Top PDF Barriers to Small and Medium Enterprises in Kosovo

Barriers to Small and Medium Enterprises in Kosovo

Barriers to Small and Medium Enterprises in Kosovo

The second issue, namely limited access to finance, has also been perceived as a barrier towards development. Limited access to finance describes the situation where a business applies for external financing (loan or grant) but gets rejected. The reason why many businesses get their applications rejected is related to their inability to provide sufficient documentation to the provider (i.e. bank, NGO…) and insufficient liquid-assets (collateral). These factors work against the development of the SME sector, as entrepreneurs struggle to find external financing to create new firms or expand already existing ones – in part because they are seen as high-risk enterprises. The 2012 Human Development Report has found that despite the credit growth in the financial market over the past years, the landscape of loans has remained relatively the same. Loans towards the service sector hold the majority of loans handed towards enterprises (71% of total loans), compared to 25% of total loans which were given towards the manufacturing service. The reason behind such an uneven distribution of loans in the market could be attributed towards the capital which is required to start a manufacturing business relative to a service-oriented business (UNDP, 59). However, for a business to experience growth over time, it needs to invest capital – absence of which could halt growth. Thus, many local enterprisessmall and medium – have been investing their own accumulated capital to generate growth (2012 Human Development Report, 60).
Show more

48 Read more

Innovation and Barriers to Innovation: Small and Medium Enterprises in Addis Ababa

Innovation and Barriers to Innovation: Small and Medium Enterprises in Addis Ababa

With increasing competition and quickly spreading of knowledge, the future of many businesses depend upon their ability to innovate. However, empirical and environmental scan evidence shows that low technological innovativeness of small and Medium Enterprises (SMEs) in Addis Ababa. Thus, this study examines barriers for technological innovation in SMEs. The data for the study was collected from four selected sub cities of Addis Ababa SMEs (Akaki, Bole, Kirkos and Yeka). The questionnaires were distributed randomly for 207 SME managers and/or owners to gather the needed information. The data gathered from managers or owners’ using ordinary scale was analyzed quantitatively. On the other hand, interview data from official of sub cities was analyzed qualitatively. The mean, mode, percentage, and correlation analyses were used to process variables and data analysis. The result of this study indicates that the major barriers of introducing or expanding technological innovation for the sampled SMEs are: lack of government policy and regulation, lack of technological and market information, inadequate research and development, high cost of innovation, organizational culture, size of enterprise, lack of skilled personnel, lack of finance and absence of cooperation. In addition, the comparative analysis indicate that, except government policy and regulation, organizational culture, size of enterprise & lack of skilled personnel, all other factors were considered to be an important barrier to industry level and both for Small and Medium Enterprises. Similarly, all factors have statistically significant relationship for Industry, Small and Medium specific, except lack of cooperation, it is statistically insignificant for SME’s specific technological innovation.
Show more

24 Read more

The Impact of the Barriers in Development of Small and Medium Enterprises

The Impact of the Barriers in Development of Small and Medium Enterprises

The small and medium enterprises (SME) have a very important role in economy due to its contribution in the functioning of the country and generation of job opportunities. Development of SME-s would contribute to envisage many challenges in relation to the economic development, high level of unemployment, demographic growth and the need for structural changes. The importance of the development of small and medium enterprises is very high due to the positive effects in the local economy but in their performance face many barriers that obstruct its development. Identification of the SME barriers remains an important challenge for the owners, managers, policy makers and including the entire society; therefore in this presentation I would try to elaborate the issue of the Impact of barriers in development of the SME-s in Kosovo. The aim of this study is to review the importance of the barriers on development of SME-s in Kosovo and identification of the ways to possible minimization of them. Finalization of this study would enable its adequate addressing on the matter and would enable extraction of the necessary recommendations to further struggle the barriers that would have an impact in development of the small and medium enterprises in Kosovo.
Show more

6 Read more

Analyzing the Barriers to Innovation Development in Emerging Economies: Vietnamese Small and Medium Enterprises (SMEs) as an Empirical Case

