The role of small and medium enterprises in economic development - The case of Kosovo

Abstract

During the last fifteen years, significant SME sector was established in Kosovo. A greater dynamic regarding to the registration of new businesses can be encountered in the first three years of 1990’s and in the postwar period that can be considered as reflection of the changing business environment in the respective periods. Private enterprises in Kosovo are established since 1989. But the intensity of registration of SMEs grew separately after 1990 and continued until 1995.At this time companies were mainly organized in the form of households, the crafts, commercial enterprises, small shops, restaurants and agricultural enterprises.The establishment of these enterprises has not been the result of enabling business environment, but it came from the need to create jobs to people whose jobs were terminated form the social enterprises. In Kosovo during the last decade, a valuavle experience was achieved by increasing and development of of private enterprises, small and medium enterprises. Despite the achieved success, private enterprises constantly complain about the difficulties that they encounter when developing their business activities but as an example in Kosovo’s SME we do stil face with higher interest rates when taking loans.Likewise, these private enterprises in the country are still not well enough stimulated due to application of overwhelmed laws. Therefore it is needed a new inventory of legislative developments, but also should be requested the evaluation for the implementation of new legislation.This paper aims to reflect the role of small and medium enterprises in the post war Kosovo in economic development, increase of employment and alleviate poverty, obstacles that they encounter during their establishment and development which affect barrier not to develop entrepreneurship development innovation skills, etc, also some advantages that they assist their funcioning…