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Internal factors affecting the performance of small and medium enterprises in Kosovo

Author

Listed:
  • Afrim Loku

    (Vice Rector for Budget, Finance and Infrastructure)

  • Nadire Loku

    (Lecturer - UBT College, Pristina, Kosovo)

Abstract

This study aims to provide an understanding of the importance of the SME sector in the socio-economic development of Kosovo and examine in particular the influence of internal factors on them. A cross-sectional survey was conducted with Kosovo SMEs through an anonymous online questionnaire. This study confirms that all internal factors - managerial skills and competencies, business experience, access to finance and technological capabilities, depending on a period, have a significant impact on the performance of SMEs. While access to finance is considered as a major challenge, technology is considered to help improve business performance. However, results revealed that poor managerial skills and competencies, despite having a significant impact on the performance of SMEs, they were also related to access in finance and technological skills, making it difficult to run a business. Training and empowerment of SME managers in key business areas can be an opportunity to improve business performance.

Suggested Citation

  • Afrim Loku & Nadire Loku, 2020. "Internal factors affecting the performance of small and medium enterprises in Kosovo," Technium Social Sciences Journal, Technium Science, vol. 11(1), pages 115-127, September.
    • Handle: RePEc:tec:journl:v:11:y:2020:i:1:p:115-127
    DOI: 10.47577/tssj.v11i1.1376
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    References listed on IDEAS

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    More about this item

    Keywords

    internal environment; SME performance; managerial competencies and skills; access to finance; technology.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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