Analyzing the Barriers to Innovation Development in Emerging Economies: Vietnamese Small and Medium Enterprises (SMEs) as an Empirical Case

to the models discussed above. In other words, the explanatory power of the barriers in regulations on trade and custom duties variable is better than the previous models’ variables. The impact coefficient of the variable is 0.554, which is found to have a positive impact on the dependent variables with a confidence interval of 99%. This finding is consistent with Nha and Quan (2013) indicating that barriers in regulations on trade and custom duties have the greatest impact on innovation for Vietnamese enterprises. Vietnam has an incomplete legal system with a limited regulation quality, not to mention that there is a huge number of subordinate legal documents. In fact, the country has to carry out a lot of additional modifications to the law system, leading to many difficulties in controlling, overlapping, and contradictory. Moreover, there are still many inadequacies in the promulgation of regulations, resulting in the impossibility of the laws. Not only they cannot support the enterprises, they also create multiple barriers. For that reason, domestic enterprises always have to take an active role in resolving difficulties, as well as changing rapidly to adapt to the law modifications. A typical issue relating to trade and custom duties which enterprises have to face is import licensing. In terms of simplification, small and medium enterprises usually innovate their working methods and cooperate with intermediaries specializing in importing materials, machinery, and equipment to meet the demand, as well as avoid unnecessary costs incurred from many types of procedures.
Show more

14 Read more

Development and Management Perspective of Small and Medium Enterprises in Kosovo

Development and Management Perspective of Small and Medium Enterprises in Kosovo

The paper presents the development and the future of small and medium enterprises in Kosovo with particular emphasis on the management aspect. The paper highlighted the diagnosis of the current situation of SMEs, identify problems, obstacles and barriers that are suffocate the development of their activities, identifying needs and requirements of the community to improve the situation of SMEs, the advancement of processes development and the development of positive trends in strategic terms. The formation and development of SMEs has contributed to employment growth and market device with different products and services. Employment in private enterprises is increasing where structural changes can be observed within the enterprises, which are expressed through a decline in the number of commercial enterprises and increasing the participation of manufacturing enterprises. Issues addressed in this paper are how we can improve the development of SMEs as an obstacle factors influencing his process? how can you help young entrepreneurs?, how can we increase the number of employees, innovation, improvement of trade balance? And how to encourage local production and increase overall performance? Finalization of the paper will enable adequate addressing of the difficulties and problems faced by enterprises in Kosovo and enables the extraction of the necessary recommendations for the next steps of development of SMEs, creating incentives and support for economic activities that develop them in order to support economic growth and employment in general in future generations.
Show more

6 Read more

Barriers and opportunities for hi-tech innovative small and medium enterprises development in the 4th industrial revolution era

Barriers and opportunities for hi-tech innovative small and medium enterprises development in the 4th industrial revolution era

Recent studies show the far-reaching integra- tion of information and operational technolo- gies. Surveys conducted by Schwab (2015, 2017), Richards (2016), Dittrich (2016), Economist Intelligence Unit (2010) and UNCTAD (2017) ex- perts show the main specifications and possible effects of the 4IR. The current situation and man - jor problems of information technology within in- dustrial area in Ukraine are analyzed by Frolov et al. (2017). Yurynets (2016) investigates the factors for economic growth, including the influence of Research and Development on GDP growth. Notwithstanding, few studies have explored in the field of high-tech innovative SMEs’ develop- ment. Economic problems of business function development in the sectors of national economy are studied by Britchenko et al. (2012). Bloem et al. (2014) and Moavenzadeh (2015) discover benefits of upgrading digital economy for large enterprises. The companies by size are distinguished in Global Enterprise Recognition Report (2015).
Show more

15 Read more

Planning, Problem Solving and Decision Making Process - Case Study in Small and Medium Enterprises in Kosovo

Planning, Problem Solving and Decision Making Process - Case Study in Small and Medium Enterprises in Kosovo

The instrument used for collecting primary data in this paper is a structured questionnaire addressed to the owners or managers of the surveyed enterprises. Questionnaire questions are simple and straightforward to get accurate and relevant answers. The questions are closed, so respondents have to choose one or more of the alternatives presented that refer to the Likert scale, depending on the type of question. In general, using this form of questionnaire has been the most effective way to collect the data needed for our study.

