The performance of micro firms in Kosova: size, age and educational implications

Durim Hoxha

International Journal of Globalisation and Small Business, 2009, vol. 3, issue 1, 25-40

Abstract: In this paper we aim to measure the performance of micro firms operating in trade sector in Kosova, and to analyse how a firm's size, its age and the entrepreneur's educational background influence the firm performance. In a two-stage analysis we first employ the Data Envelopment Analyses (DEA) technique and afterwards a censored Tobit regression. The results indicate that the firm size negatively influences the efficiency of the firms while the newer the firm is, the better it performs. As expected, the educational background of the entrepreneur positively affects the performance of the micro firm. Considering the results, several policy recommendations were given for entrepreneurs and policymakers.

Keywords: firm performance; performance measurement; firm efficiency; data envelopment analysis; DEA; micro firms; Kosova; entrepreneurship; small and medium-sized enterprises; SMEs. (search for similar items in EconPapers)
Date: 2009
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