SME-s and their economic impact Albanian Case

• Author: Denada Topuzi
• Position: University Aleksander Xhuvani, Elbasan, Albania
• Pages: 155-159

155

IIPCCL Publishing, Tirana-Albania

Academic Journal of Business, Administration, Law and Social Sciences Vol. 1 No. 3

November 2015

ISSN 2410-3918

Acces online at www.iipccl.org

SME-s and their economic impact

Albanian Case

PhD. (C.) Denada Topuzi

University Aleksander Xhuvani, Elbasan, Albania

Abstract

In this paper it is made an attempt to discover some of the factors that influence the creation

and the thrift of small and large businesses on credit. Credit problems are analyzed in countries

in transition, and in particular in Albania. Also the macroeconomic situation constitutes a

significant factor in the accumulation of bad loans. Despite many other factors that affect the

quality indicators of the loan portfolio, macroeconomic factors have played an important role.

Meanwhile, the consolidation of ties and quantitative results, without any doubt will support

future analysis and research in the field of banking supervision. In this point of view it will be

emphasized the fact that despite the relative indicators that are applied in the analysis above,

there should not be overlooked the absolute ones. Through this paper I will perform the role

of credit research and its impact on business performance. This study is focused on four

important aspects of credit and its impact on the progress of business, which contributes on

the atmosphere of doing business and especially its financing, such as: comprehensiveness,

the development of a cooperative spirit, the establishment of motivation and cultivation of

values and partnership.

Keywords: SME, Credit problems, Business performance, Albania.

Introduction

This paper aims to reflect the role of credit and its impact on the progress of business

in the region of Elbasan (Albania), in particular. Through this paper I will perform

the role of credit research and its impact on business performance. The study focuses

on four important aspects of the credit and its impact on the progress of the business,

which were stated above. In compiling this work I applied the methods of research

in economics, normative methods, analytical and synthesis, induction and deduction,

statistical methods etc. In particular I tried to illustrate the research with an empirical

presentation reflecting the situation of academic substance treatment. During the

drafting of the paper I have used national and international literature that refers to

the fields in question.

Development

During the last 25 years, private sector as well as banking sector has suffered radical

changes. After the financial crisis, the banking sector has tightened the rules and has

imposed restrictions on the part of creditworthiness. The purpose of this paper is to

analyze the impact of financial constraints on investments of SMEs (small and

medium) and BB (big business) as well as the need for frequent growth of these

businesses and further development in Elbasan region, with the aim of classification

of risk categories to which they are exposed, and the construction of a model that will