11 Read more

Entrepreneurial income and barriers to firm growth: a study of rural small and medium enterprises in Uganda

Entrepreneurial income and barriers to firm growth: a study of rural small and medium enterprises in Uganda

In regard to Industry, a significant number of small firms are involved in manufacturing activities. The main consistently carried out activities are: textiles & apparel, food & beverages, and wood & forest products. Most surveys have suggested that these three main categories comprise about 75% of manufacturing enterprises in urban areas of many developing countries and 90% in rural areas. These activities may vary from country to country and between urban and rural areas (Leidholm, 1997). SMEs are constantly changing. New firms are being created, while others are closing. Also, the existing and surviving firms are expanding and contracting in size. These changes are usually summarized in two concepts: Net firm creation (new starts minus closure), and mobility or net firm expansion (firm expansion minus firm contraction) (Liedholm, 2002). The determinants of new starts differ between high and low return (profit) activities. For high return activities, barriers to entry like initial capital requirements are found to be inversely related to the new start rate; for low return activities, new starts rate only inversely relate to the aggregate level of economic activity.
Show more

261 Read more

The Influence of Motivation on Job Performance Case Study: Managers of Small and Medium Enterprises (SMEs), Kosovo

The Influence of Motivation on Job Performance Case Study: Managers of Small and Medium Enterprises (SMEs), Kosovo

Performance evaluation can be defined as "the process of assessing performance of each member of staff during a specific time of period, estimated on the level [r]

12 Read more

Barriers and solutions for Lithuanian small and medium enterprises export to the middle east region

Barriers and solutions for Lithuanian small and medium enterprises export to the middle east region

Atsižvelgiant į bendrą smulkaus ir vidutinio dydžio įmonių atsakymų tendenciją buvo atrasti septyni išoriniai eksporto barjerai (žr. 31 pav.): (1) Įmonei sunku užmegzti ir palaikyti ryš[r]

104 Read more

Export Barriers to halal food processing small and medium enterprises (SMEs) in Malaysia

Export Barriers to halal food processing small and medium enterprises (SMEs) in Malaysia

sanitation and safety aspects (SIRIM,2004). The Third Industrial Master Plan (IMP3), 2006-2020, encompasses government’s intention to develop Malaysia as the global halal hub for the production and trade in halal goods and services (GOM,2006). This measure is intended as the average global halal food trade is estimated to be worth RM 600 billion per year (SIRIM,2004). The presence and intensity of export barriers to Malaysian SMEs involved in manufacturing and exporting of halal processed foods will negatively influence export performance and prevent them from utilizing their export potential.
Show more

16 Read more

Barriers to entry: Challenges facing youth entrepreneurs as they establish their small and medium enterprises (SMEs) in Egypt

Barriers to entry: Challenges facing youth entrepreneurs as they establish their small and medium enterprises (SMEs) in Egypt

The study aims at exploring challenges faced by youth entrepreneurs as they start their Small and Medium Enterprises (SMEs) in Egypt. The study focuses on the main hinders that hurdles youths’ progress and inhibits their growth. The main motivation behind the study stems from the importance of youth employment and their inclusion in the economy. Hence, as youths’ economic activity is realized and highlighted, creating an enabling environment becomes crucial to ensure their success. Accordingly, this thesis aims at enhancing the literature, through providing raw and recent data analysis, which explains obstacles facing youth. Through showcasing their struggle, action could be taken to improve entrepreneurial environment for youth seeking recognition. While the literature offers several explanations on struggles facing youth entrepreneurship, yet the available data remains outdated and scattered among several studies. This thesis, however, objectively provides a comprehensive platform to showcase youth struggles from a broader scope. The study covers all sectors which enables for the provision of a general and all- inclusive outlook on the matter. The study looks at the full picture and provides an encompassing explanation on the general struggles facing youth entrepreneurs. It studies the legal and non-legal system to incorporate all obstacles facing youth and inhibiting an entrepreneurial environment for the growth of their SMEs.
Show more

