Rural sector development in Albania, strategies and challenges for its future

Tomorri, Ilir; Keco, Remzi; Meço, Maksim; Kapaj, Ilir

doi:10.18638/quaesti.2018.6.1.363

Cited by 3 publications

(3 citation statements)

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“…The lack of collateral and guarantees to meet the requirements of banks to finance their activities in Albania is identified as one of the obstacles related to the financing of SMEs. The introduction of the first credit guarantee schemes in recent years is considered a good measure for increasing access to their financing and the vision for the future should focus on the continuation of the increase in access and moreover the extension of the credit guarantee schemes [27].…”

Section: Credit Guarantee Schemes In Albania and Actual Profitsmentioning

confidence: 99%

Credit guarantee schemes in Albania and their importance for developing SMEs

2023

Proceeding Book of 3rd International Conference on Scientific and Academic Research ICSAR 2023

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Credit guarantee schemes mitigate the perceived risks of lending to businesses, especially small and medium enterprises (SMEs). This encourages financial institutions to extend credit to entities that might otherwise face loan challenges. SMEs often face challenges in obtaining financing due to their size and limited assets. Credit guarantee schemes provide a means for these enterprises to secure funding, fostering their development, innovation, and contribution to overall economic growth. SMEs benefit from credit guarantee programs by expanding their operations, investing in technology, creating employment opportunities, etc. Credit guarantee schemes in Albania play a crucial role in supporting SMEs. These schemes are designed to address SMEs' challenges in accessing traditional financing due to limited collateral or credit history. This paper examines the impact of credit guarantees for a group of SMEs in Albania in the 2019-2021 period. The data on SME beneficiaries has been collected from one credit guarantee scheme that first started its activity in 2015 to encourage financial institutions to provide financial services to businesses on a sustainable basis. The SMEs part of this study have been financed by five different banks and have the highest guaranteed value during 2020. With increased access to financing, SMEs have invested in business expansion, such as purchasing new equipment, expanding production capacity, or entering new markets.

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Section: Credit Guarantee Schemes In Albania and Actual Profitsmentioning

confidence: 99%

Credit guarantee schemes in Albania and their importance for developing SMEs

2023

Proceeding Book of 3rd International Conference on Scientific and Academic Research ICSAR 2023

View full text Add to dashboard Cite

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“…The development of the SME, associated is with several problems related to the financing of their activity, diversification of products and services, increased productivity, low research and development costs, high levels of exposure to risk, human resources management and implementation of new and innovative technologies (Tomorri et al, 2018). Promoting entrepreneurship, improving the business environment, and facilitating access to finance, constitute some of the main directions for the development of the private sector.…”

Section: Introductionmentioning

confidence: 99%

CHALLENGES AND FACTORS AFFECTING THE SUSTAINABLE DEVELOPMENT OF SME-s IN ALBANIA

Tomorri,

Keco

2024

Conferencii

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Small and medium-sized enterprises (SMEs) are crucial for the economic development of a country, playing an important role in job creation, poverty alleviation and economic growth. SMEs play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. In Albania, SMEs represent more than 99% of the total number of enterprises and the percentage of employees in this sector is 82% (INSTAT, 2023). For this reason, identifying factors affecting the development of SMEs in Albania is very important, in order to take all the necessary steps to reduce barriers as well as create opportunities and facilities for supporting this sector. Small and medium-sized enterprises play an important role in the development of the national economy, influencing sustainable growth in the agriculture, services, trade, and production sectors. They are major contributors to value creation across all sectors. The development of SMEs, especially in transition countries faces several difficulties such as limited access to finance, increased competition, low research and development costs, high levels of exposure to risk, technological change, and capacity constraints related to knowledge and innovation. As an important factor for economic growth and employment, it is important to evaluate the performance of SMEs in the country as well as the constraints and challenges they face. The purpose of this study is to analyze and evaluate the factors that affect the sustainable development of the SMEs sector. The findings of the study are relevant to government, policymakers and managers to address these challenges, to encourage and offer support to SMEs’ development through their strategies.

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“…A typical characteristic of developing countries like my country is that there are many small farmers and over-employment in agriculture. The agrifood area as an entire is dealing with issues with developing marketplace institutions, setting up advertising and distribution channels, meeting European Union standards, and constructing the executive ability to support those processes [4]. The agrifood cost chain is anticipated the situation in developing countries in the coming years, as the percentage of supermarkets withinside the retail area is expected to grow importantly, so the agri-food value chain is expected to undergo major changes in the coming years.…”

Section: Introductionmentioning

confidence: 99%

Evaluating the Impact of Small Farmer’s Inclusion in Agricultural Value Chain for Sustainable Rural Development in Albania

Tomorri

Keco

Tomorri

2022

EJFOOD

Self Cite

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The rural sector is one of the most important and largest sector in Albania, referring to the contribution to economic growth, gross domestic product, level of employment in the country and increasing the welfare of the population living in rural areas. The average small farm sizes, combined with the excessive land fragmentation, the low level of investments, poor infrastructure, and the loss of agricultural land due to the change of use, have been major structural challenges for the agriculture sector in Albania. The farm structures are dominated by smallholders with many small farms (1.2 ha/farm) and few large farms. Farmers and smallholders are critical for food security, as well as for poverty reduction of rural areas. The smallholder farmers facing a number of challenges such as lack of access to reliable and timely data on market prices as well as markets, inability to access appropriate infrastructure such as storage facilities leading to post-harvest losses or low prices as a result of low-quality produce. One way to counter the above challenges is through the agricultural value chain. If a strong market linkage is created, then it can lead to the development of the value chains, and stimulate an increase in the productive base of the smallholders. An effective market linkage increases opportunities for value addition which can benefit the farmers as well as the smallholders. This paper is intended to highlight the importance of farmers and smallholders in the value chain as a key to sustainable development for the rural sector.

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Rural sector development in Albania, strategies and challenges for its future

Cited by 3 publications

References 0 publications

Credit guarantee schemes in Albania and their importance for developing SMEs

Credit guarantee schemes in Albania and their importance for developing SMEs

CHALLENGES AND FACTORS AFFECTING THE SUSTAINABLE DEVELOPMENT OF SME-s IN ALBANIA

Evaluating the Impact of Small Farmer’s Inclusion in Agricultural Value Chain for Sustainable Rural Development in Albania

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