Do Education and Other Related Determinants Matter to Business Performance? Evaluation of Kosovo through a Multinominal Regression Approach

The overall aim of this paper is to empirically evaluate the perception of SME managers or owners on business performance (BP) during the year 2023, compared to 2022. The research has determined the dependent variable – the evaluation of BP – while education (EDU), drafted business plan (DBP), experience in the field in which the business operates (EXP), managerial ability (YMS), new product development (NPD), and inadequate skill level of employment skills (ILES) are defined as independent variables. The sample during the realization of this research consists of 336 questionnaires. The data for the inquiry were collected between March and April 2023. Multinominal regression was applied as the econometric approach, and it was also used in some of the important tests for the model’s determination. The discoveries of this study reveal that education, experience in the field in which the business operates, and managerial skills have a statistically significant influence while other variables exhibit an insignificant influence on BP. With a view towards contribution and originality, our research differs essentially from earlier studies, both in the selection of variables and in the applied approach. Therefore, productive discussions will result between scholars, academics, and policy-making bodies.