Micro Small Medium Enterprises and their connection to finance - Case of Albania

Albana Kacollja, Elvira Fetahu, Ledia Canga


Being a significant part of Albania economy by leading more than 95% of active enterprises, the Small Medium Enterprises (SMEs) could be declared the biggest contributors to the economy in accordance to INSTAT data. Even though this statement, SMEs are facing constraints and difficulties in accessing finance for their development. Characterized by limited availability of collateral and high level of informality compared to European Union, there is a low level of SMEs having used bank financing, and even lower when taking in consider financing their operations from retained earnings, using informal third party or innovative alternative financial models. This paper aims to analyse the supply side of finance for SMEs by taking in consider the Banking Sector, Non-Bank Financial Institutions Sector and alternative ways as the base of financial infrastructure by putting on the scales the government policies and programs in support of SMEs finance. The results illustrate that:

  • Bank lending needs to be further developed as a key element of financial intermediation bank;
  • A wide range of financing should be further enhanced;
  • Digitalization of the economy by promoting digital transactions;
  • Better coordination and structure is needed to facilitate initiatives and regulatory reforms in regard to Government.


Parole chiave

Keywords: SMEs; Finance Access; Bank Lending; Albania Economy

Full Text


DOI: https://doi.org/10.15162/2612-6583/1237


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