Budgeting Process In Small And Medium-Sized Enterprises - Statistical Analysis Of Smes In Albania

This paper examines the budgeting practices of small and medium-sized enterprises (SMEs) in Albania, emphasizing the critical link between effective budgeting and financial performance. The study begins by outlining the research context, objectives, and aims, followed by a comprehensive literature review of key budgeting theories and challenges faced by SMEs in implementing effective strategies. It assesses the impact of budgeting on financial performance and compares these practices with those in other Balkan countries. Utilizing a robust methodological framework, the research applies quantitative techniques, including linear regression and correlation analysis, to data from Albanian SMEs. The findings show significant correlations between structured budgeting and enhanced financial outcomes, highlighting the importance of sound financial management in improving SME performance. This study contributes to the literature by offering insights into Albanian SME budgeting practices and recommendations for strengthening them, highlighting budgeting’s vital role in ensuring the financial sustainability and growth of SMEs in Albania.