Financial performance of public enterprises in Kosovo

Abstract

Accomplishing the needs of the clients is the purpose of the functioning of public enterprises in Kosovo. The way 
they meet those needs depends on their operational and financial performance. Given the different natures of 
difficulties achieving performance is a major problem in the course of the event. Therefore, in order to provide 
more qualitative services to the clients the Board of Directors and management strive to achieve maximum 
performance. In order to have positive preference there should be considered the nature of the factors that affect 
the performance including here the inherited problems and, the recent problems and difficulties with revenue 
collection. The direct impact of the Government in these public enterprises is very important because even 
though public enterprises have operational and financial problems their existence is still depended on the 
Government subsidies, as most of the times they are in danger to go bankrupt. Therefore, in addition to 
managements and the Board of Directors the main shareholder in this case is the Government of Kosovo, and 
we can say that the most interested party to improve the financial and operating performance of the public 
enterprises is the Government of Kosovo because by improving financial and operating performance they do not 
have to provide the subsidies anymore instead public enterprises will be able to contribute to the Kosovo 
Consolidated Budget. Thus, we can conclude that financial and operational performance of public enterprises are 
the indicator that public enterprises should be independent, so they do not require financial support from the 
Government, and they should provide qualitative services to the clients.