THE SEARCH FOR DETERMINANTS OF KOSOVAN SMALL AND MEDIUM ENTERPRISES PERFORMANCE

Ajtene Avdullahi; Avdullah Hoti

doi:10.20472/ES.2020.9.2.001

Authors

Ajtene Avdullahi Faculty of Economics, University of Mitrovica "Isa Boletini", Kosovo Author
Avdullah Hoti Faculty of Economics, University of Prishtina, Kosovo Author

DOI:

https://doi.org/10.20472/ES.2020.9.2.001

Keywords:

Business obstacles, Entrepreneur’s related factors, Firm’s related factors, Information Technology, Internet, SMEs profitability

Abstract

The main purpose of this study is to identify the determinants of SME performance, with a particular focus on the impact of information technology on profitability. By reviewing the existing literature and using secondary data, this paper empirically investigates the determinants of SME growth in Kosovo, the main obstacles faced by SMEs, and the impact of information technology on their performance, while also proposing strategies and measures to maximize IT adoption among Kosovan SMEs. The analysis is based on secondary data collected by the Business Support Center Kosovo through a survey of 500 SMEs. A combination of variables related to the entrepreneur, the firm, the business environment, and IT adoption is analyzed using a logit regression model. The results suggest that entrepreneur age, business age, and the introduction of new marketing methods over the past three years are significant determinants, while internet use emerges as the most significant factor influencing SME profitability.

Data:
Received: 26 Sep 2020
Revised: 19 Nov 2020
Accepted: 6 Dec 2020
Published: 20 Dec 2020