SME in Albania: A Descriptive Analyses of Business Environment Based on SME Policy Index

Abstract

Micro, small and medium enterprises make an important contribution to the economic development of Albania. Due to globalization and EU integration process, business environment in our country is becoming more and more complex and SMEs have to undertake proper actions in order to compete at national and international markets. Under these circumstances, more attention should be paid to innovation as the main tool to remain competitive in a globalized world. This paper aims to provide a descriptive analysis of SMEs sector in Albania focusing on their contribution to the national economy as well as of the environment where this type of businesses operates. Analysis is based on secondary research and the majority of data used are mostly retrieved SME Policy Index, a benchmark tool designed to assess policies that support small and medium-sized enterprises (SMEs) in emerging economies and monitor progress in policy implementation over time. Over the last years, significant progress is made toward the establishment of the proper business environment for SMEs in Albania Government policies and initiatives seem to have produced concrete results with regard to some specific indicators institutional and regulatory framework for SME policy making; operational environment for SMEs; public procurement; standards and technical regulations; and internationalisation of SMEs

Received: 30 September 2024 / Accepted: 28 November 2024 / Published: 3 December 2024