Albanian economy, sustainable development and comparative analysis of SME growth rates

• Author: Hava Mucollari - Evis Celo - Alba Dumi
• Position: University of Tirana, Albania - Ismail Qemali Vlora University, Albania - Ismail Qemali Vlora University, Albania
• Pages: 249-258

ISSN 2410-3918

Acces online at www.iipccl.org

249

IIPCCL Publishing, Tirana-Albania

Academic Journal of Business, Administration, Law and Social Sciences Vol. 2 No. 1

March 2016

Albanian economy, sustainable development and comparative analysis of

SME growth rates

PhD Hava Mucollari

University of Tirana, Albania

Evis Celo

Ismail Qemali Vlora University, Albania

Prof. Dr. Alba Dumi

Ismail Qemali Vlora University, Albania

Abstract

Financial activity in Albania as well as in other countries of Eastern Europe during the past

few years has seen significant important developments. One of the main features observed is

that financial activity in Albania is dominated by banking activity, while non-banking activity

remains extremely limited. The investment funds in Albania according to the Albanian

legislation on “Investment Funds” could be any private entity that accumulates financial

resources of natural or legal persons (Vouchers, cash etc). In this paper we will focus precisely

on the definition of SME and their ability to build a business plan that will help them to be

successful in terms of seeking funds. For this reason, SME and their financing opportunities

in Albania is one of the issues that will be analyzed. Firstly we will treat the business plan in

theory and its role in SME, and hot to draft a business plan for a Travel Agency.

In this paper we study the literature on the concept of SME and the business plan. For this

reason we have found valid date information on studies from various writers and publications.

By giving a financial view on SME on Albania, we have analyzed information from bulletins

of the Albanian Bank.

Keywords: SME growth, Albanian business, Business plan, Economic rules, Law Problems,

FDI,traditional culture.

Introduction

Since 1992, Albania has progressed rapidly in the transition from a centralized

economy to a free market economy. These were the years of the implementation of

macroeconomic stability policies and economic growth, based on a series of reforms.

At the end of 2007, total assets of the banking system constituted about 96.8% of total

assets of the entire financial system, while those of non-bank system only 3.2%.

Therefore, it is evident the need to reform the nonbank financial system. The

development of non-bank financial intermediaries and capital markets would provide

alternative ways of financing, and will have a positive impact on increasing the

efficiency and competitiveness of the financial system. Another important trend is

that the degree of banking intermediation in Albania has increased considerably in

recent years, but it is low compared with that of the euro area.Total assets of the