Strategies of the Development of Entrepreneurship and SME

SWOT ANALYSES OF THE SME SECTORS IN THE BSEC REGIONAnnex 3.ALBANIASTRENGTHS• Good reputation as business partner in selectedsectors such as garments, shoes, herbs etc.• Proximity to the EU markets for technologytransfer, sub-contracting, FDI and exports• Relatively educated and technically trainedworkforce.• Liberal regulations for development trade&investments• Low labour costsOPPORTUNITY• Access to credit of the private sector isassessed at 18-20% with a growth of 5% thisyear compared with the last year. So creditingportfolio has potential grown in Albania.• Albanian products are increasingly replacingimport• Albanian businesses look to obtain higherregional access.• New financial support schemes such asguarantee schemes, leasing etc could beconsidered as future options.• Removal of administrative barriers in CEFTAWEAKNESSES• Limited financial resources for investmentsand operational costs• Inadequate and partly obsolete technology• Limited access to information on modernproduction technologies and markets• Inadequate skills for strategic management ofcompanies and marketing• Inadequate entrepreneurial culture with regardto market and export orientation.• Under developed stock market, especiallycapital market infrastructure• Low level of domestic demandTHREATS• The existence of informal and grey economy.• Limited ability to increase competitiveness• Unfair competition• Uncertain political situation in KosovoSource: (1) SMEs in CITs, UNECE, New York & Geneva, 2006,http://www.unece.org/indust/sme/smepub03.pdf(2) Prof. Eric Dejan, 2007,(3) Qemal Balliu, Executive Director, Small Business Foundation (SBF), Albania, 2007.141