Examining the owners and manager's perceptions of the determinants that influence the effectiveness of SME: Evidence from Kosovo

Abstract

Small and medium-sized enterprises (SMEs) play a crucial role in decreasing unemployment and have a direct impact on the economy's growth. Thus, the overall focus of this research is to evaluate the gender composition of entrepreneurs, education, prior experiences, business planning, R&D investments, and the invention of new products and services in the effectiveness of SMEs. This survey has a qualitative design, with 52 total questions categorized into three main components. The sample includes 336 questionnaires completed by business managers/owners throughout March and April 2022. Logit and multinominal regression were used to ascertain the impact of specific parameters on the efficacy of SMEs. The study has discovered that gender composition, education, business plan, prior experience, and investments in research and development positively influence business effectiveness, while the invention of new products and services results are insignificant. The research will benefit these structures by focusing on the components that are managed within their capabilities to improve the business effectiveness. Regards to its scientific contribution, the research offers the most recent empirical evidence in the setting of Kosovo's economy, utilizing specific variables and an appropriate technique via the logistic model. In terms of scientific contributions, this study makes use of certain variables and a suitable methodology via the logistic model to provide the most recent empirical evidence in the context of Kosovo's economy.