IMPACT OF ENTREPRENEURSHIP IN ECONOMIC GROWTH “CASE OF A SMALL ECONOMY: ALBANIA”

Abstract

Economic growth is a very important indicator, that shows the progress or the regress that a country experiences. It becomes a mean of comparison along with other countries in the world. There are many factors that contribute in this indicator. Entrepreneurship is a factor, one of those concepts which are very hard to define clearly and properly. Many interpretations can be given, and yet none that can summarize in one description. In this paper, it will be introduced the impact of entrepreneurship in the economic growth of a country. There is an assumption stating that entrepreneurship or the formation of new enterprises has got a positive impact on the employment levels. Furthermore, the decrease in unemployment rates creates a very positive climate in the economic aspect of a country. It will be analyzed how these two: entrepreneurship and economic growth are interrelated in transitional economies like Albania. The model is going to comprise countries like: Albania, Macedonia, and Bulgaria; in order to make the comparison of the correlation’s result within them. The data interval is going to include years from 2000 to 2010, and the main source of information will be INSTAT and World Bank.