Challenges, Funding Resources and Their Impact on the SMEs Growth in Kosovo

Session

Management, Business and Economics

Description

This paper is intended to display the barriers or challenges to doing business in Kosovo, and financial resources of SMEs, and their impact on economic growth. Knowing the fact that in Kosovo more than 99% of enterprises are SMEs their have basic support in economic development, they also contribute to employment growth. In Kosovo through the years especially in the last ones, SMEs have had multiple barriers to doing business. Some of the most serious barriers that have contributed more to SMEs are access to finance, unfair competition, and corruption, to those less problematic barriers such as telecommunication, work regulation, and transport, which are not so worried for business. Most SMEs in Kosovo are forced that their business activity starts with its own funding, because they have encountered barriers that have prevented their access to finance so they forced the businesses to find other ways of funding. The commercial banks have been expensive and conservative with requested conditions for businesses. This has made very difficult the work of SMEs, given that at the time they most needed help and support. Businesses that want to enter in the market didn't find funding sources, or those who are in the market and aim to increase, they have been faced with different barriers and therefore this not suitable for a business environment and this effects in decreasing of employment and also affect negatively in the economic development of the country.

Keywords:

SMEs, barriers, challenges, banks, loans, collateral, financing resources. JEL Codes: L260, O120

Session Chair

Nora Sadiku-Dushi

Session Co-Chair

Aferina Skeja

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

Location

Lipjan, Kosovo

Start Date

31-10-2020 1:30 PM

End Date

31-10-2020 3:00 PM

DOI

10.33107/ubt-ic.2020.309

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Oct 31st, 1:30 PM Oct 31st, 3:00 PM

Challenges, Funding Resources and Their Impact on the SMEs Growth in Kosovo

Lipjan, Kosovo

This paper is intended to display the barriers or challenges to doing business in Kosovo, and financial resources of SMEs, and their impact on economic growth. Knowing the fact that in Kosovo more than 99% of enterprises are SMEs their have basic support in economic development, they also contribute to employment growth. In Kosovo through the years especially in the last ones, SMEs have had multiple barriers to doing business. Some of the most serious barriers that have contributed more to SMEs are access to finance, unfair competition, and corruption, to those less problematic barriers such as telecommunication, work regulation, and transport, which are not so worried for business. Most SMEs in Kosovo are forced that their business activity starts with its own funding, because they have encountered barriers that have prevented their access to finance so they forced the businesses to find other ways of funding. The commercial banks have been expensive and conservative with requested conditions for businesses. This has made very difficult the work of SMEs, given that at the time they most needed help and support. Businesses that want to enter in the market didn't find funding sources, or those who are in the market and aim to increase, they have been faced with different barriers and therefore this not suitable for a business environment and this effects in decreasing of employment and also affect negatively in the economic development of the country.