Enterprises In Albania Research Articles

Implementation of the Commission Recommendation of 7 December 1994 on the Transfer of Small-and Medium-Sized Enterprises in Albania: A German or Italian Model?

Abstract: In recent years, the European legislature and national parliaments have become more interested in allowing some types of intergenerational transfer before death. While the Albanian Civil Code establishes the invalidation of any succession agreement, other civil codes recognize some rights to dispose of or renounce the inheritance before death. This research investigates the possibility of implementing the Commission Recommendation of 7 December 1994 on the transfer of small-and medium-sized enterprises (94/1069/EC) in Albania by considering the Italian and German models. This contribution suggests that Albanian lawmakers could consider these models to align the Albanian legislation with the EU law Résumé: Ces dernières années, le législateur européen et les parlements nationaux se sont davantage intéressés à autoriser certains types de transfert intergénérationnel avant le décès. Alors que le Code civil albanais prévoit l’invalidation de tout accord successoral, d’autres codes civils reconnaissent certains droits de disposer ou de renoncer à l’héritage avant le décès. Cette recherche étudie la possibilité de mettre en oeuvre la recommandation de l’UE du 7 décembre 1994 sur le transfert des petites et moyennes entreprises (94/1069/CE) en Albanie en considérant les modèles italien et allemand. Cette contribution suggère que les législateurs albanais pourraient envisager ces modèles pour aligner la legislation albanaise sur le droit de l’UE.Zusammenfassung: In den letzten Jahren sind der europäische Gesetzgeber und die nationalen Parlamente stärker daran interessiert, bestimmte Formen der Übertragung von Erbschaftsansprüchen zwischen Generationen vor dem Tod zuzulassen. Während das albanische Zivilgesetzbuch die Ungültigkeit aller Erbschaftsvereinbarungen festlegt, erkennen andere Zivilgesetze bestimmte Rechte an, über das Erbe vor dem Tod zu verfügen oder darauf zu verzichten. Der vorliegende Aufsatz untersucht die Möglichkeit, die Empfehlung der Kommission vom 7. Dezember 1994 zur Übertragung kleiner und mittlerer Unternehmen (94/1069/EG) in Albanien umzusetzen, indem die italienischen und deutschen Modelle berücksichtigt werden. Der Beitrag schlägt vor, dass der albanische Gesetzgeber diese Modelle in Betracht zieht, um die albanische Gesetzgebung an das EU-Recht anzupassen.Resumen: En los últimos años, el legislador europeo y los parlamentos nacionales se han interesado más en permitir algunos tipos de transmisión intergeneracional antes de la muerte. Si bien el Código Civil albanés establece la invalidez de cualquier acuerdo sucesorio, otros códigos civiles reconocen algunos derechos para disponer o renunciar a la herencia antes de la muerte. Este trabajo investiga la posibilidad de implementar en Albania la Recomendación de la Comisión de 7 de diciembre de 1994 sobre la transmisión de pequeñas y medianas empresas (94/1069/CE) teniendo en cuenta los modelos italiano y alemán. Esta contribución sugiere que los legisladores albaneses podrían considerar estos modelos para alinear la legislación albanesa con la legislación de la UE.

Implementation and impact of integrated information systems in Albanian SME’s

Abstract This research work analyses how information technology improves business efficiency, creates employment, and fosters economic development. This paper investigates the level of integrated information systems used by small and medium enterprises in Albania. The research philosophy employed in this research work based on the case study method, and researcher interaction has been applied as a technique for data collection. Through careful observation and investigation of practical and real cases, a complete picture of the actual interaction of factors and events are obtained. A self-selection sampling technique was used. Through this technique, cooperation with managers was enabled to recommend possible concrete improvements in the systems or subsystems of information they apply. Results indicate that while information technology adoption is growing, significant barriers such as financial constraints and lack of technical skills persist. The empirical work showed that the firms involved in the study used information systems for different aspects such as sales, accounting, or quality control, but they were not integrated. The lack of the “smart” use of the information systems hampered their efficiency and make them less competitive. By leveraging such systems, SMEs can overcome challenges posed by limited resources and achieve sustainable growth.

