer services as creating web sites, 3D visualizations and animations as well as movie and media effects. Eight months after starting the business, a total of six people work for its success in an office located in the centre of Sofia. The management of the company admits that the accelerated rates of the work and the fast growth of the company weren’t expected. Rival companies have even tried to “steal” specialists from them. Georgi Dichev was awarded the prize “Best Young Entrepreneur 2006” for his innovative ideas for future company development.

Kiril Manilov, 29 years old, from PazardzikTrade with Bulgarian produced sportswear in the region of Veliko Tarnovo, loan: $ 3000

Kiril`s idea is to offer fashionable sportswear for young people at reasonable prices and most importantly – under the trademark of a certain Bulgarian company that is not so familiar in the region. Kiril Manilov managed to rent a store in the centre of Veliko Tarnovo and to start trading successfully, taking advantage from a market niche in the region and satisfying the need of young people for quality sportswear.

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Youth Business

Ivan Botushev, 29 years old, from Gotse DelchevDevelopment of rural and ecological tourism in the region of South Pirin, loan: $ 5000

Ivan`s entrepreneurial project includes the purchase of two huts and their adjustment as a base for pedestrian and horse tourism. At a later stage of the project he plans to buy a few horses which will add to the attractiveness of the idea. The potential target group of customers consists of Bulgarian and European tourists. Another part of the project is the recovery of an ancient Roman route. Ivan Botushev invested his early savings and the credit received from Junior Achievement into buying several small rural huts which he renovated. He also received a license for hospitality business and welcomed his first guests in the winter of 2006.

Alexandra Bizerova, 26 years old, from PlovdivElaboration and maintenance of help documentation for specialized software and optimization of documents flow within the client companies, loan: $ 4000

Alexandra`s company works in the IT field – creation and maintenance of training documents for software applications, help files, working instructions, software specifications, web site texts, documents needed for the ISO standardization process and others. The whole variety of documentation can be offered in both Bulgarian and English.

Alexandra`s innovative idea received recognition not only in Bulgaria but also at European level. She was invited to share her experience of starting her own business at the European Business Summit – Brussels in March 2007. She was a guest speaker in the closing panel for young entrepreneurs and the only representative of the Bulgarian youth entrepreneurs. European Business Summitis one of the most prominent business forums gathering representatives of world-known companies and institutions to share their experience and ideas.

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Youth Business

Krasimira Spassova, 30 years old, from KyustendilSchool center for language and computer skills for children in Kyustendil, loan: $ 4000Krasimira worked as an English teacher and a deputy principal at the school of her home town. Her love for teaching and children led her to starting her own business. The school centre will offer language classes and specialized classes to improve the computer skills of children aged 5-13. The courses will be flexible in relation to the children’s abilities, age and individual needs. Her private school is the only one of this kind in the town. She has already rented and furnished two classrooms.

Daniel Marinov, 19 years old, from Veliko TarnovoProduction of innovative software supporting the educational work and applicable in schools and universities, loan: $ 2000

When he applied for the loan, Daniel Marinov was only 18 years old. He developed his idea while running his student company in Veliko Tarnovo under the educational programs of Junior Achievement Bulgaria. After graduating, the team registered the company under the same name. Daniel invented user-friendly software for teachers who could develop tests and an electronic school diary that could be accessed by parents via Internet.

Presently the company is working on improvement of the software supporting the educational process and development of a similar software for universities and other private and public institutions and on a licensed system for simultaneous translation created for the needs of the business and others. The company annually participates in various IT forums and exhibitions for extending its activities beyond the country. The management’s expectations are to significantly enter on new markets in the beginning of 2008.

Maria Patarinska, 27 years old, from BotevgradFinancial & Accounting Service Ltd., loan: $ 4000

The project aims to offer modern and prompt services of high quality including financial and accounting services and audit. Maria has two years of experience in accounting and she has already chosen her future office. It will be situated in the centre of Sofia which gives additional benefits related to potential customers. The whole project requires about 12 000 BGN. Youth Business supports Maria’s company with $4000 and the rest of the sum will be covered from personal savings and a bank credit.

