INTEGRATION OF ALBANIAN SME-S WITH THE GLOBAL MARKETS AND POLICY RESPONSES TO MINIMIZE THE NEGATIVE IMPACT OF CRISIS ON SME-S SECTOR.

Abstract

The history of private enterprise in Albania started in 1990, but 
significant growth in their number took place between 1992 – 1995 
followed by a period of declining start-up rate.  Small enterprises are 
considered the main moving forces of the innovations, employment and the 
economic and social integration to Europe. They are the main force which 
will increase the competiveness of the Albanian economy in the regional 
market.  Albania is developing with constant rates on an avarage of 6% per 
year, and the most important part of this development cosists of te SME, 
which according to the INSTAT data, in the year 2009, counted about 78 
thousands busineses or 98 % of te total private enterprises in the country, 
giving a total contribution of 65% of GDP and where are employed over 
66% of the employees in the private sector.  Albanian SME are playing an 
important role in the development of the country’s economy, however, the 
constant development is faced with a number of challenges such as: lack of 
the totallegal framework, informality, unfair competition and rivalry, te 
lack of access of the alternative resources of financing, etc. About 70% of 
the enterprises that have been interviewed, they underline the lack of the 
alternatives of the financial resources which remains a serious actual 
problem. Statistical analysis of data received from the survey of a sample 
of SME selected randomly in Korca region, shows that the main problem 
that the SME facein crisis situation, is the decrease of the demand for the 
services and products that they offer, and the inability to face the 
competition. Orientation toservices and poor financial structure, the 
technological level, the subcontractposition of SME and the low level of 
security for employees are some of the mainfactors arising from the 
statistical situation of the surveyed data. The method used is a deep 
analysis accompanied by a comparative analysis in order toidentify, and 
then to analyze the factors in the field of the small businessdevelopment in 
crisis periods. Analyzing the key constraints, raised from business, this document tries to argue which is the best way to cope with the crisis in the 
context of Albanian climate of business.