Albania MSME Finance for Growth Assessment
Despite being the backbone of the Albanian economy, micro, small and medium sized enterprises(MSMEs) face difficulties in accessing finance which impedes their growth. MSMEs in Albania aresignificant contributors to the economy. In 2016, MSMEs comp...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/492421531243270171/Albania-MSME-finance-for-growth-assessment http://hdl.handle.net/10986/30123 |
| Summary: | Despite being the backbone of the
Albanian economy, micro, small and medium sized
enterprises(MSMEs) face difficulties in accessing finance
which impedes their growth. MSMEs in Albania aresignificant
contributors to the economy. In 2016, MSMEs comprised 99.9
percent of active enterprises and 81 percent of the total
number of employed people. According to the World Economic
Forum Global Competitiveness Report access to finance is the
third biggest constraint in Albania for enterprise
development and competitiveness after tax rates and
corruption. This is in line with a recent EC survey which
found that only 17 percent of MSMEs believe that there are
no obstacles to obtaining finance, a number significantly
lower than in other comparableeconomies. The number of MSMEs
having used bank financing is low compared to the
EuropeanUnion (EU) average at 29 percent for
overdraft/revolving facilities and 14 percent for other
bankloans respectively. At the same time, the number of
Albanian MSMEs which financed their operationsfrom retained
earnings stands at 24 percent, while 15 percent stated using
informal third-party finance (family, friends, etc). The
MSME sector is generally characterized by high informality
(especially in agriculture), limited availability of
collateral, low levels of financial capability, and limited
uptake of digital transactions. |
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