The current study aims at presenting the general tendencies in the development of the Bulgarian private sector shortly before the reforms and during the so called "transition to a market economy" in order to substantiate some basic recommendations regarding the policy in this area. The study makes use of all possible sources of information: National Statistical Institute's monthly data, current statistical surveys, representative studies of the private sector, balance sheets and P&L statements of state and private companies, sociological studies, the Business register of Bulgaria, documents and articles in the mass media, as well as CSD own research.