COVID-19 AND SMEs IN KOSOVO: ASSESSING EFFECT AND POLICY PREFERENCES

Besni̇k A. Krasniqi (), Li̇ri̇don Kryeziu (), Mehmet Bağiş (), Mehmet Nurullah Kurutkan () and Sara Idrizi ()
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Besni̇k A. Krasniqi: University of Prishtina and Kosova Academy of Sciences and Arts, Prishtina, 10000, Kosovo
Li̇ri̇don Kryeziu: The Institute for Entrepreneurship and Small Business (IESB), Prishtina, 10000, Kosovo
Mehmet Bağiş: Department of International Trade and Finance, Sakarya University of Applied Science, Sakarya, 54100, Turkey
Mehmet Nurullah Kurutkan: Department of Health Management, Duzce University, Duzce, 81000, Turkey
Sara Idrizi: Business Support Centre Kosovo, Prishtina, 10000, Kosovo

Journal of Developmental Entrepreneurship (JDE), 2021, vol. 26, issue 01, 1-19

Abstract: The enforced lockdown and closure of businesses in response to the Covid-19 pandemic has resulted in economic crises across the globe, bringing the attention to entrepreneurship and its importance to economic recovery. The aim of this study is to evaluate the effects of the coronavirus pandemic on SME’s and the entrepreneurs’ policy preferences based on firm size and industry type. To achieve this, evidence from a Business Support Centre Kosovo’s (BSCK) survey involving 236 SME owners interviewed online is reported. Findings from SME survey suggest the problems with cash flow and reduction of customer demand, among others, are major problems faced by SME’s across all firm size groups and industry types. Findings from factor analysis clustered SME policy preferences into three groups: policy preferences related to financing and liquidity constraints, market related and tax preferences. This study discusses some policy and managerial implications urging the need for more nuanced and variegated understanding of the effect of coronavirus pandemic on SMEs.

Keywords: Covid-19; SME; entrepreneurship; industry type; policy preferences; factor analysis (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S1084946721500059

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