Reducing Obstacles for Small and Medium Enterprises Via Digitalisation: Albania’s Case

Within the framework of modern economic science, scientists are increasingly focusing on the role of small and medium-sized enterprises. This is determined by the many benefits they provide for the country’s development. Digitalisation is one of the opportunities that can make these structures function more efficiently. Therefore, an assessment of its possibilities for different countries is still relevant. The assessment was made for Albania in the research. The research aims to show the level of digitalisation of small and medium-sized enterprises in the country, as well as to provide recommendations for future policy development in this area. The main research methods used in the study were analysis, forecasting, abstraction. The study describes the role of small and medium-sized enterprises in Albania’s economic development and the importance of digitalisation in facilitating their growth. The study also surveyed more than 100 enterprises and based on selected statistics, described the relationship between marketing budget, years of existence and use of social media. The study also focused on the benefits of digital technologies for organisations, such as the automation of internal processes, and improved communication between the company and potential buyers (target audience). The study provides recommendations for further policymaking in small and medium-sized enterprise (SME) development based on the identified weaknesses of SME development in Albania. This study contributes new knowledge to the field of entrepreneurship development in countries, small and medium-sized companies. In addition, it provides a better understanding of the peculiarities of the Albanian economy.

The impact of employee engagement and innovation performance on business success in manufacturing and service enterprises in Albania and Kosovo

This study aims to investigate the interplay between employee engagement and innovation performance in shaping the success of manufacturing and service enterprises in Albania and Kosovo. The data collection involved the distribution of questionnaires to entrepreneurs, managers, and employees of the enterprises, with direct interviews conducted in some cases. The data collection period spanned from the end of 2022 to the beginning of 2023. SPSS was employed to create the database and analyze the collected data. The study encompasses 190 companies operating in the services and production sectors, with 100 located in Albania and 90 in Kosovo. The selection of these sectors is based on their significant contribution to the region’s economic landscape. Of the total enterprises, 105 (55%) are manufacturing enterprises, and 85 (45%) are service enterprises.The findings reveal a robust and positive correlation between employee engagement, innovation performance, and business success. Employee engagement (r = 0.458**) and innovation performance (r = 0.396**) exhibit significant correlations (p < 0.01), with both factors demonstrating statistical significance (p = 0.000). The multivariate regression analysis confirms the positive influence of both employee engagement and innovation performance on business success, supported by a significance of ANOVA analysis (p = .000). This study contributes to the understanding of the specific dynamics of employee engagement and innovation performance in the context of manufacturing and service enterprises in Albania and Kosovo. It offers valuable insights for managers and entrepreneurs seeking to enhance the success of their organizations.

Assessing the Impact and Challenges of SMEs on Albania's Economy

The SME sector in Albania has a significant impact on the country's economy. The total number of economically active enterprises in Albania increased by 1.4% in 2021 compared to 2020, reaching 104,031 enterprises. Microenterprises experienced a decrease of 5.8% compared to 2016, while small and medium-sized enterprises showed growth with an increase of 27.09% and 23.24%, respectively, in 2021 compared to 2016. SMEs in Albania play a vital role in employment generation, accounting for 60.3% of total employment in the country. While microenterprises constitute over 92% of SMEs in Albania, they employ a relatively smaller proportion of the total number of employed individuals compared to their number. Small and medium-sized enterprises have shown an increasing trend in employment, with increases of 26.79% and 22.86% respectively compared to 2016. The SME sector in Albania contributes approximately 55% of the total turnover realized in the economy. Microenterprises will generate 21.97% of the total turnover, small enterprises will contribute 30.55%, and medium-sized enterprises will account for 26.50% of the turnover in 2021. The value added by SMEs in Albania has shown an increasing trend. Micro, small, and medium-sized enterprises experienced growth rates of 30.12%, 66.84%, and 66.63% respectively compared to 2016. Small enterprises consistently accounted for the highest percentage of investment during the analyzed years. However, there have been fluctuations, with large enterprises taking the lead in investment in 2017 and 2018. Overall, there has been a decreasing trend in investment growth in Albania, with negative growth rates observed in 2020 and 2021. Productivity: The labor productivity of SMEs in Albania has increased every year from 2016 to 2021. Larger enterprises generally exhibit higher labor productivity compared to smaller ones, benefiting from economies of scale, resource allocation, and access to advanced technologies and systems. Albania has made progress in implementing the Small Business Act (SBA) and has achieved high average scores in areas related to SME policy and support. Efforts to create a supportive ecosystem for SMEs include improvements in the institutional and regulatory framework, operational environment, public procurement, standards and technical regulations, and internationalization of SMEs. Limited accessibility to finance, technology, and knowledge remains a significant challenge for SMEs in Albania. Addressing this challenge requires efforts to improve access to finance through specialized lending programs and loan guarantee schemes and enhance financial literacy among SME owners. In conclusion, while SMEs in Albania make a significant contribution to the economy in terms of employment, turnover, and value-added, there are areas that require further attention and support, such as access to finance and investment. Efforts to address these challenges and promote a favorable environment for SMEs can contribute to their growth, competitiveness, and overall economic development.

