Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Graz-Austria
Acces online at www.iipccl.org
Vol. 6 No.2
economy, entrepreneurs are faced with numerous formal and informal di culties
(North D., 1990). Speciﬁ cally, they are faced with many obstacles in their business
activities: administrative barriers, limited access to ﬁ nance, lack of technologies,
skills of entrepreneurship and so on (Kume, V. et al., 2009).Kosovo is the last country
in the region to go through such a process. Small businesses are considered to be the
main generator of new jobs and a key factor of development.
Even beyond signiﬁ cant contributions on this issue in literature, there is enough room
in comprehending this phenomenon. This study is based on what Davies, C.D. et al.
(1985) are referred to the method of "the course of study", in which results from the ﬁ rst
study will inﬂ uence how to proceed with the second study.This paper is an extension
of many scholars’ e orts to contribute in the identiﬁ cation of obstacles and barriers
that hinder business growth and in giving recommendations for be er solutions. The
paperwill include wide spectrumof factors that hinder business growth in transition
countries. The study makes modest steps in addressing shortcomings, by identifying
critical factors deriving from perceptions of small business owners/managers, and
then applying an empirical study to further investigate the real current situation in
Kosovo. Moreover, the main purpose of the research is to identify those eventual
gaps related to barriers, which have an impact on small business growth in Kosovo,
and to clearly understand the correlation between di erent environmental factors
and small business growth.
For this purpose, a qualitative empirical study is conducted, initially 20 interviews
direct face to face with owners/managers of SBs in Prishtina and 200 surveys in 7
regions of Kosovo.Additionally, this paper will extend with an empirical study to
a) Why these barriers impede business growth?
b) Which are the perceptions of owners/managers regarding to the phenomenon?
c) And to investigate why some businesses grow and some not?
Based on the reports of the owners / managers, we are going to deal with a relatively
large number of factors that a ect di erent areas in di erent ways. The presence of
these factors e ects on formulation of growth objectives and their realization. The
degree of inﬂ uence of these factors also depends on how the owners / managers
perceive the institutional environment within which their businesses operate.
Recentliterature explains that active growth of the private sector, especially SBs,
has been one of the main driving forces of economic improvement in transition
economies. In eddition, extensive research in the experience of other transition
economies notes that promoting entrepreneurship and SB support remains the only
and best way to encourage economic development in any country. The main goal
in small business development is the investigation of barriers to growth, and proposal
of strategies and policies how to overcome those (Sanders, M. et al., 2009).
It is clear that many authors hesitate to disclose institutional barriers against business
growth like (corruption and organized crime), obviously those related to politics
and ‘powerful people’. As regards owners/managers, many have argued that some
barriers are erected due to interventions by people in government, however, some
owners hesitate to declare on this issue.A more serious potential problem which may
hold up transition is with barriers to the growth of ﬁ rms, especially the potentially
dynamic fast growth ﬁ rms that will provide the largest part of future employment