Entrepreneurs' responses to an economic crisis in a transitional economy (original) (raw)

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.

Entrepreneurship as an integral part to Economic Resilience: the case of Kosova

Purpose: The concept of resilience has received attention from researchers in the past decades. The purpose of this paper is to examine scholarly literature and policy documents for creating economic resilience in a post-war country, such as Kosova, and to investigate the role of the private sector and policymakers in facilitating entrepreneurial activity as a key to economic growth and improved resilience. Methodology/approach: A qualitative approach, comprising of a review of relevant policy documents relating to economic development and data gathered from in -depth semi-structured interviews. Themes identified from the literature and policy review formed the basis of the interview questions with key stakeholders in Kosova.

The Role of the Management in Kosovo SME's,the Help they need to overcome the Economic Crisis

2010

We must admit, whether we agree or not that the SMEs in Kosovo as well as in the majority of the world's economy are a driving force for an economic growth, as well as an important part of the national industry. The various flows of economic cycles in transition identify SMEs to be the promoters of the private initiative and necessary entrepreneur activities to face the economic crisis. SMEs have shown their advantage towards the other national industry because they have indicated to be flexible and ready to react quickly towards the market demands and with the same speed to adopt in changes within the environment. Even Kosovo, as an undeveloped economic country, experiencing a 20 years conflict, happens to be in a crossroad in order to determine the appropriate path to be followed that shall set forth the future of the national economy which under the current situation is very dependable and oriented towards importation of goods and services. The situation of the Kosovo SMEs c...

What do we know about small and medium enterprises’ survival in a post-global economic crisis context?

Local Economy: The Journal of the Local Economy Policy Unit

Considering the impacts of the most recent global economic crisis in 2008/2009, this paper explores how firm size, type of business activity and approach to internationalisation influence SMEs’ survival. Based on the literature in the field, we developed three hypotheses regarding determinants of Small and Medium Enterprises (SME) survival. We tested these hypotheses in a 7-year quantitative study and a survey of 344 SMEs in Poland – the seventh largest market in the European Union. Our findings reveal that, in the context of crisis, internationalisation acts as a stimulus for SMEs and influences their long-term sustainability, with businesses operating in foreign markets being more likely to survive after a global crisis. However, neither business size nor the type of business activity appears to have an impact on SMEs’ survival in a post-global economic crisis environment. Our paper extends knowledge about factors influencing a firm’s post-crisis survival and proposes a new framew...

FINANCIAL CRISIS IMPACT ON SMEs AND SMES STRATEGIES DURING ECONOMIC CRISES: A CASE OF SIVAS PROVINCE

opf.slu.cz

Financial crises affect all the economic units according to the region, country and firm structure at macro and/or micro levels. The purpose of this study is to determine how SMEs, which are the smallest building blocks of economics and have a share over 95% of both developed and developing countries' economic structure, are affected from financial crises. It's very important for the economical structures of countries to develop strategies and politics by the examination of effects of financial crises over SMEs and by determining how some firms managed to be successful during the crises while some of them failed. The practice of the study was realized on manufacturing firms in Sivas territory. The reasons to choose the manufacturing sector are the majority of the manufacturing firms among the main sector groups in Turkey and the contribution of manufacturing firms both to the employment and export. The "liquidity, financial structure and profitability ratios" of these firms will be calculated with the use of the firms' financial tables which have successful audit reports. The ratios covering a 5 year-period (2006)(2007)(2008)(2009)(2010) will be calculated to be able to make a comparison between the pre-crisis and post-crisis terms.

Entrepreneurial resilience and firm performance during the COVID-19 crisis -Evidence from Hungary

Regional Statistics, 2021

Purpose: Recognising the swift and negative impact of COVID-19 on innovation, entrepreneurial behaviour, and small and medium enterprises’ (SME) performance, the authors examine the situation and prospects of Hungarian companies and evaluate entrepreneurial resilience and firm performance, with a specific focus on subsidised firms. Design/methodology/approach: Data from two surveys are used. This is a combined dataset of the database of Hungarian companies required to use the double entry bookkeeping system, and the integrated monitoring database, established by the MIT to cover financial assistance from both the European Union and national budgets. The analyses use the propensity score matching method. The ultimate goal of the study is to show the micro-level effects of the COVID-19 crisis on entrepreneurs, with special focus on previously received financial assistance by a firm, its geographical location (based on NUTS1 level 2 regions and urban development zones2), industry (level 2 NACE3 codes), and size. Findings: The result provides evidence that subsidies have a positive impact on SMEs’ resilience, employment, sales, and productivity.

Strategic Agility or Resilience: What Should Smes Focus on During the Crisis?

InterConf, 2022

The article provides an outline for the utilization of strategic agility and resilience practices as part of the crisis management in small and medium enterprises (SMEs). The nature of strategic agility and organizational resilience are analysed from the comparative perspective. The importance of strategic agility and entrepreneurial resilience as the reaction to crisis are considered and evaluated. It was found that both aspects are highly crucial for successful overcoming of the crisis situation, with each of the case should be considered individually.

Crisis response strategies and entrepreneurial orientation of SMEs: A configurational analysis on performance impacts

International Entrepreneurship and Management Journal

This study attempts to identify the roles of different coping strategies (pivoting and persevering) and entrepreneurial orientation that could interact and affect SMEs’ financial performance in the context of a sudden and pervasive external crisis. For this purpose, we applied asymmetric configurational theorizing and methods. The fuzzy-set qualitative comparative analysis was applied to a dataset combining survey results and financial reports of 201 Finnish SMEs. Our analysis showed that, as a response to the COVID-19 crisis, it was more common to apply pivoting than the perseverance strategy. Entrepreneurial orientation was positively related to pivoting, growth, and subjective performance but not related to profitability. Firms that had faced more problems tended to apply the perseverance strategy, and their financial performance was weaker. We also found combinations of factors that led to poor performance as non-entrepreneurial firms that faced major problems consistently perfo...

Effects of Global Economic Crisis on Small and Medium-sized Enterprises in Serbia

2010

The aim of this paper is to show the effects of the global economic crisis on the small and mediumsized enterprise sector in Serbia. Contrary to expectations, in some aspects, the negative impact of the global economic crisis in SouthEast Europe, and consequently in Serbia, was much bigger than in many developed countries. Though vital and dynamic, the sector of small and medium-sized enterprises (SMEs) in Serbia suffered huge downfall, so that in this paper different ways in which crisis was manifested in this sector in Serbia would be analysed. This paper consists of the three main parts. In the introduction the importance of SMEs sector for Serbian economy is pointed out. In the second part, consequences of the crisis on Serbian economy would be analysed, and finally in the third part the impact of the global crisis on SMEs businesses would be analysed.

The role of small and medium enterprises in economic development - The case of Kosovo

Academicus International Scientific Journal, 2012

During the last fifteen years, significant SME sector was established in Kosovo. A greater dynamic regarding to the registration of new businesses can be encountered in the first three years of 1990’s and in the postwar period that can be considered as reflection of the changing business environment in the respective periods. Private enterprises in Kosovo are established since 1989. But the intensity of registration of SMEs grew separately after 1990 and continued until 1995.At this time companies were mainly organized in the form of households, the crafts, commercial enterprises, small shops, restaurants and agricultural enterprises.The establishment of these enterprises has not been the result of enabling business environment, but it came from the need to create jobs to people whose jobs were terminated form the social enterprises. In Kosovo during the last decade, a valuavle experience was achieved by increasing and development of of private enterprises, small and medium enterpri...