The role of SME (Small and Medium Enterprises) in Albania's economic development, legal and financial problems.

Abstract

Successfully coping with the pressures of the global market, is one of the main challenges faced by Albanian 
entrepreneurs today. 
Supporting SMEs is of a particular importance because the success of these companies means their growth and 
as a result the increase of competition capabilities of our economy, higher employment and increase in welfare. 
Small enterprises are the most sensitive to all changes in the business environment. They are the first to be 
prosecuted by excessive bureaucracy. They are the first to grow and develop through initiatives to act ... (Report 
of the European Commission 2009). 
In Albania small and medium enterprises represent 99.6 percent of all registered business entities. 
The institution in charge of drafting  SME policies is the ministry of Economy Trade and Energy( METE).  This 
Ministry has played an important role in drafting legislation, strategy development and supporting business 
initiatives.  
The Government of Albania has expressed an interest in creating a financial sector that would increase a stable 
credit access for the private sector.  
This interest is expressed in measures taken in strengthening the banking system and stimulating activities of 
non-banking financial institutions. 
A number of laws have been passed with the objective of reducing the administrative barriers. 
Moreover, the establishment of the National Business Registration Centre and its decentralization in 31 business 
registration desks in all country has increased company registration procedures and facilitated them. Strategies 
of the Government and medium-term programs for the SMEs development were designed and are being 
implemented.  
Furthermore, licensing procedures are simplified and a National Licensing Centre has been created in order to 
serve as a one-stop-shop. According to Doing Business Albania 2010, from 2007 to 2010, Albania has 
progressed in adopting reforms regarding the facilitation of the business practices such as the publication of an 
electronic registry, simplification of registration procedures, tax registration, social security registration etc. 
Institutional problems such as lengthy and non-transparent judicial procedures, corruption and inadequate 
infrastructure are also of major concern (EBRD 2009).