The Impact of Entrepreneurship and Strategic Management in Kosovo SME Sector

Abstract

This paper examines the impact of Entrepreneurship and Strategic Management Activities in SME sector in Kosovo. The subject was developed based on a broad literature and practices in the SME development sector, and the great importance of strategic activities in regards of firms’ growth. While preparing the paper, various methods were utilized for researching and studying strategic economic development, with the focal points in SME development. It is well known that the purpose of strategic development for Entrepreneurship is to develop the capacity for local economic development, to strengthen the future of economy and life quality for all citizens. During this process, the SME sector, public institutions, and partners in the private and nongovernmental sectors cooperate to facilitate economic growth and employment. This study focuses on enhancing the competitiveness of SMEs in Kosovo, to ensure a sustainable economic growth of the SME sector and the economy. The model includes functions of the internationalization of SMEs, human resources management, innovation strategies of SMEs, information technology and business environment. The research was conducted by using a sample of BSCK, which was done in 2014 and analysing the results of this research. The primary goal of the study was to define the combination of Entrepreneurship and Strategic Management Activities in creation of joint ventures, and research shows that founders of enterprises use leadership skills and management strategies to increase the firm's assets. Two basic research questions were defined: Do entrepreneurs use Strategic Management tools in doing business in Kosovo? What are the main drivers for choosing Entrepreneurship?