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Youth Business

Deiana Dragoeva, 30 years old, from SofiaPart-time and daily nursery school for children in early ages, loan: $ 4000

The idea for creating a nursery school came to Deiana when she first became a mother and realized the difficulties of combining professional and family responsibilities. Her children`s center is a start-up business and will offer a variety of educational and social activities for children aged 1-6. The school will also offer a variety of classes, forums and interest clubs (dancing, singing, sports) with the participation of parents and professionals in the certain field. Parents will also receive consultations about the questions concerning the health, physical training, education and the whole process of bringing up a child within the forum “I need an advice”. Presently Deiana has found the perfect place for the school and is in the process of overhauling and upholstering the place. Her expectations are to have it finished in November so that she can move to the next step of her project.

Elitsa Dimitrova, 27 years old, from RuseChildren`s centre “Vulshebstvo”, loan: $ 4000

Elitsa`s idea for a children’s club in the town of Ruse combines opportunities for educational courses, part-time care for children and organizing of parties and other special events gatherings. The club is also a nice opportunity for the parents to take a rest while their child is being taken care of at a coffee corner. Currently the children`s club offers art classes, language classes and organizes different competitions. One of the most preferred classes are the birthday workshops where the children make their own presents. The parents and the community accept Elitsa`s idea more than well.

Todor Kolev, 22 years old, from SofiaCreation and implementation of prototype server product – Adobe Flex Data Services for Microsoft. Net Framework, loan: $ 4000

The unique software will enable the communication and help the developers concentrate on the real business applications thus saving time and resources. The whole project amounts to 500,000 BGN. For the past six years Todor has been working for Gugga, an experienced software company, as a software developer and the new product will be developed as a partnership between Gugga and Todor Kolev`s Ltd. under the name of Gugga Data Services.

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Manager For A Day

The “Manager for a Day” initiative is designed to provide high-school students with the opportunity to experience the personal and academic demands of daily business operations. Furthermore, Manager for a Day promotes experiential student learning and fosters productive relationships among business, education and the community. Each year leaders from all walks of life serve as role models to young people by transfering their knowledge and practical experience in a partnership with students.

One thousand and four hundred students, more than 220 companies and government institutions took part in the Manager for a Day 2007 initiative held on March 12. Traditionally, Manager for a Day is held under the patronage of the Ministry of Finance. Minister Plamen Oresharski signed the first internship contract for a day. This year, the Minister of Education and Science Daniel Valchev, the Minister of Economy and Energy Rumen Ovcharov, and the Minister of State Administration and Administrative Reform Nikolay Vasilev joined their colleague Oresharski as participants and supporters of the initiative.

“I realized how big the responsibility a minister carries is and how important the decisions he has to make are and I am convinced this is not a task everybody is equal to. I want to thank all the people who devoted skills, time, and efforts to teach and help the others, because they develop skills that are useful throughout one’s whole life, because their contribution changes lives, as it changed mine!”

Rositsa Kirilova – Varna, Minister of Education and Science for a Day

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Official Launch of the First Center for Entrepreneurship

On November 27, 2006, the official opening of the first JA Bulgaria Entrepreneurship Center in Sofia’s High School of Architecture, Construction and Geodesy took place in the presence of Minister of Economy and Energy Rumen Ovcharov, USAID Mission Director Michael Fritz and many other special guests. The Center is launched as part of a joint project of JA Bulgaria and the Ministry of Economy and Energy called “Center for Entrepreneurship – Student Company”. The major aim of the Center is to develop the economic and business knowledge and shape and stimulate the economic way of thinking and entrepreneurship behavior among the graduating students from the non-economics vocational high schools. The Center supports the vocational non-economic high schools in elaborating entrepreneurship strategies and programs, stimulates the links between schools and business, helps students develop important social skills such as teamwork, responsibility and self-discipline, risk assessment and management skills, personal initiative and creativity, business ethics, etc. The Center gives students studying JA Bulgaria’s programs the opportunity to have regular contacts with representatives of business in a working atmosphere and also works in order to improve the qualification of the teachers who consult the student companies as well as of the managers of the companies. A Business Club was created as a part of the Center for Entrepreneurship which facilitates the establishment of a lasting partnership with business. To that end, the Business Club organizes different initiatives such as roundtables, internships and others.

