What determines the allowance of bank loans for investment – an overview of Kosovo SMEs

Florin Peci ()
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Florin Peci: Faculty of Business Administration, University of Peja

International Journal of Innovation and Economic Development, 2015, vol. 1, issue 1, 27-35

Abstract: The present study determines firm and entrepreneurship characteristics of small and medium enterprises (SMEs) active in international trade towards investment and growth. Using data collected through self-administered interviews with 180 SMEs in Kosovo, we investigated factors that influence the investment growth financed by bank loans. Econometric model of linear regression indicates that a large number of firm and entrepreneur characteristics including experience, sector, business plan, audit statements, collateral significantly affect investment growth. Our findings suggest that especially education of SMEs managers have higher rate of financing sources through bank loan. The study concludes with respective findings translated into recommendations, which have to be considered by relevant stakeholders active in entrepreneurship and policymaking.

Keywords: Bank loans; investments; SMEs; international trade; Kosovo (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:1:y:2015:i:1:p:27-35

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