191 Read more

A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country

A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country

According to Gounaris and Avlonitis (1997), market orientation adoption requires organisational values embracing philosophy, attitudes and behaviours that are conducive and enabling for market-oriented strategies. Organisations must build dynamic marketing capabilities that enable them to adapt, change, and renew operational approaches over time (Homburg & Pflesser, 2000) in order to overcome the barriers to market orientation. Capabilities that provide the means for adapting the operational processes to changes in the marketing environment, such as changes in customer demands, the emergence of new markets and channels, and competitive changes (Sinkula et al., 1997). Some barriers emanate from failure to set specific departmental guidelines that guide the flexibility of their departments’ to achieve some market orientation (Lichtenthal & Wilson, 1992). These operational procedures and guidelines, systems, activity frameworks, structures and processes, as well as marketing and operational capabilities that can be adjusted to drive a market orientation culture, are critical for market orientation implementation (Kim & Mauborgne, 2009). Organisations that are willing to overcome barriers to market orientation are increasingly recognising the strategic importance of becoming more market oriented; they focus on the importance of driving market orientation deep into their organisational cultures (Kumar, 2009). Osuagwu (2006) posits that translating market orientation into action is traceable to marketing know-how, skills and organisational operations.
Show more

12 Read more

Modeling the Individual Knowledge Sharing Barriers in Small and Medium Enterprises: An ISM Methodology

Modeling the Individual Knowledge Sharing Barriers in Small and Medium Enterprises: An ISM Methodology

Abstract— Knowledge sharing is one of the knowledge management fundamental activities in which management and knowledge management has been focused. Effective KS depends on several factors, some of these factors facilitate KS activities and some factors prevent effective KS. Effective knowledge transfer and sharing Factors can be divided into two factors which will be soft and hard. Based on communication model this paper studies barriers of knowledge sharing in organization. The objective of this paper is to develop the relationships among the identified IKS barriers. Further, this paper is also helpful to understand mutual influences of barriers and to identify those barriers which support other barriers (driving barrier) and also those barriers which are most influenced by other barriers (dependent barrier).
Show more

5 Read more

The Business Environment and Problems of Small and Medium Enterprises in Kosovo

The Business Environment and Problems of Small and Medium Enterprises in Kosovo

Loan applications and approval – from the total of 150 business surveyed, 98 have stated that in the last three years, they have applied for banking loans, of which around 65% of such businesses were approved their applications, 18% were only approved partially, and 17% were rejected their loan applications. One of the reasons for rejecting loan applications was the insufficient collateral. Survey results show that enterprises stating to have obtained banking loans express their dissatisfaction with the high interest rates, and short repayment terms.

22 Read more

Micro , Small and Medium Enterprises in Tajikistan: Drivers of and Barriers to Growth

Micro , Small and Medium Enterprises in Tajikistan: Drivers of and Barriers to Growth

This paper builds on research findings that highlight the link between MSMEs and economic growth in Tajikistan. Economic growth is directly linked to the growth of MSMEs in three im- portant sectors of the economy – trade and services, transportation and agriculture. Recent reforms, including support for a simplified tax administration through patent and certificate systems, have contributed to the rapid growth of micro-businesses in Tajikistan in the last decade. Increased awareness of the underestimated role of MSMEs in the production of ag- ricultural exports may contribute to the revitalisation of agricultural growth within the con - text of limited natural and financial resources. The accession of Tajikistan to the World Trade Organisation in 2013 and the continued liberalisation of trade will also support this process. To increase understanding of the MSME sector, those working in it and what can help drive its growth, this paper described the results of a survey of randomly selected, cluster-based enterprises in the three key economic sectors in both urban and rural areas across Tajikistan. The dataset provides detailed information on the personal characteristics of entrepreneurs, as well as specific factors influencing the growth of MSMEs, including labour, capital, infor - mation and barriers to growth. The findings can help guide policy and programmes that impact the sector and the broader environment in which it functions.
Show more

45 Read more

Micro-, Small and Medium Enterprises in Tajikistan: Drivers of and Barriers to Growth

Micro-, Small and Medium Enterprises in Tajikistan: Drivers of and Barriers to Growth

