FINANCIAL CONSTRAINTS OF SMALL AND MEDIUM ENTERPRISES: CASE OF ALBANIA

Besa Shahini ()
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Besa Shahini: University of Tirana, Albania

Journal of Social and Economic Statistics, 2016, vol. 5, issue 1, 21-34

Abstract: The main goal of this paper is focused on analyzing the main factors that affect financial constraints of small and medium enterprise (SME), in case of a developing country as it is Albania. The main analysis is concentrated in factors such as: Sector of activity of the SME (production or service), percentage of financing by credits, percentage of financing by its own capital, number of employers and the age of the firm. These factors are ‘measured’ through a survey undertaken at Albanian SMEs. A logistic regression is used to understand the impact of these factors on enterprise financial constraints. The sample consists of almost 420 SMEs spread all over territory of the country. The main finding of the research shows that factors such as: sector, age of the company and number of employers are not statistical significant, which means that these factors do not impact significantly the fact that an enterprises “suffers” or not from financial constraints. While factors such as: annual turnover, percentage of financing by bank credits and by its own capital impact significantly the financial constraints situation of the firm itself

Keywords: Financial Constraints; Enterprise; Turnover; Credits; Employer (search for similar items in EconPapers)
JEL-codes: C18 C32 D24 G21 (search for similar items in EconPapers)
Date: 2016
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