IDENTIFY THE MAIN CHARACTERISTICS OF SMES. THE ADVANTAGES AND DIFFICULTIES THAT SMES FACE IN SHKODRA.

Abstract

The sector of small and medium businesses plays an important role in the economic development of any country, and in particular for
Albania, which is passed in the period of transition. Especially in transition countries, SMEs are faced with many barriers: administrative
barriers, lack of technology, limited access to finance, entrepreneurial skills, etc.. The paper presents a topic that is very current, because
it relies on the difficulties faced by SMEs today, and to their role as very important sector in sustainable economic development that has to
do with decreasing unemployment, increasing domestic production, improving trade balance, increase the investment in the city of
Shkodra. As SMEs are one of the most important factors for economic development, I have considered important to study their
characteristics, advantages and difficulties of SMEs, the management of the small and medium enterprises, the role of SMEs in
unemployment etc., in order to minimize constraints and support their development. In the second half of the paper will be an analysis of the data found by empirical research conducted through surveys of SMEs in the town of Shkodra. The last part of the paper will be
provided recommendations, which aim to improve current conditions for SMEs in terms of external and internal in order to increase their performance.