SME’s role on economic development of Albania and their problems during 2000 - 2012

Abstract

General overview of the topic 
SMEs are the soul of the economy, responsible for the innovations and competition, the driving force that brings 
diversity among businesses, which adds employment and incomes, the most important pillars on which is 
founded the prosperity of modern Europe. Albania has made great strides in opening a business quickly, with low 
cost, reducing administrative barriers to obtaining licenses, tax system, etc., but there is still a critical level on 
innovation, entrepreneurship development, which are the basis of EU standards and indicators to measure their 
performance. 
Aim of paper: is to clarify the situation, problems and to describes the conditions of doing business for SMEs in 
Albania for the period 2000  - 2012. 
Material and working methodologies 
Method of the study is data, figures and information collection from different sources, their processing, writing the 
discussion and under that basis drawing conclusions and further formulation of recommendations. 
Results and main conclusions 
Although the climate of doing business in Albania has improved significantly, development of the SMEs is below 
average. The main challenges to improve the competitiveness of SMEs remain the improvement of the 
investment climate, law enforcement, corporate governance capability, etc. Major gaps remain improvement of 
human resource management, technological capacity, management style, cost calculation systems, marketing, 
focusing on clients, human resource development, etc. 
 SME, economy, development, problems, integration