The Development of SMEs in Albania􀀀 Case Study of The Vlora City - Economicus

by, Krisdela Kacani, Grisejda Myslimi

Abstract

Various studies assert that there is a positive correlation between SME development and economic growth. SMEs help in building productive capacities by promoting innovation. As they develop, they create new jobs, compete with large enterprises, become part of the global market, and contribute to poverty alleviation in developing countries, help to increase revenue, boost exports and reduce imports. Therefore the development of SMEs should be an essential part of any government project.Priorities for the development of SMEs are the sources of funding. Various surveys show that bank loans are the most common methods for the development of SMEs. Alternative sources such as leasing and factoring are also of great importance to the development of SMEs. But the financing of SMEs faces major obstacles which adversely affect their development. In the development of SMEs key roles also play the government policies, training of the workforce, business environment, attracting FDI, the use of new technologies etc.Policymakers around the world have applied specific measures to encourage SMEs to build international businesses. In this paper it is presented an analysis of the development resources of SMEs in our country. Special focus will be placed on the financing methods of SMEs in Vlora.