Strategic role of SMEs in the regional economy

AuthorMimoza Luta
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Vol. 1 No. 2
June, 2017
ISSN 2519-1284
Acces online at
Strategic role of SMEs in the regional economy
Msc. Mimoza Luta
A itudes towards regional economy should be permanently straight and honest. The objective
of the Municipality of Peja is favouring the free market economy, promotion of SMEs mainly
in processing production and enterprises, tourism development, privatization, revitalization
and youth employment creation of infrastructure , creation of conditions for a racting and
encouraging investment from domestic and foreign donors, such as EU funds, IMF, World
Bank etc. Also, priority is se ing an Industrial Zone, incubators and business parks, association
and the consortium of businesses, etc.
Keywords: SME, Albania, Economy.
SMEs are the main pillars of the national economy. They are the basis of the economic
system of the free enterprise. For many, the ownership of an SME, due to the great
independence and nancial gains it brings, is very tempting. Even some have
dreamed of having all their lives owned by their own business. However, many
people are reluctant to give birth to a dream of life because they think they have no
education, experience, or money, or simply fear that they may fail. However starting
a business again, the real di culties and risks arise. In the last few years, there has
been a great revival of SMEs towards the developed world. Even in Eastern Europe
and the Soviet Union, such skills are highly appreciated. In most of the developed
economies, 6-15% of the working population are men and women of SMEs. For
example, In the United Kingdom from 27 million people working around 3.4 million
employed in trade and industry working in SMEs. It is well known that a er the
collapse of centralized economies, the private sector appears at an impressive rate in
all transition economies and the number of SMEs grows day by day. It is also known
that the growth of entrepreneurial activity is more oriented to trade than to industry
or production.
SME development is an essential element of economic development. The strategic
importance of SMEs is well-known around the world for the following reasons:
SMEs contribute to employment growth to a greater extent than large enterprises.
SMEs are the main pillars of the market economy and for transition economies in
the long run it can secure the bulk of employment.
SMEs produce mainly for the domestic market, using mainly national resources.
Relocation from large state-owned enterprises to smaller enterprises and private
rms will increase the number of owners, representing a group of people with a
greater commitment and responsibility than in the former centralized economies.
The increased number of SMEs will bring more exibility to society and the
economy, and can facilitate technological innovation and provide signi cant

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