The Impact of Increasing Performance and Productivity in the Management of Human Resources in Albanian Enterprises

The importance of improving the efficiency of enterprises in Albania and, consequently, the role of personnel management in the implementation of this task has increased especially in recent years when the number of workers has decreased significantly due to the increase in emigration. The purpose of the study is to determine the most effective system of motivation and planning for them, considering the characteristics and national mentality of agricultural workers, and to form recommendations for the most acceptable management style for this group. The Holfstede typology of cultural dimensions was used as a primary method to identify the cultural and behavioral characteristics of the target audience. As a result of the survey conducted among 1514 staff representatives and the processing of its results, the average indicators for cultural dimensions were calculated and the evaluations of these indicators were given. According to the data obtained for the typology of cultural dimensions, it was found that the values in the examined social group are mainly determined by traditions and customs, which means that a management model is required that will not impose the existing principles of Western management but uses the tools own based on relatively democratic principles. Based on the obtained characteristics, recommendations were formed for such main management tools as the principles of subordination, the system of defining tasks and monitoring their implementation, as well as for effective motivation of personnel. The practical importance of the study lies in the development of recommendations for improving personnel management and, as a result, increasing efficiency in agricultural enterprises in Albania.

Driving Small Business Expansion: Evaluating the Effects of Tax Exemption for Small Enterprises in Albania until 2029

This paper examines the effects of tax exemption on small enterprises in Albania until 2029, with a focus on driving business expansion. The study aims to assess the impact of this fiscal policy on small business growth and explore its implications for the Albanian economy. By evaluating the effects of tax exemption on various dimensions of small enterprises, including revenue generation, profitability, employment, and investment, this research provides valuable insights into the potential benefits and challenges associated with the policy. Drawing on both quantitative and qualitative data, the study employs a comprehensive approach, combining statistical analysis with in-depth interviews of small business owners and key stakeholders. The findings contribute to the existing literature by shedding light on the effectiveness of tax exemption as a tool to promote small business expansion and provide policy recommendations for policymakers and government authorities. The results of this research will inform decision-making processes related to fiscal policies aimed at supporting small businesses, ultimately fostering sustainable economic development in Albania.
 
 Received: 15 January 2023 / Accepted: 18 March 2023 / Published: 20 March 2023

Performance management assessment in agriculture organisations (using factorial parameters case of Albania)

The relevance of the study is determined by the need to identify solutions to increase the productivity of agricultural and food enterprises in Albania and to improve their production. The purpose of the study is to analyse the production of agricultural and food products, the level of remuneration of agricultural workers, the impact of state financial assistance on production volumes, and to provide proposals for increasing productivity in the agricultural sector. The methodological approach is based on: statistical analysis, the analogy method, graphical method, method of logical generalisation. The key findings are the substantiation of the expediency of mechanisation in the production of agricultural products, and an increase in the budgetary financial support and the wages of employees to boost the productivity of agricultural enterprises, reducing the dependence on imported goods and increasing the export of Albanian agricultural products to the world markets. The authors confirmed that to enhance the productivity of agricultural and food enterprises, it is necessary to focus on raising the wages of workers, mechanising production, and expanding the area of irrigated land. This will raise the competitiveness of Albania's agricultural and food products to a new level and increase its exports to the world markets. The findings of the study and the conclusions formulated on their basis are of practical importance for the managers of agricultural and food enterprises in Albania when developing measures to increase the productivity of workers, as well as for the government of the country when approving the areas of financial support for economic activities

Social Enterprises in Albania - Reporting and Impact on the Economy

Social Enterprises in Albania - Reporting and Impact on the Economy

Reflections on the link between digitalisation and firm performance during the pandemic: the case of Albania