Access to land is not consistent across the country due its natural topography and population distribution. Larger plots for kitchen gardens are mostly available in Khatlon Province and the Region of Republican Subordination. The sizes of plots in Sughd and Gorno-Badakhshan Autonomous provinces are smaller due to high population density in Sughd and lack of avail- able land in Gorno-Badakhshan (see Figure 7). Since 2007, in Khatlon Province and the Re- gion of Republican Subordination, the size of plots has decreased slightly. In Sughd Province, it has stabilised and in Gorno-Badakhshan Autonomous Province, it has slowly increased. Notably, 800,000 rural households in Tajikistan are the main source of agricultural production in the country. Some argue that this small-scale activity is simply oriented towards rural subsist- ence and cannot significantly impact national economic development. However, further examina- tion of agricultural exports other than cotton, such as onions and dried fruit, provides contrary evidence on the impact of rural households on export and business development in Tajikistan.
Show more

45 Read more

Bank Loans as a Source of Financing Small to Medium-Sized Enterprises in Western Balkans.The Kosovo Case Study.

Bank Loans as a Source of Financing Small to Medium-Sized Enterprises in Western Balkans.The Kosovo Case Study.

Abstract- It is accepted worldwide that a healthy banking system play a crucial role in the economic development of a country. Also, the role and importance of the banking system in developed and developing countries (including Kosovo) is unquestionable. This is evident especially in financing business needs of Small and Medium Enterprises (SMEs), which generate income and employment. However, financing SMEs’ needs by banks, often is accompanied with problems and various challenges. The aim of this paper is to highlight the role and importance of banks on financing business needs of SMEs, identify problems which arise, by giving recommendations on solving the aforementioned, which would be beneficial for both parties. Hence, this paper offers important implications for banks, SMEs, as well as for policymakers.
Show more

6 Read more

OVERCOMING THE PERCEIVED BARRIERS OF E-COMMERCE TO SMALL AND MEDIUM SCALE ENTERPRISES IN GHANA – A PROPOSED MODEL

OVERCOMING THE PERCEIVED BARRIERS OF E-COMMERCE TO SMALL AND MEDIUM SCALE ENTERPRISES IN GHANA – A PROPOSED MODEL

Small and Medium sized Enterprises (SMEs) do play a major and important role in today’s world economy, and they are recognized as one of the main contributors to economic, development and employment growth. On the other hand, the revolution in Information technology (IT) and communications changed the way people conduct business today. In recent years, increasing numbers of businesses have been using the Internet and other electronic media in conducting their marketing efforts, giving the chance for Electronic business which is a new phenomenon to grow in a very dramatic and dynamic way. Adopting E-business by Small and Medium enterprises can change both the shape and nature of its business all over the world. Because the increase usage of the Internet and other Electronic business tools (i.e.: E-mail, Intranets, Extranets and Mobile phones) in electronic transactions might create not only a lot of opportunity for small business enterprises but also can eliminate a lot of threats. From this perspective, it is noticed that the Internet, electronic media tools are playing a vital and essential role in conducting marketing activities within business enterprises regardless of its type or size (Nelson, 2000). There is a growing recognition of the role of small and medium enterprises (SMEs) in economic development. They are often described as the engine of growth and prolific job creators. Even in the developed industrial economies, it is the SME which has the largest employer of workers rather than the multinationals (Mullineux, 1997). Interest in the role of SMEs in the development process continues to be in the forefront of policy debates in most countries. Governments at all levels have undertaken initiatives to promote the growth of SMEs (Feeney and Riding, 1997). SMEs represent over 90% of private business and contribute to more than 50% of employment and of GDP in most African countries (UNIDO, 1999). Small enterprises in Ghana are said to be a characteristic feature of the production landscape and have been noted to provide about 85% of manufacturing employment of Ghana (Steel and Webster, 1991; Aryeetey, 2001).
Show more

17 Read more

Lending to Small and Medium Enterprises

Lending to Small and Medium Enterprises

Second, the identification and lowering of barriers to entry for non-bank SME lenders should also be considered. In this regard, two major categories of non-bank lenders have been targeted by international regulators – non-bank online lenders and securitisers. This segment is still embryonic in the Australian SME lending market. The biggest barrier to non-bank online lenders competing in SME loan provision is their ability to generate sufficient capital to lend either off their own book or through a managed trust structure. However, the success of the aforementioned US online non- bank lenders in attracting investor funds suggest that it is possible. An alternative structure, and one that is growing in popularity in the housing lending market internationally, is peer-to-peer based lending.
Show more

14 Read more

Show all 10000 documents...

Related subjects