The Innovations and Entrepreneurship – Evidence from Kosovo’s SME Sector

Abstract

The purpose of this research is to study the implication of R&D and Innovation in Entrepreneurship with particular meaning in the SME sector in Kosovo. The research is grounded on a review of the literature in this area and R&D applies and innovation actions of the SME development sector. This paper practices a variety of research methods to explore the development of Kosovo SMEs. In this research, we used a sample of BSCK (Business Support Centre Kosovo) last research, which tells us that most SME managers agreed that a number of activities undertaken are the result of efforts to apply R&D, or innovation occurs within the SME growth orientation. The results of the paper suggest that enterprise success and SME development are conditioned by SME ownership, financial sector conditions, internal and external business environments, and access to regional markets. The paper will also support most aspects of managers' needs to achieve business performance, as well as decision-makers at different levels in developing SME development procedures and regulations.

MANAGEMENT’S PERCEPTION OF THE DETERMINANTS THAT INFLUENCE SMEs PERFORMANCE: EVIDENCE FROM KOSOVO

“…The above argument relies on the coefficient of 1.210 and the ρ -value (ρ = .546). This result contradicts the findings of Frese and Gielnik (2014) and Krasniqi et al (2020), who claim that firms with experienced management outperform inexperienced management.…”

“…The effectiveness of SMEs can be evaluated quantitatively using various metrics such as efficiency through financial results, productivity, the number of clients (Anggadwita and Mustafid 2014), market participation, profitability indicators, turnover, liquidity, value add, and many other financial indicators (Gupta and Batra 2016; Zimon 2018; Claudiu, Popa, Marinescu, and Stefan 2019). A qualitative approach, on the other hand, is utilized to evaluate SMEs performance, with metrics like as leadership style, employee behavior, customer loyalty, managerial skills, consulting services, types of innovation, and several other parameters being employed (Expósito and Sanchis-Llopis 2019; Krasniqi et al 2020). Studies have presented a set of multi-dimensional measures in the form of a guide of balanced outcomes in which organizational factors may be employed to determine the efficacy of SMEs performance as the paradigm for measuring management performance, respectively, SMEs performance (Avdullahi and Hoti 2020; Coelho, Duarte, and Borges 2018; and Durguti et al 2020).…”

“…Additionally, the multi-dimensional outlook on the association between novelty and SMEs contends that making the right decision for innovation is vital in achieving the wanted outcomes in the context of limited resources for novelty. Krasniqi et al (2020) examined the interaction of numerous parameters such as research and development (R&D), product innovation, patenting, the importance of staff experience, the creation of new business ideas, and the worth of flexibility on the level of profit from the perspective of the qualitative approach. The study was conducted using OLS, and the econometric outcomes reveal that R&D and patenting have a considerable favorable impact on firm profits.…”

“…Researchers claim that in the EU and worldwide, SMEs are responsible and contributing to a significant portion of GDP, dropping unemployment, and offering a wide range of services (Robu 2013). Secondly, in light of recent continuous technological changes in the global economy, globalization, and recovery as a result of the pandemic and current developments in Europe, SMEs have indeed been influenced to confront a wide range of challenges because the economic outlook is constantly advancing (Krasniqi et al 2020). Lastly, SMEs seem to be the backbone of the free entrepreneurship initiative, which is considered an essential determinant of defining a competitive economy (Krasniqi et al 2020), while it was discovered that SMEs play a significant role in the context of promoting technological progress and innovation in economic activity (Avdullahi and Hoti 2020).…”

“…Secondly, in light of recent continuous technological changes in the global economy, globalization, and recovery as a result of the pandemic and current developments in Europe, SMEs have indeed been influenced to confront a wide range of challenges because the economic outlook is constantly advancing (Krasniqi et al 2020). Lastly, SMEs seem to be the backbone of the free entrepreneurship initiative, which is considered an essential determinant of defining a competitive economy (Krasniqi et al 2020), while it was discovered that SMEs play a significant role in the context of promoting technological progress and innovation in economic activity (Avdullahi and Hoti 2020). In the context of the empirical review, many studies have examined SME performance at the organizational level, stressing the interactions between internal factors or a mixture of (i.e., as in our case) internal and external factors.…”