This article focuses on an analysis of the digitalisation of enterprises in Albania and its impact on their performance with a view to understanding better the role of digitalisation and the experience of private sector firms in this area. The research draws on an econometric analysis of World Bank data examining firms’ experiences and their perceptions of their operating environment. After setting the scene with an overview of the types and size of enterprises in Albania, the article focuses on digitalisation, the level of which is generally low, and seeks answers to a number of research questions. The authors conclude that, while the impact of digitalisation on performance is positive and statistically significant, achieved chiefly via increased business activity online, there is a need to understand better what this means in practice as well as to explore the lack of statistical significance, despite the presence of a positive relationship, of other variables examined in the course of the analysis. Further work is also needed to understand how firms will approach digitalisation in the future after the economic shocks of Covid-19.

Social Enterprises in Albania: Analysis of Albanian Legislation over the Years

Pursuant to Law no. 65/2016 “On social enterprises in the Republic of Albania”, the Albanian lawmakers have aimed to regulate the exercise of the profitable activities of non-profit organizations by providing a legal solution and improving the regulatory framework of the so-called, in some countries, the third sector (which is not included neither in state-owned nor in private commercial entities). The law hereof aims to regulate the exercise of non-profit commercial activities, by limiting the types of entities allowed to be non-profit organizations, and therefore leaving the trading companies out of scope. Regarding the object of the law, in order to protect and socially include the vulnerable groups, its scope is limited to employment, provision of employment opportunities, provision of goods and services and economic and social integration for the ulnerable groups, therefore it has set some restrictions on the legal notion of social enterprise. Despite the great legislative work and the good will to finally regulate and stimulate an innovative sector such as the social enterprise, in the de iure condito debate it was mentioned that there is still room for improvement in this part of the legislation, which has not given any or has given only a few effects in practice. Therefore, by analyzing the Albanian legislation in the sector, we aim to provide an explanatory description of Law no. 65/2016 but at the same time, de iure condendo, to ask for a better addressing of the problems that have arisen in practice, in the light of the European and foreign legislation, jurisprudence and doctrine in this field.

Finance Leasing and ARMA Forecasting: Evidence from Albania

Ten financial institutions are offering finance leasing-loans in Albania. Even though finance leasing is a potential financing resource for small and medium enterprises in Albania (which are on average 95% of national enterprises), the value of finance leasing is one thousand times smaller than other forms of medium and long-term loans or real estate loans. Developing of finance leasing is a challenge for the progress of the financial sector, and untapped potential as well. Currently, the finance leasing portfolio is dominated by financing for personal vehicles and work-vehicles, therefore diversification of leasing products is an immediate need of consumers. This study analyzes the value of finance leasing in Albania with time series from 2008 to 2020 (with quarterly frequency). The methodology applied for data processing is the co-integration method of finance leasing and other forms of medium-term and long-term financing. Also, the ARMA method is used to forecast the value of finance leasing. We found out that there is no long-run relationship between finance leasing with medium and long-term loans. Therefore, econometric tests suggest optimal forecasting ARMA (1,1) modeling. The parameters of ARMA model are positive statistically significant with autocorrelation AR (1) and negative statistically significant with the moving average MA (1), and forecasting values have a short-run equilibrium with a wide interval.

Management of information systems, implementation and their importance in Albanian enterprises

Management information system collects and processes data (information) and provides it to managers at all levels who use it for decision making, planning, program implementation, and control. In addition to the global studies of management information system, this paper will analyze similar cases in Albanian enterprises. Albanian enterprises strongly need management information systems and the facilities that they bring to their management ensuring a better functioning and higher performance of different enterprise processes. In this paper was taken the case study of the Microsoft Dynamics NAV system, the implementation in “Infosoft Systems” enterprise in Albania and the impact of NAV system in some of the enterprise departments. Implementation phase of management information system is one of the most important stages which starts with the organization of the information systems management department and ends with the procurement of the relevant software. To get more information we used a questionnaire which was designed and sent to some enterprises in Albania. The purpose of this questionnaire was to learn how many of them use management information systems, what type of information system they use and the advantages or benefits that the implementation of information systems brings to enterprises in Albania. As a conclusion, management information systems have contributed to enterprises to put in place better functionality, which leads to increased enterprise performance, increased profits, simplified work processes in different departments.

