Perspectives of Innovations, Economics and Business

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 13
Issue 4
Online publication date 2013-11-05
Title Financing the small and medium enterprises in Albania
Author Blerina Kurti, Ingrid Shuli
Abstract
The importance of small and medium enterprises in economy is indisputable. They are the main contributor in employment, innovation and economic growth of a country. European Commission is fully supporting the development and growth of small and medium enterprises through changes in legislation, creating a friendly business environment, facilitation in obtaining funds in the last two decades. The share of SME in total enterprises in Albania is 99.6% and their contribution in the GDP is 73%. Their growth is closely linked with their ability to finance their activity, which is one of the most important issues they are faced with due to their size and creditworthiness.  
This paper aims to analyze the difficulties and obstacles that SME in Albania encounter in obtaining financing due to lack of source of financing within country, limited opportunities of accessing international capital markets as well as high interest rate.

Citation
References
Ardic, O. P., Mylenko, N., & Saltane, V., 2011. “Small and medium enterprises: A cross-country analysis with a new data set,” World Bank, Working paper 5538

Bank of Albania, 2012. Supervision Annual Report

Beck, T., Demirguc-Kunt, A., Laeven, L., & Maksimovic, V., 2004. ‘The determinants of financing obstacles,” Working Paper 3204, February 2004

Beck T, Demirgüç-Kunt A., Peria M.S.M., 2008. Bank financing for SMEs around the world: drivers, obstacles, business models, and lending practices. World Bank Policy Research Working Paper no. 4785

Beck, T., Demirguc-Kunt, A., Peria, M.S.M., 2011. "Bank Financing for SMEs: Evidence Across Countries and Bank Ownership Types," Journal of Financial Services Research, Vol. 39(1), pp.35-54, http://dx.doi.org/10.1007/s10693-010-0085-4

Beck, T., Demirguc-Kunt, A., & Singer, D., 2011. “Is small beautiful? Financial structure, Size and Access to Finance,” Working paper 5806, September 2011

BEEPS, 2010. The Business Environment and Enterprise Performance Survey (BEEPS) 2008-2009. A Report on methodology and observations, April 2010

Claessens, S., & Tzioumis, K., 2006. Measuring firm's access to finance, World Bank, Washington DC
Durvy, M.J.N., 2007. “Equity financing for SMEs: The nature of the market failure”, The SME Financing Gap (Vol. II), Proceedings of the Brasilia Conference, 27-30 March 2006

Love, I., 2003. "Financial Development and Financing Constraints: International Evidence from the Structural Investment Model", Review of Financial Studies, Vol.16(3), pp.765-791, 
http://dx.doi.org/10.1093/rfs/hhg013

Modigliani, F. and Miller, M.H., 1958. “The cost of capital, corporation finance and the theory of investment”,  The American economic review, Vol. 48(3), 261-297

Small Business Act for Europe, 2012, European Comission

SME Financing Gap, 2006. SME Financing Gap (Vol. II), Proceedings of the Brasilia Conference, 27-30 March 2006

OECD, 2012. SME Policy Index: Western Balkans and Turkey 2012: Progress in the Implementation of the Small Business Act for Europe

VKM, 2007. VKM nr. 795 dated 11/7/2007 "Per miratimin e Strategjise se Zhvillimit te Biznesit dhe Investimeve per periudhen 2007-2013"( On the ratification of the Business and Investment Development Strategy”

Watson, J., 2010. SME performance: separating myth from reality: Edward Elgar Publishing

Zhao, J., 2009. "Research on the Financing of Small and Medium Enterprises", International Journal of Business and Management, Vol. 3(11), pp.171-174, http://dx.doi.org/ 10.5539/ijbm.v3n11p171

Keywords Small and medium enterprises, financial sector, financing constrains, Albania
DOI http://dx.doi.org/10.15208/pieb.2013.24
Pages 99-110
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
PIEB 611
Journal Hits
PIEB 1561128
Journal Downloads
PIEB 27309
Total users online -