Determinants of Entrepreneurship and Small Business Growth in Kosova (original) (raw)
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International Journal of Entrepreneurship and Innovation Management, 2008
This paper aims to provide an in-depth analysis of the important factors explaining small firm growth contextualised in a very unique transition economy -Kosova. Although the small business literature suggests that there is a range of complex factors explaining small business growth, there is still scarce evidence on whether these interpretive frameworks are sufficient in explaining small firm growth in a transition context. For this purpose, this paper uses survey data from a randomly selected sample of 350 Small-and Medium-sized Enterprises (SMEs). Based on this data set, the Ordinary Least Square (OLS) regression is employed in order to compare the impact of the three sets of factors (the firm, the entrepreneur and the business environment) on the growth of new versus the more established small firms. Our findings generally refute Gibrat's Law and support Jovanovic's Learning Theory. We also find that a multiplant firm, the separation of ownership and management, the age of the entrepreneur at the startup and entrepreneurial teams exert a positive effect on firm growth. The findings support the view that the prior unemployment status of the entrepreneur is negatively linked with growth. The paper provides some important conclusions and implications for policymakers and entrepreneurs.
This paper aims to provide an in-depth analysis of the important factors explaining small firm growth contextualised in a very unique transition economy – Kosova. Although the small business literature suggests that there is a range of complex factors explaining small business growth, there is still scarce evidence on whether these interpretive frameworks are sufficient in explaining small firm growth in a transition context. For this purpose, this paper uses survey data from a randomly selected sample of 350 Small-and Medium-sized Enterprises (SMEs). Based on this data set, the Ordinary Least Square (OLS) regression is employed in order to compare the impact of the three sets of factors (the firm, the entrepreneur and the business environment) on the growth of new versus the more established small firms. Our findings generally refute Gibrat's Law and support Jovanovic's Learning Theory. We also find that a multiplant firm, the separation of ownership and management, the age of the entrepreneur at the startup and entrepreneurial teams exert a positive effect on firm growth. The findings support the view that the prior unemployment status of the entrepreneur is negatively linked with growth. The paper provides some important conclusions and implications for policymakers and entrepreneurs. Reference to this paper should be made as follows: Krasniqi, B.A., Shiroka-Pula, J. and Kutllovci, E. (2008) 'The determinants of entrepreneurship and small business growth in Kosova: evidence from new and established firms', Int.
This paper aims to provide an in-depth analysis of the important factors explaining small firm growth contextualised in a very unique transition economy -Kosova. Although the small business literature suggests that there is a range of complex factors explaining small business growth, there is still scarce evidence on whether these interpretive frameworks are sufficient in explaining small firm growth in a transition context. For this purpose, this paper uses survey data from a randomly selected sample of 350 Small-and Medium-sized Enterprises (SMEs). Based on this data set, the Ordinary Least Square (OLS) regression is employed in order to compare the impact of the three sets of factors (the firm, the entrepreneur and the business environment) on the growth of new versus the more established small firms. Our findings generally refute Gibrat's Law and support Jovanovic's Learning Theory. We also find that a multiplant firm, the separation of ownership and management, the age of the entrepreneur at the startup and entrepreneurial teams exert a positive effect on firm growth. The findings support the view that the prior unemployment status of the entrepreneur is negatively linked with growth. The paper provides some important conclusions and implications for policymakers and entrepreneurs.
The purpose of this paper is to explore the main determinants of growth in small and medium sized enterprises (SMEs) in central and eastern Europe. The important role played by SMEs in the economic development of central and eastern European (CEE) countries has attracted the recent attention of academics and policymakers but remains relatively unexplored. Empirical research has suggested that firm growth is determined not only by the traditional characteristics of size and age but also by other firm-specific factors such as indebtedness, internal financing, future growth opportunities, process and product innovation, and organisational changes. Although growth in manufacturing and service SMEs in transition economies is well explained by the traditional firm characteristics of size and age, there is no empirical evidence concerning what other specific factors may be associated with SME growth and performance in these countries. Using a panel dataset of 560 fast growing small and med...
