The impact of the business environment barriers on SMEs growth: the context of Kosovo

Session

Management, Business and Economics

Description

This research empirically investigates the impact of the business environment on SMEs’ employment growth. The SMEs in Kosovo struggle with many barriers either to survive or achieve growth objectives; this includes internal and external barriers for doing business. In this context, we use the survey sample of the Riinvest Institute, which consists of SMEs in Kosovo. The multiple linear regression models in statistical software SPSS were employed to check the statistical significance of the business environment barriers to SMEs employment. In line with the literature review, the study finds that the business environment has significant effects on SMEs’ employment growth. Thus, according to analysis, some institutional obstacles such as limited access to finance and corruption have significant impact on SMEs’ employment growth. Whereas, as regard to firm characteristics; the number of employees and firms’ amount of sales have shown to be statistically significant to the firms’ employment growth. The research findings are relevant for firms’ managers and policymakers since they capture the effects of the business environment on SMEs’ employment growth.

Keywords:

SMEs; business environment; employment; growth

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-50-5

Location

UBT Kampus, Lipjan

Start Date

29-10-2022 12:00 AM

End Date

30-10-2022 12:00 AM

DOI

10.33107/ubt-ic.2022.437

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Oct 29th, 12:00 AM Oct 30th, 12:00 AM

The impact of the business environment barriers on SMEs growth: the context of Kosovo

UBT Kampus, Lipjan

This research empirically investigates the impact of the business environment on SMEs’ employment growth. The SMEs in Kosovo struggle with many barriers either to survive or achieve growth objectives; this includes internal and external barriers for doing business. In this context, we use the survey sample of the Riinvest Institute, which consists of SMEs in Kosovo. The multiple linear regression models in statistical software SPSS were employed to check the statistical significance of the business environment barriers to SMEs employment. In line with the literature review, the study finds that the business environment has significant effects on SMEs’ employment growth. Thus, according to analysis, some institutional obstacles such as limited access to finance and corruption have significant impact on SMEs’ employment growth. Whereas, as regard to firm characteristics; the number of employees and firms’ amount of sales have shown to be statistically significant to the firms’ employment growth. The research findings are relevant for firms’ managers and policymakers since they capture the effects of the business environment on SMEs’ employment growth.