EVALUATING THE IMPLICATIONS OF STARTING-UP UNREGISTERED ON FUTURE FIRM PERFORMANCE: EVIDENCE A 2019 SURVEY IN ALBANIA

This paper evaluates critically the relationship between starting-up unregistered and firm performance. The widespread belief across all the dominant theories of informal entrepreneurship is that unregistered start-ups experience poorer future firm performance than those registered from the outset of their operations. To evaluate this poorer performance thesis, this paper reports World Bank Enterprise Survey (WBES) data on 377 enterprises in Albania collected in 2019. After controlling for other determinants of firm performance, the finding is that formal enterprises that started-up unregistered have significantly higher annual sales growth than enterprises that registered from the outset. To explain this, the argument is that in weak institutional environments, such as Albania, the advantages of operating unregistered at the outset outweigh the benefits of registration. The result is a call to re-theorize firm performance in the informal sector and for policy to shift toward a more facilitating approach that enhances benefits of registration.

Important Indicators Having Effect on Growth of SMEs in Albania

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

The Link Between Innovation Behaviors and Productivity Strategies of Enterprises in Albanian Economic Growth

The paper primarily aims to provide a link between the innovation behaviors and productivity levels of enterprises in Albania, which are the main source of job creation and employment in economic growth, as well as underscore the importance that the innovation behaviors and productivity strategies of enterprises play in Albanian growth in the long-run. The regression model developed and Johansen co-integration test applied on the data of GDP per worker and the number of created jobs or employed in 1991-2013, are investigated with the scanted literature throughout the study.

Aplications Techniques of Marketing in SME-s in Albania

The SME plays a very important role in the structural organization of production of all type of economies. They have some specific features identified, first of all, in the importance of the entrepreneur and his full involvement in all business activities; which activities are taken in a simple structure of the functional type; a strong presence in industrial markets; and, above all, a frequent absence of precise and formalized strategies and non-use mode of analysis and strategic planning. These characteristics make the SMEs an element in itself that consists on values, behaviors, operating mechanisms and management practices throughout the typical and unique characteristics. If we consider the application of marketing in Albania, the evolution of the discipline is very complex. First, because of the peculiarities and historical evolution of the industrial system, as the SMEs, has facilitated the spread of a feature that requires huge investments, a significant programming skills and organizational resources dedicated and specialized. The objective of this work is to understand what level and state of the art of marketing in small and medium-sized enterprises in Albania, verifying it through some theories of various authors. It then discusses, with several references, the problems of marketing of SMEs with a greater focus on Albanian’s SME. DOI: 10.5901/mjss.2014.v5n23p2755

Profitability of Small and Medium Enterprises in Albania (Focusing in the City of Tirana)

In the face of economic and social conditions that Albania confronts nowadays, the development of the small business enterprises has a primary place as well as an important role, too.The business and enterprises literature shows that there are many factors determining the success and the growth of an enterprise. The profit is one of the most important factors for an enterprise to survive in a competitiveenvironment. Consequently, it is an important indicator of SMEs’ performance.The profitability refers to the possibility of an enterprise to be financially successful. This can be assessed prior to entering the business or can be used to analyse an enterprise that currently is under operation.In this paper, profitability of SMEs is being measured through linear regression model. The data are collected through direct interviewsto businesses and real data are taken from the declaration forms of small business personal income tax payment (DFITP). DOI: 10.5901/jesr.2014.v4n6p546

Corporate enterprises in Albania and Macedonia in comparative law

Transformation is a process closely connected with reforms in the property-rights regime, but retransfering the ownership has been the core of this process in all post communist countries. The objective of this article is to analyse the drafting of commercial legislation in Albania and Macedonia and in which way corporate enterprises were affected from the structure of economic organizations during socialism.

The Efficiency of Small and Medium Enterprises in Albania

Albania is going through a process of major economic and social changes. Since this process has been broad and wide-ranging, a lot of studies have been focused on its problematic, and specifically the efficiency of small and medium enterprises (SMEs) as the economic development fostering units. In Albania, as well as in other developing countries, the SMEs have not been very efficient due to several problems linked with their financial situation, financing process, and profitability. As already known, developing countries lack financial resources, this in turn is due to non-functioning of financial markets. Therefore, one of the main objectives of this paper is to analyse the problems of SMEs in general in Albania, and the problems they face in finding financial resources and support. This paper will also attempt to measure the variables of profitability, financial situation and other variables in order to assess their effects on the efficiency of SMEs. DOI: 10.5901/ajis.2014.v3n3p295