The role of SME in the market development in Kosovo

• Author: Nerimane Bajraktari
• Position: University of Prizren, Kosovo
• Pages: 263-270

263

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

The role of SME in the market development in Kosovo

Nerimane Bajraktari

University of Prizren, Kosovo

Abstract

Small and medium businesses make 90 % of all businesses in Kosovo and are the main factor

of economic development. Kosovo is oriented towards a market economy and has a proactive

approach in the development of small and medium businesses for a sustainable economic

development.

When thinking of “business”, people automatically think of big corporations like Coca Cola,

IBM, Sony, Toyota, BMW, etc. which are symbols of the industrialized world of the modern

society and of the economy of a country, but do not notice a component of the business world

or small business as a main pillar of national economy. Small business is the basis of a free

market economy. Whatever the reason, owning a business, contains one of the most challenging

things that are rewarding. However, starting a new business contains dangers and challenges.

In this context, main purpose of this paper is the analysis of SME in the market development

of Kosovo.

Keywords: business, management, economy, development.

Introduction

Since 1999, the economy in Kosovo has been mainly sustained from international

institutions, public sector, and remittances (BB, 2010). The role of the private sector,

especially of the small and medium businesses has been relatively weak. However,

Kosovo is still in a transition phase where entrepreneurship and small play an

important role towards modern free market economy and as a result towards economic

growth and development. Since small and medium businesses are the arteries of a

country’s economic development, they also deserve an increased attention and strong

support to increase management quality, to create customer value and increase their

profit. The main problem of small and medium businesses in Kosovo is the wrong

management and the failure of an enterprise is related directly to bad governance.

On the other hand, the orientation of businesses towards quick profits without creating

value for customers is exactly a plan for failure. Kotler analyses in his new book on

marketing based on value, that: “Manage the current, forget the past in a selective

way, and create the future”.

All enterprises small, medium, and big, private or public, profit-oriented or not, no

matter the field of activity they all have one thing in common: the need to be managed.

In order to reach profit, all of them engage in a number of human, material, and

financial resources. Managers are the most important resource for every enterprise

(Llaci, 2010, 82).

According to Drucker management has three main roles:

- To realize the enterprises specific aim and mission;

- To do a productive work and for the worker to achieve that;