Some features of investing SMEs in Kosovo

Abstract

Small and medium enterprises play an important role in the economic development of a country, especially for transition countries, since constitute the largest participative economic structure of these countries. Their role is crucial for these countries to resolve problems arising from the transformation process in these countries. Kosovo is a country that is in a process of late transition. Development of SMEs depends on their ability to grow and develop. This paper is based on data collected from surveys of SMEs by BSC Kosovo in late 2012 and aims to provide some features of the investing SMEs in Kosovo by observed them as a whole as well in particular by micro, small and medium category enterprises. The analysis has to do with the features that characterize SMEs which had investment activity. Our analysis suggests that investment as important variable SMEs had positive correlation with the size and age of the enterprise. Also investing SMEs are characterized by recruitment of new employees in the last year, having written a business plan and used of bank loans. SMEs that operate in two or more locations, as well as those with importing activity are characterized by the investment activities. Investments have no significant correlation with the sector in which the company operates, but generally dominate trade SME which dominate the economic structure in Kosovo. Investments of services enterprises have a downward trend with increasing the size of the company, while the manufacturing enterprises shows a positive trend in this regard, since their participation is increasing investment in enterprises with increasing the size of the enterprise.

Keywords. SME, investment, characteristics, group, Kosovo.

JEL. D22, E22, G11, G21.