Abstract
One of the main challenges Albanian market is currently facing is the successful survival of Albanian small and medium entrepreneurs against the pressure of global market manufacturers/ suppliers, who can supply Albanian market with quality and competitive prices. Being under this pressure, it is, of course, particularly difficult for new manufacturers, established undertakings/ companies, newly established or old, to survive from the potential risk of failure during the first 3-4 years of their existence.This paper discusses some important issues and problems of financial situation, in general, and of the growth of small and medium enterprises in Albania. In addition, it presents, both theoretically and empirically, the relationship between the key performance indicators of SMEs growth. Some factors like number of years (age); number of employees; annual turnover, are subject to this analysis in order to see how SMEs are performing in Albania. For the analysis of qualitative and quantitative data, the linear regression and logistic regression models are used. DOI: 10.5901/ajis.2016.v5n3s1p575
Highlights
In line with previous studies, we argue that the growth of SMEs in the manufacturing, trade and service sector is strongly connected with the traditional business features Number of years; Number of employees; Turnover; etc
We see that turnover, a factor with significance value (p-value
This indicates a financial conflict, it is beyond doubt as we expect turnover to affect business profitability
Summary
Different theories have tried to identify the main factors determining the growth of a business. The empirical literature suggests that business growth is determined by traditional features, such as size and age, and by other specific features of the business itself. Specify an empirical model enabling the combination of traditional business characteristics (such as size and age) with more specific determining factors (such as total asset, leverage, internally generated funds, future development opportunities, and productivity factor). All these variables are closely related with the theoretical models explaining the growth of SMEs. Secondly, the Central and Eastern European countries are not homogenous, in terms of level of development and growth of SMEs, which vary from country to country.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
