The role of SME in the market development in Kosovo

AuthorNerimane Bajraktari
PositionUniversity of Prizren, Kosovo
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
The role of SME in the market development in Kosovo
Nerimane Bajraktari
University of Prizren, Kosovo
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
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.
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;

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