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2007 – A Year of Awards for JA Bulgaria

JA Bulgaria received the Best Practice Award from JA-YE Europe at the Annual Meeting of JA-YE Europe in May, 2007 in Brussels. Such awards are given for the first time in Europe, and it was a real honor for both the Board and the staff of the organization to have this recognition on part of the European network.

In 2007, Mita Georgieva was awarded the JA Worldwide 2007 Teacher of the Year Award for her “excellence, innovation, and effectiveness in teaching economics” and for her ten years of dedicated involvement with Junior Achievement Bulgaria. Leveraging her reputation as a noted expert in the field of education, she was instrumental in helping build the relationship between JA Bulgaria and the Bulgarian Ministry of Education and Science.

Ms. Georgieva has also helped raise the profile of Junior Achievement Bulgaria in the local media promoting Junior Achievement’s innovative entrepreneurship, work readiness, and financial literacy programs for young people. Since 1997, she taught JA Worldwide programs in her classes, reaching an estimated 1,000 students. She also works with JA Bulgaria to recruit volunteers by sharing her experiences. Ms. Georgieva helped adapt JA Worldwide programs for use in Bulgaria, and developed case studies and exercises which reinforce the program’s lessons on entrepreneurship, financial literacy and work readiness.

JA Bulgaria was also awarded the 25,000-dollar 2007 Entrepreneurial Award of JA Worldwide and the MetLife Foundation. MetLife, a long time JA partner, has a desire to be engaged in advancing the JA mission and recognizes the need to provide JA members with incentives to identify and implement innovative ideas.

HP Responsible Business Ideas European Contest – in 2007 the contest was won by the Bulgarian student Viktoria Zogova from Velingrad for her idea to address the global potable water shortage locally through a mechanical household system for water purification called “Crystal Stream”.

JA Bulgaria CEO Milena Stoycheva was awarded the 2007 JA Wordwide Platinum Individual Achievement Award.

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JA-YE Alumni Business Club Bulgaria

JA-YE Alumni Business Club Bulgaria started its history in October 2000, when four enthusiastic former JA students established it. During the years its structure changed, its members increased but its values and vision remain the same. JA-YE ABC considers it is important to encourage and help young Bulgarians to understand business, value free enterprise and be workforce ready for the challenges of the future, and that is why it shares JA Bulgaria’s mission and values. Being one of the founders of JA-YE Alumni Europe, Alumni Business Club Bulgaria was among the participants in the first JA-YE Alumni Conference held in Lithuania 2004.

Apart from helping JA Bulgaria, we have our own projects to work on. We are a socially responsible organization and we believe that our activities assist in the selection and recruitment of the future business leaders in our country. Therefore we reach the best JA students; share knowledge, experience and responsibilities; develop business skills of the alumni members. At the same time we have the opportunity to develop as individuals, acquire and later teach organizational and entrepreneurial skills, communication and teamwork abilities. To achieve our mission we rely on excellence, responsibility and quality.

During the 2006/2007 school year, JA-YE Alumni Business Club Bulgaria organized the 4th JA-YE Alumni Conference and supported different events such as: the final round of “Virtual Enterprise” competition, “Manager for a day ®”, “Best Student Company of Bulgaria 2007” competition, etc. These activities and projects helped us build a reliable and working organization that provides its members possibilities to gain knowledge and develop interpersonal skills by following the JA mission and goals. As a result we have set up “The most innovative product” award; published the first Alumni Bulgaria newsletter “Together”; and recruited around 40 new members in ten different Bulgarian towns.

4th JA-YE Alumni Conference – 17-21 July 2007 – SofiaThe European Alumni conference is an annual meeting that brings together the JA-YE alumni from all over Europe for training, workshops, roundtable discussions, cultural management, sharing of best practices, and networking. The 4th Annual Alumni Conference was held in Sofia. Alumni Business Club of JA Bulgaria handled all the logistics of the event.

The purposes of the Alumni Conferences are to build and strengthen the network within former JA-YE students across Europe; to inspire the delegates to get further involved with the JA-YE alumni work in their countries; to motivate alumni organizations in JA-YE member countries to continue supporting their home country JA organizations at both national and international level after the conference; to engage JA-YE alumni directly in the coordination and implementation of youth activities and enterprise programs of the JA-YE organizations; to instill in young people the value of volunteering, sharing and networking; to improve quality and increase innovation throughout our network by encouraging more exchange between JA-YE Alumni member nations.

