Comparative approach to the financing of agricultural enterprises in the Republic of Kosovo and EU countries

Abstract

PurposeThe purpose of this study is to examine the financial challenges faced by agricultural enterprises in the Republic of Kosovo. It aims to compare the various forms of financing used in Kosovo with those in European Union (EU) countries. The study seeks to highlight opportunities and challenges with a focus on how they can learn from the experiences of EU countries.Design/methodology/approachThe study is based on responses from agricultural enterprises in both the EU and Kosovo. Data was gathered through a survey conducted with 50 agricultural enterprises in Kosovo, whereas for EU context, information from the 2020 Survey on the Financial Needs and Access to Finance of EU Agricultural Enterprises (provided by EAFRD). Statistical data were processed using the Stata and SPSS programs.FindingsIn agriculture sector, loan is the primary form of financing to expand their activities and capacities, whereas financing for agricultural enterprises exhibits a negative relationship with the bureaucratic procedures associated with financing.Research limitations/implicationsThe main research’s limitations include the unavailability of official data from the relevant institutions in Kosovo.Practical implicationsA possible implication arising from this research is the reliance of the development of agriculture enterprises on debt.Social implicationsDue to the lack of comprehensive data in this regard, is unable to analyze the specific impact of gender in financing patterns of these enterprises.Originality/valueThis study provides real data on the current situation of agricultural enterprises in Kosovo. Considering Kosovo’s goal to integrate with the EU, this comparative approach adds significant value to the study.