THE IMPORTANCE OF FINANCING SME INVESTMENTS IN KOSOVO

  • Shpteim Rezniqi College Biznesi, Prishtina - Kosovo
Keywords: economy, financial constraint, resources, credit

Abstract

SMEs represent an important part of transition economies and make an important contribution to their economic indicators, such as gross domestic product, employment, innovation, etc., therefore finding ways to grow and develop is of interest to researchers and policymakers.
Theoretically, it is considered that SMEs need and have greater opportunities for growth, but in practice they face various development barriers, among the most important of which are financial constraints and lack of appropriate financing instruments, especially in economies in transition. The growth and development of SMEs must be accompanied by real investments, which increase the value of their assets. Internal financial constraints force SMEs to seek additional financing alternatives from outside sources, where, in the absence of a securities market, bank loans play a major role in transition economies and, to some extent, financing from friends and family.

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Published
2020-12-16
How to Cite
Rezniqi, S. (2020). THE IMPORTANCE OF FINANCING SME INVESTMENTS IN KOSOVO. Knowledge International Journal, 43(5), 1173 - 1175. Retrieved from https://ikm.mk/ojs/index.php/KIJ/article/view/4830