The Efficiency of Small and Medium Enterprises in Albania

Abstract

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