The Contribution of SMEs to the Economic Growth (Case of Albania)

Abstract

Small & Medium Sized Enterprises have an important place in the economical development of Albania. They already consist of the majority of private business and they are the main source of employment generation, innovation and productivity growth. In this context an
important determinant of the Albanian economy development lies in the development of small and medium enterprises, which is not based only on the number of start-ups but also on the positive change of business environment and entrepreneurial skills. The aim of the research is to examine the contribution of SMEs to the economic growth of the country through employment generation, building of added value, GDP, export activities etc., and the changes in entrepreneurial skills of Albanian SMEs to foresee the ways of improvement and enterprise development. The methods of research are: analysis and synthesis of the scientific literature discussing the problems SMEs are facing and the environmental changes; the systematic statistical data analysis of Albanian entrepreneurial skills of small and medium-sized enterprises. The analysis shows that from the weakest dimensions of SME sector in Albania are entrepreneurship education and training and the promotion of innovation and use of new technologies.

Keywords: SMEs, economic growth, Albania