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JA Bulgaria Christmas Fun-Raisers 2006 and 2007

In the beginning of December 2006 and December 2007, JA Bulgaria held its traditional Christmas Fun-Raiser parties and celebrated together with friends and partners the year’s accomplishments. During the whole night The Jazz Big Band of Bulgarian National Radio and a DJ performed a selection of popular and loved songs to entertain all of the guests, who had a chance to enjoy the impressive menu of Flannagan’s and to win big raffle prizes, provided by our sponsors. Later in the evening Santa Clause Junior & Little Snow-white joined the party as special guests and rewarded the lucky ones with a whole bag of surprises and attractive gifts, among which weekends in 5-star hotels and spa resorts, travel packages, sports treats and many more.

Santa Clause’s assistants and partners 2006 – special thanks to:

Raffle Sponsors 2006:

Santa Clause’s assistants and partners 2007 – special thanks to:

Raffle Sponsors 2007:

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Report of the Auditors

TO THE MANAGEMENT OF FOUNDATION “JUNIOR ACHIEVEMENT BULGARIA”

I have audited the accompanying balance sheet of FOUNDATION 'JUNIOR ACHIEVEMENT BULGARIA' as of 31 December 2007 and the related statements of income, of cash flows and of changes in equity for the year then ended. These financial statements are the responsibility of the Foundation's management. My responsibility is to express an opinion on these financial statements based on our audit. I conducted my audit in accordance with the International Standards on Auditing. These Standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion the financial statements present fairly, in all material respects the financial position of the Foundation as of 31 December 2007 and the results of its operations and its cash flows for the year then ended (in accordance with the National Accounting Standards).

SofiaMarch 18, 2008

Maria VaklinovaCertified Public Accountant

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Report of the Auditors

JUNIOR ACHIEVEMENT BULGARIABalance Sheet as of 31 December 2007 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 60 60 A. Equity 83 76I. Tangible fixed assets net of accumulated depreciation 7 12 I. Subscribed capital

II. Intangible fixed assets net of accumulated depreciation 5 6 II. Reserves 83 76

III. Long-term financial assets 48 42 III. Financial resultB. Current assets 236 44 B. Liabilities 73 28

I. Inventories 14 7 I. Long-term payables 4II. Short-term receivables 22 6 II. Short-term payables 69 28III. Short-term financial assets 200 31 III. ProvisionsC. Deferred expenses 1 C. Deferred income and financing 141TOTAL ASSETS 297 104 TOTAL EQUITY AND LIABILITIES 297 104

EXPENSESAmmount in BGN'000

REVENUESAmmount in BGN'000

current year previous year current year previous yearА. Operating expenses 231 221 А. Operating revenues 291 291I. Operating expenses 243 97 I. Grants and subsidies 4 279 II. Administrative expenses 151 115 II. Other net revenues 234 12III. Financial expenses 12 9 III. Revenue from sales 167

IV. Investment earnings 3V. Exceptional income 5

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

D. Total expenses before taxes 406 221 D. Total revenues before taxes 413 291

E. Accounting profit 7 70 E. Accounting lossF. Tax expenses F. Tax revenuesG. Net profit 7 70 G. Net lossTOTAL 413 291 TOTAL 413 291

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 BulgariaMasterCard InternationalPublicis / MARCHewlett-Packard BulgariaNestle BulgariaGE (General Electric)Darik RadioMtelCoca-Cola CompanySviloza Inc.Ministry of State Administration and Administrative ReformVapcarov ADDimi PanitzaBoni BonevMinistry of Education and ScienceMinistry of FinanceMinistry of CultureJA WorldwideU.S. Embassy

British EmbassyBritish Council BulgariaPeace Corps BulgariaBalkan Children and Youth FoundationHewlett-Packard EuropeFree and Democratic Bulgaria FoundationBulgarian International Business Association (BIBA)CNsysPorsche BulgariaM3 Communications WorkgroupDeloitte BulgariaRight RentalManager MagazineScena MagazineBulgarian Charities Aid FoundationGrand Hotel SofiaCongress EngineeringKarieri.bgJA-YE Alumni Business Club BulgariaRadisson SAS Grand HotelEstee LauderAvonEcopack

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