THE ROLE OF THE GOVERNMENT POLICY FOR SUPPORT THE SME-s

Abstract

This paper describes the important role of the government policy for
support the SME-s. In Albanian economy, a transition market economy, SME-s,
constitute the main source of the national income. The Albanian economy, like the
other countries in our region is challenging a lot of problems. As far as we know
most of the problems stem from the transition period. This paper presents the
contributions of the SME-s sector to total employment. SME-s play a vital role in
the economy, they have a crucial importance in developed and especially in
developing countries. According Analoui & Karami (2003), SME-s are important
contributions in creation of the new jobs and in the growth of the economy.
Contemporary global economy deals SME-s slowly with the impact of
economic problems, that's why we want to bring here the important role that the
government has to protect, to create facilities for business, making them to
operate in the right ways.
The aim of this study is to accent and to underline that government can
change and improve the SME-s conditions with their policies. These policies could
help them to performance growth and in this way lasting competitiveness in the
market.
To verify how much do the business feel the government support. There is
done a study in one of the main cities in Albania, Shkoder. Based on the data
gathered by the questionnaires, on some of the SME-s in this city, there is done an
regression analysis. This analyze is done to understand the situation. Based on the
results of the analyses are done conclusions and recommendations.