The purpose of this paper is to explore the main determinants of growth in small and medium-sized enterprises (SMEs) in Central and Eastern Europe. The empirical research has suggested that firm growth is determined not only by the traditional characteristics of size and age but also by other firm specific factors such as indebtedness, internal financing, future growth opportunities, process and product innovation, and organizational changes. Limited empirical evidence has been provided as to which of these determining factors is associated with SMEs growth and performance in transition economies. Using a panel dataset of 4,561 small and medium-sized enterprises from seven transition economies we find evidence that firm size and age can explain to a large extent the growth in SMEs in these countries. When we control for other firm specific characteristics and macroeconomic factors, the size-age-growth relation remains stable and significant. We also find evidence that high-growth fi...
Sosyal Bilimler Elektronik Dergisi - Electronic Journal of Social Sciences, 2018
Entrepreneurship is beneficial and necessary for economic growth. The contribution of entrepreneurs in industry and services is crucial for economic growth, productivity, innovation, competitiveness and job creation. Over 95% of firms in OECD countries are SMEs and these account for 60-70% of employment in most countries. Particularly, onwards 1970s together with the intensification of global competition, the increase in economic uncertainty, the growth in market fragmentation, changes in the character of technological progress, new economic opportunities and increasing rates in unemployment stimulate entrepreneurial activities and affect resulting in a shift from large to smaller firms. Entrepreneurship associated with small business is regarded as the key vehicle for the creation of new enterprises. Most of the governments, particularly in developed countries have recognised the importance of entrepreneurship and have made the encouragement of entrepreneurial activity an important aspect of their economic policies and programmes. In this paper, first of all, concept of entrepreneurship, importance, benefits and trends in entrepreneurship are emphasized. Secondly, as the case studies government supports in Turkey and Kosova, particularly for SMEs are examined. In the final part of the study, some recommendations are developed.
The Search for Determinants of Kosovan Small and Medium Enterprises Performance
International Journal of Economic Sciences, 2020
The main purpose of this study is to identify determinants of SMEs performance, followed by the impact of Information Technology on SMEs profitability. By reviewing the existing literature and using the secondary data, this paper empirically investigates the determinants of SMEs growth in Kosovo; the fundamental obstacles faced by SMEs in Kosovo; the impact of Information Technology on SMEs performance and, it proposes strategies and measures to maximise Information Technology adoption from Kosovan SMEs. For the research purpose in this paper are used the secondary data gathered from Business Support Center Kosovo, who developed a survey from 500 SMEs in Kosovo. The combination of the variables related to entrepreneur, firm, business environment and IT adoption in a logit regression model suggest that entrepreneurs age, business age, introduction of any new method of marketing other than existing in the market for products/services during last three years from the firm are significant, whereas Internet use from SMEs resulted the most significant variable for SMEs profitability.
Entrepreneurship and firm growth in transition -The Case of Kosovo
Academic Journal of Business, Administration, Law and Social Sciences. IIPCCL Publishing, Graz-Austria, Vol. 7 No. 1., 2021
This study explores the development of entrepreneurship in the transition phase and integrations processes with particular emphasis on challenges of fi rm growth and development in Kosovo. Moreover, this is an investigation of the perception of small business owners/managers' on specifi c obstacles to growth and develop their businesses. This paper is supported by a special empirical study based on a survey conducted with 200 businesses including 7 regions of Kosovo. It was organized in the fi rst half of 2017 directly with key business actors which identifi ed the main problems of entrepreneurship development and business growth. However, various obstacles have been identifi ed, mainly related to environment of doing business. From the data obtained from the fi eld, statistical factor analysis has been done to measure the impact of various variables on business growth. Additionally, data analysis shows that there is a close correlation between the obstacles and the growth of businesses. The research results raise important issues for discussion and recommendations regarding applications of policies and strategies for the development and growth of businesses in Kosovo.
Financial Barriers to SME Growth Empirical Evidence from Kosova
This paper provides an overview of the financial obstacles of small and medium sized enterprises (SMEs) in Kosova which is based upon an SME survey conducted by Riinvest Institute at the end of 2002. The survey identified financing (lack of capital, high interest rates, high bank requirements, short repayment period) to be one of the key barriers to hinder SME growth. Logit-probit regressions are employed in order to identify and measure the impact of different factors on increasing the probability of the firm to obtain a loan. Results from the econometric model confirm that the larger the firm the higher probability of getting a loan and vice versa. Age of the firm also increases the probability of the firm to get a loan. These findings tested empirically theory that smaller firms are credit rationed in the market place as a result of information asymmetry and lack of sufficient available capital to meet the needs of SMEs. The findings urge the need for appropriate government policies regarding small firm finance in Kosova.